The Hidden Cost of the Endowment Ordinance, and How a Different Option Can Benefit Our Communities
Written testimony submitted by Lisa Gambee, Tygh Valley resident and candidate for Wasco County Commissioner Position 1
Wasco County is holding public hearings right now on a proposed Endowment Fund. The idea itself is solid, but the way it’s written doesn’t really give folks a clear sense of just how much money we’re talking about - or what setting that money aside would mean for the county.
Wasco County Endowment per Currently Written Ordinance
The current ordinance language states:
Capitalizes the Fund with up to $15,000,000 from existing County Project Fund balances, plus ongoing county-retained SIP revenues, tax abatement dollars, and investment earnings.
This means the capital being proposed is not just $15,000,000, it’s closer to $78,000,000. Here’s the numbers (these numbers do not incorporate depreciation and reinvestment, actual dollars may vary).
Lisa’s testimony about the planned Endowment Ordinance on August 19th at The Board of County Commissioners Meeting
Google Data Center Revenue - Wasco County
All agreements are for 15 years
| Agreement | Annual Revenue |
Years To Date |
Revenue Paid | Years Remaining |
Revenue Remaining to be Paid |
Total Revenue |
|---|---|---|---|---|---|---|
| Enterprise Zone Agreement 1 (Signed 2005, has expired) | $250,000 | 15 | $3,750,000 | 0 | $0 | $3,750,000 |
| Enterprise Zone Agreement 2 (Signed 2013, expires 2031-2032) | $280,000 | 10 | $2,800,000 | 5 | $1,400,000 | $4,200,000 |
| Enterprise Zone Agreement 3 (Signed 2015, expires 2033-2035) | $907,133 | 7 | $6,349,931 | 8 | $7,257,064 | $13,606,995 |
Strategic Investment Program, Agreement 4
(Signed 2021. This includes two data centers. The first center is now making payments, the second center has not yet received occupancy)
| SIP Data Center 1 (50% full tax value) | Annual Revenue |
Years To Date |
Revenue Paid | Years Remaining |
Revenue Remaining to be Paid |
Total Revenue |
|---|---|---|---|---|---|---|
| Initial Payment (One Time Fee) | $1,500,000 | 1 | $1,500,000 | 0 | $0 | $1,500,000 |
| Taxable Portion (Wasco County is 24.4% tax) | $379,654 | 1 | $379,654 | 14 | $5,315,156 | $5,694,810 |
| Guaranteed Annual Payment (GAP) | $2,878,639 | 1 | $2,878,639 | 14 | $40,300,946 | $43,179,585 |
| Community Service Fee (CSF) | $610,000 | 1 | $610,000 | 14 | $8,540,000 | $9,150,000 |
| Total | $5,368,293 | $5,368,293 | $54,156,102 | $59,524,395 |
| Revenue Added to Endowment Fund (not including final data center) | $62,813,166 |
| Initial Endowment | 15,000,000 |
| Total Dollars put into the Endowment | $77,813,166 |
The ordinance includes a 15‐year restriction on using the funds. After that period ends, only a portion of the annual interest can be spent and even that interest comes with additional limits on how it can be used. Any new revenue added to the fund also starts its own rolling 15‐year restriction.
What if an Optional Funding Idea Similar to City of The Dalles SIP Resolution is Considered?
The City of The Dalles passed an ordinance that lays out how money from the Google SIP Agreement will be split out, assigning different components of the agreement to different funds within the city budget (note: none of these have a 15-year “no touch” component). Here’s what their resolution includes (per the city website).
Key elements of the 2024 resolution include:
1. Initial Payment Revenue shall be received in the Special Enterprise Reserve Fund and reserved for proposed special projects.
2. Property Tax Revenue shall be received in the General Fund and used to support general fund operations.
3. Community Service Fee Revenue shall be received in the Capital Improvement Fund until sufficient reserves are established to support the City's General Facility Capital Improvement Plan, then received in the Special Enterprise Reserve Fund for proposed speci projects.
4. Guaranteed Annual Payment Revenue shall be received in the Special Enterprise Reserve Fund and utilized to support City Public Works Master Plan projects. Funds shall be transferred to the appropriate Public Works fund to support said projects as they commence
A similar option for Wasco County could provide a “win-win” situation if funds were assigned to both a Special Investment Fund and the Endowment Fund, utilizing different components of the Data Center agreements.
