February 14, 2022 Agenda
ERICSWENSON,MAYOR
DEBBIECABRALES,COUNCILORWARD1
C ITY OF W OODBURN
ALICESWANSON,COUNCILORWARDII
ROBERTCARNEY,COUNCILORWARDIII
C ITY C OUNCIL A GENDA
SHARONSCHAUB,COUNCILORWARDIV
MARYBETHCORNWELL,COUNCILORWARDV
F EBRUARY 14,2022–6:30 P.M.
BENITOPUENTEJR.,COUNCILORWARDVI
C ITY H ALL C OUNCIL C HAMBERS –270M ONTGOMERY S TREET
1.CALL TO ORDER AND FLAG SALUTE
2.ROLL CALL
3.EXECUTIVE SESSION
A.To consider preliminary negotiations involving matters of trade or
commerce in which the governing body is in competition with governing
bodies in other states or nationspursuant to ORS 192.660(2)(g)
To consult with counsel concerning the legal rights and duties of a public
body with regard to current litigation or litigation likely to be filed pursuant
to ORS 192.660 (2)(h).
To consider records that are exempt by law from public inspection pursuant
to ORS 192.660 (2)(f).
To conduct deliberations with persons designated by the governing body to
negotiate real property transactions pursuant to ORS 192.660(2)(e).
4.ANNOUNCEMENTS AND APPOINTMENTS
Announcements:
None.
Appointments:
A.WoodburnParks and Recreation Board1
Richard Irish
5.COMMUNITY/GOVERNMENT ORGANIZATIONS
This facility is ADA accessible. If you need special accommodation, please contact the City Recorder at
503-980-6318or Statewide Toll Free Relay (800) 735-1232, at least 48 hours prior to this meeting.
Si usted necesita asistencia especial, comuníquese al 503-980-6322 o a la línea telefónica gratuita, (800)
735-1232, con un mínimo de 48 horas, antes de la reunión.
**Habrá intérpretes disponibles para aquéllas personas que no hablan Inglés, previo acuerdo.
Comuníquese al (503) 980-6322.**
February 14, 2022Council Agenda Page i
None.
6.PROCLAMATIONS/PRESENTATIONS
Proclamations:
None.
Presentations:
A.COVID-19 Update
B.Use of Force Report3
7.COMMUNICATIONS
None.
8.BUSINESS FROM THE PUBLIC–This allows the public to introduce items for Council
consideration not already scheduled on the agenda.
9.CONSENT AGENDA–Items listed on the consent agenda are considered routine
and may be adopted by onemotion. Any item may be removed for discussion
at the request of a Council member.
A.Woodburn City Council minutes ofJanuary 24, 202210
Recommended Action: Approve the minutes.
B.Acceptance of the dedication of a street reservation and public12
easement at 2145 Molalla Rd NE (Woodburn Eastside Apartments),
Woodburn, OR 97071 (Tax Lot 051W09B000900)
Recommended Action:Accept the dedication of a street
reservation and public easement granted by The Woodburn Eastside
Apartments, owners ofthe property located at 2145 Molalla Rd NE,
051W09B000900).
Woodburn, OR 97071 (Tax Lot
C.2022 OLCC Renewal17
Recommended Action:Recommend to the OLCC to renew the
liquor licenses for the listed businesses for the year of 2022.
D.Liquor License Application for Los Hermanos Chapin Inc.20
Recommended Action:Recommend that the OLCC approve the
Liquor License Application for Los Hermanos Chapin Inc.
E.Liquor License Application for Huerta’s Market LLC22
Recommended Action:Recommend that the OLCC approve the
Liquor License Application for Huerta’s Market LLC.
February 14, 2022Council Agenda Page ii
F.Acknowledgement of Change in Operating Name Involving Cable 24
Television Franchisee Wave
Recommended Action:Take no action. Acknowledge WaveDivision
VII, LLC's notice of intent to operate under new trade name.
G.Building Activity for January 202228
Recommended Action:Receive the report.
10.TABLED BUSINESS
None.
11.PUBLIC HEARINGS
None.
12.GENERAL BUSINESS –Members of the publicwishing to comment on items of general
business must complete and submit a speaker’s card to the City Recorder prior to
commencing this portion of the Council’s agenda. Comment time may be limited
by Mayoral prerogative.
A.FY 2022/23 Financial Plan29
Recommended Action:Adopt the attached FY 2022/23 Financial Plan
(Budget Policies and Fiscal Strategy) via a motion.
B.Low Income Household Water Assistance Program71
Recommended Action:Authorize the City Administrator to sign the
enclosed Low Income Household Water Assistance Program
Agreement between the City of Woodburn, the Mid-Willamette Valley
Community Action Agency (MWVCAA), and the Oregon Housing and
Community Services Department.
C.Authorization to amend UGB to include URA 79
Recommended Action:Authorize the Community Development
Director to begin the process of including the Urban Reserve Area
(URA) in the Woodburn Urban Growth Boundary (UGB).
D.Project Gamos –Community Service Fee Agreement82
Recommended Action:
Via a motion:
1.Approve the attached Community Service Fee Agreement with
Chewy, Inc.
2.Place a deadline for the acceptance of the terms of the
areement no later than February 28, 2022, and Authorize the
February 14, 2022Council Agenda Page iii
City Administrator to countersign the agreementand;
3.Direct the City Administrator report back to the City Council as
to the status of the agreement during the Council’s February 28,
2022, meeting.
13.OTHER BUSINESS
None.
14.PLANNING COMMISSION OR ADMINISTRATIVE LAND USE ACTIONS–These are
Planning Commission or Administrative Land Use actions that may be called up
by the City Council.
None.
15.CITY ADMINISTRATOR’S REPORT
16.MAYOR AND COUNCIL REPORTS
17.ADJOURNMENT
February 14, 2022Council Agenda Page iv
Agenda Item
February 9, 2022
TO:City Council
FROM:Eric Swenson, Mayor
SUBJECT:Committee Appointments
The following appointment is made, subject to the approval of the Council.
Please forward any adverse comments to me prior to the Council meeting on
Monday, February 14, 2022. Noreply is required if you approve of my decision.
Woodburn Parks and Recreation Board
Richard Irish
1
2
After each use of force incident,the
involved Police Officer(s) are required to
document the event in a Use of Force
Report. This report is reviewed by
department’s supervisory and command
staff.
At the end of each year, this annual Use of
Force and Vehicle Pursuit Report is
completed for the Chief of Police and
Command Staff. This report is used to
evaluate current trends and techniques in
2021
order to address any training, equipment
Woodburn Police Department
needs,or policy changes.
Use of Force& Vehicle PursuitReport
Use of Force
Historical Use of Force Overview
A goal of the Woodburn Police Department
is to resolve each situation safely and
The Woodburn Police Department’s three-
peacefully. While most incidents end with
year trend shows a 34%decreasein Use of
no physical force used, a small number of
Force incidents from 2019-2020. From 2020
contacts require physical force to resolve the
to 2021, there was a 28%increasefrom the
situation.
prior year.
The Woodburn Police Department’s use of
Chart 1
force is guided by department policy, state
and federal law, from a reasonable officer’s
Force Incidents 2019-
perspective and based upon the totality of
the circumstances atthe time the force was
2021
used.
The Woodburn Police Department has
several policies that outline the types of
2021
43
devices and techniques officers can use and
2020
31
the circumstances for use, including:
2019
47
Useof Force
01020304050
Control Devices and Techniques
Use of Force Incidents by Year
Conducted Energy Device
Chart 1 shows the annual numberof use of force
Firearms
events for the last three years.
Vehicle Pursuits
Canine Program
1
3
Table 1 represents annual data to include the It is important to note the Woodburn Police
percentage change compared annually over Department did not receive a complaint
the last three years.surrounding a use of force event in 2021.
Table 1
Force Incidents 2019-2021
Force Data
Year Incidents % + or -
The Woodburn Police Department records
2019 47+13%
certain information from each Use of Force
2020 31-34%
report. Gender, intoxication, suspect injury,
officer injury, and the types of force used
2021 43+28%
are captured in the charts and graphs below.
Table 1 shows the yearly increase or decrease from
the previous year.
In 2021, the Woodburn Police Department
responded to approximately 14,740calls for
Chart 2
service, which was an increase of 1080 calls
(+8%) as compared to 2020. The number of
Arrest by Gender
arrests from 2020 to 2021 increased by 57.
The rateofarrests made and use of force
incidents was 1 use of force event for every
50
22arrestsin 2021.
40
Table 2
30
Rates of Force Incidents Per Arrest
20
Male
10
Female
Year Rate
# of #
0
ArrestsInvolving
201920202021
Force
20191052 47
1 in
22
FemaleMale
202087931
1 in
28
Chart 2comparesthe numberof forceevents
involvingfemales vs. males.
202193643
1 in
22
As shown in Chart 1, for 2021, Woodburn
Officers reported 43 use of force incidents.
Table 2 shows the rate of arrests made per year and
those involving force used.*Of note for 2021, 2020,
Each officer is required to report the
& 2019, “additional assisting officer”, arresttotals
individual force used even if force is used
were excludedduring singular arrest incidents.*
upon the same suspect by multiple officers.
2
4
Intoxication levels often times are a key
Table 4
factor when a suspect becomes non-
Physical Control by
compliant, resulting in the need of the
Frequency
officer to utilizeforce to make an arrest.
Table 3
Year 2019 20202021
24 18 11
Firearm
Under the
Displayed
Influence
CED Displayed n/a n/a 4
Year2019 2020 2021
Control Hold 10 5 1
Alcohol 9 715
Takedown757
Drugs10913
K93 1 1
Alcohol & 7 111
Focus Blows 3 2 1
Drugs
CED Use19 9 5
Unknown11 35
Wrist Lock6 7 2
10 11 12
Not Under
the
Shoulder Lock8 5 3
Influence
Other 15 0 20
Table 3 represents the number incidents of self-
reported use of alcohol and/or drugsby suspects
Table 4 represents the type of force used and the
and/or officer observations.
number each technique or device used.*Of note
CEDDisplayed is included inthe2021report.*
In 2021, our officers used a mechanical
Officers must report any use of force
restraint system(WRAP)in 5 incidents.
situation if the force used, could or would
This device wasdesigned to secure an
likely cause injury to the suspect. Table 4
individual safely for transport to the jail in
shows the type of force used in each
order to prevent injury tothemselvesor
incident.
others, or causing damage to a patrol
vehicle.
The display of an officer’s service weapon
and/or Conducted Energy Device (CED) are
The Woodburn Police Department has a K9
recorded separately from use of physical
program consisting of two patrol
force.
protection/apprehensioncanines.The K9’s
are utilized as force options.
The K9 can be deployed two ways. The first
is to track and apprehend a fleeing suspect.
The second isa show of force to non-
compliant suspects. Anytime the K9
deployment results in the canine biting a
3
5
subject, the incident is considered a use of
force, therefore requiring reporting.
Table 5
Patrol K9 Team Deployments
Table 5
Year
# of # of # of Deployments % of Deployments resulting
represents
three years of
Deployments Captures resulting in a canine in a canine bite
K9
bite
deployments,
captures, bites
2019431449.3%
and
percentage of
202031 11 13.2%
bites resulting
from
202127 3 13.7%
deployment
The Woodburn Police Department utilizes a
Table 6
Conducted Energy Device (CED) as a force
option. The CEDcan beutilized under four
CED Use and Arrest Involving
options.
ECD’s
Two of the options are considered mere
Year Arrests
CED% of
presence and the other are considered use of
Use
Arrest &
force.
CED’s
The laser of theCEDcan beactivated
2019191052 1.8%
showing the suspect where the CEDdarts
are targeted.The spark demo is when the
20209 879 0.9%
dart cartridge is removed and the CEDis
triggered. The CED’selectrodes arc across
2021 49360.4%
metal conductors giving off a spark as a
Table 6 represents three years of data onCEDuse
visual demonstration.
and the percentage ofuse in forceincidents.
The probe mode is when the two CED
Injuries reported in Use of Force Incidents
probes are firedfrom the deviceat the
suspect. The thin insulated wires connected
Injuries can occur to both officers and
tothe CED’s metal probes deliver the
suspects during violent encounters. Data
electronic stimulant. The drive stun mode is
shows that officers report fewer injuries than
when the CED is pressed upon the subject’s
suspects do during a use of force incident.
body, sending the electronic stimulant from
The tables below represent the number of
the CEDitself.
officers and suspects injured and the type of
injuries sustained.
4
6
Table 7Days and hours of the Week
Tables 9 and 10 display the number of
Officer Injury by
incidents regarding the Use of Force during
Type
each work shift.
Year201920202021
Table 9
No Injury423140
U of F Day Night
Cuts/Abrasions302
by ShiftShift Shift
Bruise/Swelling200
2021823
Injured Joint/Torn 001
Ligaments
Table 10
Table 7 shows the number of officers injured and the
type of injuriessustained.
U of F by day of Total #
weekfor 2021
In 2021, 98% of the time Officers used force
they did not report injuries. For suspects,
Monday5
90% of them were uninjured during a use of
Tuesday0
force incident.
Wednesday4
Thursday4
Suspect Injury by
Friday4
Type
Saturday9
Year2019 20202021
Sunday5
No Injury 16 19 27
Abrasions 9 7 2
ECD Puncture 12 5 1
Cut/Puncture 9 0 0
Bruise/Swelling1 0 1
Table 8
Table 8 shows the number of suspects and injury
sustained.
5
7
Tables 11 and 12 display the number of Vehicle Pursuits
incidents regarding pointing a firearm/CED.
Table 13
The Woodburn Police Department operates
on two shifts. Dayshift hours are 6:00am to
Vehicle Pursuits by Year
6:00pm. Night shift hours are 6:00pm to
6:00am. This report also displays days of Year% + or -
# of
the week when Use of Force incidents
Pursuits
occurred.
2019 0-100%
2020 8800%
Table 11
2021 80%
Pointing a Day Night
Firearm/CEDShiftShift
Table 13 shows the number of pursuits each
year along with the percentage change.
2021410
The Woodburn Police Department reports
Table 12
and reviews each vehicle pursuit. Vehicle
pursuits are inherently dangerous to the
Total # for 2021
Pointing a
community, the pursuing officer and the
Firearm/CEDby
pursued suspect. Each vehicle pursuit is
day of the week
unique and poses a wide variety of risks and
outcomes. Vehicle pursuits are closely
Monday3
monitored and reviewed to ensure best
Tuesday0
practicesand training are adheredto.
Wednesday2
Thursday2
Friday 1
The annual report is used by the Chief of
Police and Command Staff to evaluate the
Saturday2
department’s pursuit training, response, and
liability for each vehicle pursuit.
Sunday4
Pursuits dropped significantly from 2018 to
2019because the Woodburn Police
Department shifted to a more restrictive
pursuit policy that focused on initiation and
continuation of pursuits. This has beena
growing trend by law enforcement agencies
throughout the country. Case law, litigation,
and community expectationsregarding use
of force have been the primary factors in
6
8
changing the way law enforcement views
reasons. Often because the risk of
vehicle pursuits. For 2021, there was no
apprehension does not rise to the level of the
increase in pursuits from 2020. One of the
associated dangers of continuing to pursue.
eight pursuits involved a subject wanted for
Officer(s)must deactivate all emergency
attempted murder. Four pursuits involved a
equipment and end theirattempt to
DUII suspect, one pursuit involved a
apprehend the suspect upon termination of a
robbery suspect, and one pursuit involved a
pursuit.
domestic violence suspect. Five of the eight
The conclusion of a pursuit canalsooccur
pursuits were discontinued by officers.
when the suspect vehicle stops on its own,
Chart 3
stopped by intervention techniques (stop
sticks or PIT), or the suspect vehicle
Suspect Vehicle
becomes disabled.
2.5
Speeds
Chart 4 shows how each of the 2021 pursuits
2
ended.
22
1.5
Chart 4
1
111
Vehicle Pursuit
0.5
Resolution
000
0
20+30+40+50+60+70+80+90+
Top Speed
5
3
0
Additional facts for 2021 vehicle pursuits:
VEHICLE OFC. SPIKE STRIPS
STOPPEDDISCONTINUED
6 of the of 8 pursuits occurred between
Resolution
the hours of 6:00pm and 6:00am
1 occurred on aMonday, 4 on
Chart 4shows how each 2021pursuit was resolved.
Thursday, 2 on Friday and 1 on Sunday.
There were no injuries reported.
