Start it.

So it is uh five o'clock on May 28th, 2026, and I'm gonna call the Beaverton Urban Redevelopment Agency Budget Committee meeting to order.

Recorder, will you please call the roll?

Yes, Chair.

Um good evening, um committee members.

Uh just a heads up.

I will just be reading your name, your full name off at the beginning.

Um just for the record, and then we'll go on to just calling your last name, just as a heads up.

Um so committee member Lacey Beatty.

I see her on here, but I didn't hear you.

Hear me.

Yes, thank you.

Oswaldo Bernal.

Here.

John Duggar.

Here Andrew Aylin.

Sorry if I'm mispronouncing your last name.

That's okay.

Here uh Corinne Hanning.

Here.

Ashley Hartmeyer Prigg.

Here.

Uh Nadia Hassan.

Uh she's absent.

Okay, thank you.

Uh Michael Hughes.

Here.

Uh Edward Kimme.

Okay.

Christopher Cornthall.

Here.

Eric Lair.

Here.

Adam Marion.

Here.

Uh Carla Marzenek.

Okay.

Um Joseph Montez Montes.

Here.

Jennifer Nye.

Whose name do you just call?

Jennifer Nye.

Okay.

Jennifer, we can't hear you.

I see you, Jennifer.

I know you're here, so I'll just mark you as uh here.

Rhonda Reister.

It's usually me.

Here.

Thank you.

Rick Skyhan.

Alison Tivnon.

Here.

Ben Walker.

Here.

Thank you.

Sarah Walton.

Here.

Thank you.

Amy Webb.

Here.

And Kevin Teter.

Here.

Alrighty.

Thank you.

Thank you.

And recorder looks like Carla is on now.

I am on.

Great.

Thank you so much.

Okay.

Thank you, everybody.

Our next order of business is described in agenda bill 01-2026, which is to elect a budget committee chair.

In the interest of time, and given that this is the only Bureau Budget Committee meeting this year, I propose that we do not elect a vice chair for this meeting.

If anybody objects, please indicate by uh raising your hand or putting your name in the chat so that I can call on you.

Does anybody object?

And Mayor, I see your name.

Are you objecting?

Are you making a nomination for uh I am not objecting?

I'm ready to make a nomination.

Okay.

Uh so before you do, I will just say that we are gonna open the floor to any budget committee member to nominate either themselves or another committee member to be budget committee chair.

Uh the nominee may be any any one of us, any member of the budget committee.

So there's no need to second a motion, and the person nominated can decline the nomination, and you can nominate yourself.

And if you you are nominated, you can also vote for yourself.

Uh nominations will stay open until nobody else makes any further nominations, and after I close the floor for nominations, we'll take a vote by roll call on each person made uh in the order of the nominations that were made.

So the first person to read received 12 or more votes.

There is a major by the majority of the budget committee is elected to the position.

Uh I'll now open the floor, and mayor, I do see your name in the chat.

Mr.

Chair One, I want to say we want to make the nomination process as hard as possible and to read as many words while you're holding a baby, drinking a juice box, and doing the work.

Uh, but for everyone else, uh, I would like to move that we make Eric Lair the chair.

Um, since it's one meeting, he's done it before, and he runs a pretty tight ship.

Thank you.

Uh there's an opportunity for other nominations as well.

Um there any other nominations.

Okay, I'm not hearing any.

Eric, if you are nominated, are you willing to accept it?

Yep.

Okay, great.

So hearing no other nominations, seeing no other news in the chat.

Uh will the reporter please call the role for Eric to be nominated as Bureau Budget Committee Chair.

And Chair Teter, just to clarify, did you second that?

Because I don't think we got a second.

Oh yeah, we don't need a second for this motion.

Okay, thank you.

Thank you.

I'll go ahead and call roll.

Umgar?

Yes.

Ellen?

Yes.

Annie?

Yes.

Hartmeyer Prague?

Yes.

Hughes.

Yes.

Cornthall.

Yes.

Blair.

Yes.

Marion.

Yes.

Marzenek.

Yes.

Montes.

Yes.

Nye.

Yes.

Reister?

We can hear you.

Yes.

Skyhan?

Yes.

Tibnon?

Yes.

Walker?

Yes.

Walton?

Yeah.

Webb.

Yes.

And Teter.

Yes.

Twenty.

Yes.

Two absent.

Thank you.

Okay.

