FIN-1.02 - FY 2003-04 Annual Budget

BCP-FIN-1.02

The Council finds that:

1. The Multnomah County Tax Supervising and Conservation Commission (TSCC) held its public hearing on the City of Portland's FY 2003-04 budget on June 19, 2003 and certified the City's FY 2003-04 budget and proposed levies on that date.

2. For FY 2003-04 the document provides specific position authorization and line item expenditure and revenue detail for all City bureaus and funds.

3. After the preparation, approval, public notice, and presentation to the TSCC of the City’s Approved Budget, it is advisable to update the estimates of resources and requirements contained in the FY 2003-04 Budget prior to final adoption as allowed under Oregon State budget statutes.

4. The changes to be incorporated in the Adopted Budget include:

a. The carryover of appropriations for certain activities or projects previously authorized in the FY 2002-03 budget but not expected to be expended by June 30, 2003. Carryover appropriations will be budgeted in contingency pending determination of realizing budgeted year-end balance for FY 2002-03.

b. Technical adjustments including program revenue adjustments; updated estimates for interagency agreements; updated estimates for General Fund overhead recovery; and numerous minor adjustments needed in order to make the resource and requirement estimates as up-to-date and technically accurate as possible prior to adoption of the FY 2003-04 budget.

5. The budget should be adopted so that there is no delay in establishing budget authority for conducting City business on July 1, 2003.

6. The Council expresses specific direction to bureaus to ensure proper attention is given to work items in the form of Budget Notes included in the Adopted Budget document.

NOW, THEREFORE, the Council directs:

a. The Fiscal Year 2003-04 budget of the City of Portland is hereby adopted.

b. Expenditures in accordance with the annual budget adopted in Section 1.a of this Ordinance, amounts are hereby appropriated for the fiscal year beginning July 1, 2003, from the funds and for the purposes listed on Attachment 1 , Table 1. This schedule of appropriations incorporates the changes referred to in the Findings of this ordinance.

c. The Mayor and the Auditor are hereby authorized to draw warrants on the appropriations made in Section 1.b of this Ordinance as provided in Section 2-508 of the City Charter.

d. The number of authorized full-time positions is hereby limited to the number of such positions listed for each fund and bureau in the FY 2003-04 Adopted Budget unless otherwise authorized by Council.

The Mayor, the Commissioners and the Auditor, within their respective jurisdictions, are authorized to fill vacant positions in accordance with the Human Resources Administrative Rules unless otherwise directed by Council. Salaries for each appointee shall be set in accordance with the Compensation Plan of the City of Portland unless otherwise directed by the Council.

e. Special expenditure limitations are hereby established as follows:

i. Expenditures may not exceed the amounts listed for the major object categories in the FY 2003-04 Adopted Budget, as amended throughout the fiscal year by the appropriate authority. The "major object categories" include personal services, external materials and services, internal materials and services, capital outlay, equipment cash transfers, contingency, fund-level cash transfers, debt retirement, and inventory increases.

ii. Bureau managers may adjust their line item budgets as needed, subject to the limitations described below.

(a) Line item budget adjustments may not change the appropriation amounts shown in Attachment 2 , Appropriation Schedule – FY 2003-04, Table 10 except with approval from the City Council as provided for in ORS 294.450, 294.326, or 294.455 or through the Supplemental Budget process provided for in ORS 294.455 and ORS 294.480.

(b) Line item budget adjustments may only change the totals for the major object categories of the bureau program budget with written authorization from the Commissioner-in-Charge and subsequent reporting in the trimester Budget Monitoring Reports that bureaus submit to the Office of Management and Finance.

iii. Expenditures for internal materials & services (line items 551000 through 559000) may only be used to obtain services from City of Portland agencies. Any line item budget adjustment that changes an internal materials & services amount must be agreed to by both the bureau providing the service and the bureau receiving the service, in accordance with the City's policy on interagency agreements adopted by the City Council on June 21, 1989 and revised on December 4, 1992.

iv. Fund-level cash transfers may not exceed the amounts detailed in the FY 2003-04 Adopted Budget without approval from the City Council.

v. The capital outlay category is to be used for the purchase of "fixed assets," which are defined as tangible assets having a unit cost of at least $5,000 and an expected life of at least one year. The capital outlay category is subdivided into land, buildings, improvements, and equipment/furniture. "Improvements" are fixed assets other than buildings that add value to land, cost at least $10,000, and have an expected life of at least 10 years. "Equipment and furniture" (line item 564000) is defined as fixed assets other than land, buildings, and improvements.

vi. Expenditures on Federal and State grant projects are limited to those grants that have been accepted and approved by the City Council.

f. Special budget monitoring provisions are hereby authorized for FY 2003-04:

The Financial Planning Division of the Office of Management and Finance is directed to prepare a trimester report to Council regarding budgetary performance and fiscal status and is authorized to require City bureaus to submit such information as is necessary to prepare this report, including the status of Budget Notes included in the FY 2003-04 Adopted Budget.

g. Resolution number 33526, directing Council increases to the General Fund capital set aside, adopted by Council June 13, 1996, is hereby rescinded.

h. The FY 2003-04 Adopted Budget will be prepared in accordance with Council policy directions and state budget law.

i. The FY 2003-04 Adopted Budget will include the Budget Notes as presented in Attachment 3 titled Budget Notes.

Ordinance No. 177596

Passed by Council June 19, 2003.  Effective July 1, 2003.