The most concerning factor with pursuits is
2021Conclusion
how apursuit ends. Vehicle pursuits may
end in either termination or conclusion. All of the Use of Force incidents were
determined to be within policy and in
Terminations occur when the pursuing
compliance of state and federal laws.
officers stop their attempt to apprehend the
suspect. Conclusion is when the suspect
vehicle stopsand is no longer moving. Any
officer or supervisor can make the decision
to terminate a vehicle pursuit at any point.
Pursuits are terminated for a variety of
7
9
COUNCIL MEETING MINUTES
JANUARY24, 2022
DATECOUNCILCHAMBERS,CITY HALL, CITY OF WOODBURN, COUNTY OF
MARION, STATE OF OREGON, JANUARY 24, 2022
CONVENEDThe meeting convened at 7:01 p.m. with Mayor Swenson presiding.
ROLL CALL
Mayor Swenson Present
Councilor CarneyPresent -via video conferencing
Councilor Cornwell Present -via video conferencing
Councilor SchaubPresent -via video conferencing
Councilor Swanson Present- via video conferencing 7:03 p.m.
Councilor Puente Present -via video conferencing
Councilor Cabrales Present -via video conferencing
Staff Present:City Administrator Derickson,City Attorney Shields, Assistant City Administrator
Row, Economic Development Director Johnk, Police Chief Pilcher, Community Development
Director Kerr, Finance Director Turley, Public Works Director Stultz, Assistant City Attorney
Granum, Human Resources Director Gregg, City Recorder Pierson
APPOINTMENTS
Carney/Cabrales… approve the appointment of Desiree Winz to the Woodburn Library Board.
The motion passed unanimously.
PRESENTATIONS
Mayor Swenson recognized the Woodburn High School Girls Soccer team and congratulated them
on their 4A State Championship.
CONSENT AGENDA
A.Woodburn City Council minutes of January 10, 2022,
B.Woodburn City Council Special Meeting minutes of January 19, 2022,
C.Woodburn City Council Executive Session minutes of January 19, 2022,
D.Crime Statistics through December 2021.
Carney/Cabrales… adopt the Consent Agenda. The motion passed unanimously.
FY 2021-2022 SUPPLEMENTAL BUDGET REQUEST FOR THE IMPACT TO THE
BUILDING FUND OF INCREASED COMMERCIAL BUILDING PERMIT ACTIVITY
A Public Hearing to consider input on the FY 2021-2022 Supplemental Budget Request for the
Impact to the Building Fund of Increased Commercial Building Permit Activity. Mayor Swenson
declared the hearing open at 7:04 p.m. forthe purpose of hearing public input on the FY 2021-
2022 Supplemental Budget Request for the Impact tothe Building Fund of Increased Commercial
Building Permit Activity.Finance Director Turley provided a staff report. No members of the
public wished to speak in either support or opposition of the FY 2021-2022 Supplemental Budget
Request for the Impact tothe Building Fund of Increased Commercial Building Permit Activity.
Mayor Swenson closed the hearing at 7:09 p.m.
COUNCIL BILL NO. 3172 - A RESOLUTION APPROVING TRANSFERS OF FY 2021-
2022 APPROPRIATIONS AND APPROVING A SUPPLEMENTAL BUDGET
Carney introduced Council Bill No. 3172. City Recorder Pierson read the bill by title only since
there were no objections from the Council. Finance Director Turley provided a staff report.On roll
call vote for final passage, the bill passed unanimously. Mayor Swenson declared Council Bill No.
Page 1 - Council Meeting Minutes,January 24, 2022
10
COUNCIL MEETING MINUTES
JANUARY24, 2022
3172 duly passed.
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) REQUEST FOR
ADDITIONAL FUNDS –AWARE FOOD BANK
Economic Development Director Johnk provided a staff report. Gabriella Pena with Aware Food
Bank provided information on thefood bank and expressed thanks tothe City Council for their
support. Rick Gaupo with Marion Polk Food shared information on rebuilding the food bank.
Carney/Swanson… authorize staff to proceed with an application to Business Oregon requesting
additional CDBG COVID-relief funds for the AWARE Food Bank project.
CALL-UP BRIEFING: PLANNING COMMISSION APPROVAL OF A DESIGN
REVIEW AND VARIANCE APPLICATION PACKAGE FOR 550 N. 1ST STREET (DR
21-11 AND VAR 21-05)
The Council declined to call this item up.
CITY ADMINISTRATOR’S REPORT
The City Administrator reported the following:
City Hall remains closed to the public due to staffing shortages. It is being monitored on a daily
basis.
Asked the City Council on whether or not they would like to see the fireworks show return to
the City. Councilors supported the idea of continuing with the fireworks show in Woodburn.
MAYOR AND COUNCIL REPORTS
Councilor Swanson stated that Comcast has been working in her neighborhood and she is excited
to see this coming into her neighborhood.
Councilor Carney stated that Comcast finished in his neighborhood andwould like to compliment
them on their professionalism.
Mayor Swenson announced that the annual Chamber of Commerce meeting will take place Friday,
th
the 28upstairs at the Metropolis and that the Woodburn Fire District has their annual awards
banquet on February 5. He also announced that the fire department just barely beat the police
department in the first responders Chili Cook-off and the Rotarians came out ahead of the
Kiwanians in the Chili Cook-off
ADJOURNMENT
Carney/Swanson…move to adjourn. The motion passed unanimously. Mayor Swenson adjourned
the meeting at 7:36 p.m.
APPROVED
ERIC SWENSON, MAYOR
ATTEST
Heather Pierson,City Recorder
City of Woodburn, Oregon
Page 2 - Council Meeting Minutes,January 24, 2022
11
Agenda Item
February 14, 2022
TO:Honorable Mayor and City Council through City Administrator
FROM:Curtis Stultz,Public Works Director
SUBJECT:Acceptance of the dedication of a street reservation and public
easement at 2145 Molalla Rd NE(Woodburn Eastside Apartments),
Woodburn, OR 97071 (Tax Lot 051W09B000900)
RECOMMENDATION:
Accept the dedication of a street reservation and public easement granted by
The Woodburn Eastside Apartments, owners of the property located at 2145
Molalla Rd NE, Woodburn, OR 97071 (Tax Lot 051W09B000900).
BACKGROUND:
The property owner is required to provide this street preservation/public utility
easement in order to satisfy the conditions of approval of Design Review(CU 2019-
04, DR 2019-06, & VAR 2020-05 Related to ANX 2019-01).
DISCUSSION:
This dedication contains an 82-foot wide street reservation and public utility
easement located within the propertyboundarylimits as shown in theattached
exhibit. This public utility easement reserves the right on the subject easement to
be convert to a future street, including the permanent right to construct,
reconstruct, operate, and maintain public utilities.
:
FINANCIAL IMPACT
There is no cost to the City for thePublic Easements.
ATTACHMENTS
ACopy of thePublic Easement documents is included asExhibit “A” and Exhibit
“B”.
Agenda Item Review:City Administrator ___x___City Attorney ___x___Finance ___x__
12
13
14
15
16
Agenda Item
February 14, 2022
TO:Honorable Mayor and City Council through City Administrator
THRU: Martin Pilcher, Chief of Police
FROM:Keith Kimberlin, Lieutenant
SUBJECT:2022 OLCC Renewal
RECOMMENDATION:
Recommend to the OLCC to renew the liquor licenses for the listed businesses
for the year of 2022.
BACKGROUND:
Annually the police department reviews activities occurring at or near all
licensed liquor establishments in Woodburn. Through the established guidelines
and procedures, the City Council ensures equitable and consistent treatment of
liquor license applications.
The following liquor license applications were reviewed in accordance with
Woodburn Police Department standards and are recommended for approval:
Off Premise Sales:
7-Eleven # 2362-17416C A & J Market
Bi-Mart #643 C & M Market
Carniceria El Ranchito Circle K #9641
Crossroads Grocery & Deli Del Sol Market
EZ Stop Grocery & Deli Guacamole’s Market
La Tovara Las Islas
Mariscos El Sarandeado New AM PM of Woodburn
Safeway Store #1976 Sunrise Food Mart & Deli
st
Tienda Mexicana Monte Alban (1St.)Tienda Mexicana Monte (Front St.)
Valley Pacific Floral Walgreens #12095
Walmart #1793 Wheeler Dealer
Agenda Item Review:City Administrator __x____City Attorney __x____Finance __x___
17
Honorable Mayor and City Council
February 14, 2022
Page 2
Woodburn Fast Serv Woodburn Liquor Store
Woodburn Market Woodburn Mega Foods
Woodburn Stop N Go
Full On Premise Sales:
7 Seas Restaurant & Bar Casa Marquez Mexican Grill
Chipotle Mexican Grill Denny’s Woodburn
Eagles Lodge #3284 WoodburnElmer’s Restaurant
Fusion Restaurant and LoungeLa Parranda Nightclub
La TovaraLas Islas
Los Cabos Mexican RestaurantLos Cuatro Hermanos
Mariscos El Sarandeado OGA Golf Course
Red Robin Rumor’s Bar & Grill
Tequila’s Bistro Bar The End Zone Sports Bar and Grill
Trapalas Restaurant Woodburn Bowl
The Raven Bar & Grill
Limited On Premise Sales
Abby's Legendary Pizza Dede’s Deli
El Tule Taqueria Pepper’s Deli & Pub
Shari’s of Woodburn Sushi Brothers
The PlayceWoodburn Estates /Country Cottage
Woodburn Mega Foods
:
DISCUSSION
The Woodburn Police Department has completed a review, in connection with
the OLCC, on the listed businesses above and found nothing that would
disqualify or preclude the renewal of the various licenses for the businesses listed
on this document.
18
Honorable Mayor and City Council
February 14, 2022
Page 3
Licensees of Concern
La Parranda/ El Rodeo The End Zone
DISCUSSION:
During the 2021calendar year the Woodburn Police Department has responded
to the La Parranda/El Rodeo Nightclubon eightseparate disturbances and/or
fight calls between July 2021 and November 2021, as well as 2 DUII’s that were
related to La Parranda. La Parrandahas the largest amounts of disturbance
calls for establishments that serve alcohol.
Woodburn Police responded to five reports of fights, including one where a gun
was waved at customers, as well as two DUII’s directly related to the End Zone in
the 2021 calendar year.
FINANCIAL IMPACT:
None
19
Agenda Item
February14, 2022
TO:Honorable Mayor and City Council through City Administrator
THRU: Martin Pilcher, Chief of Police
FROM:Andy Shadrin,Lieutenant
SUBJECT:Liquor License Application
RECOMMENDATION:
Recommend that the OLCC approve the Liquor License Application for Los
Hermanos Chapin Inc.
:
BACKGROUND
Applicant: Los Hermanos Chapin Inc.
153 Grant St.
Woodburn, OR 97071
971-413-9885
Point of
Contact:Andres Pablo Lucas
502 Broadway St
971-294-1906
Business:Los HermanosChapin
153 Grant St.
Woodburn, OR 97071
971-413-9885
Owner(s): Andres Pablo Lucas
Agenda Item Review:City Administrator ___x___City Attorney _x____Finance __x___
20
Honorable Mayor and City Council
February 14,2022
Page 2
License Type(s):
Off-Premises -May selland serve beer, wine, and cider for consumption off the
licensed premises. May sell beer, wine and cider in a securely covered,
“growler”, for consumption off the licensed premises.
On January 6, 2022, the Woodburn Police Department received an application
for Off-Premises sales liquor license for Los Hermanos Chapin. The business
currently operates as a convenience storeat 153 Grant Streetin Woodburn, OR
97071.
The hours of operation are 8 AM to 11 PMSunday through Saturday. There is no
noted entertainment planned at the business nor seating for customers. The
Woodburn Police Department has not received any communication from the
public or surrounding businesses in support of or against the proposed change.
:
DISCUSSION
The Police Department has completed a background investigationofLos
Hermanos Chapin Inc.,and the listed owner, Andres Pablo Lucas, through
various police databases and business related databases. Andres Pablo Lucas
holds a valid driver’s license and no other items of concern were located during
the check.
FINANCIAL IMPACT:
None
21
Agenda Item
February14, 2022
TO:Honorable Mayor and City Council through City Administrator
THRU: Martin Pilcher, Chief of Police
FROM:Keith Kimberlin,Lieutenant
SUBJECT:Liquor License Application
RECOMMENDATION:
Recommend that the OLCC approve the Liquor License Applicationfor Huerta’s
Market LLC.
:
BACKGROUND
Applicant: Huerta’s Market LLC
311 N. Front Street Suite B
Woodburn, OR 97071
503-902-0714
Point of
Contact:Blanca A. Kurka
1281 W. Hayes St.
Woodburn, OR 97071
503-951-7849
Business:Huerta’s Market
311 N. Front Street Suite B
Woodburn, OR 97071
503-902-0714
Owner(s): Blanca A. Kurka
Agenda Item Review:City Administrator __x____City Attorney ___x___Finance _x____
22
Honorable Mayor and City Council
February 14,2022
Page 2
License Type(s):
Off-Premises -May selland serve beer, wine, and cider for consumption off the
licensed premises. May sell beer, wine and cider in a securely covered,
“growler”, for consumption off the licensed premises.
On December 6, 2021, the Woodburn Police Department received an
application for Off-Premises sales liquor license for Huerta’s Market. The business
currently operates as a convenience store at 311 N. FrontStreetSuite B in
Woodburn, OR 97071.
The hours of operation are 8 AM to 11:59PMSunday through Saturday. There is
no noted entertainment planned at the business nor seating for customers. The
Woodburn Police Department has not received any communication from the
public or surrounding businesses in support of or against the proposed change.
:
DISCUSSION
The Police Department has completed a background investigationofHuerta’s
Market LLC., and the listed owner, Blanca Kurka, through various police
databases and business related databases.Blanca Kurkaholds a valid driver’s
license and no other items of concern were located during the check.
FINANCIAL IMPACT:
None
23
Agenda Item
February14, 2022
TO:Honorable Mayor and City Council
ie Granum, Assistant City Attorney
FROM:McKenz
SUBJECT:Acknowledgement of Change in Operating Name Involving Cable
Television Franchisee Wave
RECOMMENDATION:
Take no action. Acknowledge WaveDivision VII, LLC's notice of intent to operate
under new trade name.
BACKGROUND:
WaveDivision VII, LLC ("Franchisee"), currently holds a cable television franchise
granted by the City, dated March 1, 2013 (Ord. 2500). Franchiseehas since
been doing business in Woodburn under the business trade name of "Wave"
(previously “Wave Broadband”and "Willamette Broadband").
Most recently in June 2021, the City consented toa "change in control"
transaction involving Franchisee (Res. 2166), wherein pursuant to a Plan of
Merger, 100% of the membership interestof Franchisee's parent company was
purchased, and as a result, the indirect control of WaveDivision VII, LLC,
changed. Following the indirect change in control, the Franchise continued to
beheld in the name of WaveDivision VII, LLC, and Franchisee continued to
provide services in Woodburn under the Wave name.
On January 12, 2022, the City received a notice that WaveDivision VII, LLC,
planned to begin operating in Woodburn under a new business trade name.
Rather thanoperating as "Wave," the Franchisee will transition tooperating
publicly as Astound Broadband and Astound Business Solutions. This change in
trade names is not an indication of any change in ownership of WaveDivision
VII, LLC, nor of what legal entity or corporation remains obligated to perform or
provided services under the City's Franchise Agreement.
DISCUSSION:
Agenda Item Review:CityAdministrator ______CityAttorney ______Finance _____
24
Honorable Mayor and City Council
February14, 2022
Page 2
Since this change in trade names is not an indication of any legal change in
control or ownership of the Franchisee, no formal approval or consent is required
of the City Council.Thus, no action is being recommended at this time, and staff
merely provides this information for the Council's general consideration and
acknowledgment.
FINANCIAL IMPACT:
None.