Thank you very much.

So at this time, uh, Chair Lair, I will pass it over to you.

Thank you so much for doing this.

We really appreciate it.

Well, thank you, Chair Teter.

Um, first uh agenda item here is to approve the May 19th, 2025 Bureau Budget Committee minutes.

Do we have a motion?

I move to approve the minutes.

I'll second.

Any discussion.

Okay.

Hearing none.

Recorder, we're ready to vote for approval on the minutes.

Please call the roll.

Just as a note, if you're a new member of the committee or you weren't able to attend last year's meeting, uh, the committee's practice is that you abstain from voting on this motion.

Thank you, Chair.

Umgar.

Yes.

Ellen.

Abstain.

Canning.

Yes.

Hartmeyer Prigg?

Yes.

Hughes.

Yes.

I don't believe Kimmy is he.

If we can chime in really quick, Edward texted saying that he's having trouble getting handled again as somebody can check.

Okay.

I'll double check that.

Thank you.

We'll come back.

Cornthall.

Yes.

Lair?

Yes.

Marion.

Yes.

Marzenek.

Abstain.

Montes.

Absent.

Nye.

Uh Jennifer, we didn't hear you very well.

Sorry, I apologize.

That's okay.

I'll abstain.

Ryster.

Yeah.

Skyhan.

Yes.

Tibnon.

Yes.

Walker.

Yes.

Walton.

Yes.

Webb.

Yes.

And Teter.

Yes.

Great.

Thank you.

20 yes.

Great.

Thank you, recorder.

Uh the next item on the agenda is described in Agenda Bill 02-2026 regarding the consideration of the proposed Bureau budget for fiscal year 2026 through 27.

We will start with the Bureau budget message brought to you by the Bureau Executive Director Andy Varner and the Bureau Interim Treasurer Susan Cole.

Andy and Susan, it's your show.

Thank you, Chair.

And we do have the presentation up.

All right, well, good evening, everyone.

I'm Andy Barner, the executive director of the Bureau Redevelopment Agency.

I appreciate you all being here.

I'll start a presentation tonight by giving a high level overview of what we accomplished this past fiscal year and what we're clearing up for for the next fiscal year.

After my portion, as Eric said, our intern interim treasurer Susan Cole will take you through the financial details.

First, I want to thank our CDD and our Bureau staff members, support folks who assisted with this presentation and all the small details that go into getting a budget committee process together, but especially Tyler Ryerson and Julie Janine Lambert for their work.

So thank you all again for your time.

Welcome, new uh committee members, and thank you for your service.

Next slide, please.

This is a reminder, this slide is a reminder of the framework that guides all of our work, uh, the Central Beaverton Urban Renewal Plan, which voters approved back in 2011.

It defines our district boundaries, goals, uh, the maximum indebtedness that we can borrow, and the overall strategy.

Funding for all of this comes primarily from tax increment financing or TIFF, otherwise known as TIFF.

So as property values rise in the district, we can reinvest those gains back into the community.

Uh next slide, please.

So our work in Bureau is driven by seven long-term goals that are identified in the plan, uh, promoting arts and culture, improving transportation, supporting businesses, expanding housing, engaging the community, encouraging redevelopment, and overall adding value in the district.

So these seven goals form the foundation for all of our activities.

Every initiative we undertake connects back to one or more of these priorities, ensuring that we stay aligned with the community's vision when the plan was adopted.

Uh, but we need to do so thoughtfully, carefully, and sustainably so we balance the resources we have available for our work.

Next slide, please.

Umly grounds us in place.

It's the geographic area where Bureau project and investments occur.

So it's always helpful to keep this boundary in mind as we talk about the projects and the programs that you'll hear about today because the work is highly focused on making this area safer, more connected, and more uh more vibrant.

Um admittedly, some areas are uh qualifying for that verbage more than others.

Um that's where some of our other city plans and initiative uh really need to align with Bureck goals so we can maximize the dollars that we have.

Uh next slide, please.

This is how the urban renewal plan allocates funding over its 30-year lifespan.

As you see, nearly half of the tax increment, uh, 48%, is dedicated to transportation and infrastructure, uh, which is why so many of our major efforts focus on mobility, safety, and connectivity.

Another third supports joint investment programs with redevelopment in mind, and the remaining allocations help with um incentives, uh, community identity and program oversight.

Uh these categories allow us to focus our efforts where they create the greatest benefit using the increment.

