CCDA Financial Impact Report 2012-2013Tigard City Center Development Agency
Financial Impact Report
of the City of Tigard’s Urban Renewal Plan
for the fiscal impact year ended
June 30, 2013
CCDA
Tigard City Center Development Agency
Financial Impact Report of the City’s Urban Renewal Plan
For the fiscal impact year ended June 30, 2013
1
Introduction
Urban renewal agencies must prepare an annual financial report for the governing body
and public in accordance with Oregon Revised Statutes 457.460. The report includes a financial
summary of the preceding year and the budget for the new fiscal year. It also includes an analysis of
the financial impact of carrying out the urban plan on the tax collections for all taxing districts.
Urban Renewal – An Overview
The purpose of urban renewal is to improve specific areas of a community that are poorly developed,
under-utilized, or that have declined over time. These areas can have old, deteriorated buildings; streets
and utilities in serious need of upgrades (or the areas can simply lack streets and utilities altogether),
weak business activity, and few or aging parks and public facilities. Urban renewal is a process
authorized by Oregon law (ORS 457) to finance improvements in these areas using “tax increment
financing.” A portion (the increment) of property tax revenues from properties within the urban
renewal district are designated to support financing for improvements to the urban renewal area. While
urban renewal provides for unique funding of improvements to a district, it is not intended that tax
increment financing be the only source of funding. Other sources including ones typically used
for capital improvements such as the gas tax, Traffic Impact Fee (TIF), System Development
Charges (SDC), interagency funding, or state grants are programmed to support downtown projects.
For a city government to utilize urban renewal as a funding mechanism, it must establish an urban
renewal agency, and it must adopt an urban renewal plan. The Tigard City Council approved the City
Center Urban Renewal Plan for Downtown in December of 2005. In May 2006, a special ballot measure
was passed by the voters, authorizing the use of tax increment financing (urban renewal) in downtown.
Urban Renewal Finance – A Summary
Urban renewal is a process authorized by Oregon law to finance improvements in those
neighborhoods and districts that need special attention and revitalization. Once a district is
established, the tax valuation for the district is “frozen.” As properties appreciate in value, the
increase in taxes (the “increment”) generated above the frozen base are used to pay for debt on
specific projects within the urban renewal plan.
These tax increments are used to repay municipal bonds. Bond proceeds are used to finance
improvements that will revitalize the district. New taxes are not imposed to fund urban renewal.
Bonds and tax increment financing will be used to fund projects in the urban renewal plan. Under
this system, the increment portion of property taxes generated within the urban renewal area is
temporarily shifted to repay the bonds used to finance projects in the City Center.
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Tigard City Center Urban Renewal District
3
Under tax increment financing, when the value of a property within the urban renewal district
increases, the proceeds from property taxes on the increased value (the “tax increment”) go to the urban
renewal district. These proceeds fund further urban renewal projects, either directly or by providing
for the repayment of municipal bonds that fund improvements. The tax increment is unique as a
source of funding, because it is usable only for projects identified in the urban renewal plan.
How Does Urban Renewal Affect Taxes?
With urban renewal and the use of tax increment financing, there is no net change on Tigard
property tax bills. New property taxes are not created as a result of urban renewal. Under today’s
Oregon law, property tax rates are fixed. Tigard’s City Center Urban Renewal Plan also does not
authorize any “local option” tax levies or special assessments. Tax revenues are generated from the
increase in property values multiplied by current tax rates. These revenues pay for urban renewal
under Oregon law.
History of Tax Increment Financing
In less than two decades, three ballot measures – Measure 5 (1990), and Measure 50 (1997) – have
made significant changes to Oregon’s system of property taxation. Those changes have influenced
urban renewal programs and tax increment revenue calculations. The provisions of these changes to
the property tax system, Ballot Measures 5 and 50, now are incorporated into Oregon’s Constitution,
and into Oregon Urban Renewal Statutes. Those provisions provide the basic framework for
revenue calculations in this report.