Attachments
January 12, 2022, Letter from Michael R. Dover of Kelley Drye & Warren LLP,
Counsel to Radiate Holdings, L.P., parent company of WaveDivision VII, LLC,
providing notice of WaveDivision VII, LLC's Intent to Operate Under New
Trade Name
25
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27
CITY OF WOODBURN
Economic and DevelopmentServices Department
MEMORANDUM
270 Montgomery StreetWoodburn, Oregon 97071 (503) 982-5246
Date:February 1, 2022
To: Chris Kerr,CommunityDevelopment Director
From: Melissa Gitt,Building Division
Subject:Building Activity for January2022
202020212022
No.Dollar AmountNo.Dollar AmountNo.Dollar Amount
Single-Family Residential3$782,04415$3,908,93743$12,434,166
Multi-Family Residential0 $0 1 $2,558,8030 $0
Assisted Living Facilities0 $00 $00 $0
Residential Adds & Alts1 $19,7122 $12,5096 $202,046
Industrial0 $00 $00 $0
Commercial6 $9,625,7401 $100,0004 $1,032,295
Signs and Fences0$00$00$0
Manufactured Homes0$00$01$70,000
TOTALS10$10,427,49619$6,580,24919$13,738,507
Fiscal Year to Date
$14,555,077$23,797,416$500,468,994**
(July 1 –June 30)
Totals based off of permit valuation
**Project Basie (Amazon) permit valuationis $451,339,834
K:\\xx PDF Agenda Process\\2022\\February 14, 2022\\memo - 2022 - 1January.doc
28
Agenda Item
February 14, 2022
TO:Honorable Mayor and City Council
FROM:Scott C. Derickson, City Administrator
Tony Turley, Finance Director
SUBJECT:FY 2022/23 Financial Plan
RECOMMENDATION:
Adopt the attached FY 2022/23Financial Plan (Budget Policies and Fiscal
Strategy) via a motion.
BACKGROUND:
In the past year, the City has experienced a series of difficultand unprecedented
challenges due to the COVID-19pandemic. Because of the pandemic, the City
downsized a host of programs and services, mostly related to the parks and
recreational programming. In addition, the City has successfully allocated various
federal and state pandemic related funding to accomplish a variety of programs
and projects for the community, including the Legion Park Improvement Project
and to bring critical child abuse services to the Family Resource Center.
Although the City still projects revenue over expense shortfalls within the five-year
planning period, we have successfully utilized the Budget Policies and Financial
Plan, as a best practice strategy, to effectively manage,planaccordingly for
large capital projects, and lessen any shortfall impact.
TheCity Council should approach General Fund spending withcaution. There are
some reasons to be optimistic, such as regionaleconomic conditions and the
strength of the housing markets, along with potential industrial development, that
remains strong, but it will be sometime before the financial benefit of these
markets materialize into General Fundsupport.
In the interest of sound financial management,the City Council directed that a
comprehensive set of financial planning documents be developed and
implemented for the purposes of improving the City’s financial sustainability. Since
Agenda Item Review:City Administrator ___x___City Attorney __x____Finance __x___
29
Honorable Mayor and City Council
February 14, 2022
Page 2
the 2011 policy implementation, the City has prepared the Financial Plan as a
means of managing the City’s current year budget and inform the FY 2022/23
budget development process.
In past years,the City Council has been commended by the City Auditor and
recognized by the Government Finance Officers Association for the use of
comprehensive budget policies and the quality presentation, clarity, and
transparency of Woodburn’s budget documents.
The Financial Plan intends to help predict cost and revenue trends from year to
yearandmake better decisions via the memorializing of sound financial practices
and budget administration. If necessary, the Financial Plan informs the need to
reducethe City’s budget to remain consistent with the City Councilgoals and
meet community needs within available resources.
:
2022/23 POLICY
Attached is the proposed FY 2022/23Financial Plan:Budget Policies & Fiscal
Strategy, which islargely unchanged fromthe previous year, other than the
addition of a greatly enhanced and comprehensive Investment Policy, which we
will discuss during the Council meeting.
FINANCIAL IMPACT:
There is no immediate monetary impact on the City. TheFinancial Plan draft will
help make stronger financial decisions that are in the best interests of the
community and the City organization.
30
City of Woodburn
FY 2022/23FinancialPlan
Budget Policies, Fiscal Strategy, &Five Year Forecast
FY 2022/2023 Budget Goal.Woodburn’s challenge will be associated with development-related
service demands,maintaining a sound financial position in the face of changing community
dynamics, and closing projected revenue over expense General Fund shortfalls while working to
fully rebuild popular parks and recreational programming impacted by COVID-19.
1.The City will remain financially challenged for the immediate future. Working in the
framework of the City Council’s FY 2022/23 Financial Planand Oregon Budget Law, the
City Administrator will present a balanced FY 2022/23Budget, working to closeprojected
General Fund revenue shortfalls over timewhile protecting cash balances to the greatest
extent possible. The City will likely continue operating at reduced service levels pending
a COVID-19 operational and financial recovery.
2.The City will seek to build cash reserves when possible with the understanding that startup
costs may be required when starting or reestablishing COVID-19 impacted or related
services and programs. Financial plans for reestablishing pre-COVID-19 programs will be
presented to the City Council as appropriate.
3.In addition, it is also the goal of the City to prioritize existing resources on priority services
such as public safety funding, continued community COVID-19 education, economic aid,
and planning for the restoration of parks and recreation programming, including aquatics
and library services.
4.Proposed uses of the second round of the American Recovery Plan Act Funding(ARPA)
will be utilized in accordance with federal rules, maintaining or reestablishing levels of
services,and other COVID related priorities established by the City Council. The City
Administrator will include proposed uses of ARPA funds as part of the FY 2022/23 Budget
Process.
BUDGET POLICY
SECTION 1. ANNUAL REVIEW& POLICY
A.Fiscal Responsibility.The policy of the City of Woodburn is to return the highest level
(or sustain the current levels) of service with the least amount of taxpayer investment and
to plan accordingly.
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B.Balanced Budget.The City’s budget shall be balanced. For each fund, ongoing costs are
not to exceed ongoing revenues plus available fund balances used in accordancewith
reserve policies. The budget resolution will be adopted by the fund at a summary level.
C.Budget Process. The annual budget process is intended to weigh all competing requests
for City resources within expected fiscal constraints. Levels of service will increase or
decrease based on the availability of resources. Requests for new programs made outside
the annual budget process will be discouraged. New initiatives will be funded by
reallocating existing City resources to services with the highest priorities.
D.Fiscal Recommendations. Consistent with the administrative responsibilities outlined in
the Charter, the City Administrator will make fiscal recommendations to the City Council
on all measures necessary to sustain current levels of service and avoid reductions in City
programs, including the consideration by the City Council of new revenue sources if this
is determined to be in the best interest of the community.
E.Budget PolicyUpdates.The City Council will review and adopt the Fiscal Year Budget
Policies on an as-needed basis as determined by the City Administratoror as
circumstances require.
F.AnnualFive-Year Forecast.The City Council will review and approve the Five-Year
Forecastas needed.The forecast is an estimate of future revenues and expenses intended
to serve asan estimate anda guideline for makingsound financial decisions in the current
fiscal yearand budget preparation.The Five-Year Forecast and the Budget Policies
together will constitute the City’s annual Financial Plan.
G.Policy Direction.Consistent with the role outlined in the Woodburn City Charter, the
City Council is responsible for providing policy direction to determine the City’s overall
financial health.In response to the fiscal recommendations made by the City
Administrator, the City Council shall consider all measures necessary to sustain current
levels of service. In addition, the City mayavoid reductions in City programsby
consideringnew revenue sources if this is determined to be in the best interest of the
community.
H.Budget.Under the Woodburn City Charter, the City Administrator servesas Woodburn’s
Budget Officer.The Finance Director assists the City Administrator with the preparation
and presentation of the annual budget, budget administration,and the day-to-day finance
operations. The Budget Officer is responsible for the administration of the annual budget
and may approve or disapprove the expenditures contained in the adopted budget if
deemed in the best financial interest of the City.
I.Budget Administration.As authorized by the City Charter, the City Administrator is
responsible for taking actions necessary to keep expenditures within anticipated revenues,
including initiating layoffs, reorganizations, downsizing, program reductions,and
adjustments to service levels. The City Administrator will keep the City Council informed
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as to any steps taken to reduce expenditures,and whenever possible, the Council will
review the decisions and consider options during a mid-year budget review.
SECTION 2. DISCRETIONARY & DEDICATED RESOURCES
A.Recognizing Financial Limits
.Woodburn will make a distinction between two different
types of services; 1) those funded primarily from City discretionary resources,and 2) those
funded primarily from dedicated resources.
B.Discretionary Resources
. The General Fund collects resources to provide discretionary
programs and services as recommended by the Budget Officer and approved as part of the
City’s cycle.The City will continue to fund these programs primarily from General Fund
discretionary resources.These include police, park and recreation, economic development,
land use, financial services, and other programs.
C.Dedicated Resources.Dedicated resources are normally subject to restrictions via state
and federal law, grant agreements and contracts, City policy,and ordinances. City services
funded primarily through dedicated funds include such items as speed and safety belt
enforcement, grant-funded transportation, utility services, etc.
SECTION 3. GENERAL FUNDBUDGET(DISCRETIONARY)
A.Annual Budget Goal.The goal shall be to prepare a budget that maintains existing high
priority programs supported by the General Fund while at the same time seek savings and
alternative revenue sources wherever possible. Funding for lower priority programs will
be reduced or eliminated to ensure that expenditures remain in balance with resources.
B.General Fund Emphasis.The highest priority shall be to conserve General Fund
discretionary resources to fund high priority programsas defined by the City Council and
City Administrator.
C.Maximize City Council’s Discretion.Wherever legally possible, revenues are to be
treated as discretionary resources, rather than as dedicated to a particular program or
service. The goal is to givethe City Council flexibility in allocating resources to local
priorities.
D.New Revenues.In order to sustain current levels of service, avoid reductions in public
safety programs,or increase services needed to meet community demands, the City
Council may consider new discretionary revenues if it is determined to be in the best
interest of the community.
E.Use of Dedicated Funding Sources. Whenever legally possible,funding responsibility for
existing programs or activities should be transferred to appropriate dedicated funding
sources, freeing up scarce discretionary resources to fund City Council priorities.
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F.Cost Efficiency.Staff will prepare fiscally conservative budgets and will seek savings
wherever a balance between cost efficiency and the quality of public service can be
achieved.
G.Materials & Services.Departments are to prepare “base budgets” with a goal of holding
General Fund or other discretionary resources for materials and services expenditures to
no more than prior yearbudget levels.
H.No General Fund Street Maintenance Support.No discretionary General Fund revenues
will be usedto support street maintenance activities.General Fund street lighting transfers
are exempted from this policy.
I.Revenue Estimates.Departments should budget for revenues based on the best
information available during the annual process. If additional information becomes
available during the budget process, it should be provided to the Finance Director’s Office.
Accuracy in revenue/expenditure estimates iscritical. Subsequent annual estimates should
also take into consideration the actual receipts from the previous year.
J.Pursuit of New Departmental Revenues.Departments shall pursue revenue sources to
the fullest extent possible for all services as well as total cost identification (including
indirect costs) for fee-setting purposes, grants, or other funding opportunities. Any new
revenue sources should be used to offset the cost of existing staff and programs, rather than
funding new staff or programs.Fee schedules will be reviewed annually to ensure costs are
recovered.Fee schedules will be updated as part of the annual budget process.
K.Expenditure Reductions.Reductions in revenues may require expenditure reductions
from the “base budget” level. If reductions are required, the City Administrator will be
guided by the City Council’s adopted Resource Reduction Strategy (See Section 19).
L.New Discretionary Programs.New discretionary programs,deemed a high priority
activity, may be included in the Proposed Budget with the prior approval of the City
Administrator.If programs are added/expanded, an evaluation will be made on the impact
to supporting services (e.g. information, finance, facilities, human resource, budget, etc.).
Anyincreases in overhead servicesattributed to additional programs shall be included in
the analysis of the total cost of new programs.
Should outside funding for a program expire, the program may be terminated by the City
Administrator or the City Council.
M.Full Cost Recovery.City staff shall make every effort to assign costs where they occur
through the use of interdepartmental/interfund charges and indirect cost percentage
assignments. The intent is to clearly define the actual cost of each direct service the City
provides internally or externally. The first priority is the recovery of overhead costs from
all funds and grant programs.
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N.Annual Budget Savings.To the extent General Fund supported departments experience
savings during the year (due to position vacancies, etc.) that money shall be designated
first to meeting the established contingency and reserve levels. Should the contingency and
reserve levels be met, any remaining savings may be allocated towards the PERSReserve
and/or one time projects as determined by the City Administrator.
SECTION 4. NON-GENERAL FUND / UTILITY BUDGETS(DEDICATED)
A.Bottom-Line Emphasis.For activities or programs funded primarily from non-General
Fund sources, departments are to prepare “base budgets” with a goal of holding any
General Fund contribution to no more than the amount provided in the currentfiscal year,
subjectto the availability of funds. Whenever possible, reductions in General Fund
contributions should be achieved.
B.No Backfilling. General Fund discretionary dollars will not be used to backfill any loss in
water and/or sewer City utility revenue,state-shared or federal revenues, grants,or
dedicated funding programs (for further information, see the Resource Reduction
Strategy).
C.Revenue Estimates.Departments should budget for revenues based on the best
information available at the time the budgets are prepared. If additional information
becomes available during the budget process, it shall be provided to theFinance
Department. New revenues should be estimated based on available informationforthe first
year. Subsequent annual estimates should also take into consideration actual receipts from
the previous year.
D.Overhead Cost Allocation Charges.All non-General Fund departments should budget
the amount allocated to that department.
E.Cost Efficiency.As with the General Fund, staff responsible for non-General Fund budgets
will prepare fiscally conservative budgets,and will seek savings wherever abalance
between cost efficiency and the quality of public service can be achieved.
F.Utility Revenue Allocations.It is the policy of the City of Woodburn that revenue
generated by City-owned utilities will first be usedto meet operational expenses, and
subsequently fund capital projects in a manner consistent with Woodburn’s Capital
improvement plans and operating requirements.
G.Utility Rates.The City will maintain utility rates at a level thatensuresthat all debt service,
operating,and capital costs,are adequately recoveredand debt covenant requirements are
met.Capital costs identified in the approved capital improvement plan will be usedas the
basis for forming the capital costs recovery portion of utility rates.
H.System Development Charges.As permissible under state law, the City will pursue the
recoveryof infrastructure-related development costs relating to water, sewer, street, storm,
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and parks. These costs will be delineated via a defensible methodology, which will be
revisedfrom time to time to ensure accuracy.
SECTION 5. FUND RESERVES &CONTINGENCIES
A.PERS Side Account Savings
. In 2019, the City Council goal of establishing a PERS side
account was achieved with a City contribution of $2,823,043, which received a PERS
match. The City will continue to add resources to the City’s PERS Fund as resources allow,
but will direct any PERS savings to help maintain current service levels.It is the overall
goal of the City tocontinue to increase the balance in the City’s PERS Reserve Fund in
order to make future Side Account contributions.
B.General Fund Contingency. Consistent with Government Finance Officers Association
(GFOA) best practices, at least 20 percent of the General Fund’s operating appropriation
shall be placed into the operating contingency to meet cash flow needs, with a long-term
goal of increasing the reserve to 25 percent as year-end savings occur.In addition, it is the
goal of the City to preserve the contingency balanceto the greatest extent possible.No new
General Fund program or service will be created that diminishes the General Fund
Contingency below established minimum levels.
C.Contingency Replenishment.If contingency funds are expended, an effort will be made
to reduce expenses to retain a minimum of 20 percent General Fund contingency.
D.Shortfall Management Reserve (SMR).The SMR is intended to subsidizefuture
shortfalls estimated in the Five-Year Forecast.If SMR funds are expended, an effort will
be made to replenish funds as savings are identified in the annual budget process.
E.Water & Sewer Fund Contingencies.The Water and Sewer Funds will maintain annual
contingencies of not less than 5%.
F.Equipment Replacement.This fund is for the replacement of vehicles and equipment.
The goal is for City departments to transfer one-tenth the value of its fixed asset inventory
every year as budget allows to ensure future replacement funding is available. Replacement
fund transfers may be limited or delayed in order to preserve operational budgets.
SECTION 6. GRANT APPLICATIONS(ALL FUNDS)
A.Approval to Pursue.The City Administrator’s approval is necessary before any employee
pursues lobbying efforts on matters having budget implications, and before grant
applications are submitted to the granting agency. Department Heads should advise the
City Administrator before official positions are taken on matters that might have budget
implications.
B.General Fund Matching Funds.Upon approval by the City Administrator, matching fund
requirements will be presented to the City Council for final approval.
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SECTION 7. NEW POSITIONS, PROGRAMS,AND OVERTIME(ALL FUNDS)
A.Base Budget & New Positions.Departments are to prepare “base budgets” with no new
regular positions unless specifically authorized by the City Administrator in advance of
budget preparations. Reorganizations of departments or programs resulting in changes in
staffing or positions maybe considered if the change is cost-neutral or cost savings from
the current costs.No position compensation or increase will be provided beyond the
amounts budgeted for the position without prior approval from the City Administrator.