Uh next slide, please.

Uh this chart shows the steady growth and the value since the district was formed.

Um and since the tax base was frozen in uh fiscal year 2013, the total assessed value in the district has grown by 85% to the uh fiscal year 27 proposed budget.

Uh that growth increases our tax increment and allows us to reinvest in the district.

As you can see, the increment revenue has grown by 450 million dollars over the plan life thus far.

Uh for this budget year, we're proposing an under levy, meaning we intentionally don't take the full amount of increment available.

We're doing this to avoid stranding funds when there isn't enough debt to spend it on, and to also return a share of the growth back to the city's general fund and to our partner taxing districts.

So this is a strategic tool and a strategic decision that we evaluate every year, and uh last fiscal year uh was the first time uh using that option.

Next slide, please.

So we had a very productive year.

Um, I think over this this past fiscal year.

We did generate enough increment to share revenue with partner agencies, uh, gained approval to implement a novel stormwater management approach for development in the district.

Uh, Bureau of Secured Estate Grant for a creed site connections and green infrastructure planning.

That's a project that kind of weaves various activities in our Three Creeks area around the downtown.

We advanced the downtown loop project through phase one planning and engagement, uh, continued supporting affordable housing, assembled key redevelopment properties, uh, provided building improvement grants, develop a downtown parking plan and fully leased the five retail spaces in the Beaver 10 Central Garage.

It's been a year of steady, tangible progress on multiple fronts for the agency and the board.

Next slide, please.

This slide shows our work implementing the Bureau Portfolio Redevelopment Strategy, which was adopted in 2023.

Uh so we spent the year actively negotiating with developers on the Lombard West and Hall and Center sites, which you'll see here.

Lombard West is really in the middle of the screen that's near the transit center, and the Hall and West site is on the left side of the screen at the corner of center and hall streets.

These are two significant transit-oriented redevelopment opportunities with uh potential for mixed use housing, open space, and community benefits.

They're complex.

These are long-term projects, especially in today's sort of investment and development environment.

Uh, but when they come to fruition, they'll have transformative impact for the community and the Pierre District.

Next slide, please.

These are other core programs that continue to serve the community year-round.

Our building improvement grants support small businesses and property owners.

The critical home repair program helps low-income residents remain safely housed in existing structures in the district.

And our pre-development grants reduce early stage risk for developers.

These programs ensure continuous reinvestments and community benefits, even as we work on some of the larger redevelopment and infrastructural infrastructure projects we've discussed.

Next slide, please.

As noted, um, infrastructure is our largest allocation category.

And in this, we've made some progress.

Since it is our largest spending category, we made the choice to allocate a position in Bureau to solely focus on this work.

And that's including the first projects you see listed here.

That's a focus of apposition.

I already mentioned a few of these projects a couple of slides ago and the key accomplishments, but in addition to those, we've seen progress in art installations, Millikan Way improvement planning.

Um, so that project will be ready for bidding later this year.

And also, you're seeing right now Canyon Road uh pedestrian enhancements for the district.

These investments lay the groundwork for redevelopment and help improve how people move through and experience our downtown.

Next slide, please.

So, as a reminder for folks, uh the Bureau board adopted a five-year action plan in fiscal year 2025.

This plan provides the framework for our three strategic priorities that you can see at the bottom of the screen.

Um, and also provides forecasted expenditures that help guide our annual budget decisions.

Next slide, please.

So as we look ahead, um, the major spending priorities of this next fiscal year align with the capital infrastructure and placemaking projects and programs identified in our action plan.

And taking together these investments, strengthen connectivity for the long term because of some of these, like the Loop are long-term community investments.

They create more welcoming public spaces and help define a stronger identity for downtown Beaverton and the broader urban redevelopment district.

And next slide, please.

And in addition to those capital investments, um, this next year, we really want to lean in on redevelopment and investment strategy.

So we're continuing active work at the Lombard West and the Hall Center sites.

Uh, like I said, both are major opportunities for mixed use and housing development.

We will also prepare for solicitation of the BC2 and Beaver Dam West sites at the round campus.

Um we'll continue to support businesses and the development community and then stay ready for real estate acquisition opportunities if they arise if they make sense for the district and the board.

Finally, we continue to support affordable housing and implement a downtown equity strategy and our various initiatives.

So also all of these investments will be in service of catalyzing and leveraging private investment throughout the district.

