Urban Renewal Agency to consider budget for adoption in June

Published 11:00 am Tuesday, May 16, 2023

LA GRANDE — The La Grande Budget Committee and Urban Renewal Agency voted to approve the proposed 2023-24 budget for the Urban Renewal District during a budget hearing on Monday, May 15.

“We’re funding our core economic development programs, as is the Urban Renewal Agency’s guidance received at the retreat. And we’re essentially keeping status quo on the funding levels for all of our programs. That translates to $1,350,000 of available capital improvement project dollars,” City Manager Robert Strope said.

Each year the Urban Renewal Agency decides whether to under levy urban renewal to provide more revenue to the city’s general fund and other taxing jurisdictions, such as Union County, Intermountain Education Service District, La Grande School District, La Grande School Bonds, La Grande Cemetery District, Vector Control and 4H Extension. The projected tax revenues distributed to these jurisdictions due to the under levy totals over $1 million.

“Under Oregon law, we are required to provide notice to the taxing jurisdictions that are impacted by a potential under levy,” Strope said. “We did not receive any feedback, formal objections, or anything from the taxing jurisdictions. My sense is, and from talking with them over the years, they appreciate the additional dollars that they can put to good use.”

Only $950,000 of new property tax revenues would be levied under the proposed budget in part due to the funds carried over from the current budget for programs.

The funding for the core programs of urban renewal would remain the same — with the exception that the agency voted to combine the business park Call for Projects and the traded sector incentive into one program.

This program is now called the Trader Sector/Business Park Call for Projects Business Attraction Incentive Program.

Under the budget $350,000 will be allocated to the non-business park Call for Projects and $75,000 to the Facade Grant Program.

The $500,000 budgeted for the agency initiated project and the $425,000 budgeted for the business attraction program will all be carried over from the 2022-23 fiscal year’s budget.

Included in the budget is approximately $1.2 million being carried over from the previous budget. This includes funding for projects that were approved but have not yet been completed.

“All of these projects have struggled with a number of issues over the last year. Mainly, contractor availability,” Economic Development Director Timothy Bishop said.

Bishop anticipates that contractor availability will continue to pose an issue. Most of the incoming call for projects are projecting an 18-month to 2-year window for completion.

The budget will go to the Urban Renewal Agency for consideration and adoption during the regular session meeting on June 7.