B.Considerations of New Positions/Programs
.Unless otherwise authorized by the City
Administrator, consideration of new programs and positions will occur only if the cost of
the position or program is offset by non-General Fund sources legally tied to the new
position or if the cost of the position is offset by new external revenues,reductions within
existing fundsand/or the position is required to generate those revenues.Cost estimates for
new positions will include office facility space, equipment, rent, utilities, supplies, related
increases in overhead services, etc.
Additional personnel or programs shall be requested only after service needs have been
thoroughly documented or after it is substantiated that the new employees will result in
increased revenue or enhanced operating efficiencies.
C.Annual Overtime Budgets.Departments will anticipate their annual overtime costs to be
included inthe proposed budget.Once the budget is adopted, overtime costs are to be
managed within adopted levels.No overtime costs can exceed budgeted levels without first
obtaining the authorization of the City Administrator.
SECTION 8. MID-YEAR BUDGET REDUCTIONS
A.Revised Revenue or Expense Estimates.If additional information concerning revenue
reductions or significant expense increases becomes available after the start of the fiscal
year, it may be necessary to make budget adjustments.These adjustments will be made in
accordance with the City Council’s adopted Resource Reduction Strategy.
SECTION 9. MID-YEAR REQUESTS, CONTINGENCY(ALL FUNDS)
A.Non-Emergency Requests.In those cases where a department is required to absorb an
unanticipated cost beyond its control of a non-emergency nature, departmental resources
must first be exhausted prior to a transfer from General Fund contingencies. Upon
conducting a final financial review of departmental budgets towards the end of the year, a
transfer from contingency will bepresented to the City Council through a budget resolution
or supplemental budget.
B.Emergency Requests.Emergency requests during the fiscal year will be submittedto the
City Administratorfor recommendation and forwarded to the City Council for
consideration.
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SECTION 10.COMPENSATION & BENEFITS (ALL FUNDS)
A.Wage Policy.Historically, the biggest factors forcing budget growth are increases in
employee compensation and increased benefit costs. The City will have a compensation
and benefits program that: 1) reflects the value of work performed by our employees, 2)
compares favorably with the compensation and benefits paid for similar work in both the
private and public sectors, and 3); considers the community’s ability to pay. Both our
employees and the public must understand the mutual respect that such a policy warrants.
B.Health Care & PERS Costs
.Continue the City’s policy on wageincreaseswhich evaluate
the cost of health insurance and PERS contributions as part of the total compensation
package. It is the goal of the City to reduce annual escalations of health insurance, and
other benefit costs by getting the employees to bear an equitable portion of the annual
premium increases and/or selecting lower cost-benefit programs.
C.Cost of Living Adjustments (COLA).The City Administrator will make a
recommendation either to include, or not include, a COLA for non-represented employees
in the Proposed Budget. COLAs included in the Proposed Budget are considered and
approved by the Budget Committee and City Council as part of the budget process. COLAs
or other compensation provided for in collective bargaining agreements will be provided
for in the annual Proposed Budget.
D.Step Adjustments.Budgeted personnel services expenditures will include an amount to
account for annual step adjustments for all employees who are not currently at the top of
their range. Annual employee step adjustments will not exceed 5% without the expressed
permissionof the City Administrator.
SECTION 11.BUDGET CONTROLS
A.Legal Compliance.The City Administratorand Finance Director will continue to review
and control departmental budgets at the appropriation level.
B.Personnel Services & Benefits
.With the exception of overtime pay and temporary help
accounts, which shall be developed by Department Heads with the adviceof the Finance
Director and the approval of the City Administrator, personnel services and benefits cost
calculations will be provided by the City Administrator and the Finance Director and will
be used as provided. The City Administrator and the Finance Director will also provide
estimates for insurance and internal service expenses.These amounts will not be altered by
Department Heads.
C.Wages & Benefit Control. Positions not entitled to receive benefits will be managedin a
manner that keeps them below mandatory benefit thresholds(such as PERS, health
insurance, etc.).Positions will only be eligible for benefits if approved by the City
Administrator and/or designated in Job Descriptions. All benefit costs must be anticipated
and included in the annual Budget.
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D.One-Time Revenues. One-time revenues will be used only for one-time expenses.
SECTION 12.UNAPPROPRIATED ENDING FUND BALANCES(ALL FUNDS)
A.Limit UnappropriatedEnding Fund Balances.To provide the most budget flexibility
during the year, the City will limit the use of unappropriated ending fund balances to
circumstances where they are required by law.Rather than use unappropriated fund
balances, the goal should be to place any monies not needed for current expenditures in the
relevant funds’ operating contingencies or a City Council approved reserve.
SECTION 13.CAPITAL IMPROVEMENT GUIDELINES
A.Capital Improvement Program.A 6-year Capital Improvement Program will be adopted
as partof the annual budget process. It will include all projects anticipated to be initiated
and/or delivered in the 6-year planning period. The Capital Improvement Programwill be
consistent with the City’s adopted Capital Improvement Master Plans.Funding availability
will determine the rate at which Capital Improvement Program projects are initiated or
completed.
B.Exceptions.The City will fund dedicated programs and services with dedicated funding
sources. Exceptions may be made, on a case-by-case basis, by the Budget Committee, City
Council, or by the City Administrator if appropriate.One criterionwill be whether the City
would incur more costs elsewhere as a result of the reduction.
C.Capital Planning Consideration.Recognizing that it does not necessarily make sense to
fund current operations at the expense of long-term capital or planning programs, every
effort will be made to continue capital and planning programs geared to the City’s long-
term needs.
SECTION 14. DEBT ISSUANCE (ALL FUNDS)
A.Debt Issuance.The City will issue debt in accordance with the adopted Master Debt
Resolutions for Sewer and Water. General Obligation debt will only be issued in
compliance with state statutes. Debt will only be issued (for all fund types) when a
dedicated resource is available to meet the required debt service and reserve.
No debt will be issuedwithout the approval of the City Administrator and authorization of
the City Council.
B.Interfund Transfers.Interfund transfers are allowed if the City Council determines the
transfer to be in the best interest of the City. All interfund transfers will bemanaged
consistent with state budget law.
C.Debt Compliance. On an annual basis the Finance Director and shall ensure that annual
reporting requirements have been met and will review the condition of the corresponding
debt funds to ensure compliance with existing financing agreements.
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SECTION 15. DEBT REFINANCING/REFUNDING
A.Debt Refinancing/Refunding. From time to time, the City Council and/or the City
Administrator may direct the Finance Director to determine the feasibility of
refinancing/refunding existing debt. Refinancing may include restructuring to meet
unanticipated revenue expectations, achieve cost savings, mitigate irregular debt service
payments, release reserve funds, or remove unduly restrictive bond covenants.
B.Responsibility
.The Finance Director, with the assistance of consultants as needed, shall
have the sole responsibility for conducting the analysis of outstanding bond debt for
refinancing/refunding opportunities that may be presented by underwriting and/or financial
advisory firms and making a recommendation to the City Administrator.
C.Term of Refinancing/Refunding Issues.The City may refund bonds within the term of
the originally issued debt. However, the City may consider maturity extension, when
necessary to achieve adesired outcome, provided that such extension is legally permissible.
The City may also consider shortening the term of the originally issued debt to realize
greater savings. The remaining useful life of the financed facility and the concept of inter-
generational equity should guide this decision.
D.Analysis and Report. The City will evaluate each refinancing/refunding candidate on a
case-by-case basis. When analyzing possible refinancing/refunding opportunities: the City
establishes a guideline net present value savings threshold goal of three percent (3%) of
the refinanced/refunded bond principal amount. The net present value savings will be net
of all related issuance costs. In addition, the Finance Director will make a full report on the
potential saving generated and any financial risk associated with refinancing/refunding the
debt.
SECTION 16.INVESTMENTS
A.Administration. The City of Woodburn’s Investment Policy is attached as Exhibit A.
SECTION 17. ANNUAL FINANCIAL AUDITS
A.Annual AuditRequired.The Oregon Municipal Audit Law (ORS 297.405 – 297.555)
requires a financial audit and examination be made of the accounts and financial affairs of
the City at least once a year. Consistent with State law, the City of Woodburn will conduct
an annual independent audit of the preceding fiscal year.
B.Audit Standards.Woodburn’s annual financial audits will be conducted in accordance
with auditing standards generally accepted in the United States. Those standards require
that an independent auditor plan and perform the audit to obtain reasonable assurance about
whether the basic financial statements are free of material misstatement. The audit will
examine, on a test basis, evidence supporting the amounts and disclosures in the basic
financial statements. Theaudit will also assess accounting principles used and significant
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estimates made by management, as well as evaluating the overall basic financial statement
presentation. The audit will contain an assessment of the City’s internal financial controls
and procedures to make any necessary recommendations for improvement.
C.Finance Director and City Administrator Oversight.It will be the responsibility of the
Finance Director and the City Administrator to oversee the annual audit process.
D.Preparation of Financial Statements. When feasible, City staff will prepare and provide
annual financial statements to the auditor’s satisfaction.If staffing levels or other barriers
exist to internal preparations of financial statements, the City Administrator may authorize
the auditor’s preparation of financial statements for the purposes of completing the annual
audit on time.
E.Audit Deadlines & Extensions.Per Section 17(F), the annual audit will beprovided to
the City Council no later than December 31.Consistent with State law, the annual audit
will also be filed with the Oregon Secretary of State’s Audit Division no later than
December 31. Any and all requests for audit filingor presentationextensions must be
approved by both the City Administrator and the auditor. In the event that an audit filing
extension is requested and/or granted, the City Administrator will inform the City Council
of the reason for the extension request and an estimated time line for completing,
presenting, and filing the audit.
F.Audit Presentation to Council.The annual audit findings will be presented to the
Woodburn City Council during a regularly scheduled City Council meeting by a
representative of the audit firm. All audits presented to the City Council must be complete
and signed by a representative of the audit firm.
G.Budget Committee Review. A copy of the annual financial report will be provided to the
Woodburn Budget Committee for their review.
SECTION 18.PROGRAMS
A.Discretionary Programs.To the extent discretionary resources are available, high priority
services areas will be slated for growth.Lower priority service areas will receive constant
or decreasing discretionary support.Based on the direction of the City Council,
discretionary programs are identified, and prioritized, as follows:
Police Patrol & Public Safety
Police Support Services
Financial Services
Legal Services
Land Use Planning
Economic Development
Code Enforcement
General Administration
Library
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Aquatic Center
Recreation Programming
Parks and Park/Tree Maintenance
Other General Fund Supported Non-Essential Program & Services
Computer/Network transfers (new and replacements of equipment and servers)
Discretionary Transfers (i.e. Transit, Streets, RSVP, etc.)
Community Services (i.e. flower baskets, TOT Grants – where permissible, etc.)
Intergovernmental Agreements that provide no direct offsetting revenues
SECTION 19.RESOURCE REDUCTION STRATEGY(ALL FUNDS)
A.Goal & Reduction Approach. When faced with a potential reduction in resources, the
City’s goal is to continueto provide services in a professional, effective and efficient
manner. Consequently, to the extent possible, across-the-board reductions in expenditures
will be avoided.
B.Case-by-Case Consideration. Reductions will be made on a case-by-case basis, focusing
on each individual program or service.If possible, the reduction will be made proportional
to the programs and services identified by the City Council.
C.Moderation When Possible.If, as a result of aloss of a significant amount of discretionary
resources, expenditure reductionsbecome necessary they will be made onamoderate case-
by-case basis to discretionary supported programs and services.
D.Discretionary Contributions.If further reductions are required, any discretionary funding
that supplements or supports services mostly supported with dedicated resources will be
reduced or eliminated. This may apply to programs or activities expanded or started with
discretionary resources within the last fewyears.Exceptions may be made on a case-by-
case basis by the City Council.
E.Furlough Days.If personnel budget/salary savings are required, the City may consider a
reduced workweek or furlough days prior to laying off staff.
F.Consideration List. Programs funded by discretionary resources will be reduced or
eliminated as needed. Legal restrictions or the City’s ability to maintain minimal service
levels will be considered.The City Administrator can determine the appropriate level of
consideration at his/her sole discretion when making mid-year reductions or comprising
the annual budget proposal. Based on the direction of the City Council, the order of City
service areas to be considered for reductions are:
Intergovernmental Agreements that provide no direct offsetting revenues
Community Services (i.e. flower baskets, TOT Grants – where permissible, etc.)
Discretionary Transfers (i.e. Transit, Streets, RSVP, etc.)
Computer/Network transfers (addition or replacement of computers and servers)
Other General Fund Supported Non-Essential Program & Services
Parks and Park/Tree Maintenance
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Recreation Programming
Aquatic Center
Library
General Administration
Code Enforcement
Economic Development
Land Use Planning
Legal Services
Financial Services
Police Support Services
Police Patrol & Public Safety
G.Indirect Costs
. The City’s overhead programs will not be prioritized butwill be sized to
the need and size of the overall organization. Generally, wherever possible, the City’s goal
is to make fee-supported programs self-sufficient.This includes recovering those
programs’ appropriate shareof the City’s overhead costs. If reductions occur, then indirect
costs will be sized to the needs and size of the rest of the organization.
The Transit Fund indirect costs will be per the federally allowed de minimis overhead rate
of 10 percent.
H.Dedicated Funding for Programs.Where legally possible, the City will consider using
dedicated resources to fund high priority programs related to the purpose for which the
dedicated funds are received.
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EXHIBIT A
CITY OF WOODBURN
INVESTMENT POLICY
I.Purpose
This Investment Policy defines the parameters within which funds are to be invested by the City
of Woodburn (the "City”). This policy also formalizes the framework, pursuant to ORS 294.135,
for the City’s investment activities to ensure effective and judicious management of funds within
the scope of this policy.
These guidelines are intended to be broad enough to allow designated City staff to function
properly within the parameters of responsibility and authority, yet specific enough to adequately
safeguard the investment assets.
II.Governing Authority
The City’s investment program shall be operated in conformance with Oregon Revised Statutes
and applicable federal law. Specifically, this investment policy is written in conformance with
Chapter 294 of the Oregon Revised Statute ("ORS") and the Woodburn City Charter. Any revisions
or extensions of applicable sections of the ORS 294 shall be assumed to be part of this Investment
Policy immediately upon being enacted.
III.Scope
This policy applies to activities of the City with regard to investing the financial assets of
operating funds, capital funds, bond proceeds, and bond reserve funds. Funds managed by
the City that are governed by other investment policies are excluded from this policy;
however, the management of all funds remain subject to Oregon Law.
Except where legally required to hold separate funds, the City will consolidate cash balances
from all funds to maximize investment earnings. Net investment income will be allocated to
the various funds based on generally accepted accounting principles.
IV.General Objectives
The City's investment objectives, in priority order are:
1.Safety & Preservation of Invested Capital
Investments shall be undertaken in a manner that seeks to ensure the preservation of
capital in the overall portfolio (i.e. the principal balance). The goal is to mitigate credit
risk and interest rate risk. The City will also reduce custodial risk through the use of a
third-party custodian who will hold securities in the City's name evidenced by
contract and monthly statements.
2.Liquidity
The investment portfolio shall remain sufficiently liquid to meet all reasonably anticipated
operating requirements. Where possible and prudent, the portfolio should be structured so
that investments mature concurrent with anticipated demands.
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3.Return
The investment portfolio shall be designed with the objective of attaining a market rate of
return throughout budgetary and economic cycles, taking into consideration the safety and
liquidity needs of the portfolio.
V.Standards ofCare
1.Prudence
The standard of prudence to be used by investment officials shall be the "prudent person"
standard and shall be applied in the context of managing an overall portfolio.
The "prudent person" standard states: "Investments shall be made with judgment and care,
under circumstances then prevailing, which persons of prudence, discretion and intelligence
exercise in the management of their own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the probable income to be derived."
The Investment officer and staff acting in accordance with this Investment Policy, written
procedures, and Oregon Revised Statutes 294.004 to 294.990, and exercising due
diligence shall be relieved of personal responsibility for an individual security's credit risk
or market price changes in accordance with ORS 294.047.
2.Ethics and Conflicts of Interest
In carrying out authorized activities under this Policy, Officers and employees shall, at all
times, comply with the State of Oregon Government Standards and Practices code of ethics
set forth in ORS Chapter 244. Additionally, Employees and officers shall refrain from
undertaking personal investment transactions with the same individual with whom business
is conducted on behalf of the City.
3.Delegation of Authority and Responsibilities
i.Governing Body
The City Council will retain ultimate fiduciary responsibility for invested funds. The
governing body will receive reports, pursuant to, and with sufficient detail to
comply with ORS 294.085 and 294.155.