The remaining Enterprise Zone Payments, the SIP Initial Payment and the SIP Community Service Fee go into a Special Investment Fund for Public Works bridge projects and community infrastructure needs, or economic development needs ($1,400,000 + $7,257,064 + $1,500,000 + $8,540,000 = $18,697,064)
Property Tax - goes into General Fund
The initial Endowment capital plus the SIP Guaranteed Annual Payment goes into Endowment Fund ($15,000,000 + $40,300,946 = $55,300,946)
Here’s what that option would look like, with a second section if it includes the SIP Agreement Data Center 2:
Current Funding Structure
Special Investment Fund Revenue Streams
| Source | Initial Investment |
Annual Revenue |
Total Investment |
|---|---|---|---|
| Enterprise Zone Agreement 2 Remaining Funds | $280,000 | 280,000 | $1,400,000 |
| Enterprise Zone Agreement 3 Remaining Funds | $907,133 | 907,000 | $7,257,064 |
| SIP Data Center 1: Initial Payment | $1,500,000 | $1,500,000 | |
| SIP Data Center 1: Community Service Fee (CSF) | $610,000 | 610,000 | $8,540,000 |
| Total | $3,297,133 | 1,797,000 | $18,697,064 |
Endowment Revenue
| Source | Initial Investment |
Annual Revenue |
Total Investment |
|---|---|---|---|
| Initial Payment from County Funds | $15,000,000 | $15,000,000 | |
| SIP Data Center 1: Guaranteed Annual Payment (GAP) | $2,878,639 | $2,878,639 | $40,300,946 |
| Total | $17,878,639 | $55,300,946 |
Funding With SIP Data Center 2 Included
Special Investment Fund Revenue Streams
| Source | Initial Investment |
Annual Revenue |
Total Investment |
|---|---|---|---|
| Enterprise Zone Agreement 2 Remaining Funds | $280,000 | 280,000 | $1,400,000 |
| Enterprise Zone Agreement 3 Remaining Funds | $907,133 | 907,133 | $7,257,064 |
| SIP Data Center 1: Initial Payment | $1,500,000 | $1,500,000 | |
| SIP Data Center 1: Community Service Fee (CSF) | $610,000 | 610,000 | $8,540,000 |
| SIP Data Center 2: Initial Payment | $1,500,000 | $1,500,000 | |
| SIP Data Center 2: Community Service Fee (CSF) | $610,000 | 610,000 | $8,540,000 |
| Total | $5,407,133 | 2,407,133 | $28,737,064 |
Endowment Revenue
| Source | Initial Investment |
Annual Revenue |
Total Investment |
|---|---|---|---|
| Initial Payment from County Funds | $15,000,000 | $15,000,000 | |
| SIP Data Center 1: Guaranteed Annual Payment (GAP) | $2,878,639 | $40,300,946 | |
| SIP Data Center 2: Guaranteed Annual Payment (GAP) | $2,878,639 | $40,300,946 | |
| Total | $20,757,278 | $95,601,892 |
A Win for the County Government, and a Win for County Communities
Having the two-fund option provides a better balance of investment for community infrastructure or economic development needs, with funding for an Endowment Fund that provides a future revenue stream that is not tied to property taxes. The county doesn’t have to choose an “all-or-nothing” approach, and adding the Special Investment Fund ensures infrastructure investments are being addressed before the impact of 15 years of inflation.
Contact your County Commissioners Or Make A Public Comment
Commissioners and Contacts
Scott Hege, Commissioner, Chair (Term: January 1, 2023 - Dec. 31, 2026)
ph: (541) 506-2522
cell: (541) 288-1616
Click here to email Scott Hege: ScottH@wascocountyor.gov(Opens in new window)
Rodger Nichols, County Commissioner, Vice-Chair (Term: July 15, 2026 - Dec. 31, 2026)
ph: (541) 506-2523
cell: (541)980-1728Click here to email Rodger Nichols Rodgern@wascocountyor.gov(Opens in new window)
Jeff Justesen, County Commissioner (Term: January 1, 2025 - December 31, 2028)
ph: (541) 506-2524
cell: (541) 980-2231
Click here to email Jeff Justsen JeffJ@wascocountyor.gov
Submit Public comment to Christine McNamara, Executive Assistant, before or at the September 2nd Meeting of the Board of County Commissioners
Click here to email Christine: ChristineMc@wascocountyor.gov