So that's my time.

I'll transition the presentation over to Susan Cole, our interim treasurer, and Susan will provide some financial details on our various funds, and then we can ship to questions after her portion.

Good evening.

Again, my name is Susan Cole.

And next slide, please.

This slide here presents an overview of the entire urban renewals agency's budget.

And so the first thing that might jump out at you is on the left here, we have borrowed funds of 42 million dollars that represent 57% of the urban renewal resources for fiscal 27.

And we had a very good question about this, and I'm I'm hoping that the committee got the answers in time to review.

But one of the reasons why we are proposing a bond this year is because it can be very efficient to group major projects together and then to issue one bond so that those resources cover the next three to four, maybe even five years' worth of capital projects.

And we think we're about nine to ten months away from that at this time from nailing down those details.

But because this budget does span the entire year, we do need to start that planning for it right now.

And so part of this budget does propose $35 million in a bond.

The remaining $7 million would be what we call a daylight loan or an overnight loan from the general fund.

And that's an internal financing tool that many urban renewal agencies use with our partner cities, and that allows the urban renewal agency to keep up with our short-term goals, and it also helps to for us to manage our cash flow and projections over time.

So one important aspect of urban renewal is that the tax increment can only be used for debt, and so that's why we engage in debt for urban renewal.

Next, you'll see some beginning working capital of 11 million dollars, and that is largely the tax increment itself.

Again, it can only be used on debt, and so as we engage in the $7 million overnight loan, uh it'll be drawn down against that fund balance there.

So some other resources of note here are we do have a parking program that's um that was extensively talked about with Bureau on Tuesday night.

There you'll see the tax increment at roughly six and a half million dollars.

There's a handful of grants coming in.

Uh, program income represents all the other income that comes into the agency that is not tax increment.

So this would be uh any kind of rents for the retail portion of the garage, um, parking.

Well, I already I separated out parking for you there, but um, interest earnings, that sort of thing, and then we have some interfund transfers in for Bureau, and that's um some of this is just a nuance of how we budget because uh the urban renewal tax the debt fund is a different fund, so we have to do some transfers there.

Um, next slide.

So on the uses side of urban renewal, uh we have materials and services that's largely in our fund 903 for more of the day-to-day operations.

Again, we have our debt service shown there, that's to pay back the $7 million in addition to the installment payments.

Uh currently we have a $55 million bond outstanding for Bureau, and so those installment payments are built in there, as well as an estimate for the $35 million bond that I mentioned.

It is just an estimate, but that is also built into the debt service.

Um, capital outlay you'll see is about 19%.

Uh, the largest item there that we're budgeting is um for the loop project, and we'll have some more details we go through these numbers in these um slides.

Um we do have a contingency budget there of about a third or 26 million dollars.

And uh as another member asked about well, why is that so high?

And that's because we plan to issue the debt late in this fiscal year in the spring, you know, April-ish time frame, April, May.

And so that will enable the agency to complete projects prior to June 30.

And what this is telling you is that it does intend to carry over those funds until future fiscal years.

And so that's what that represents is those bond funds that are not spent by June 30 that are carried over for July 1 in the subsequent fiscal year, so that the agency is is ready to go with with that with those projects.

And again, so the interfund transfers out.

That's kind of a uh technical issue as we um move money between the urban renewal increment fund and the debt service fund.

And part of the inner fund transfer out, I also want to make note here is uh the urban renewal does not have staff, and so urban renewal has to pay the city for staff support.

And so part of that interfund transfer out actually goes back over to the city, which of course Andy and I are probably thankful for because that helps pay for the services that we're doing right now as part of the budget committee.

So that's that's part of that inner fund transfer out.

Uh so next slide, please.

So the urban renewal, the agency has five funds that we budget for, and these five funds help us track and organize the financial information so that is the goal is to be really transparent with the public and to you know record all the ins and outs of what the agency is doing.

So the first fund here is the tax increment fund.

This is the fund under state law where we record that tax increment that Andy went over, you know, above the frozen base.

So you'll see here it's a comparison between the current year budget and our proposed budget and what some of those variances are.

So as I mentioned, the tax increment can only be paid to debt service, and that's a requirement of the urban renewal state law.

Um this budget, as Andy did mention, includes um what we call underlevy or revenue share of the property tax increment.