The City Council may engage the services of one or more external investment
managers to assist in the management of the entity’s investment portfolio in a
manner consistent with this investment policy. Investment advisers may be hired
on a non-discretionary basis. All investment transactions by approved investment
advisers must be pre-approved in writing by the Investment Officer and compliant
with this Investment Policy.
ii.Delegation of Authority
Authority to manage investments within the scope of this policy and operate the
investment program in accordance with established written procedures and internal
controls is also granted to the City's Finance Director, hereinafter referred to as
Investment Officer. The Investment Officer shall be responsible for all transactions
undertaken and shall establish a system of controls to regulate the activities of
subordinate officials.
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VI.Transaction Counterparties, Investment Advisers and Depositories
1.Broker/Dealers
The Investment Officer shall determine which broker/dealer firms and registered
representatives are authorized for the purposes of investing funds within the scope of this
investment policy.
The following minimum criteria must be met priorto authorizing investment transactions.
i.Broker/Dealer firms must meet the following minimum criteria:
A.Be registered with the Securities and Exchange Commission (SEC)
B.Be registered with the Financial Industry Regulatory Authority (FINRA)
C.Provide most recent audited financials
D.Provide FINRA Focus Report filings
ii.Approved broker/dealer employees who execute transactions with the
City must meet the following minimum criteria:
A.Be a registered representative with the Financial Industry Regulatory
Authority (FINRA);
B.Be licensed by the state of Oregon;
C.Provide certification (in writing) of having read; understood; and agreed to
comply with the most current version of this investment policy.
iii.Periodic (at least annual) review of all authorized broker/dealers and their
respective authorized registered representatives will be conducted by the
Investment Officer. Factors to consider would be:
A.Pending investigations by securities regulators
B.Significant changes in net capital
C.Pending customer arbitration cases
D.Regulatory enforcement actions
2.Direct Issuers
Obligations that are permitted for purchase by this policy may be purchased directly from
the issuer.
3.Investment Advisers
Investment advisers engaged by the City must meet the following minimum criteria.
i.The following items are required for all approved Investment Advisers:
A.The investment adviser firm must be registered with the Securities and
Exchange Commission (SEC) or licensed by the state of Oregon (Note:
Investment adviser firms with assets under management > $100 million
must be registered with the SEC, otherwise the firm must be licensed by the
state of Oregon).
B.All investment adviser firm representatives conducting investment
transactions on behalf of the City must be registered
representatives with FINRA.
C.All investment adviser firm representatives conducting investment
transactions on behalf of the City must be licensed by the state of Oregon.
D.Certification, by all of the adviser representatives conducting investment
transactions on behalf of this entity, of having read, understood and agreed
to comply with this investment policy.
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ii.A periodic (at least annual) review of all investment advisers under contract will be
conducted by the Investment Officer to determine their continued eligibility within
the portfolio guidelines. Factors to consider would be:
A.Pending investigations by securities regulators
B.Significant changes in net capital
C.Pending customer arbitration cases
D.Regulatory enforcement actions
4.Depositories
All financial institutions who desire to become depositories must be qualified Oregon
Depositories pursuant to ORS Chapter 295.
VII.Suitable and Authorized Investments
1.Permitted Investments
The following investments are permitted pursuant to ORS 294.035, 294.040, and ORS
294.810.
US Treasury Obligations: U.S. Treasury and other government obligations that
carry the full faith and credit guarantee of the United States for the timely
payment of principal and interest.
US Agency Obligations: Senior debenture obligations of US federal
agencies and instrumentalities or U.S. government sponsored enterprises
(GSE).
Oregon Short Term Fund
Corporate Indebtedness
1.Commercial Paper issued under the authority of section 3(a)2 or 3(a)3
of the Securities Act of 1933.
2.Corporate Bonds
Banker's Acceptances
Qualified Institution Time Deposits/Savings Accounts/Certificates of Deposit
2.Approval of PermittedInvestments
If additional types of securities are considered for investment, per Oregon state statute they
will not be eligible for investment until this Policy has been amended and the amended
version adopted by the City.
3.Prohibited Investments
i.Private Placement or “144A” Securities
Private placement or “144A” securities are not allowed. For purposes of the policy,
SEC Rule 144A securities are defined to include commercial paper privately placed
under section 4(a)(2) of the Securities Act of 1933.
ii.US Agency Mortgage-backed Securities
US agency mortgage-backed securities such as those securities issued by FNMA and
FHLMC are not allowed.
iii.Securities Lending
The City shall not lend securities nor directly participate in a securities
lending program.
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VIII.Investment Parameters
1.CreditRisk
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a
real or perceived change in the ability of the issuer to repay its debt. Credit risk will be
mitigated by the following guidelines:
i.Diversification
It is the policy of the City to diversify its investments. Where appropriate,
exposures will be limited by security type; maturity; issuance, and issuer. Allowed
security types and Investment exposure limitations are detailed in the table
below.
ii.Recognized CreditRatings
Investments must have a rating from at least one of the following nationally
recognized statistical ratings organizations (NRSRO): Moody’s Investors Service;
Standard & Poor’s; and Fitch Ratings Service as detailed in the table below.
Ratings used to apply the guidelines below should be investment level ratings
and not issuer level ratings. A single rating will be determined for each
investment by utilizing the lowest security level rating available for the security
from Standard and Poor’s, Moody’s Investor Services and Fitch Ratings
respectively.
iii.Portfolio Average Credit Rating
The minimum weighted average credit rating of the portfolio’s rated investments
shall be Aa/AA/AA by Moody’s Investors Service; Standard & Poor’s; and Fitch
Ratings Service respectively.
iv.Exposure Constraints and Minimum Investment Credit Ratings
The following table limits exposures among investments permitted by this policy.
Issue Type Maximum % Minimum Ratings
HoldingsMoody’s / S&P / Fitch
US Treasury Obligations 100% None
US Agency Securities 100% -
Per Agency (Senior Obligations Only) 33% -
Oregon Short Term Fund Maximum allowed -
(Local Gov. Investment Pool "LGIP") per ORS 294.810
Bankers’ Acceptances 25%A1+/P1/F1+
Time Deposits/Savings 50% -
Accounts/Certificates of Deposit
Per Institution 25%
Corporate Debt (Total) 15%-
Corporate Commercial Paper 15%
Per Issuer2.5% A1/P1/F1
Corporate Bonds10%
Per Issuer2.5% Aa/AA/AA
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v.Restriction on Issuers withPrior DefaultHistory
Per ORS 294.040, the bonds of issuers listed in ORS 294.035 (3)(a) to (c) may be
purchased only if there has been no default in payment of either the principal of or
the interest on the obligations of the issuing county, port, school district, or city,
for a period of five years next preceding the date of the investment.
2.Liquidity Risk
Liquidity risk is the risk that an investment may not be easily marketable or redeemable.
The following strategies will be employed to mitigate liquidity risks:
i.The value of at least six months of budgeted operating expenditures will be
invested in the Oregon Short Term Fund, with a qualified depository institution,
or investments maturing in less than 90 days to provide sufficient liquidity for
expected disbursements.
ii.Funds in excess of liquidity requirements are allowed for investments maturing in
greater than one year. Portfolio investment maturities will be limited as follows:
Total Portfolio Maturity Constraints:
Maturity ConstraintsMinimum % of Total Portfolio
Under 90 days Six (6)Months Estimated
Operating Expenditures
Under 1 year 50%
Under 3 years 100%
iii.Reserve or Capital Improvement Project monies may be invested in securities
exceeding the maximum term if the maturities of such investments are made to
coincide as nearly as practicable with the expected use of the funds.
3.Interest Rate Risk
Longer-term investments have the potential to achieve higher returns but are also likely to
exhibit higher market value volatility due to the changes in the general level of interest rates
over the life of the investment(s). Interest rate risk will be mitigated by providing adequate
liquidity for short term cash needs, and by making longer-term investments only with funds
that are not needed for current cash flow purposes. The following strategies will be
employed to control and mitigate adverse changes in the market value of the portfolio due
to changes in interest rates:
i.Where feasible and prudent, investment maturities should be matched with
expected cash outflows to mitigate market risk.
ii.To the extent feasible, investment maturities not matched with cash outflows,
including liquidity investments under one year, should be staggered to mitigate re-
investment risk.
iii.No commitments to buy or sell securities may be made more than 14 days prior to
the anticipated settlement date, or receive a fee other than interest for future
deliveries.
iv.The maximum percent of callable securities in the portfolio shall be 10%;
v.The maximum stated final maturity of individual securities in the portfolio shall be
three years, except as otherwise stated in this policy.
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IX.Investment of Proceeds from Debt Issuance
Investments of bond proceeds are restricted under bond covenants that may be more
restrictive than the investment parameters included in this policy. Bond proceeds shall be
invested in accordance with the parameters of this policy and the applicable bond covenants
and tax laws.
X.Investment of Reserve or Capital ImprovementFunds
Pursuant to ORS 294.135(1)(b), reserve or capital Improvement project monies may be invested
in securities exceeding three years when the funds in question are being accumulated for an
anticipated use that will occur more than 18 months after the funds are invested, then, upon
the approval of the City Council, the maturity of the investment or investments made with the
funds may occur when the funds are expected to be used.
XI.Guideline Measurement and Adherence
If the portfolio falls outside of compliance with adopted investment policy guidelines or is
being managed inconsistently with this policy, the Investment Officer shall bring the
portfolio back into compliance in a prudent manner and as soon as prudently feasible.
Violations of portfolio guidelines as a result of transactions; actions to bring the portfolio
back into compliance; and reasoning for actions taken to bring the portfolio back into
compliance shall be documented and reported to the City Council.
XII.Reporting and Disclosure
1.Compliance
The Investment Officer shall prepare a report at least monthly that allows the City
Council to ascertain whether investment activities during the reporting period have
conformed to the investment policy. The report will include, at a minimum, the following:
i.A listing of all investments held during the reporting period showing: par/face value;
accounting book value; market value; type of investment; issuer; credit ratings; and
yield to maturity (yield to worst if callable).
ii.Distribution by type of investment
iii.Transactions since last report
iv.Distribution of transactions among financial counterparties such as broker/dealers
v.Violations of portfolio guidelines or non-compliance issues that occurred during the
prior period or that are outstanding. This report should also note actions (taken or
planned) to bring the portfolio back into compliance.
2.Performance Standards/ Evaluation
At least annually, the Investment Officer shall report comparisons of investment returns to
relevant alternative investments and comparative Bond Indexes. The performance of the
portfolio should be compared to the performance of alternative investments such as
available certificates of deposit; the Oregon Short Term Fund; US Treasury rates; or against
one or more bond indices with a similar risk profile (e.g., Bond indexes comprised high
grade investments and maximum maturities of three years).
When comparing performance, all fees and expenses involved with managing the portfolio
shall be included in the computation of the portfolio’s rate of return.
3.Audits
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Management shall establish an annual process of independent review by the external
auditor to assure compliance with internal controls. Such audit will include tests deemed
appropriate by the auditor.
XIII.Policy Maintenance and Considerations
1.Review
The investment policy shall be reviewed at least annually to ensure its consistency with the
overall objectives of preservation of principal, liquidity and return, and its relevance to
current law and financial and economic trends.
2.Policy Adoption and Amendments
This investment policy and any modifications to this policy must be formally approved in
writing by the City Council.
This policy will also be submitted to the Oregon Short Term Fund (OSTF) Board for review
where the policy:
Allows maturities beyond 18 months unless the funds are being accumulated for a specific
purpose, including future construction projects, and upon approval of the City Council, the
maximum maturity date matches the anticipated use of the funds (ORS 294.135(1)(b) and
294.135(3)),
And either:
A.This policy has never been submitted to the OSTF Board for comment;
Or
B.Material changes have been made since the last review by the OSTF Board.
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Table of Contents
Introduction ................................................................................................................................................................1
City of Woodburn Background ...............................................................................................................................1
Purpose of the Forecast .........................................................................................................................................2
Forecast Methodology ...........................................................................................................................................2
Executive Summary ....................................................................................................................................................3
Economic and Demographic Assumptions .............................................................................................................3
Issues in the Coming Year .......................................................................................................................................3
Citywide Issues Beyond One Year ..........................................................................................................................3
Fund Summaries: ....................................................................................................................................................4
General Fund ..............................................................................................................................................................6
Building Inspection Fund ............................................................................................................................................8
Transit Fund ................................................................................................................................................................9
Street Fund .............................................................................................................................................................. 10
Water Fund .............................................................................................................................................................. 11
Sewer Fund .............................................................................................................................................................. 12
Remaining Funds ..................................................................................................................................................... 13
Major Assumptions – Revenues .............................................................................................................................. 15
Major Assumptions – Expenditures ........................................................................................................................ 16
Glossary ................................................................................................................................................................... 17
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Introduction
City of Woodburn Background
The City of Woodburn is a municipal corporation, which operates under a Council-Manager form of
government. Policymaking and legislative authority are vested in the City Council, which consists of an
elected Mayor (two-year term position) and six councilors (four-year term positions). The City
Administrator is responsible for carrying out Council ordinances and policies, managing the daily
operations, and appointing department heads. The City provides a full range of services, including but
not limited to: police, water, wastewater, public works, library, parks, recreation, aquatics, municipal
court, community planning and building inspections, and economic development.
Woodburn, incorporated in 1889, is located in
the Willamette Valley halfway between the
larger urban areas of Portland and Salem.
The City of Woodburn, with a population of
1rd
26,250, is Oregon’s 23mostpopulated city,
and third most populated city in Marion
County. The population of the region within a
30-mile drive of Woodburn is 2.1 million,
according to the American Community Survey.
The US Census data shows Woodburn per
capita income was $20,720 (compared to
$33,763 for the state), and the median income
for a household was $50,093, or 20 percent
less than the state median household income
2
of $62,818.
Historically, the Woodburn economy centered around agricultural and forest products, with the City
serving as the manufacturing and services hub for these two sectors. As nearby urban populations have
grown, Woodburn has attracted a variety of new businesses ranging from advanced manufacturing,
distribution and warehousing, agricultural and food processing, wood products manufacturing, regional
retail and a wide range of service-providing businesses. Amazon is in the process of building a 3.8 million
square foot fulfillment center in Woodburn that is the largest current construction project in the state.
It is targeted to be complete in the summer of 2023.
Woodburn is an attractive community with new single and multi-family housing subdivisions already in
the development queue. Metro area transportation issues and affordable housing shortages are creating
1
Portland State University, Population Estimates and Reports, Certified Population Estimates, July 1, 2019
2
US Census Bureau Quick Facts, Woodburn, OR (figures shown in 2019 dollars)
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population shifts into Woodburn. Marion County’s adopted population projections indicate Woodburn
will grow to 37,216 by 2030.
Purpose of the Forecast
The intent of this forecast is to project the financial position of primary operating funds, based on current
service levels and conservative assumptions. The forecast sets the stage for the annual budget process,
aiding both the City Administrator and City Council in establishing policies and priorities to allocate
resources appropriately. Forecasting is one of the most powerful tools the City has available to help
make informed financial decisions that will ensure the City’s future vitality and economic stability.
Forecast Methodology
Economic forecasting is not an exact science;rather, it is dependent upon the best professional judgment
of the forecaster. The City of Woodburn’s approach to forecasting is to apply a conservative philosophy
that neither overstates revenues nor understates expenditures. To enhance the accuracy of projections,
the City identifies factors that contribute to the changes in revenues and expenditures, such as
development, inflation, interest rates and known future events that will affect operations. Forecasting
of operating costs embraces the concept of status quo. This concept assumes that the current level of
service will continue for the next five years with cost changes based on inflationary increases. This
provides a baseline economic estimate from which reductions or increases in service levels can be
determined. To the extent certain reductions or additions are anticipated, they are noted within the fund
section of this report. Exceptions to the status quo assumptions are noted at the beginning of each fund.
Capital improvement projects are prioritized according to master plans for Water, Sewer,
Transportation, Storm Water, and Parks, but are scheduled based on available resources. To the extent
possible, operations are funded first and remaining resources are allocated to fund capital improvement
projects. This frequently means that improvements are delayed until the needed funding has been set
aside. Improvements too expensive to be paid from net resources are assumed to be funded via bonded
debt, although in practice, this is a rare occurrence. For these reasons, capital construction funds, and
the related special revenue funds, are not included in this forecast.
Utilizing general ledger reports, audited financial statements, water and sewer master plans/rate
studies, and published City budgets, each of the funds listed below were examined to identify patterns
in revenues, expenditures and cash balances that may indicate financial instability or threats to the
sustainability of current operations.
We look forward to feedback from the City Council and other interested parties on identified issues.
