FIN-1.07 - FY 2005-06 Annual Budget

BCP-FIN-1.07

The Council finds:

1. The Multnomah County Tax Supervising and Conservation Commission (TSCC) held its public hearing on the City’s FY 2005-06 Approved Budget on June 16, 2005 and certified the budget and proposed tax levies on that date.

2. For FY 2005-06 the budget document provides specific position and expenditure authorization 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 Approved Budget prior to final adoption, as allowed under Oregon Revised Statutes.

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

a. The addition of $175,000 in one-time General Fund discretionary resources to the Fire Bureau budget for a delivery system study.

b. The addition of a management analyst position for the Campaign Finance Fund. The position will be supported with resources already allocated to the fund in the Approved Budget.

c. An increase in General Fund beginning balance of $1.74 million, an increase in General Fund revenues of $0.3 million, an increase in General Fund contingency of $0.2 million, and the elimination of a $1.8 million transfer from the General Reserve Fund to the General Fund.

d. An $847,000 increase in contingency in the Children’s Investment Fund to partially reconcile estimated fund revenues with City projections.

e. A $781,345 increase in contingency in the Parks Local Option Levy Fund to reconcile estimated fund revenues with City projections.

f. An increase in General Fund carryover of $612,343. Of this amount, $80,000 will be added to the Planning Bureau budget.

g. A reduction to the Parks Bureau budget of $326,227, to correct technical errors in the Approved Budget.

h. Transfer of a $230,000 appropriation for Holly Farm Park development from the Transportation Operating Fund to the Parks Construction fund.

i. Transfer of $135,780 from contingency to external materials and supplies within the Health Insurance Fund and Portland Police Association Health Insurance Fund to cover significantly higher FY 2005-06 Oregon Medical Insurance Pool rates.

j. An increase in the Office of Management and Finance budget of $159,931 to fund a limited term position for Portland General Electric (PGE) acquisition and increased Utilities Customer Service facilities costs. Of the increase, $130,000 will be transferred from the PGE special appropriation.

k. A reduction of $3.2 million in the Sewer System Rate Stabilization Fund, which will be loaned to the Transportation Operating Fund for the purchase of three new streetcars.

l. An increase to the special appropriation for the Regional Arts & Culture Council of $61,208.

m. An increase to the graffiti abatement program in the Office of Neighborhood Involvement of $80,000 to match private contributions to graffiti abatement on large commercial properties.

n. An increase to the Bureau of Housing and Community Development of $269,834, to go to Central City Concern for the Hooper Center.

5. The budget should be adopted so that there is no delay in establishing budget authority for conducting City business on July 1, 2005.

6. Council directs bureaus to ensure proper attention is given to compliance with budget notes included in the Adopted Budget document.

NOW, THEREFORE, the Council directs:

a. The FY 2005-06 budget for the City is hereby adopted in the total amount of $2,688,496,563.

b. In accordance with the FY 2005-06 budget adopted in Section 1.a. of this ordinance and ORS 294.435, expenditure amounts are hereby appropriated for the fiscal year beginning July 1, 2005 from the funds and for the purposes listed in Attachment 1 , Volume Two, Table 1 (Appropriation Schedule – FY 2005-06). This schedule of appropriations incorporates the changes referenced in Section 1.4 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 2-105 of the City Charter.

d. The number of authorized positions is hereby limited to the number of such positions listed for each fund and bureau in the FY 2005-06 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 Bureau of Human Resources’ administrative rules unless otherwise directed by Council. Salaries for each appointee shall be set in accordance with the City Compensation Plan 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 2005-06 Adopted Budget, as amended throughout the fiscal year by the appropriate authority. The major object categories include personal services, materials and services (including equipment cash transfers), capital outlay, contingency, fund-level cash transfers, and debt retirement.

ii. Bureau directors may adjust their line item budgets as needed, subject to the following limitations:

(a) Major object category adjustments may not change the appropriation amounts shown in Attachment 1 , Volume Two, Table 1 (Appropriation Schedule – FY 2005-06) except with approval from 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) Major object category adjustments may only change the totals for the major object categories of the bureau 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 and services (line items 551000 through 559000) may only be used to obtain services from City agencies. Any line item budget adjustment that changes an internal materials and 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.

iv. Fund-level cash transfers may not exceed the amounts detailed in the FY 2005-06 Adopted Budget without approval from Council.

v. Funds appropriated in the capital outlay category are to be used for the purchase of fixed assets, which are defined as tangible assets with 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 defined as fixed assets other than buildings that add value to land, cost at least $10,000, and have an expected life of at least ten years. Equipment/furniture is defined as fixed assets other than land, buildings, or improvements.

vi. Expenditures on federal and state grant projects are limited to those grants that have been accepted and approved by Council.

f. 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 2005-06 Adopted Budget.

g. The FY 2005-06 Adopted Budget will include the budget notes as presented in Attachment 2 .

h. The actions adopting the annual budget of the City and establishing appropriations contained in this ordinance are binding City policy.

Ordinance No. 179373 passed June 23, 2005 and effective July 1, 2005.