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FIN-4.09 - Close the Water Growth Impact Trust Fund, the Portland Police Association Health Insurance Fund and the Parking Facilities Debt Redemption Fund, and create the Tax Increment Reimbursement Fund

FIN-4.09 CLOSE THE WATER GROWTH IMPACT TRUST FUND, THE PORTLAND POLICE ASSOCIATION HEALTH INSURANCE FUND AND THE PARKING FACILITIES DEBT REDEMPTION FUND, AND CREATE THE TAX INCREMENT REIMBURSEMENT FUND
Binding City Policy
BCP-FIN-4.09

 
PURPOSE
 
The Council finds:
 

1. Council established the Water Growth Impact Charge Trust Fund to collect and keep contributions from wholesale customers to help pay for expanded facilities required by growth in their demand for water. The fund was established so those water districts that were experiencing growth would contribute a proportionate share of money toward the next major supply increment, and establishment of this fund ensured that those contributions would be kept separate from other bureau revenues.

2. In 1995, wholesale contributions were suspended with the deletion of the growth section in the wholesale agreements, so the only revenue in the Water Growth Impact Charge Trust Fund is interest earned on the fund balance. In October 2007 Council directed the Water Bureau to reimburse the wholesale customers who had paid into the fund. All reimbursements have been made, and the fund can now be closed.

3. Council established the Portland Police Association Health Insurance Fund to pay medical and prescription drug claims for Portland Police Association (PPA) City employees, dependents, retirees, and other participants.

4. In July 2004 PPA members moved to CityNet, a new self-insured benefits plan exclusively for PPA employees. CityNet was transitioned to a fully insured program effective September 2007, and medical claims expenditures were no longer paid out of the PPA Health Insurance Fund.

5. Outstanding rate grievances with the Portland Police Association were settled in September 2008, and approximately $100,000 was refunded to PPA members out of fund contingency. With the settlement of the grievances, a separate PPA Health Insurance Fund is no longer required.

6. Council established the Parking Facilities Debt Redemption Fund to achieve a proper matching of revenues and expenditures related to financing infrastructure improvements associated with the City’s parking system and for the Portland Streetcar project. Specifically, the fund accounted for resources derived from parking facilities, and the allocation thereof, to pay principal and interest on bonded indebtedness associated with financing these improvements.

7. With the repayment on the debt moved to the Parking Facilities Fund, the Parking Facilities Debt Redemption Fund is no longer required and can now be closed. Future debt payments will be made from the Parking Facilities Fund.

8. The creation of the Portland Housing Bureau means that tax increment financing will now be received by the City to pay for certain functions that used to be done by the Portland Development Commission.  These reimbursements need to be tracked separately from other funding streams in order to meet compliance requirements.

9. The Office of Management & Finance has determined that a new fund, to be titled the Tax Increment Reimbursement Fund, should be established for this purpose.

 


 
POLICY
 
NOW, THEREFORE, the Council directs:
 

a. Effective June 30, 2009, the Water Growth Impact Trust Fund (Fund 616) will be closed.  At that time, all Water Growth Impact Trust Fund account balances will be closed and transferred to Water Operating Fund (602). Final fund financial statements for Fund 616 will be published in the Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2009.

b. Effective June 30, 2009, the Portland Police Association Health (PPAH) Insurance Fund (Fund 707) will be closed. All PPAH Insurance Fund account balances were closed and transferred to the General Fund during the Spring 2009 BuMP. Final fund financial statements for Fund 707 will be published in the Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2009.

c. Effective June 30, 2009, the Parking Facilities Debt Redemption Fund (Fund 613) will be closed. At that time, all Parking Facilities Debt Redemption Fund account balances will be closed and transferred to the Parking Facilities Fund (606). Final fund financial statements for Fund 613 will be published in the Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2009.

d. Effective July 1, 2009, the Office of Management & Finance will establish the Tax Increment Reimbursement Fund (Fund 221) in the City’s financial system as a special revenue fund.

e. The actions closing the Water Growth Impact Trust Fund, the Parking Facilities Debt Redemption Fund, and the Portland Police Association Health Insurance Fund; and creating the Tax Increment Reimbursement Fund contained in this ordinance are binding City policy.

Section 2. The Council declares that an emergency exists because it is necessary to close and create the funds before the end of the fiscal year in order to properly prepare financial statements for the year ending June 30, 2009; therefore this ordinance shall be in full force and effect from and after June 30, 2009.

 


 
HISTORY
 
Emergency Ordinance No. 182928, passed by City Council June 18, 2009 and effective June 30, 2009.