St. Helens urban renewal agency committee approves $1.20 million FY2027 budget despite warnings about negative cash flow

The St. Helens Urban Renewal Agency Budget Committee voted June 1 to approve a fiscal year 2026–27 budget of $1,198,226 and to levy the maximum incremental tax revenues allowed under state law.

Budget officer Gloria Bush presented the agency’s proposed spending package and said the agency expects to begin debt-service payments in the coming fiscal year on a temporary IFA (Infrastructure Finance Authority) loan. Bush said the IFA loan balance is $14,630,318 and the agency’s maximum indebtedness is $62,000,000; by June 30, 2026 the agency expects about $18,254,496 of MI to be used. “These projects have set the groundwork for future public amenities and private investment in the city's riverfront property,” Bush said.

Public comment and several committee questions highlighted the agency’s tight near-term cash position. A community member who identified himself during public comment said the district has run at negative cash flow and urged the committee to recognize the risk. “If you look at last year of the budget… the revenue is less than the expense,” the speaker said, arguing the agency has relied on hoped-for increases in property valuations to close gaps.

Committee members pressed staff on how debt-service timing and refinancing could affect payments. Bush and other staff explained the interim loan was intended as bridge financing to be refinanced through the state bond bank; the committee was told the timing of that refinance will affect how much interest and how many payments fall into FY2027. Committee members also asked which development projects underpin the revenue forecast; staff pointed to the Arcadia development, riverfront parcels and potential reactivation at the former Armstrong World Industries site as the key assumptions for growth.

John Walsh, who spoke during the presentation as the agency administrator, said the agency had previously focused on accumulating resources to be able to advance infrastructure projects identified in the adopted Urban Renewal Plan. He described $50,000 in proposed capital outlay and $25,000 in materials and services for an annual audit as placeholders in the draft budget.

The committee approved the budget and the proposed maximum incremental levy by voice vote with one recorded no vote. Jeremy Evans made the motion to adopt the budget; the committee recorded the approval and moved on to city budget business.

What happens next: the approved budget will be submitted consistent with state process and the agency will begin the first cash outflows associated with the IFA loan under the plan presented to the committee. Staff told the committee they aim to wait to seek reimbursements of some prior-year city expenses from the agency until revenues are more certain.