FIN-1.12 - FY 2006-07 Annual Budget

BCP-FIN-1.12

The Council finds:

1. The Multnomah County Tax Supervising and Conservation Commission (TSCC) held its public hearing on the City’s FY 2006-07 Approved Budget on June 15, 2006 and certified the budget and proposed tax levies on that date.

2. For FY 2006-07 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. Reducing interfund transfers to the Campaign Finance Fund by $607,652 and moving $545,000 to contingency in recognition of lower than expected expenditures in FY 2005-06 and 2006-07.

b. Redirecting $261,873 in General Fund savings from the reduced Campaign Finance Fund transfer to fund 6.75 FTE in the Bureau of Emergency Communications, the Fire Bureau, the Planning Bureau, and the Portland Office of Emergency Management with ongoing resources instead of one-time resources.

c. Eliminating one position, adding one position, and reclassifying one position in the Water Bureau for a total reduction of 0.4 FTE, with no net fiscal impact.

d. Reallocating funds from external materials and services to personal services in the Mayor’s Office to add 0.75 limited-term FTE for the Visioning project.

e. Transferring a one-time special appropriation for Multi-Jurisdictional Gang Services to the Mayor’s Office budget and creating two limited term, full-time positions.

f. Carrying over $200,000 of unspent FY 2005-06 funds for Charter review, to complete work in FY 2006-07.

g. Converting the $400,000 special appropriation for downtown marketing to a payment to the Portland Development Commission, which will manage and coordinate the downtown marketing effort.

h. Transferring $343,862 in interest earned on forfeited assets, currently held in a trust account, to the Police Bureau budget.

i. Making technical adjustments to the Bureau of Development Services to properly fund two positions and an interagency agreement, correct entries in contingency and fund balance, and account for the transfer of the Neighborhood Inspection program, for a net fiscal impact of ($1,821).

j. Adjusting the Sewer System Operating Fund budget to balance the capital improvement plan, with no net fiscal impact.

k. Adjusting the Sewer System Debt Redemption Fund to replace estimates with actual debt service amounts on the 2006 Series A and B bond issues.
l. Increasing the budget in the Bureau of Housing and Community Development and related funds by $1,486,172. This amount is composed of the following elements:

• $200,000 in General Fund resources to rehabilitate methamphetamine houses, budgeted in the Bureau of Housing and Community Development

• $380,000 in General Fund resources for homeless and public safety services, to be shifted from the special appropriation for jail beds and inmate treatment services to the Bureau of Housing and Community Development budget

• $553,336 in one-time FY 2005-06 General Fund resources, to be carried over to FY 2006-07 in the Housing Investment Fund and transferred to the Bureau of Housing and Community Development, to continue a variety of programs

• $299,549 in extended federal grant funds, budgeted in the Bureau of Housing and Community Development

• $20,000 in extended federal grant funds, budgeted in the Housing and Community Development Fund

• $33,287 in extended federal grant funds, budgeted in the HOME Fund

 

m. Increasing the OMF/Technology Services budget by $5,424 to reconcile the budget with bureau interagency agreements.

n. Decreasing the OMF/Technology Services budget by $186,871 to reflect a decrease in special projects contract carryover based on true costs.

o. Adjusting beginning balance in the Facilities Services Operating Fund by $6,530,093 to reflect capital projects that will not be completed in FY 2005-06.

p. Moving a $2,306,000 loan repayment to a different account in the Insurance and Claims Operating Fund, with no net fiscal impact.

q. Increasing the Convention and Tourism Fund budget by $240,000 to reflect the most recent forecast for transient lodging taxes.

r. Transferring $13,438 from the Bureau of Development Services to the Office of Neighborhood Involvement to adjust the transfer of resources associated with the move of the Neighborhood Inspection program.

s. Increasing the Office of Sustainable Development budget by $45,786 in grant resources that will be used to fund one-half of the sustainable city government position.

t. Increasing the Office of Transportation budget by $12,000 to recognize interagency revenue from the Bureau of Housing and Community Development for Dignity Village activities.

u. Changing the mix of positions added for the Keep Portland Moving program at the Office of Transportation, with no net fiscal impact and no net change in total positions.

v. Moving $323,905 in ongoing and one-time resources from the Parks Trust Fund to the Golf Fund to cover cash flow requirements without changing the programmatic use of the funds.

w. Reducing the transfer from the Parks Local Option Levy Fund to the Parks Bureau operating budget by $10,909 to reflect a 1.8% reduction (the average Parks budget reduction) in funds passed through the bureau to other organizations. 

x. Correcting the positions included in the Approved Budget to open Fire Station 27 to reflect one less lieutenant and one more firefighter, with no net fiscal impact.

y. Carrying over $523,444 in federal grant funds for the Portland Office of Emergency Management.

z. Replacing a management auditor position for the Police Bureau’s Office of Professional Standards with a senior management auditor position, with no net fiscal impact.

aa. Increasing contingency in the Fire and Police Disability and Retirement Fund by $426,345 to reach the normal 3% level, following an increase in estimated beginning balance of $2.4 million and a reduction in tax revenue of $1.9 million.

bb. Increasing a special appropriation for the Portland Development Commission by $200,000 for the purpose of funding small business grants.

cc. Reducing the Commissioner of Public Utilities’ budget by $69,659 and eliminating one FTE.

5. The budget should be adopted so that there is no delay in establishing budget authority for conducting City business on July 1, 2006.

NOW, THEREFORE, the Council directs:

a. The FY 2006-07 budget for the City is hereby adopted in the total amount of $2,933,560,038.

b. In accordance with the FY 2006-07 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, 2006 from the funds and for the purposes listed in Attachment 1 , Appropriation Schedule – FY 2006-07 (Volume Two, Table 2). 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 2006-07 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 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 2006-07 Adopted Budget (Volume Two, Tables 1 and 2), 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, 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 , Appropriation Schedule – FY 2006-07 (Volume Two, Table 2) 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 shown in Volume Two, Table 1 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 559782) 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 2006-07 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. A transfer of $5 million in excess Local Improvement District reserves from Bancroft Bond Fund 311 to General Fund 101 will be made, effective with the adoption of the FY 2006-07 Budget.

g. 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 2006-07 Adopted Budget.

h. The Financial Planning Division of the Office of Management and Finance will work with all bureaus to ensure that bureaus report results achieved with all add packages. This reporting may include adjustments to performance goals for existing performance measures, the creation of new performance measures, or simply narrative reporting of results in the FY 2006-07 budget monitoring reports and the FY 2007-08 Requested Budget. Financial Planning will include bureaus’ performance results in budget monitoring and Requested Budget analyses.

i. The FY 2006-07 Adopted Budget will include the budget notes as presented in Attachment 2 . Council directs bureaus to ensure proper attention is given to compliance with budget notes.

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

The Council declares that an emergency exists because it is necessary to adopt the budget and establish appropriation without delay in order to provide authority to transact the financial affairs of the City for FY 2006-07; therefore, this ordinance shall be in full force and effect from and after July 1, 2006.

Ordinance No. 180256 passed June 22, 2006 and effective July 1, 2006.