passed ordinance 2026-158

Amend Portland Clean Energy Community Benefits Fund Code to allow a transfer of interest earned in FY 2024-25 for the FY 2026-27 budget (amend Code Section 7.07.060)

budget finance
code amendment
budget appropriation

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

Impact statement

Purpose & background

In July 2024, City Council authorized a one-time transfer of interest earnings, totaling $7,648,595 from PCEF to the City's General Fund to help bridge significant budget constraints facing the City in FY 2024-25. In June 2025, Council adopted a City budget that again leverages PCEF interest proceeds to support the General Fund. The FY 2026-27 budget also includes a similar transfer of PCEF interest to the General Fund in the amount of $26,890,729. This was necessary due to the continued fiscal strain amid growing demand on City services. Because the PCEF fund maintains a meaningful balance and continues to yield significant interest revenue, the structure offers a second opportunity to supplement constrained budgets without touching principal fund resources.

Financial impacts

This ordinance allows $26,890,729 to be transferred from PCEF to the General Fund to support expenses in FY 2026-27. This amount is based on audited actual interest from FY 2024-25.

Economic impacts

Not applicable.

Community impacts

The PCEF Committee was informed of the proposed amendment to allow the second transfer of interest and discussed it in their May 13, 2026, public meeting. Members of the public had opportunities to submit written comments before and after the meeting as well as verbal comments during the meeting. No comments were received during the meeting related to the proposed amendment.

▸ Full text (the legislation as adopted)

The City of Portland ordains. Section 1. The Council finds: In 2018, Portland voters created the Portland Clean Energy Community Benefits Fund (PCEF) program, which invests in community-originated climate action projects that advance social, economic, and climate justice. In June 2024, Council adopted the FY 2024-25 budget, which included a one-time transfer of PCEF interest from FY 2022-23 to the General Fund. In July 2024, Council amended the PCEF code to allow for the one-time transfer of interest that accrued in PCEF in FY 2022-23 to the General Fund (Ordinance No. 191809). In January 2025, the City Administrator, the Deputy City Administrator for Budget and Finance, the Deputy City Administrator for Community and Economic Development, and the PCEF Committee discussed a second transfer of interest that accrued in PCEF in FY 2023-24 to the General Fund. Council adopted the FY 2025-26 budget on June 18, 2025, which included a transfer of interest that accrued in PCEF in FY 2023-24 to the General Fund. In May 2026, the PCEF Committee was briefed on transferring the interest that accumulated in the PCEF fund in FY 2024-25 to the General Fund for FY 2026-27. The FY 2026-27 Approved Budget includes a transfer of $26,890,729 from PCEF to the General Fund. NOW, THEREFORE, the Council directs: Amend City Code Section 7.07.060 as shown in Exhibit A. This ordinance shall be in full force and effect on July 1, 2026.

Tally

10 yea 2 nay