Because the fund section provides detailed information, the executive summary will focus on the most
significant issues facing the City.
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Executive Summary
The forecast is based on the combined effort of City staff and predicts that most operating funds will
have sufficient resources to meet expenses over the five-year period. A few of the fund graphs depict a
declining undesignated balance of resources. While this may seem alarming, it is just an indicator. In
reality, the City would not submit a proposed budget where costs exceed all available resources. The
forecast allows the City to identify where problems might occur and provides the adequate time to take
corrective action before the situation becomes a crisis. Thegoal in assembling this report is to reveal
trends, highlight financial issues and provide suggestions and options.
Economic and Demographic Assumptions
Oregon and the City of Woodburn’s economic conditionwill be heavily influenced by populationgrowth.
Woodburn’s economy determines the ability to retainthelocal workforce as well as attract new job
seekers. These factors will weigh heavily upon the City’s ability to continue to provide a high-level service
to the public.
Issues in the Coming Year
COVID-19 restrictions in early 2020 resulted in layoffs of part-time employees in Aquatics, Recreation
and Library, and reduced service in Transit. Forecast includes estimates for full staff costs pre-COVID.
Continued focus on stabilizingfinancesacross all funds in light of rising wages, increased retirement
costs and medical insurance costs, and the need to grow the work force to sustain a growing
community
The Urban Growth Boundary (UGB) expansion has permitted opportunities for future development,
which will increase future demands on safety/security, water, sewers, streets, building activities, and
recreational opportunities. Supplying the demand is expected from an estimated 3,000 housing
units (a mixture of both single-family and multi-family) over the next five years. Employment needs
will be met by the development of the newly annexed industrial areas (expected to provide an
estimated 1 million additional square feet during this time.)
Expansion of the Economic Development program
Citywide Issues Beyond One Year
Public Employees Retirement System (PERS): The City participates in the Oregon PERS State and Local
3
Government Rate Pool employee pension program. The City’s liability in PERS was $16,971,947as of
June 30, 2021. This liability will be paid through a combination of interest earnings and rate increases.
Annual interest earnings that meet or exceed 7.2 percent will reduce the liability and subsequent
biennial PERS rates, while earnings below 7.2 percent will increase the liability and also increase
3
The $16,979,947 is the City of Woodburn’s net proportionate share of the Unfunded Actuarial Liability as of June 30, 2021.
Oregon PERS’ independently audited financial statement can be found at http://www.oregon.gov/pers
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subsequent biennial PERS rates. Currently the unfunded liability of $16.97 million has been amortized
for repayment through 2035-36. Therefore, each biennium includes an increase due to normal cost
increases for the current employees, plus an amortization payment for the unfunded liability. Rate relief
is projected to begin in the 2036-37 biennium.
In May 2017, Gov. Kate Brown appointed a PERS task force to identify potential funding sources to
address the statewide $5 billion PERS liability. The findings resulted in the approval of Senate Bill (SB)
1566 establishing an Employer Incentive Fund (EIF), which provides up to 25.0 percent matching funds
for qualifying employers who make an additional one-time lump sum payment to pay down their PERS
unfunded actuarial liabilities (UAL). The PERS board is developing the program, inclusive of procedures
to request matching funds, and develop a strategy to reduce the unfunded liability.
The city participated in a PERS side account and in December 2019 paid PERS $2,823,043. With the state
contribution, the total Side Account is $3,527,735. This reduced each of the City’s PERS contribution
rates by 2.85 percent.
Health Insurance
Though the City has implemented a high-deductible medical plan and attempted to control health
insurance costs, the growth rates on some policies have continued to increase. Due to the uncertainty
in health care premiums, prescription rates, and the future stability of the Affordable Care Act, the first
forecast year includes an average 5 percent growth assumption in each forecast year.
Fund Summaries:
General Fund
Service demands in Police and Community Services (i.e., Library, Aquatic Center, Recreation, and Parks)
will increase as Woodburn’s populations grows. Meeting the service demands will require
new/additional revenue or cuts to existing programs. Property tax revenue will assist in meeting the
community needs, and the 3.0 percent annual growth allowed by law has been included in each of the
forecast years. Anticipated property development will be included in the tax forecast as they are added
on the county assessor tax rolls. Higher inflation factors have been taken into account in the salary and
benefits categories to match the CPI increases in these areas.
Water
The operational fund is strengthening following a declining fund balance due to rising costs without
corresponding rate increases since 2006. The fund ended each fiscal year in the positive due to the
deferral of capital improvement projects. A rate study was presented in spring 2018 which resulted in
City Council approving ten years of rate increases beginning July 2018; 10 percent increases in 2018 and
2019, followed by annual increases of 4 percent each July in the remaining years 3-10. Fund balance
reductions are anticipated over the next few years as capital projects are completed ahead of growth
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needs. Fund balance should improve as rate increases are implemented and new development is
completed.
Transit
Each year the Transit Fundstruggles to meet its operational needs, and most years is able to maintain a
fund balance due to an annual subsidy from the General Fund.In FY 2020-21, the annual GF subsidy was
increased to $150,000. Transit is aggressively seeking grants to fund operations and maintain and/or
increase current levels of service. Revenue from the statewide transit tax of 0.1 percent, implemented
in July 2018 and charged to all employees through payroll, is helping increase the annual revenues.
Wastewater
The Sewer Fund reflects the utility rate revenue and operational costs. Major expansion at the
Wastewater Treatment Plant (WWTP) originally planned in 2011-12 has been on hold awaiting a decision
from DEQ regarding the water quality limits for temperature. With that lawsuit finally resolved, work
can begin on the project to update the Wastewater Facilities Plan and Rate Study, which will inform
necessary facilities upgrades and the financial resources required to complete them.
Streets
The City has allowed the fund balance to grow in preparation for priority capital projects. Currently, the
West Hayes Street improvement is the top capital improvement project.
HB 2017 Keep Oregon Moving was implemented in 2018 and includes a 4-cent gas tax increase. An
implementation dashboard has been set up for HB2017 on the ODOT website. The current Keep Oregon
Moving report of revenue and expenditures is available on ODOT’swebsite.
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General Fund
Variances from Status Quo Assumptions
None
Key Assumptions
Property tax revenue increase of 4.5 percent in FY 2022-23, 12 percent in FY 2023-24, 15 percent in FY 2024-
25,and 3.5 percent FY 2025-26 through FY 2026-27
PERS rate is 20.5 percent as of July 1, 2021, will increase to 22.5 percent two years later in FY 2023-24, and
increase to 24.5percent inFY 2025-26
General Fund Right-of-Way charge on Water and Sewer of 5 percent continues on total revenues
Addition of new Right-of-Way charges for small franchise utilities
Operating Position
General Fund Forecast
22,000,000
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
Dollars
10,000,000
8,000,000
6,000,000
4,000,000
ActualActualActualActual
FORECASTFORECASTFORECASTFORECASTFORECAST
PROJECTION
FY 2017-18FY 2018-19FY 2019-20FY 2020-21FY 2021-22FY 2022-23FY 2023-24FY 2024-25FY 2025-26FY 2026-27
RevenueExpensesEnding Fund Balance
Property taxes account for nearly two-thirds (68 percent) of the annual revenues in the General Fund.
Property taxes will increase as new developments occur within city limits, but it takes several years to
see the income increase. The forecast assumes an increase of 4.5 percent in FY 2022-23 from the housing
permit activity in the last two fiscal years. An increase of 12 percent in FY 2023-24 and 15 percent in FY
2024-25 from the completion of the Amazon facility followed by a more conservative 3.5 percent growth
in the remaining fiscal years as the construction of new housing units flattens out.
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Franchise fees, the second largest revenue in this fund, are based on the gross revenues collected in
Woodburn for utilities that use the City’s right-of-way. Charges for Goods and Services is the third largest
type of revenue at 4.4 percent. Forecast revenues are projected to increase at a modest 1.0 percent rate
beyond year one of the forecast period.
Potential Impacts and Issues
There are potential future demands that could increase costs in this fundand will require close
monitoring. These include:
Police Staffing: As the community grows, there will be an increased demand for police services.
Parks & Recreation: As demand grows for use of City parks, additional burden is placed on the City’s
General Fund to provide enhanced services. Additional staff hours are required for cleanup and
maintenance of these parks. These potential cost increases are not included in the forecasts.
Engineering & Planning: Engineering & Planning division expenditures will be significantly impacted by
new development within the Urban Growth Boundary expansion, and by the city as a whole. The City
will closely monitor the actual revenues against the forecast and will take corrective action if necessary.
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Building Inspection Fund
Variances from Status Quo Assumptions
Permit revenues continue to increase due to large residential and commercial developments
The FY2021-22 spikeis impacted by the new Amazon project
Increased building activity prompted the creation of a full-time plans examiner position using two
unfilled part-time plans examiner positions for FY 2021-22
Operating Position
Building Inspection Fund Forecast
$10,000,000
$9,500,000
$9,000,000
$8,500,000
$8,000,000
$7,500,000
$7,000,000
$6,500,000
$6,000,000
$5,500,000
$5,000,000
$4,500,000
Dollars
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
ActualActualActualActualProjectionFORECASTFORECASTFORECASTFORECASTFORECAST
FY17-18FY18-19FY 19-20FY 20-21FY 21-22FY22-23FY23-24FY24-25FY25-26FY26-27
RevenueExpensesEnding Fund Balance
The Building Inspection team provides services to ensure safe building design and construction through
the enforcement of building codes and standards. Revenues are based onpermits issued for new
development and redevelopment that historically ebbs and flows. Future revenues are based on
estimates of when specific projects might begin.
Potential Impacts and Issues
The Building Fund, of course, will be significantly impacted by the Urban Growth Boundary expansion.
Delays in developers submitting plans or starting construction will impact the bottom line. The City will
closely monitor the actual revenues against the forecast and will take corrective action if necessary.
Approximately 50percent of the Woodburn School District 2015 voter approved bond measure allows
for significant construction work to all the school buildings for repairs, additions and two new schools.
The school bond will impact the department workload and revenue over the next five years.
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TransitFund
Variances from Status Quo Assumptions
COVID-19 restrictions reduced routes times, reduced fare revenues and reduced part-time staff
starting in late FY 2019-20 and continuing in FY 2020-21. Forecast considers full staff estimates.
FY 2022-23revenue and expenditure spikes reflectthe purchase of sixnew vehicles
Operating Position
Transit Fund Forecast
$2,500,000
$2,000,000
$1,500,000
$1,000,000
Dollars
$500,000
$-
$(500,000)
$(1,000,000)
ActualActualActualActualProjectionFORECASTFORECASTFORECASTFORECASTFORECAST
FY 17-18FY 18-19FY 19-20FY 20-21FY21-22FY 22-23FY 23-24FY 24-25FY 25-26FY 26-27
RevenueExpensesEnding Fund Balance
Transit provides Dial-a-Ride services for disabled citizens and fixed route bus operations and is funded
by a contribution of $150,000 from the General Fund with the balance from grant revenue and fares.
Capital Projects — From Operating Revenues
Replacement of buses and vans is done as needed and historically has occurred when grant funding is
available. The spike in FY2022-23 includes the purchase of six new vehicles, funded with grant revenue
and one-time funding from Amazon for a new commuter route. Pandemic-related manufacturing and
shipping delays resulted in a delay of planned vehicle purchase in FY 2021-22.
Potential Impacts and Issues
Should a large, unanticipated curtailment of state and/or federal grant revenue occur, this program
could potentially be drastically curtailed or discontinued,as replacement funding is not anticipated to
be available from the General Fund.
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Street Fund
Variances from Status Quo Assumptions
None
Operating Position
Street Fund Forecast
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
Dollars
$1,000,000
$-
$(1,000,000)
ActualActualActualActualProjectionFORECASTFORECASTFORECASTFORECASTFORECAST
FY 17-18FY18-19FY 19-20FY 20-21FY 21-22FY22-23FY23-24FY24-25FY25-26FY26-27
RevenueExpensesEnding Fund Balance
State gas taxes are the largest source of revenue followed by privilege taxes paid by PGE and NW Natural.
Revenue is allowed to accumulate over time in order to fund major street improvements. As the
improvements are underway the expense budget spikes and the fund balance decreases. While the
forecast shows fund balance decreasing to zero,in reality the capital projects will be staggered or
delayed in a manner that preserves the fund balance.
Capital Projects — From Operating Revenues
The current major capital projects shown in the forecast period are West Hayes Street from Settlemier
to Cascade and South Woodland Extension.
Potential Impacts and Issues
Due to the increase in the gas tax/registration/other fees, and the shifting of shared revenues (to cover
street lighting expenses) to this fund, the financial outlook remains relatively stable. Privilege taxes are
dependent on population growth and can be impacted by weather patterns.
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WaterFund
Variances from Status Quo Assumptions
Spring 2018 water rate study resulted in City Council approved increases over the next 10 years;
annual increases of 4 percent each July from 2020 to 2028.
FY 2018-19 the water bond was refinanced
FY 2024-25 expenditure peak reflects the Country Club Road water line transmission replacement
Operating Position
Water revenues areprimarily driven by consumption. The funds costs are a mix of fixed expensesfor the
systems and infrastructure required to provide water, plus variable operating expenses.
Water Fund Forecast
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
Dollars
$2,000,000
$-
$(2,000,000)
$(4,000,000)
ActualActualActualActualProjectionFORECASTFORECASTFORECASTFORECASTFORECAST
FY17-18FY18-19FY19-20FY 20-21FY 21-22FY22-23FY23-24FY24-25FY25-26FY26-27
RevenueExpensesEnding Fund Balances
Potential Impacts and Issues
As personnel, material and services costs continue to increase, levels of service will become difficult to
maintain. Additionally, unknown capacity improvements predicated by the UGB expansion will impact
future capital needs.
Capital Projects — From Operating Revenues
The Water Construction Fund 466 still carries a balance to cover most of the proposed projects for FY
2022-23. However, after that balance is spent the Water Fund will budget transfers for future water
construction. While the forecast shows fund balance decreasing to zero, in reality the capital projects
will be staggered or delayed in a manner that preserves the fund balance. Major projects include a new
well and raw water piping at the Parr Road Treatment Plant and painting the elevated storage tank.
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Sewer Fund
Variances from Status Quo Assumptions
Bond defeasance was paid in early FY 2020-21 of $13.5 million
Sewer rate increases of 5 percent in January 2021 and 2022
Operating Position
Sewer Fund Forecast
$25,000,000
$20,000,000
$15,000,000
$10,000,000
Dollars
$5,000,000
$-
$(5,000,000)
ActualActualActualActualProjectionFORECASTFORECASTFORECASTFORECASTFORECAST
FY17-18FY18-19FY19-20FY 20-21FY 21-22FY22-23FY23-24FY24-25FY25-26FY26-27
RevenueExpensesEnding Fund Balance
Potential Impacts and Issues
In January 2012, thefinal design planfor required wastewater treatment plant upgradeswere submitted
to DEQ based on their previously approved evaluation report. In August 2013, EPA provided notice to
DEQ disapproving of Oregon Water Quality Standards, includingNatural Conditions Criteria for
Temperature, and Statewide Narrative Natural Conditions Criteria, in general. The Pudding River TMDL
for temperature, established in 2008 using natural criteria, could no longer be used for permitting.
Recently, the legal challenges to TMDL standards have been resolved, which will allow DEQ to establish
a water quality standard for the Pudding River and the development of the City’s updated National
Pollutant Discharge Elimination System (NPDES)permit. To initiate this process, the City is undertaking
an update to the Wastewater Facilities Master Plan & Rate Study, which will inform necessary upgrades
to the treatment plant and collection systems, as well as the financial resources required to accomplish
them.
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Remaining Funds
Capital Construction Funds
Capital Construction Funds are not included in this forecast because their activity is limited by funds
available. A more robust capital construction plan and reporting mechanisms were implementedfor
development during the FY 2020-21 budget cycle.
Remaining Funds
The remaining 13 funds have dedicated revenue sources, are for a specific purpose, or have nominal
activity. These funds have not been included as part of the Five-Year Forecast.
Urban Renewal Forecast is shown below
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Urban RenewalFund
Variances from Status Quo Assumptions
Business grants were given out during COVID-restricted times
Peak in FY 2018-19 was the First Street Improvement projectcosts and a loan for the
improvement which will paid through FY 2028-29
The building of twoapartment complexes in the Urban Growth Area is expected to increase
property tax revenuebeginning in FY 2022-23 and, therefore, increase the Urban Renewal Fund’s
revenue
Operating Position
Urban Renewal Fund Forecast
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
Dollars
$1,500,000
$1,000,000
$500,000
$-
ActualActualActualActualProjectionFORECASTFORECASTFORECASTFORECASTFORECASTFORECAST
FY 17-18FY 18-19FY 19-20FY 20-21FY 2021-FY 22-23FY 23-24FY 24-25FY 25-26FY 26-27FY 26-27
22
RevenueExpensesEnding Fund Balance
Potential Impacts and Issues
Future projects may be impacted by funding although, many grants are available and the staff has been
successful in acquiring grants.
