Bend Park & Rec officials question impact of city tax breaks on future park funding
Tracee Tuesday
BEND, Ore. {KTVZ} — The Bend Park and Recreation Board is taking a closer look at how city tax breaks and development incentives could affect the long-term funding of parks and community spaces.
During this week’s meeting, Park District officials discussed how tax exemptions and financing tools—such as tax increment financing (TIFs)—are being used to promote affordable housing and spur redevelopment across Bend. While those programs are designed to support city growth, board members said they may also reduce the revenue that funds essential services.
Board Director Jodie Schiffman voiced frustration over the growing disconnect between the district and the City of Bend. She emphasized that the two agencies are not operating in alignment, and that existing tax exemption programs are limiting the amount of property tax money directed to local services, including parks.
Park Planner Rachel Colton explained that while the city’s focus on growth brings opportunity, it also comes with trade-offs. “Unfortunately, we don’t have many mechanisms to offset lost revenue,” she said. “Our primary funding comes from property taxes, system development charges, and user fees. Beyond potential bonds or levies, there aren’t many ways for us to recoup those funds.”
According to city estimates, current and proposed tax exemptions could total around $40 million in foregone revenue for local districts over the next 30 years. That figure has prompted park leaders to ask difficult questions—chief among them, how to replace the lost funding and how much influence the Park District has in the city’s tax decisions.
“For the TIF districts, those are specified by Oregon law,” Colton noted. “But we have no approval authority over them.”
Colton added that property taxes are what sustain the district’s daily operations. Reductions through exemptions and TIFs, she warned, directly impact park programs. “For example, a projected $800,000 loss in property taxes equals the amount we provided in scholarship programs last year,” she said.
These discussions are expected to continue through the fall as Bend evaluates its housing and redevelopment strategies.
City and park officials alike acknowledge that finding a balance between growth and sustainability will be one of the community’s biggest fiscal challenges in the years ahead.