Tax Increment Calculations
To determine the amount of the taxes levied, the total assessed value within each urban renewal
area is segregated by the county assessor into two parts: (a) the total taxable assessed value in the
district at the time the Urban Renewal Plan was adopted (the base or “frozen” value); and (b) the
difference between the frozen base value and the current total assessed value (the incremental
value or “excess”). Revenues derived from the application of the tax rate for each affected taxing
district to the amount of the incremental value may be collected by the urban renewal agency and
deposited in its debt service fund. This revenue is used to repay indebtedness incurred in carrying
out the projects.
Tigard City Center Urban Renewal Plan – Purpose
The stated purpose of the City Center Urban Renewal Plan is to provide improvements in the
downtown area so that it will be economically healthy while maintaining its “uniquely Tigard”
character. The establishment of the urban renewal district provides a funding mechanism for
projects in downtown Tigard. For more information, you may review the City Center Urban
Tigard City Center Development Agency
Financial Impact Report of the City’s Urban Renewal Plan
For the fiscal impact year ended June 30, 2013 | CCDA
4
Renewal Plan and the report accompanying the City Center Urban Renewal Plan online at:
www.tigard-or.gov/downtown_tigard/about/docs/urban_renewal_plan.pdf or request a copy from
the City of Tigard.
How Was the Urban Renewal Plan Developed?
In late 2005, the same citizen-business-city partnership that worked on the Tigard Downtown
Improvement Plan collaborated to find financing for the “catalyst” projects identified in the
Downtown Improvement Plan. Urban renewal and tax increment financing was identified as a
potential source of financing and an urban renewal plan was prepared. The voter-approved Tigard
City Center Urban Renewal Plan provides the special financing for the public improvement projects
identified in the Tigard Downtown Improvement Plan.
What are Tigard’s Specific Plans for Urban Renewal?
Under Oregon law, urban renewal can provide special funding for a wide variety of projects and
programs. Tigard’s approved City Center Urban Renewal Plan authorizes funding for up to 35
different projects in the city center over twenty years. Most of the proposed projects in Tigard’s
plan are for public improvements and facilities, although some assistance for private businesses
and property owners is provided. The intent of the projects such as new streets, parks, plazas, is to
stimulate new investment in downtown and create a vibrant, new town center with public spaces that
the community can use. As property values rise in the downtown urban renewal district, the increase
in tax revenues generated supports the payment of bonds used to improve the area. Over time, it
is expected that the value of property and taxes generated will be higher through the use of urban
renewal than if left alone.
The Tigard City Council, working closely with dozens of citizens (and after numerous hearings
and meetings) included the following categories of projects in the urban renewal plan: Street
Improvements, Streetscape Improvements, Bicycle and Pedestrian Facilities, Parks, Public Spaces,
Public Facilities, Planning and Development Assistance (for privately owned properties).
Effect of Urban Renewal on Taxing Districts
Carrying out an urban renewal plan has an effect on the county assessor’s calculation for each taxing
district that shares values with Tigard’s urban renewal agency. Some property taxes that may have
been received by the taxing bodies that levy property taxes within Tigard’s urban renewal area are
being paid to Tigard’s urban renewal agency.
Passage of Ballot Measure 50 (Article XI, Section 11 of the Oregon Constitution) resulted in
converting most property taxes from a levy-based system to a rate-based system. Page 6 of this
report shows the financial impact by taxing district for Tigard’s urban renewal agency.
Tigard City Center Development Agency
Financial Impact Report of the City’s Urban Renewal Plan
For the fiscal impact year ended June 30, 2013CCDA |
5
Financial Reports
The financial reports on pages 5 and 6 account for the activities of Tigard’s urban renewal agency.