And what that means is the assessed value is such within urban renewal that we could levy more, but we don't want to have that left over or stranded at the end of it at the you know, at the end of 30 years at the end of the 150 million dollar maximum indebtedness, because then we have to refund it back to the agencies.

And so by revenue sharing as we go, it helps everybody along the way.

It's kind of it's a win-win.

Um, and our financial planning for the bond really comes becomes more important in this aspect because what that does is it enables us to measure and estimate what we need for that current year increment to ensure that the agency is able to accomplish the goals that that it wants to accomplish during the year.

So while we freeze it for fiscal 27 at the 6.4 million, we do look at it each and every year.

And so right now it looks like we can continue to revenue share as time goes on.

We'll probably increase that 6.4 million over time.

It doesn't have to be flat each and every year.

We can slowly increase it as we need to.

We just notify the assessor every year what increment we would need.

Um but we do want to have that smooth and predictable for our overlapping districts for the fire district, for the parks district, and for our own city general fund.

And then you see a line item there for prior year property taxes.

Um, sometimes people don't pay their property taxes on time, and so the county assessor does a nice job at recording uh which year those prior property taxes belong to, and we just lump them all together in the prior year line right there.

So you can see here how the revenue is going up, the resources are going up about 12%, 1.8 million, and that is largely due to the fund balance and the beginning working capital, and that is a is a testament to how this year is shaping up in terms of revenues and expenditures.

So then for the increment fund, we we move into the uses side of the equation, and as I mentioned, that's where we have these interfund transfers out, and then some contingency.

So the interfund transfers out here are purely for debt service.

It's for that $55 million installment payment that's roughly $2.7 million each year.

And the difference between that and these numbers you see here would be made up of the overnight loans from the general fund and then estimates that we do in the event we feel that urban renewal might need a bank loan or in this case a bond.

So we do need to budget for that debt service, even if we don't tap into it, and so that's part of the dynamic that you're seeing here that we're planning for that, and it just sort of depends on how the projects unfold during the fiscal year.

Uh next slide, please.

So here we have the Bureau of Capital Project Fund.

This fund is used to track all the major tangible projects that we see urban renewal do.

For example, the parking garage.

When the parking garage was constructed, it was all budgeted in this fund here.

Um, and so excuse me, for the current year, what you see here is the fund balance is dropping down, which which is not to worry because Bureau is kind of a closed system.

So we can trade money back and forth.

That's not like for those of you on the on the city budget committee, that's quite different from the city.

Bureau itself, these five funds work in tandem.

Um, so the beginning working capital, if we if we need some more revenue, we can transfer it from different locations.

But here you see it's made up with the $35 million bond proceeds from loans.

And so that's what's really filling that bucket for resources as we move into fiscal 27.

And then you can see the expenses here that we're planning for.

So we have about 5.4 million for property acquisition.

And that's um Janine would be able to answer that if there's specific properties, but generally that's for opportunity type things.

So there's all the capital projects that Bureau is intending to do in fiscal 27 would be here in this fund.

And then you can see the large contingency which I mentioned earlier.

And that's just the residual bond funds that will be available for July 1st 2027 when we start the next year because as you know construction projects sometimes take a little while to warm up and get going.

And so we really need those resources during the nice weather.

You know they might be designed in April and May maybe even June but then in July, August, September, and so on is is kind of that bell curve where that major construction might occur.

So we need to be prepared for that and it can be quite a number of months to plan for a bond issue.

So that's why we want to budget it in fiscal 27 so that we're ready to go with a bond in the spring and have those resources available in the following year.

Next slide please so this fund 903 the Bureau program and activities fund this is where some of the other magic of urban renewal happens this fund you can see has some interest earnings it has um proceeds from loans this is part of the daylight loan I mentioned from the general fund we do collect all the interest for urban renewal in this fund.

We do that on purpose because we don't want there's nuances in state law with how urban renewal works and so we just want to be really clear that the interest is going to the benefit of urban renewal in terms of program income and doesn't get caught up in this maximum and deadness concept.

And so some attorneys just recommend recording interest very clearly in a separate fund from the increment so that's why we collect it all here.

And so some of the programming activities that Andy mentioned are budgeted here the the improvement grants are here the the day to day work that Bureau does is budgeted here.

And then we have interfund transfers out so that is what's paying for the project management and oversight that's where that's budgeted right there.

And then we have a small contingency.

