Funding for PDC

• How PDC is funded?
  • Contact staff for additional information
• PDC Budget Information

• Developing Future Financial Resources

Overview

Our agency brochure PDC: Investing in Portland's Future, provides an overview of the work of the agency, and how we bring together resources to achieve goals that make Portland a truly world-class city.

Where does PDC get its funding? PDC’s projects and programs have been funded primarily by federal and other grants, program income earned on asset management, contracts for services, tax increment financing, City of Portland General Fund allocations, and private sector donations and lending agreements. Tax Increment Financing (TIF) is the primary funding mechanism for PDC projects. The agency’s main goal is to use public funds to stimulate private sector investment, job creation and expansion of the tax base. PDC’s first major urban renewal project, the South Auditorium Project, is an excellent example. The project replaced 110 acres of blighted downtown property with a spectacular development of new, high-quality offices, housing, and beautiful fountains and plazas.

PDC’s role was to put in place the appropriate infrastructure that would allow private development to go forward. In the final analysis, 97 percent of the funding for the South Auditorium Project came from private sources. During 1992 alone, the value created in the South Auditorium District development generated an additional $9.6 million in property taxes.

Description of PDC's Funds

You can review information on PDC's current and past budgets and view a chart that depicts PDC's fund structure. You can also learn about how Portland has used urban renewal over the last 46 years to redevelop and improve our communities.

PDC has several legal appropriation fund types, which are described below. The Capital Projects Funds, which include tax increment debt proceeds, consistently make up the largest portion of PDC's resource budget.

• General Fund
  This is PDC’s primary operating fund. The General Fund accounts for administrative activities, including indirect overhead costs. In addition, certain programs and projects funded with City General Fund monies are budgeted in this fund. A sub-fund within the General Fund is used for predevelopment activities associated with the creation of new urban renewal areas and other initiatives.

• Special Revenue Funds
  PDC’s Special Revenue Funds include the following: Ambassador Program, Enterprise Zone, Housing and Community Development (HCD) Contract, Housing Acquisitions, and Other Federal Grants. The Special Revenue Funds account for the proceeds of specific revenue sources that are dedicated for specific purposes. Generally these funds account for federal, state, local grant, and private activities.
  The Other Federal Grants Fund provides for all housing HOME program activities performed under contract with BHCD. The Other Federal Grants Fund also accounts for economic development activities performed under a revolving loan program through the Environmental Protection Agency Brownfield Grant.

• Capital Projects Fund
  PDC’s capital funds are Airport Way, Central Eastside, Convention Center, Downtown Waterfront, Gateway Regional Center, Interstate Corridor, Lents Town Center, North Macadam, River District, South Park Blocks and Willamette Industrial. These funds are used to manage the finances of PDC’s urban renewal areas. The primary source of capital funds is tax increment debt proceeds and program income derived from the investment of tax increment proceeds.

• Enterprise Loan Fund
  The Enterprise Loan Fund accounts for Housing and Economic Development loan funds which are self sustaining by the collection of principal and interest from borrowers. The Fund includes the budget for Private Lender Proceeds.

• Internal Service Fund
  The Internal Service Fund accounts for the Risk Management Fund. The FY 2001-02 Budget established the Risk Management Fund to set aside resources that could be used to meet insurance deductibles, if necessary.

Some Key Facts

• Tax Increment Financing (TIF) is the primary funding mechanism for PDC projects (providing about 71 percent of the total FY 2006-2007 budget)
  • 95 percent of the Development Department's budget derives from TIF
  • 85 percent of the Economic Development Department's budget derives from TIF
  • 68 percent of the Housing Department's budget is derived from TIF
• TIF funds are being set aside for affordable housing in each non-industrial Urban Renewal Area (20-30% of total TIF resources)
• TIF and the Urban Renewal activities it funds produce real bottom line results for the city both in private investment leveraged and in tax revenues produced
• TIF has legal limitations set by state statutes
• TIF is a declining resource for the city but PDC is engaged in resource development activities to come to terms with TIF

Developing Future Resources

As PDC looks to the future, we are pursuing creative approaches to finance future projects that will best leverage public investment.

Information coming soon.

Contact Information

If you have specific questions, or would like to learn more about the selection process, contact Julie VanNoy at (503) 823-1102 or by e-mail to learn more.

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