passed ordinance 2025-403

Adopt the FY 2025-26 Fall Supplemental Budget and make other budget related changes

budget finance
budget appropriation

Department: City Budget Office
Service area: City Operations
Introduced by: Mayor Keith Wilson
Status: Passed

Impact statement

Purpose & background

In the Fall Supplemental Budget (Technical Adjustment Ordinance or TAO), City Council adopts changes to appropriation levels in various funds and makes changes to Current Appropriation Level targets. Many programs and projects throughout the City are impacted by this action. The proposed legislation does not change any City policies.

Financial impacts

Approval of the exhibits of this ordinance reflect appropriation changes in 48 funds by a net increase of $241.3 million, primarily resulting from truing up beginning fund balances and other resources between fiscal years. There is a net increase/decrease to General Fund contingency accounts. These changes are summarized in Exhibit 2. Additional details are available in Exhibit 7.

Economic impacts

None

Community impacts

The public had the opportunity to provide online testimony for several weeks leading up to a publicly-noticed hearing, where community members may also provide virtual testimony. This supplemental budget is a part of a much larger budget process; the rest of the budget process is subject to extensive public outreach in the form of public meetings, public hearings, Council work sessions, requests, and analysis provided online and the inclusion of public budget advisors.

▸ Full text (the legislation as adopted)

The City of Portland ordains. Section 1. The Council finds: Exhibit 1, attached, includes all incremental changes to the City appropriation schedule as a result of the Fall Supplemental Budget Process. A memorandum, attached as Exhibit 2, identifies programs, projects, or activities that require appropriation adjustments or transfer or appropriation within bureau and fund budgets. Exhibit 3, attached, shows, for informational purposes, a reconciliation of changes to all funds. Exhibit 4, attached, shows, for informational purposes, all requests materially affecting the General Fund. Exhibit 5, attached, shows all position changes. Exhibit 6, attached, shows all bureau decision package narrative with corresponding high-level financial information. Exhibit 7, attached, includes the Fall TAO memo published by the City Budget Office that explains changes of note. City financial policy FIN 2.03 dictates that "at least fifty-percent (50%) of General Fund discretionary revenue that exceeds budgeted beginning balance (adjusted for the difference in encumbrance carryovers and Council-authorized carryovers from the prior fiscal year) will be set aside during the Fall budget monitoring process for allocation to infrastructure maintenance or replacement in the subsequent budget process. This funding shall be allocated for projects relating to emergency preparedness, parks and recreation, and transportation." In FY 2025-26, there is a negative balance of General Fund discretionary after adjusting for budgeted beginning fund balance and encumbrance carryovers, and therefore this policy is not applicable to this ordinance. NOW, THEREFORE, the Council directs: The FY 2025-26 Appropriation Schedule is hereby amended by adjusting appropriations for certain expenditures in various funds as indicated by the increases and decreases presented in Exhibit 1; explanation of these changes are provided in the memorandum attached as Exhibit 2. The City Budget Office is directed to adjust FY 2026-27 General Fund Current Appropriation Level targets, as outlined in Exhibit 2, to reflect the addition of $4,455,568 in health benefit expenses to build up the health fund reserve. The number of authorized positions in the FY 2025-26 Revised Budget is hereby amended as presented in Exhibit 5. The actions amending the FY 2025-26 Revised Budget contained in this ordinance are binding City policy.

Tally

10 yea 0 nay 2 other