So I also wanted to mention here that we do have the first street dining commons and the management built in here and the downtown equity that the Andy did mention.

So next slide this fund 904 is a technical fund.

This is the fund that records the debt service specifically so its funding source is a transfer in from the increment and as I mentioned we do have a 55 million dollar bond that we're that was sold in 2020 and that we have a new bond proposed to finance projects over the next three to four years.

And here you can just see the outline of the principal the interest the commercial loan principle 3.3 million I I want to stress that is an estimate that staff performed before we enter into a bond sale of 35 million we have a whole bond team that we work with we have specialized attorneys we have a municipal financial advisor so as we gear up for that bond we'll be working with our bond team and that's when the details really become more solidified is when we work with them we work with CDD to get those projects and the timing of the projects and our municipal financial advisor is the the party that helps us narrow down the term of the debt the interest rate that the debt will have and then what our actual debt service payment will be but we still want to make sure that we have adequate budget authority to pay that debt service when it does occur.

And then you can see here a $7 million overnight loan from the general fund.

And this is a really nice technique because an overnight loan from the general fund doesn't cost any money there's no financing fees associated with it.

If the council wanted to they could charge um interest to Burea and maybe get you know $70 or whatever interest might accrue for 24 hours.

But typically Beaverton has historically has not charged any rear any kind of fees or interest for those loans so next slide please and the last fund $05 is our parking facilities fund.

This was set up specifically when the garage was complete so we you know we manage the construction in in one spot but then once those capital assets are complete and we're into operations we we wanted to track all of that separately and so here you can see the parking facilities fund.

It includes parking garage operations and management it also includes the on street parking compliance and also the garage retail space.

It also includes the on street parking compliance and also the garage retail space.

So you can see the revenues here broken out in terms of the first floor rental of the garage, the the parking garage revenues, public parking revenues.

And it is receiving a loan from the city.

This is part of the $7 million daylight loan.

So one million of that will go to this fund to help it balance out as it embarks on the contracts and maintaining the garage and that sort of thing.

And I think that that is yes, that is all we have for the um details of the budget.

So happy to take questions.

Great.

Thank you, Susan and Andy.

Before we move on to committee deliberations on the budget, we're going to allow members of the public the opportunity to comment on the proposed budget.

So with that, I'm going to open the public hearing on the Bureau budget.

Tyler, has staff received any written comments on the budget?

Yes, uh, Chair Lair.

Um we have received a few of two questions from our budget committee members, and those are on the website, and I've been able to send that all to you.

A third question came in later today with in a form of a letter from Ms.

Reister, who's a budget committee member and um is a formal letter, so that is also on the website, and we have provided written responses to all three of those questions and answers and to Miss Ryster's letter.

In addition, we had a public testimony submitted by Antonio Perog on May 27th.

Great.

Thank you, Tyler.

So people are curious, they can go find those on the website.

Uh recorder, do we have anyone wishing to speak at this hearing?

For those joining this meeting virtually that wish to speak at tonight's hearing, please follow the instructions included on uh tonight's agenda.

After each person speaks, committee members may ask questions of the speaker.

So recorder, is there anyone who wishes to comment?

No, Chair Lair, we do not have anybody in person or online.

Great.

Thank you.

Okay, there are no members of the public that wish to comment.

Uh are there any questions of staff?

There is one in the chat.

Okay, so in the chat looks like committee member Walker asked, uh, when does the 35 million dollar proposed bond hit the ballot box?

Is it November 2026?

So the nuance with urban renewal is the plan actually went to the voters in 2011 and authorized up to 150 million dollars in what's called maximum indebtedness.

And so that 150 million dollars was approved by the voters back in 2011.

And so this 35 million dollar bond proposal would be part of that 150 million dollars.

So we're gonna be paying some amount of interest on taking the 22 million dollars of contingency.

Do we have a drawdown plan?

Because just from a rough back of the envelope calculation, that's gonna cost us 300 to 500,000 at a one to three percent interest rate, which I'm concerned that that's a lost opportunity cost.

How much is money is this gonna save actually packing this bond proposal together for the fiscal year?

Sure, that's a great question, and that is why we rely on a bond team to help us with those questions.

So when we partner with our municipal, they're called municipal financial advisors, and so what they do is they sift through the capital projects that we are wanting to use the money for, and then we come up with a spending plan as you mentioned.

And so with um with municipal debt, uh, if we want them to be free of income tax, so they would be tax exempt, then we would have three years to spend down that money.