In accordance with ORS 457.460 (1), these reports were prepared by the Finance Department of
the City of Tigard using the same basis of accounting it uses to prepare its financial statements —
modified accrual basis of accounting. These reports are due annually by January 31, so the
information and figures contained herein are based upon audited financial statements. At the end of
each fiscal year, June 30, this financial impact report is prepared which shows the urban renewal tax
impact by taxing district. Copies are available by January 31 at the Tigard Permit Center, 13125 SW
Hall Blvd., Tigard, 97223.
Statement of Resources and Requirements
As summarized below, City Center Development Agency’s 2012–13 total requirements were
$383,710 for expenditures charged to the district as of June 30, 2013. For fiscal year 2013–14, total
budgeted resources were balanced with requirements of $1,608,388.
The district uses the funds it receives from the division-of-taxes method of calculating property
taxes to finance various urban renewal projects and activities. These property taxes totaled $291,996
in FY 2012–13 and are expected to increase slightly to $300,940 in FY 2013–14 per the Washington
County assessment summary received after budget adoption.
Tigard City Center Development Agency
Financial Impact Report of the City’s Urban Renewal Plan
For the fiscal impact year ended June 30, 2013 | CCDA
Note: Figures are based upon audited financial statements.
City Center Development Agency
Statement of Resources and Requirements
for the fiscal year ended June 30, 2013
As summarized below, City Center Development Agency's 2012-13 total requirements were $668,866 for expenditures
charged to the District as of June 30, 2013. For fiscal year 2013-14, total budgeted resources of were
balanced with requirements of $1,608,388.
The District uses the funds it receives from the division-of-taxes method of calculating property taxes to finance
various urban renewal projects and activities. These property taxes totaled $291,996 in FY 2012-13 and
are expected to increase slighty to $300,940 in FY 2013-14 per the Washington County assessment summary received after budget adoption.
Debt Service Fund Capital Projects Fund Total
ActualBudgetActualBudgetActualBudget
2012-132013-142012-132013-142012-132013-14
Resources:
Beginning Fund Balance 826,448 726,448 302,272220,000 1,128,720946,448
Tax Increment Property Taxes291,996 300,940 - - 291,996 300,940
Interest Income 4,223 - 1,900 - 6,123 -
Other Financing Sources - - 280,000361,000 280,000 361,000
Total Resources 1,122,667 1,027,388584,172581,000 1,706,8391,608,388
Requirements:
Debt Service 285,156 361,000 - - 285,156 361,000
Capital Outlay - - 383,710581,000 383,710 581,000
Ending Fund Balance 837,511 666,388 200,462 - 1,037,973666,388
Total Requirements 1,122,667 1,027,388584,172581,000 1,706,8391,608,388
Note: Figures are based upon audited financial statements.
6
Detail of Purpose
Financial Impact of Urban Renewal Plan on Tax Collections
Tigard City Center Development Agency
Financial Impact Report of the City’s Urban Renewal Plan
For the fiscal impact year ended June 30, 2013CCDA |
Tigard Urban Renewal District
Financial Impact on Other Taxing Districts
for the fiscal year ended June 30, 2013
Financial Impact of the Urban Renewal Plan on Tax Collections by Taxing District
for the year ended June 30, 2013
Base year
FY 2012-13 FY 2005-06Change in Taxes leviedPercent of
