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Finance 101: Revenues & Services in Hillsboro

by Robby Hammond, Hillsboro City Manager

Post Date:05/01/2023

Robby Hammond headshot Knowing how local governments pay for community services, projects, and programs is valuable for community awareness and accountability.

Did you know the State of Oregon restricts how many funding sources can be used? Making it easier for you to be informed about the City’s finances, and continuing our commitment to transparency, we’re using space in City Views and on our public website to explain where City funding comes from — and how it’s spent on the services and programs you see daily.

Permanent Property Taxes

Under Measure 50, property taxes on existing properties are limited to 3% annual growth. The City receives some of the property taxes you pay, and these revenues go into the General Fund where they fund public safety services, including Police and Fire & Rescue; facilities and programs provided by Parks & Recreation and the City’s two libraries; community planning, and more.

Local Option Levy

In Hillsboro, our Local Option Levy is a five-year property tax that provides essential support for a specific use: our Police, Fire & Rescue, and Parks Maintenance programs, services, and staffing. Approved by 82% of Hillsboro voters in May 2022, the rate has remained consistent for the past 17 years.

Utility Bill

Customers pay their utility bill to fund sanitary sewer, surface water management, transportation, and drinking water services provided by the City of Hillsboro and Clean Water Services — and the infrastructure that is necessary. The Transportation Utility Fee funds bike and pedestrian pathways, maintenance of our streets, and more. Also, residents in the South Hillsboro neighborhood are charged a Community Service Fee for park development.

System Development Charges

Development helps pay for itself in Hillsboro through System Development Charges that cover the costs of plan reviews, infrastructure impacts (water pipelines, roads, and sewer lines), and amenities such as community parks and the soon-to-open inclusive park & playground.

Transient Lodging Taxes

When visitors and tourists stay overnight in a hotel in Hillsboro, they pay taxes called Transient Lodging Taxes, or TLT. The State requires 70% of the City’s local TLT to be spent on tourism-related activities, such as the Wingspan Events Center, or the future Hillsboro Hops Ballpark.

Read more about the City’s finances on our Budget webpage.

Budget items