And in that three-year time frame, we are able to invest that money as part of our investment portfolio so we can earn interest on that money as we're spending it on capital projects.

And so that's so we partner, so the finance department and CDD, our community development department, we partner together on that plan of disbursements, and then our municipal financial advisor helps us determine what is the best debt instrument and uh to offer to the market to pay for those projects.

And depending on the timing of those projects, maybe we won't issue the whole 35 million at once.

Maybe we'll just do maybe 15 one year, and then 12 months later, we'll do the rest of it.

And so the project planning does become very important on that.

And the nuance with Oregon budget law is we have to have this in our budget in order to pay for anything, or or we could also do it mid year when we have more details.

We could amend the budget at the time through a public hearing process.

And we thought, well, why don't we go ahead and plan for it now in this budget cycle?

Um, just so everybody is on the same page of what we're thinking.

But we are able to earn interest also on that on those bond proceeds when they hit our bank.

All right, any other questions of staff?

And just as a reminder, for any point in this meeting, if you want to speak, you can either use the raise hand feature or type your name in the chat.

And looks like Adam's got another question.

Yeah.

What I was concerned about is last year we approved 12 million dollars in contingency, and we're only on track to draw down four million dollars year to date.

So that is a pretty big budget difference.

And now we're moving to a 22 million dollar unreserved contingency.

But I did not see a drawdown schedule or a project allocation schedule for those funds.

Is that exists somewhere, or could it be provided to the committee, or what is the allocation or drawdown schedule for the 22 million dollars?

Right, it would be part of the five-year plan and is not completely developed yet because a lot of it is contingent on the downtown loop project that we are also counting on partners from the federal government and from the um, I believe it's the Oregon Department of Transportation, but I can defer to Andy, but part of the details of the drawdown schedule is somewhat contingent on these other partners and developing these project plans, and so that's what the Beaverton team will be developing over the eight to nine month period until um we that's part of the process of getting ready for this 35 million dollar bond issue.

So that you're right, that is yet to come.

Okay, Mayor Baby.

Um I appreciate that we are issuing back uh some money out of Bureau this year, but to me, um I'd rather we not do that.

I'd rather us be using that money to build.

So can you tell me a little bit about the timeline to get an RFP out for uh Beaver Dam and kind of what our timeline is in the budget scenario that we're in, we're either gonna have to cut or we're gonna have to create revenue, and we're sitting on commercial space that is empty.

So, what's the timeline to get something out there for the public to bid on?

Yeah, mayor.

Uh oh, I just see Janine popped on.

Yeah.

Um thanks for the question, and I expect that we expect that uh from you.

But like I said, that is going to be a goal this next fiscal year.

Um there are going to be some conditions, some micro macro and microeconomic conditions that we have to work through.

But as a team, this is something we're going to focus on to figure out uh what our solicitation and development proposal is going to look like over the next year, so we can do something with those properties.

What do you mean by micro and macro conditions for us that don't speak economic development?

Yeah.

Um this is where I think uh several of our team members and various divisions and departments in the city are going to have to work closely together to see what we could do, for instance, regarding attracting pre-leasing if we want to have office in that space.

Um, the Portland, you know, we're an exurb of the mid-tier uh city, Portland, which has had its challenges with development.

Some of that impacts what the some of the same kind of macro economic factors that we see in Beaverton.

Um so I think with our economic development strategy and with Bureau and some of our other sort of initiatives that we're working through with the city, like with the loop, um, this is where we're gonna have to really partner together and see what it'll look like to gain energy, a momentum, and put together a good solicitation proposal.

Um, I know that the city had some success back in 2019.

A lot of factors have changed then, a lot of a lot of things have changed over the past year that we've been hearing um explicitly from the development community.

Um, but like I said before, um, our goal, and uh Janine popped on here, that's gonna be one of her focus series, try to get a solicitation out this year so we can create um assessed value from those properties sooner rather than later.

Calendar year or budget year.

Uh I'm going to say budget year.

But it's a good idea.

So if we're just throwing it out there, like we we need staff to move.

Like we have to create revenue.

Giving back a little bit of money to the districts is noble and all, but what they need from us is to create real value in the district.

That is what we promised voters we would do.

We had a solicitation in 2020 six years ago.

So I don't, you know, we could work as the bureau to to give better direction, but like if we like the entire thing we promised voters was returning value.