Capital Projects — From Operating Revenues
Major projects include the completion of the Bungalow Theater and Museum, Historic Locomotive
Shelter and the Public Arts and Mural program. With the increased operating revenues from the
assessed valuations of new apartment complexes, new capital projects will be identified in the coming
years to utilize the additional funds.
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Major Assumptions – Revenues
The assumptions for this forecast arebased on historical trends and expected growth. Most revenues
will be improved as the City’s boundary grows, but there will be pressure on staffing levels or other
expenses that may generate offsetting expenses in the short run.
Revenue Assumptions
Property Taxes — General Fund
The Marion County Assessor determines the taxable assessed value of each property. In Oregon, there
is no correlation between real market value and assessed value. Generally, assessed values grow by 3
percent per year as allowed by the state constitution, but has been impacted by compression. Reduced
property tax revenue due to compression reached a peak during the recessionand has steadily improved
in the last threeyears. The City’s tax rate is permanently set at $6.0534 per $1,000 of assessed value,
and is subject to limitation under Ballot Measures 5 and 50.
Franchise Fees — General Fund
These fees are assessments on the utility companies’ gross receipts for using the City’s right-of-way.
Rates vary by type of utility ranging from 3 percent to 8 percent. Franchise fees are assessed on
telecommunication, cable television, natural gas, electric utilities, ambulance and garbage. These
revenues are expected to grow at a rate of 1 percent for the forecast period. A new Right-of-Way
franchise fee was implemented in December 2020 for small utilities using the City’s right-of-way.
Charges for Goods & Services — Utility User Charges
Water: The forecast assumes a 4 percent rateincrease in each of the forecast years as adopted by City
Council through 2028.
Sewer: The forecast includes 5 percent rate increases effective January 2021 and January 2022 as
adopted by City Council.
Gas Taxes
The State Gas Tax is estimated with a growth rate of 5 percent per year.
Building, Planning and Engineering Permits
Permit revenues are based on identification of specific developments with assumptions based on which
fiscal year the development is likely to begin.
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Major Assumptions – Expenditures
PersonnelServices
Wages: Due to higher inflation in calendar year 2021, the potential for a higher COLA has been
accounted for in the first year (FY 2022-23) of the five year forecast. Subsequent years have been
forecast at the normal 3 percent increase. This is a conservative estimate, which takes into
account bargaining agreements and merit increases.
Bargaining GroupFYFY
2021-22 2022-23
Woodburn Police Association –Officers (WPA)– contract end 6/2022 2.5% N/A
Woodburn Police Association – Community Service Officers (WPA) 2.5% N/A
American Federation of State, County, and Municipal Employees 3% N/A
(AFSCME) – contract ends 6/2022
Insurance: A growth rate of 5 percent is used for insurance costs ineach of the forecast years.
PERS: Rate assumptions for all categories were reduced due to the PERS side account. General
Fund PERS assumptions tend to be slightly higher than other funds due to higher PERS rates for
Police service employees.
Material and Services
Impacts of inflation are assumed to steadily increase over the five years at 3 percent. Management has
been aggressive in managing costs in this category to help offset growth in personnel services costs and
has been successful in holding spending well under budgeted amounts. However, inflation, workers’
compensation and other liability insurance rates may cause this category to exceed the management
targets as years pass.
Capital Equipment
The Public Works Fund maintains a replacement reserve for capital equipment replacement, which is
funded via transfers from the Water, Streets and Sewer funds. The General Fund replaces equipment on
an as-needed basis or emergency basis, with emphasis on whether funding is available.
Debt Service
Estimates are based on amortization schedules for outstanding debt issues.
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Glossary
Capital Projects
New construction and major repairs to the City’s fixedassets
Operating Position
Recurring revenues and recurring expenditures
Potential Impacts
Refers to issues and challenges that are in addition to the status quo. The intent is to inform the reader
of economic matters that might occur during the forecastperiod.
Recurring Expenditures
The expense portion of status quo,predictable and on-going costs
Recurring Revenues
The resource portion of status quo, predictable and ongoing revenues
Revenues
Includes both recurring revenues and transfers in
Status Quo
The current level of services
Transfers In
Internal charges by General Fund for services provided to other funds
Urban Growth Boundary (UGB)
A regional boundary around the City’s perimeter used by local governments as a guide to zoning and
land use decisions to control urban expansion onto farm and forestlands
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Agenda Item
February14, 2022
TO:Honorable Mayor and City Council
FROM:Jim Row,Assistant City Administrator
SUBJECT:Low Income Household Water Assistance Program
RECOMMENDATION:
Authorize the City Administrator to sign the enclosed Low Income Household
Water Assistance Program Agreement between the City of Woodburn, the Mid-
Willamette Valley Community Action Agency (MWVCAA), and the Oregon
Housing and Community Services Department.
:
BACKGROUND
The City recently learned that a new utility assistance program, known as theLow
Income Household Water Assistance (LIHWA) Program has becomeavailable to
provide financial support to Woodburn residents who are struggling to pay their
water and sewer bills.
The LIHWA Program is offered by the Oregon Housing and Community Services
Department andis administeredin Marion and Polk Countiesby the Mid-
Willamette Valley Community Action Agency (MWVCAA). The term of the
agreement will be from the date of execution until the end of thecurrentLIHWA
Program year, which is September 30, 2023. It is possible that additional funding
will be allocatedto the program following the end of the current program year.
If approved by the City Council, staff will refer utility customers who are in need of
assistance to the LIHWA Program. If a customer is ineligible for assistance through
the LIHWA Program, they may still be eligible for assistance through the City’s Utility
Assistance Program, currently Administered by Love INC.
DISCUSSION:
The City typically issues 15-20 shut of notices each week. The majority of the
accounts are brought current, resulting in approximately 5-8 actual weekly shut
offs.
Agenda Item Review:City Administrator __X__City Attorney __X__Finance __X__
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Honorable Mayor and City Council
February14, 2022
Page 2
The LIHWA Program is intended to provide aid to residents who are experiencing
difficulty paying their water/ sewer bills. Financial assistance will be paid directly
to the City and will be applied tothe customers’ outstanding account balances.
Qualifying utility customers will be provided with utility assistance funding subject
to the following criteria:
•Funding can be used to pay outstanding water and/ or wastewater
service charges, including reconnection charges, fees, penalties, or
reduction of current charges and fees
•In order to qualify, applicants must earn less than 60% of the state median
income
•At least one member of the household must have a social security
number
•Regular assistance payments have a floor (minimum) of$100 per account
and aceiling (maximum) of $1,000 per account
•Households who receive a regular payment are not required to have
received a past due or shut off notice
•Households may receive one LIHWA regular assistance payment during
the program year
•Customers experiencing a qualifying “crisis” situation are eligible to
receive up to an additional $1,000 in assistance during the program year
•Households may receive one LIHWA crisis assistance payment during the
program year
FINANCIAL IMPACT:
The LIHWA Program has approximately $1.2 millionin fundingavailable in Marion
and Polk Counties.
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CityofWoodburn
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Agenda Item
February 14, 2022
TO:Honorable Mayor and City Council
FROM:N. Robert Shields, City Attorney
Chris Kerr, Community Development Director
SUBJECT: Authorization to amend UGB to include URA
:
RECOMMENDATION
Authorize the Community Development Director to begin the process of
including the Urban Reserve Area (URA) in the Woodburn Urban Growth
Boundary (UGB).
:
BACKGROUND
In December 2015, the City Council enacted Ordinance 2530 and memorialized
the UGB settlement reached after amediation involving the City, the County,
the State, and 1000 Friends of Oregon. In addition to the expanded UGB,
Ordinance 2530 added aURA for future Cityexpansion. The URA encompasses
230 acres of Southwest Industrial Reserve land. Under Oregon law, the URA must
be brought into the UGB and subsequently incorporated into the City in order for
future urbanization to occur.
DISCUSSION:
Procedurally, in order for the City to bring the URA into the UGB, the City must
initiate another UGB amendment. Once the necessary Planning staff work is
completed, the City Council enacts an ordinance. The City’s proposed UGB
amendment is then considered by Marion County. Finally, the City’s UGB
amendment is submitted to the Oregon Land Conservation and Development
Commission (LCDC) for state approval.
Numerous cities throughout the State have struggled to successfully navigate
the complex statutes and administrative rules regulating UGB amendments.
Staff believes thatWoodburn’s strongest application for aUGB amendment
would be a straightforward one focused only on bringing all of the URA into the
UGB. It is imperative that the City’s UGB amendment be well supported by a
land use consultant’s assessment of the available developable land and the
Agenda Item Review:City Administrator ___x___City Attorney __x____Finance __x___
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Honorable Mayor and City Council
February 14, 2022
Page 2
City’s present land need. Ifthe City Council authorizes staff to proceed, the first
step will be to retain the necessary land use consultant through the City’s public
contracting process.
FINANCIAL IMPACT:
The UGB amendment process involves compiling and analyzing a significant
amount of data related to population and employment projections, land
inventories, and reviewing the serviceability of land. Many of the City’s adopted
plans, such as our Economic Opportunities Analysisand Buildable Lands
Inventory will need to be revised and updated consistent with the State’s
requirements for UGB amendments. The consultant chosen will need to be well-
versed in the technical and legal requirements for processing UGB
amendments.
Staff included $50,000 in this year’s budget under “professional services” to
provide technical assistance for exactly this type of project. While
acknowledging that the UGB amendment process is complex and may require
addressing many currently unknown issues, Staff believes that the budgeted
allotment will be satisfactory for the project at this time.
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Agenda Item
February 14, 2022
TO:Honorable Mayor and City Council
FROM:Scott C.Derickson, City Administrator
Jamie Johnk, economic Development Director
SUBJECT:Project Gamos – Community Service Fee Agreement
:
RECOMMENDATION
Via a motion:
1.Approve the attached Community Service Fee Agreement with Chewy,
Inc.
2.Place a deadline for the acceptance of the terms of the agreement no
later than February28, 2022, and Authorize the City Administrator to
countersign the agreement and;
3.Direct the City Administrator report back to the City Council as to the
status of the agreement during the Council’s February 28, 2022, meeting.
BACKGROUND:
In October 2019, the City first responded to a Business Oregon project lead
known as “Project Apofiki.” A that time, the City responded by providing
information on availableindustrial land, incentives, and a profileof the
community.The City met with Project Apofiki representatives in February 2020 in
Woodburn, after which the project went dormant. Then in July 2021, Business
Oregon again reached out to city staff that Project Apofiki was once again
active and considering Woodburn as a prospective development site.
In December 2021, we were once again notified that the project, now named
“Project Gamos,” had signed a letter of intent with a local private developerto
construct their 800,000-s.f. distribution facility on the 50-acreindustrial parcel
south of Stacy AllisonWay.In January 2022, Project Gamos, which hasnow
publiclyidentified as Chewy,expressed their interest to the City ina 3-year
enterprise zone tax abatement.
Agenda Item Review:City Administrator ___x___City Attorney __x____Finance __x___
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Honorable Mayor and City Council
February 14, 2022
Page 2
As a result, and in order to minimize the financial impact of the project moving
forward with Enterprise Zone benefits, staff has negotiated a Community Service
Fee Agreement (CSFA), or fee in lieu of tax, in order to keep Woodburn Police
and Fire District intact. Councilors should know that although staff promptly
made the changes to the Agreement that Chewy requested, Chewy has not
yet signed the CSFA.
DISCUSSION:
Per State law, under the proposed agreement, the City will support and process
an Enterprise Zone Property Tax Abatement Application,which would provide
Chewy with a three-yearproperty tax abatement benefit. At the conclusionof
the abatement period, the full-assessedvalue of the project would then be
placed on the tax rolls. Under the agreement, Chewy wouldoffset the financial
impact of the abetment by making community service fee payments to the
City.
In exchange for Enterprise Zone benefits,Chewy will construct aproposed
distribution center with an initial estimated investment of $153 Million ($85 million
in structural and $68 million in equipment) inside the City ofWoodburn city limits.
Throughoutthe three-year abatement program, Chewy agrees to begin hiring,
and maintain,1,000 Regular Full-Time Positions. Chewy also agrees tomeet or
exceed the following minimum starting wage level and benefits for all
employees hired into Regular Full-Time Positions as follows:
AnAverage Minimum starting wage of at least $16.00 per-hour.
Benefits (provided after an employment period of thirty (30) days):
Comprehensive Health, Dental, and Vision Insurance Plan Coverage, and
Pet Insurance. For purposes of this Section, Comprehensive health plan
coverage means an employer-provided health insurance plan(s) that
includes coverage for the essential health benefits outlined in the
Affordable Care Act ("ACA"), with the employer share for premium costs
equating to at least 70% of the plan's cost for single coverage.
Under the three yearCSFA that would be tied to the tax-abatement program,
the Company wouldpay the City, based on the assessed value methodology
contained in the agreement.This fee would be collected annually and thenthe
City woulddistribute the Woodburn Fire District’s portion directly. In the CSF
Agreement, we have proposed a payment from the company based on the
following calculations:
83
Honorable Mayor and City Council
February 14, 2022
Page 3
Community Service Fee ("CSF") Multiplier Rate:
Community
Percentage of Tax Rate
Current Tax Service Fee
Budgeted for Public
Rate("CSF") Multiplier
Safety Services
Rate
CITY OF
WOODBURN $6.053458.587%$3.5465
(permanent rate)
WOODBURN FD
$1.6009100%$1.6009
(permanent rate)
WOODBURN FD
$0.35100%$0.35
(local option levy)
TotalCSF Multiplying Rate*$5.4974
Community Service Fee Amount:
Assessed Value of the Company's Enterprise
Zone Investment
Annual
$5.4974
Community (Building & Improvements and Machinery &
= *CSF X
Equipment)
Service Fee
Multiplier
Amount
$1000
NOTE: The abated value will be calculated using a specific depreciation
schedule provided by the Marion County Assessor. Nothing herein shall limit or
restrict the Company from challenging its assessed valuation or amount due for
ad valorem property taxes in the same manner as any other taxpayer.
Finally, Chewywill be responsible for all costs and work associated with filing an
Enterprise Zone Authorization Applicationand Chewy agrees to utilize
WorkSource Oregon (or other local service providers) for employee hiring.
84
WOODBURN ENTERPRISE ZONE
TAX ABATEMENT & COMMUNITY SERVICE FEE AGREEMENT
THIS Tax Abatement & Community Service Fee Agreement ("Agreement") is entered into this
day of , 2022 ("Effective Date"), between the City of Woodburn, a municipal corporation of the
State of Oregon ("City") and ("Company")(collectively the
"Parties").
RECITALS
A.Pursuant to the Oregon Enterprise Zone Act (ORS 285C.045 – 285C.250), the City sponsored the
re-designation of the Woodburn Enterprise Zone ("Zone") in May 2021. This current
redesignation, unless earlier terminated or extended, is in effect through June 30, 2031.
B.The Woodburn Enterprise Zone covers most of the developable land within the City's boundary,
with the exception of 105 acres of property located in the City's Southwest Industrial Reserve
area.
C.The Company desires to engage a private developer to construct an industrial facility on
property currently located within the Zone (tax lot nos. 052W140000801 & 052W14000800)
("Project Site") and then participate in the Zone tax abatement program.
D.It is anticipated that the Company's lease of the Project Site and future business operations
within the Zone will meet the Enterprise Zone Exemption Criteria found in ORS 285C.175.
E.In planning to bring new development and business to Woodburn, the Company acknowledges
that the City has a vital interest in ensuring that any benefits provided to the Company through
the Zone program are balanced against specific financial support for the City's critical public
safety services and infrastructure.
F.The Woodburn City Council also acknowledges that the City's sponsorship of the Enterprise Zone
program is a vital resource for creating better opportunities for business investment across the
City and that part of managing the Zone program includes ensuring that the business incentives
provided for new opportunities are balanced against sustaining revenue for public services.
G.The Parties understand that the Enterprise Zone Act, specifically sections ORS 285C.150 and
285C.160, have a detailed framework that permits enterprise zone sponsors to require eligible
business firms to satisfy "other conditions" in order for the firm to be authorized; however, the
purpose of this Agreement is to reflect the Parties mutual understanding for certain program
arrangements that extend beyond the scope of what is specified by those sections of the Act.