TotalPermanentIncrementalIncrementalIncrementalImpacton totalTaxes Divided
Assessed TaxAssessedAssessedAssessedon Assessed for
Taxing District Value RateValueValueValueTaxes ValueUrban Renewal
Education
PCC 5,281,797,406 0.2814 95,335,863 69,207,378 26,128,485 7,352.56 1,486,298 1.80%
NW Regional ESD 5,281,797,406 0.1531 95,335,863 69,207,378 26,128,485 4,000.27 808,643 1.80%
Tigard/Tualatin School District 5,281,797,406 5.9592 95,335,863 69,207,378 26,128,485 155,704.87 31,475,287 1.80%
Beaverton School District 5,281,797,406 4.6930 95,335,863 69,207,378 26,128,485 122,620.98 24,787,475 1.80%
Local Government
Washington County 5,281,797,406 2.8271 95,335,863 69,207,378 26,128,485 73,867.84 14,932,169 1.80%
Metro 5,281,797,406 0.0962 95,335,863 69,207,378 26,128,485 2,513.56 508,109 1.80%
Port of Portland 5,281,797,406 0.0698 95,335,863 69,207,378 26,128,485 1,823.77 368,669 1.80%
TV Fire & Rescue 5,281,797,406 1.7675 95,335,863 69,207,378 26,128,485 46,182.10 9,335,577 1.80%
City of Tigard 5,281,797,406 2.5131 95,335,863 69,207,378 26,128,485 65,663.50 13,273,685 1.80%
Tigard Tualatin Aquatic 5,281,797,406 0.0895 95,335,863 69,207,378 26,128,485 2,338.50 472,721 1.80%
Excluded from M-5 rate limitation
Washington County bonds 5,281,797,406 0.1354 95,335,863 69,207,378 26,128,485 3,537.80 715,155 1.80%
Metro bonds 5,281,797,406 0.2182 95,335,863 69,207,378 26,128,485 5,701.24 1,152,488 1.80%
PCC bonds 5,281,797,406 0.3145 95,335,863 69,207,378 26,128,485 8,217.41 1,661,125 1.80%
Tigard/Tualatin School District 5,281,797,406 1.4483 95,335,863 69,207,378 26,128,485 37,841.88 7,649,627 1.80%
Tri-Met bonds 5,281,797,406 0.0581 95,335,863 69,207,378 26,128,485 1,518.06 306,872 1.80%
City of Tigard 5,281,797,406 0.4528 95,335,863 69,207,378 26,128,485 11,830.98 2,391,598 1.80%
TV Fire & Rescue 5,281,797,406 0.1550 95,335,863 69,207,378 26,128,485 4,049.92 818,679 1.80%
Beaverton School District 5,281,797,406 2.1673 95,335,863 69,207,378 26,128,485 56,628.27 11,447,240 1.80%
Note: The division-of-taxes process results in some property taxes that may have been received by the "taxing districts" that
levy property taxes within the urban renewal area (for example, Washington County, NW Regional ESD) being paid over to
Tigard's urban renewal agency. The taxing districts forgo a share of the property tax income during the life of an urban renewal
plan so that the urban renewal agencies can carry out activities that increase property values in the long term. The above table
shows the urban renewal tax impact by taxing district using permanent rates established pursuant to Measure 50.
Tigard Urban Renewal District
Financial Impact on Other Taxing Districts
for the fiscal year ended June 30, 2013
Financial Impact of the Urban Renewal Plan on Tax Collections by Taxing District
for the year ended June 30, 2013
Base year
FY 2012-13 FY 2005-06Change in Taxes leviedPercent of
TotalPermanentIncrementalIncrementalIncrementalImpacton totalTaxes Divided
Assessed TaxAssessedAssessedAssessedon Assessed for
Taxing District Value RateValueValueValueTaxes ValueUrban Renewal
Education
PCC 5,281,797,406 0.2814 95,335,863 69,207,378 26,128,485 7,352.56 1,486,298 1.80%
NW Regional ESD 5,281,797,406 0.1531 95,335,863 69,207,378 26,128,485 4,000.27 808,643 1.80%
Tigard/Tualatin School District 5,281,797,406 5.9592 95,335,863 69,207,378 26,128,485 155,704.87 31,475,287 1.80%
Beaverton School District 5,281,797,406 4.6930 95,335,863 69,207,378 26,128,485 122,620.98 24,787,475 1.80%