Everything this board should do should be about returning value.

And when we're sitting on lots, it is doing the opposite of that.

We're not just sitting on empty lots, we are acquiring an assembling property for a broader solicitation.

Um in the next 12 months, whether calendar year or fiscal year, we're going to be doing um economic development strategies to help with some of those attraction.

Uh, to help potentially we could help find uh pre-leasing opportunities to meet some of Bureau's goals while economic factors that Andy mentioned are real right now in a way that are changed from even a year ago and making market rate development more challenged.

Um so we're working towards that as well as infrastructure planning in the Beaver Dam area.

Suffice it to say though, um, we we've understand we've heard this from Bureau that's that's the direction to make this a focus area over the next year.

So that's that's what we intend to do as a staff and the board.

All right, committee member Marion.

You're muted again.

After we got talking about the two properties Bureau owns, I am curious why we've allocated a million dollars for acquisition, considering we're kind of going into a real estate downturn because of the intel and Nike layoffs is I mean, we want to make the most out of the budget we have.

And I know the construction will be advantageous, but as joint investment, I'm curious what why the board reduced reduced that.

I can try this.

Um so committee member, was your question about the um property acquisition line item?

Yeah, they was the reduced by a million dollars for other budgetary reasons, and then as Mayor Beattie was saying, we're we still sat for about a year to two years on the I think the buffet palace property, and when we're start taking kind of initiative in that development area for the Bureau Board.

Yeah, we yeah, thanks for the question.

We did do two development proposals for those two properties that I that I showed on one of those slides.

So we're um having to actively work through negotiations with developers um on that.

Um you know, with a with a public solicitation, it does it it takes a little bit more um sausage making to uh work with the developer to achieve the goals you may have for a site, and you know, going through public solicitation process and and selecting someone and making sure that the process has been fair, we can get kind of the most um the most uh equitable and impactful project that we can have on those sites, but some different than the private sector where you may just have a you know a simple uh transaction, just go and develop.

We do have to put some more thought into that.

Um so it does take a bit longer.

I I totally understand that.

And if we could make it go quicker, we would.

Um, some of these properties we typically do a six or maybe a 12-month um negotiation period with a developer that's selected to work out those details uh before we transition to uh selling the property for them.

But that means we have to get some sureties and some of those negotiations to make sure that the public's getting the best project it can.

All right.

Seeing no additional questions for staff, I'm gonna go ahead and close the public hearing at this time.

And before we begin deliberations on the proposed budget, we need a motion to approve the proposed fiscal year 2026 through 27 budget as submitted.

Do we have such a motion?

Chair, this is Tivnon.

I move for the approval of the proposed Bureau budget for fiscal year 2026-27 as submitted.

Mrs.

Hartman.

I second it.

Okay.

It's been moved by committee member Tivnon and seconded by Committee Member John.

Is that you?

Okay.

Committee member Duggar to approve the proposed Bureau budget for fiscal year 2026 through 27 as submitted.

Is there any discussion on the motion?

And if anybody desires to make an amendment to the budget, staff is here to uh guide us through the process.

Any discussion?

Okay.

Seeing none, we are ready to uh move to a vote on the motion, which is to approve the proposed Bureau budget for fiscal year 2026 through 27 2027 as submitted.

Uh recorder, can you please take the roll?

Yes, Chair.

Uh Beatty.

Yes.

Bernal.

Yes.

Duggar.

Yes.

Ellen?

Yes.

Hanning?

Yes.

Hartmeyer Prague.

Yes.

Son.

Or I apologize, she's absent.

Uh Hughes?

Yes.

Kimmy.

Yes.

Corinthhal.

Yes.

Blair?

Yes.

Marion?

No.

Marzenek?

Yes.

Montes.

Yes.

Nye.

Yes.

Reister?

Yes.

Skyhan?

Yes.

Yes.

Tivnon.

Yes.

Walker.

No.

Walton.

Yes.

Webb.

Yes.

Teter.

Yes.

Uh 19 yes, two no, one absent.

Okay.

Well, with that, the proposed Bureau budget for fiscal year 26 through 27 as approved by this committee, the 19 to 2 vote will be forwarded to the Bureau Board for a public hearing on June 16th, 2026.

And with that, we've completed our agenda tonight.

So the meeting is adjourned.

Thanks, everybody.

We'll see you next year.

Recording star.