H.Pursuant to Section 4 of the City of Woodburn Charter, it is acknowledged by the Parties that
certain terms and conditions of this Agreement are made under the power of the City's home
rule charter authority and are to be harmonized with the Enterprise Zone Act. Nothing herein is
intended to conflict or otherwise be inconsistent with the Enterprise Zone Act.
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I.The Company further acknowledges that the Enterprise Zone Act does not prohibit or otherwise
prevent an eligible businesses and sponsoring jurisdictions to agree upon additional conditions
that may be imposed upon a business firm seeking program benefits.
J.The City and Company have in good faith negotiated this Agreement related to the Zone tax
abatement program, including all other incentives to be provided by the City in exchange for the
Company's financial contributions towards the City's critical public safety services. This
Agreement comprises the full scope of the Parties' resulting negotiations.
The Parties Agree as Follows:
AGREEMENT
1.Definitions.
(a)Community Service Fee Contribution. Means a monetary contribution to the City to
cover critical public safety services in Woodburn during the Company's eligible tax
abatement period(s) described in this Agreement.
(b)Covered Position. Means all of the Company's jobs at its Project Site location within the
Zone and as otherwise negotiated under the Company's First Source Agreement.
(c)First Source Agreement. Means the mandatory contract that the Company will enter
into with WorkSource Oregon (or other local service provider) that must remain in
effect during the period of the tax abatement. WorkSource Oregon (or other local
service provider) will generally serve as a resource to the Company for recruitment,
referral, and placement of personnel in Covered Positions.
(d)Regular Full-time Position. Means a non-seasonal or non-temporary job directly with the
Company exceeding an annual average of 32 hours per week.
2.City of Woodburn Obligations.
2.1.Enterprise Zone Program. The City shall continue to perform all statutory duties
required of a Zone Sponsor per ORS 285C.050 to 285C.255 (Oregon Enterprise Zone Act) and
shall take no adverse action to preemptively or administratively cause the early termination of
the Zone during the Company's initial eligibility period for tax abatement. Furthermore, the City
agrees that it shall review and make timely findings on all Zone applications received from the
Company and file such applications with the Marion County Assessor and Business Oregon per
the requirements of the law.
2.2.City Coordination & Assistance. The City shall work in good faith with the Company for
the duration of the period of any Zone tax abatement to foster the success of all Parties in this
undertaking. The City will coordinate all parties necessary to achieve real property tax
abatement for the Company's qualified property at the Project Site, including for an initial
abatement period estimated to commence in fiscal year 2024 continuing through fiscal year
2026, provided that the Company discharges its obligations under this Agreement.
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2.3.Infrastructure Grant Assistance. Conditioned upon the Company providing the critical
data and timely information necessary for completing such applications, the City shall assume
responsibility for preparing and administrating (if awarded) the following grants intended to
provide financial contributions toward the construction of surrounding roadway infrastructure
for the Project Site: Oregon Department of Transportation Immediate Opportunity Fund (IOF)
and Business Oregon Special Public Works Fund (SPWF) grants.
2.4.Future Company Investments. Unless earlier terminated by City Council Resolutionor
administrative action by Business Oregon, through the duration of the City's current Zone
designation (i.e. through June 30, 2031), the City agrees that it will support subsequent Zone
authorization applications by the Company for additional tax abatement on future incremental
investments at the Project Site, provided that the Company meets the minimum investment
threshold and has not reduced the employment of the firm pursuant to the requirements set by
ORS 285C.155 and 285C.200(2). For purposes of meeting the employment requirements for
qualifying future abatements, the Company shall maintain the minimum employment levels and
job quality commitments outlined in Section 3 below.
Any subsequent Zone abatement authorized by the City pursuant to this Section will be
contingent upon the Company continuing to meet the Obligations outlined in Section 3 below
and contributing a new Community Service Fee during the abatement period that will be
calculated pursuant to Section 3.5 and based on the annual assessed value of the new qualifying
investment.
3.Company Obligations. In consideration of the City covenants outlined above and for other
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to
be bound hereby, the Company shall perform the obligations set forth in this Section.
3.1.Conditions Precedent. The following are conditions precedent to the obligations set
forth herein:
(a)The City's approval of this Agreement;
(b)The positive determination by the City and the Marion County Assessor that the
Company's initial Enterprise Zone investment at the Project Site and described herein is
eligible for the tax abatement provided by ORS 285C.050 – 255.
3.2.Investment in Project Site. The Company's proposed initial investment in the Zone
includes the following estimated project costs:
(a)Real Property: Building or Structure to be Constructed $85,000,000
(b)Personal Property: Project Machinery and Equipment $68,000,000
Total Estimated Value of Investment $153,000,000
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3.3.Minimum Employment Level. The Company acknowledges that it expects to begin hiring
for Regular Full-Time Positions at the Project Site in May 2023, and that one thousand (1,000)
new Regular Full-Time Positions will be filled during the initial abatement period.
3.4.Job Quality Commitments. The Company shall meet or exceed the following minimum
starting wage level and benefits for all employees hired into Regular Full-Time Positions at the
Project Site:
(a)Wages: Average Minimum starting wage of at least $16.00/hr
(b)Benefits (provided after an employment period of thirty (30) days): Comprehensive
Health, Dental, and Vision Insurance Plan Coverage, and Pet Insurance. For purposes of
this Section, Comprehensive health plan coverage means an employer-provided health
insurance plan(s) that includes coverage for the essential health benefits outlined in the
Affordable Care Act ("ACA"), with the employer share for premium costs equating to at
least 70% of the plan's cost for single coverage.
3.5.Community Service Fee. Each year that the Company receives a Zone tax abatement
(initial or subsequent), the Company shall pay to the City a Community Service Fee. The method
of calculating such a fee and payment terms are set as follows:
(a)The Community Service Fee will be calculated as the amount of each year’s abated
property taxes that would have otherwise been paid and distributed to the City for
Woodburn Police Department budgeted services and the Woodburn Fire District were it
not for the Company’s participation in the Enterprise Zone Program. (See calculation
methodology in the attached Exhibit A).
(b)The payment of the Community Service Fee will become due and payable during the
initial tax abatement period according the payment schedule in Exhibit A. Any
subsequent Community Service Fee that is calculated and owing as a result of an
additional eligible Company investment at the Project Site, will also be payable on an
annualized basis and in the same general manner as otherwise described in this
Agreement.
(c)The final accounting and billing for the Company’s Community Service Fee will occur in
December of each year. The City will invoice the Company with the final calculation and
payment will be due and payable in full within 30 days of invoice date.
(d)Prior to the City's receipt of any Community Service Fee payment under this Agreement,
the City shall execute an Intergovernmental Agreement with the Woodburn Fire District
that provides for the timely disbursement of the Fire District's share of all collected fees
under this Agreement.
(e)Other than the City's timely allocation of the Fire District's portion of the Community
Service Fee, which will be distributed to the Fire District per the terms of an
Intergovernmental Agreement between such parties, there shall be no further
obligation for the City to trace Community Service Fee funds to a level of expenditure or
independently report on future expenditures of the funds. Furthermore, the Company
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shall have no consequential expenditure oversight or control over the Community
Service Fees paid to the City under this Agreement.
(f)The Company shall not be required to pay any Community Service Fee set forth herein
with respect to any year that it pays ad valorem property taxes on the full assessed
value of its investment at the Project Site due to cancellation of or disqualification from
the Enterprise Zone tax exemption program.
3.6.Enterprise Zone Application. The Company is responsible for all costs and work
associated with filing an Enterprise Zone Authorization Application(s) with the City as provided
in ORS 285C.140 and the applicable administrative rules.
3.7.Obligations Pursuant To a First Source Agreement. The Company will utilize WorkSource
Oregon’s (or other local service provider’s) program for employee hiring at Zone operations
throughout the project construction and tax exemption period. A “First Source Agreement” is
executed with WorkSource Oregon (or other local service provider), which determines
performance standards for recruitment activities. Positions to be hired through WorkSource
Oregon (or other local service provider) are negotiated. WorkSource Oregon (or other local
service provider) will focus its initial recruitment efforts on residents of Woodburn.
3.8.City of Woodburn Business Registration. The Company must maintain a current and
active City of Woodburn Business Registration as of the contract execution date and during the
entire tax abatement period.
3.9.Equal Opportunity. As part of its activities under this Agreement, the Company shall not
discriminate on the basis of race, religion, color, sex, marital status, national origin, age, mental
or physical disability, sexual orientation, gender identity, source of income, or other protected
characteristic.
4.Remedies. If the Company fails to perform its obligations under this Agreement, the City may,
at its discretion, pursue one or more of the following remedies. The City's failure to exercise its remedies
does not waive City of Woodburn’s claim(s) for breach of contract or the Company’s duty to fulfill its
obligations under the Agreement.
City's Remedy for Company's Non-performance of Employment and Job Quality Related
4.1.
Obligations. If the Company fails to meet the employment level and job quality commitments in
accordance with Sections 3.3 and 3.4 of this Agreement, the property shall be subject to the
penalties described in ORS 285C.240. The Company will notify the tax assessor and City that
they are disqualified from tax exemption for the tax year in which failure occurred, as specified
under ORS 285C.240(1),(2) and (3). The Company may avoid disqualification from the enterprise
zone program by paying the City one year’s worth of the exemption. See OAR 123-674-6600 to
123-674-6630.
4.2.Late Payment Remedy for Any Fee Owed. Failure of the Company to make payment in
full of any amount due under this Agreement by the due date shall result in a penalty being
charged on the past due balance in the following amount(s): Late payment penalty equal to one
percent (1%) of the amount overdue for each month outstanding until paid, beginning with the
due date of the late payment.
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4.3.City's Remedy for Company's Non-payment of Community Service Fee Obligations
. If
Community Service Fees are not paid to the City in accordance with Section 3.5 and Exhibit A of
this Agreement, the City may declare a default under this Agreement. The Company shall then
have thirty (30) days to cure the default; otherwise, the City may file an action to collect the
entire amount of the unpaid fee, with penalties and interest as otherwise permitted by law. In
the event a suit or action is instituted to enforce payment of the Community Service Fee and the
Company is found to be in default of this Agreement, the Company agrees to pay the City in
addition to the amounts owing, reasonable attorney's fees and such additional sums as the
court may adjudge.
4.4.Company's Remedy for Challenging Amounts Due. The Company may challenge the
City’s calculation of any payment amount due to the City pursuant to this Agreement by filing a
written objection on or before the due date for the payment. The objection shall be
accompanied by payment in full of the amount claimed by the City to be due and a statement of
the basis for the challenge. The City shall deposit the amount in a trust and agency account and
shall have fifteen (15) days to review the objection and issue a determination, together with any
refund it concludes is required. Failure of the City to respond shall be deemed a denial. This
process shall be a prerequisite to the Company exercising any other remedies for contesting the
amount due to the City. The Company may institute proceedings in the Circuit Court for Marion
County, as appropriate, to challenge any amounts due claimed by the City or to seek specific
performance of this Agreement in the event of breach by the City. In the event that the Court
determines that a refund is due the Company, the City shall pay the amount due, together with
interest at the rate actually earned by the City during the interim.
4.5.Company's Remedy Limitation. The amount of any monetary remedy obtained by the
Company shall not exceed the amount of property tax savings resulting from the property tax
abatement granted to the Company under the City's Enterprise Zone program.
5.Term & Termination. Subject to compliance with all terms and conditions herein, the Term of
this Agreement commences upon the Effective Date first written above and will continue in effect till
June 30, 2031, or the fifth anniversary following a subsequent authorization for Zone tax abatement for
the Company at the Project Site per ORS 285C.245, whichever occurs later. All payment terms and
representations and warranties of the Company contained in this Agreement shall survive the expiration
of this Agreement.
6.Miscellaneous.
6.1.Relationship of the Parties. Nothing in this Agreement is intended, or is to be deemed to
create a partnership or joint venture between the Parties. The Company shall at no time hold
itself out as a subsidiary or affiliate of the City. Further, nothing contained herein shall be
deemed or construed by the Parties, nor by any third parties, as creating a relationship between
the City and any officers, employees, volunteers, suppliers, contractors, or subcontractors used
by the Company to carry out any activities under this Agreement.
6.2.Authority. Each party represents and warrants that is has the full right and power to
enter into this Agreement and that it is fully ready, willing, and able to perform all its obligations
hereunder.
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6.3.No Third Party Beneficiaries
. Except as specified under Section 3.5 of this Agreement
providing for the Woodburn Fire District, no provisions of this Agreement are intended or will be
construed to confer upon or give to any person or entity other than the signatories to this
Agreement any rights, remedies or other benefits under or by reason of this Agreement.
6.4.Successors and Assigns. This Agreement shall bind the successors and assigns of the
parties. In the event of a purchase, merger, or other restructuring, including but not limited to a
divestiture of theCompany, whether voluntary or not, the Company shall make every effort to
ensure that the obligations set forth herein are not impaired. The Cityshall cooperate and assist
the Company in fulfilling this obligation.
6.5.Notices. Any notice under this Agreement must be in writing and will be effective when
actually delivered in person or three (3) days after being deposited in the U.S. mail, registered or
certified, postage prepaid and addressed to the party at the address stated in this Agreement or
such other address as either party may designate by written notice to the other. Mailing
addresses for the parties are as follows:
(a)The City. City of Woodburn
Attn: City Administrator
270 Montgomery Street
Woodburn, Oregon 97071
(b)Company. \[Company Name\]
Attn: Pete Kirllies VP of Real Estate, Procurement, Facilities
1855 Griffin Road, Suite B-328
Dania Beach, FL 33004
6.6.Oregon Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Oregon without regard to principles of conflicts of law. Any claim, action,
suit or proceeding (collectively, "Claim") between the City and Contractor that arises from or
relates to this Agreement shall be brought and conducted solely and exclusively within the
Circuit Court of Marion County for the State of Oregon. Contractor hereby agrees to the in
personam jurisdiction of such court and waives any claims of an inconvenient forum.
6.7.Severability. If any provision of this Agreement or the application thereof shall, for any
reason and to any extent, be invalid or unenforceable, neither the remainder of this Agreement,
nor the application of the provisions to other persons, entities or circumstances shall be
affected, but instead shall be enforced to the maximum extent permitted by law
6.8.Merger Clause; Waiver. No modification, amendment, discharge, or change of this
Agreement, except as otherwise provided, shall be valid unless the same is in writing and signed
by the party against which the enforcement of such modification, amendment, discharge, or
change is sought. This document constitutes the entire, final, and complete agreement of the
parties pertaining to the subject matter hereof, and supersedes and replaces all prior or existing
written and oral agreements between the parties or their representatives relating to the
business plan and feasibility funding. The failure of the City to enforce any provision of this
Agreement shall not constitute a waiver by the City of that of any other provision.
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\[Signatures\]
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EXHIBIT A
COMMUNITY SERVICE FEE CALCULATIONS AND PAYMENT SCHEDULE
This attachment is provided to clarify the formulas used to calculate the Company’s Community Service
Fee total and the estimated payment schedule under the Agreement.
CALCULATION FORCOMMUNITY SERVICE FEE DUE
This section outlines how the Company’s Community Service Fee payment amount (Section 3.5) will be
calculated.
Community Service Fee ("CSF") Multiplier Rate:
Percentageof Tax Rate
Current Tax Community Service Fee
Budgeted for Public Safety
Rate ("CSF") Multiplier Rate
Services
CITY OF WOODBURN
$6.0534 58.587% $3.5465
(permanent rate)
WOODBURN FD
$1.6009 100% $1.6009
(permanent rate)
WOODBURN FD
$0.35 100% $0.35
(local option levy)
Total CSF Multiplying Rate* $5.4974
Community Service Fee Amount:
Assessed Value of the Company's Enterprise Zone Investment
Annual
$5.4974
(Building & Improvements and Machinery & Equipment)
Community
*CSF
X
=
Service Fee
Multiplier
$1000
Amount
NOTE: The abated value will be calculated using a specific depreciation schedule provided by the Marion
County Assessor. Nothing herein shall limit or restrict the Company from challenging its assessed
valuation or amount due for ad valorem property taxes in the same manner as any other taxpayer.
PROPOSED CSF PAYMENT SCHEDULE
City Calculation of CSF & Estimated Due Date of CSF
Tax Assessment Year
Invoice Date (no later than) (within 30 days of invoice)
2024 December 15, 2024 January 15, 2025
2025 December 15, 2025 January 15, 2026
2026 December 15, 2026 January 15, 2027
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