Local Government
Washington County 5,281,797,406 2.8271 95,335,863 69,207,378 26,128,485 73,867.84 14,932,169 1.80%
Metro 5,281,797,406 0.0962 95,335,863 69,207,378 26,128,485 2,513.56 508,109 1.80%
Port of Portland 5,281,797,406 0.0698 95,335,863 69,207,378 26,128,485 1,823.77 368,669 1.80%
TV Fire & Rescue 5,281,797,406 1.7675 95,335,863 69,207,378 26,128,485 46,182.10 9,335,577 1.80%
City of Tigard 5,281,797,406 2.5131 95,335,863 69,207,378 26,128,485 65,663.50 13,273,685 1.80%
Tigard Tualatin Aquatic 5,281,797,406 0.0895 95,335,863 69,207,378 26,128,485 2,338.50 472,721 1.80%
Excluded from M-5 rate limitation
Washington County bonds 5,281,797,406 0.1354 95,335,863 69,207,378 26,128,485 3,537.80 715,155 1.80%
Metro bonds 5,281,797,406 0.2182 95,335,863 69,207,378 26,128,485 5,701.24 1,152,488 1.80%
PCC bonds 5,281,797,406 0.3145 95,335,863 69,207,378 26,128,485 8,217.41 1,661,125 1.80%
Tigard/Tualatin School District 5,281,797,406 1.4483 95,335,863 69,207,378 26,128,485 37,841.88 7,649,627 1.80%
Tri-Met bonds 5,281,797,406 0.0581 95,335,863 69,207,378 26,128,485 1,518.06 306,872 1.80%
City of Tigard 5,281,797,406 0.4528 95,335,863 69,207,378 26,128,485 11,830.98 2,391,598 1.80%
TV Fire & Rescue 5,281,797,406 0.1550 95,335,863 69,207,378 26,128,485 4,049.92 818,679 1.80%
Beaverton School District 5,281,797,406 2.1673 95,335,863 69,207,378 26,128,485 56,628.27 11,447,240 1.80%
Note: The division-of-taxes process results in some property taxes that may have been received by the "taxing districts" that
levy property taxes within the urban renewal area (for example, Washington County, NW Regional ESD) being paid over to
Tigard's urban renewal agency. The taxing districts forgo a share of the property tax income during the life of an urban renewal
plan so that the urban renewal agencies can carry out activities that increase property values in the long term. The above table
shows the urban renewal tax impact by taxing district using permanent rates established pursuant to Measure 50.
Tigard Urban Renewal District
Detail of Purpose
for the fiscal year ended June 30, 2013
Capital Projects Fund
ActualBudget
2012-132013-14
Detail of Purpose:
Capital Outlay:
Main Street Green Street 11,734 -
Fanno Creek Trail Lighting 17,013 70,000
Brownfields Initiative - 50,000
Public Works Yard Development- 80,000
Burnham Street Parking Lot217,841 -
Façade Improvement Program85,343 125,000
Targeted Incentive Program - 75,000
Downtown Gateways 1,050 110,000
Land Purchase 6,556 -
Downtown Design/Consulting37,403 51,000
Admin/Legal 6,770 20,000
383,710581,000
Note: Figures are based upon audited financial statements.
Tigard Urban Renewal District
Detail of Purpose
for the fiscal year ended June 30, 2013
Capital Projects Fund
ActualBudget
2012-132013-14
Detail of Purpose:
Capital Outlay:
Main Street Green Street 11,734 -
Fanno Creek Trail Lighting 17,013 70,000
Brownfields Initiative - 50,000
Public Works Yard Development- 80,000
Burnham Street Parking Lot217,841 -
Façade Improvement Program85,343 125,000
Targeted Incentive Program - 75,000
Downtown Gateways 1,050 110,000
Land Purchase 6,556 -
Downtown Design/Consulting37,403 51,000
Admin/Legal 6,770 20,000
383,710581,000
Note: Figures are based upon audited financial statements.
Note: Figures are based upon audited financial statements.
Attachments
Notice of Report Availability – published twice in the Tigard Times.