37708

Resolution

Certify that certain services are provided by the City to establish eligibility for State Shared Revenue

Adopted

WHEREAS, ORS 221.760 provides as follows:

Section 1. The officer responsible for disbursing funds to cities under ORS 323.455, 366.785 to 366.820 and 471.805 shall disburse such funds in the case of a city located within a county having more than 100,000 inhabitants, according to the most recent federal decennial census, only if the officer reasonably is satisfied that the city meets the requirements set out in subsection (2) of this section, or if the city provides four or more of the following municipal services: a) Police protection b) Fire protection c) Street construction, maintenance, and lighting d) Sanitary sewers e) Storm sewers f) Planning, zoning, and subdivision control g) one or more utility services.

WHEREAS, City officials recognize the desirability of assisting the state officer responsible for determining the eligibility of cities to receive such funds in accordance with ORS 221.760;

WHEREAS, the City of Portland is a city located within a county having more than 100,000 inhabitants;

NOW, THEREFORE, BE IT RESOLVED that the City of Portland hereby certifies that the following services enumerated in Section 1 of ORS 221.760 are provided by the City:

Police protection
Fire protection
Street construction, maintenance, and lighting
Sanitary sewers
Storm sewers
Planning and zoning
Water service

BE IT FURTHER RESOLVED that the City Budget Office shall transmit a certified copy of this resolution to the State of Oregon, Department of Administrative Services to establish the City’s eligibility for State Shared Revenues.

Impact Statement

Purpose of Proposed Legislation and Background Information

The resolution must be passed by Council to prepare the City for the beginning of a new fiscal year on July 1, 2025. The item is included because ORS 221.760 requires the City to certify that it provides certain municipal services in order to qualify for state shared revenues (cigarette and liquor taxes).

Financial and Budgetary Impacts

The resolution makes the City eligible for an estimated $21,000,000 in cigarette, liquor, and state marijuana taxes in FY 2025-26.

Economic and Real Estate Development Impacts

Not applicable.

Community Impacts and Community Involvement

The City’s annual budget includes multiple programmatic changes that will impact the community. These programmatic changes invest resources and reallocate internal resources into bureau programs as articulated in the Adopted Budget. A three-member Community Budget Advisory Board was invited to sit in on budget discussions with the Mayor and Council as the budget was developed. There were Council work sessions held to discuss the FY 2025-26 Budget process in April and May of 2025. Council conducted four listening sessions in March and April of 2025 as well. Public comment has been solicited on the City Budget Office website, and in accordance with Oregon Local Budget Law, live public testimony was received on May 7th, 2025 during the Mayor's Proposed Budget Hearing and will be heard again on May 21st, 2025. Council members receive weekly emails from the CBO compiling the written comments received by the public through the online portal.

100% Renewable Goal

This action does not directly impact the 100% renewable goal.

Financial and Budget Analysis

Analysis provided by City Budget Office

The ordinance adopts a total budget of $8,638,585,121. Of this amount, $8,479,992,777 exists in the legally-binding appropriation schedule, with the remaining $158,592,344 existing in unappropriated ending fund balance and debt service reserve budgets—neither of which are appropriated by the Council per state budget law.

The appropriated budget includes program expenses totaling $4,491,210,534. A breakout of program expenses will be detailed in Volume 3 of the Adopted Budget book, expected to be published in late July.

The ordinance anticipates a variety of revenues and expenditures but does not directly generate those revenues or incur the expenses. This budget contains new fees and surcharges that have never been collected and thus their actualization will be groundtruthed as part of analysis of FY 2025-26 revenue actuals via budget-to-actuals monitoring. There exists some risk that projected revenues and planned expenditure reductions will not be actualized, resulting in a need for budget and policy flexibility which can be reviewed and processed through the City Budget Office's Budget Monitoring Processes and addressed by the Council via supplemental budgets.

The ordinance also creates, eliminates, and reclassifies positions. In total, a net of 41.9 FTE are reduced in the FY 2025-26 Adopted Budget compared to the FY 2024-25 Revised Budget. CBO notes that position figures do not represent staffed positions but rather position authority and may include limited-term positions budgeted by bureaus.

Economic and Real Estate Development Analysis

Analysis provided by Prosper Portland

An Economic and Real Estate Development Impact Analysis was not submitted for this proposed action. Pursuant to City Council Resolution 37664, Prosper Portland staff has reviewed the action and agree that it does not require an Economic and Real Estate Development Impact Analysis.

Document History

Document number: 2025-238

President's referral: City Council

Agenda	Council action
June 10, 2025 Regular Agenda City Council	Continued Continued to June 18, 2025 at 6:00 p.m.
June 18, 2025 Regular Agenda City Council	Adopted Votes Aye (11): Ryan Koyama Lane Morillo Novick Clark Green Zimmerman Avalos Dunphy Smith Pirtle-Guiney Absent (1): Kanal

Document number

2025-238

Introduced by

Mayor Keith Wilson

City department

City Budget Office

Contact

Ruth Levine

Director, City Budget Office

ruth.levine@portlandoregon.gov

Agenda Type

Regular

Date and Time Information

Meeting Date

June 18, 2025

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