By Aileen Hymas
For Columbia Gorge News
THE DALLES — While Wasco County’s primary source of income is property taxes and funds provided from the state and federal government, one-time cash infusions from large businesses setting up shop, like Google’s Strategic Investment Program (SIP) funds, have ranked at the top of the county’s revenue sources for the past few years as the region has attracted new and expanding businesses. With these influxes comes a question: what should the county do with this money?
At a regular board meeting Aug. 19, Wasco County had its first hearing proposing an endowment and resiliency fund, securing the county’s $15 million in project fund balances plus current tax abatement, SIP and current investment earnings into a long-term investment portfolio set aside to build interest.
The endowment would remain untouched for the first 15 years with no disbursements until July 1, 2041. After that maturation date, the county can appropriate up to 75% of interest earnings into the county budget to be used for capital improvements, economic development projects, matching grants and loans to the community for projects that fit under ORS 190’s definition. At least 25% of interest earnings must be put toward the fund’s principal to combat inflation.
“If we spent the $15 million today, the $15 million would be gone, but by investing it in what we’re calling a ‘renewable endowment’, that gives us access after the period of maturation to have a fund that we can utilize theoretically infinitely,” said Community Development Director Kelly Howsley-Glover.
Commissioners reacted positively to the idea of putting away this money for the future.
“We can spend every dollar we get every time we get a check or something, and not think about the future. What we’re thinking about doing is wanting to make sure that we have a future,” said Commission Chair Scott Hege.
The presentation, vision and stipulations for the endowment came from a subcommittee of the Wasco County Management Team, which is a group of county directors and deputy directors who meet monthly.
The subcommittee included Community Development Director Kelly Howsley-Glover, Sheriff Lane Magill, Information Services Director Andrew Burke, Deputy Building Official Kylie Van Orman and Planning Division Director Danny Doughertey.
“We had unanimous support from the management team for the endowment concept,” Howsley-Glover said. “Unanimous ... is not a word that I think we say very often at all. So that’s a big deal.”
The proposed endowment will be managed through the county’s finance department. The county also has an investment committee that works with the finance department and brings in professionals to guide county staff.
“We are limited on the types of investments we are allowed to make,” explained County Administrator Tyler Stone.
Stone told the board that even with conservative modeling of investment revenues, the county will be able to draw down millions from this endowment after it matures.
“We think that we’re going to get between $2.5 million and $4.5 million a year every year thereafter,” Stone said. He explained that future tax abatement revenue or SIP funds will each be subject to their own 15-year maturation period. “But that’s going to add to the pot,” he said.
Stone added that language in the ordinance allows the county to access cash if there is a major emergency.
“If there is a true catastrophe, like let’s just say the ‘96 floods, the board at that time can tap into some of the principal,” Stone said.
The county acknowledged that this would restrict the short-term impact of this windfall, delaying the fund’s uses on immediate needs.
Lisa Gambee, former Wasco County Clerk and candidate for Wasco County Commissioner Position 1, told the board she is in favor of pursuing income streams that reduce the taxpayer burden, but asked the board about more immediate needs throughout the county.
“What I am concerned about is some of the restrictions that are applied with waiting for 15 years on this project,” said Gambee. “That’s a long time for a community to wait to get assistance if it needs it.”
Materials presented by the management team’s subcommittee argue that creating an endowment will multiply the money’s efficacy: “By decreasing the dollars available for immediate spending, we increase the total number of people who will benefit from these funds over the next 15 years and beyond.”
Howsley-Glover gave some examples for how investment earnings play a crucial role in enacting state or federal grants, citing $5 million of work at the county fair grounds and Hunt Park where grants were matched by county investment dollars — and could not have been implemented without that revenue.
“The public can see those investments, which include EV chargers and emergency shelter improvements,” Howsley-Glover said, also describing, “new picnic tables, the fire rings, all the work that’s gone into improving the RV park facilities as well as the fairgrounds.”
Stone pointed to the county’s past financial struggles as a reason for allocating the funds toward savings.
“It’s a protection measure for the county to be able to not have to endure a situation like we did in 2006 or ‘07, with the loss of those timber dollars,” he said.
Staff and commissioners repeatedly compared Wasco County’s financial situation with other counties in the state, specifically noting departments’ restraint around spending.
“Oregon is struggling,” said Hege. “There are very few counties that are in a position that Wasco County’s in.”
At a second public hearing for this ordinance on Sept. 2, the county board will vote on creating this endowment.
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