FIN-1.23 - FY 2007-08 Annual Budget

BCP-FIN-1.23

Section 1.  The Council finds:

1.  The Multnomah County Tax Supervising and Conservation Commission (TSCC) held its public hearing on the City’s FY 2007-08 Approved Budget on June 14, 2007 and certified the budget and proposed tax levies.

2.  The FY 2007-08 Adopted Budget document will provide specific position and expenditure authorization and revenue detail for all City bureaus and funds.

3.  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 significant changes to be incorporated in the Adopted Budget include:

     a.  Increasing the Emergency Communication Fund budget by $459,000 to cover increased labor costs associated with an amended union agreement.

     b.  Converting one part-time accountant position to full-time and restoring one position related to the Traffic Signal reduction at the Portland Department of Transportation.

     c.  Reducing the Transportation Operating Fund budget for the Steel Bridge Strengthening project from $1.5 million to $750,000.

     d.  Increasing the Facilities Services Operating Fund budget for debt service costs associated with the City Archives project by $76,500, from $362,500 to $439,000.

     e.  Increasing the Facilities Services Operating Fund budget by $69,200 to support Mayor’s Office security contracts.

     f.  Transferring $50,000 from contingency in the Parking Facilities Fund to pay for the marketing of a parking validation system.

     g.  Increasing the Parking Facilities Fund budget by $200,000 to recognize additional revenue from the

Station Place

garage and provide reimbursement to the Portland Development Commission (PDC).

     h.  Transferring $100,000 from contingency in the Spectator Facilities Fund to pay for concourse and restroom repair at Memorial Coliseum.

     i.  Increasing the Technology Services Fund budget by $220,765 to continue funding two information system analyst positions that support the Police Bureau.

     j.  Reducing the Technology Services Fund budget by $1,000,000 to reflect reduced interagency revenue from the Revenue Bureau, and increasing the fund budget by $170,455 to true up to other bureaus’ interagency agreement amounts, for a net decrease of $829,545 in the fund’s budget.

     k.  Transferring $22,600 from contingency in the Insurance & Claims Operating Fund to purchase computers.

     l.  Transferring $29,300 from contingency in the Workers’ Comp Self-Insurance Operating Fund to purchase computers and fund a contract for nursing services.

     m.  Increasing the Revenue Bureau budget by $25,000 to pay for welcome kits for new businesses.

     n.  Increasing the Parks Capital Construction & Maintenance Fund budget by $2,611,460 to support seven capital projects.

     o.  Transferring $188,630 from the Parks Levy Fund to the Parks Capital Construction & Maintenance Fund to support the development of a playground at DickinsonPark.

     p.  Increasing Portland Parks & Recreation’s (PP&R) budget by $70,240 to support preliminary work on capital improvement plan projects.

     q.  Transferring $1,955,000 from the Sewer Revolving Loan Fund and the Sewer System Safety Net Fund to the Sewer System Operating Fund, so the two former funds can be closed.

     r.  Increasing the Fire & Police Disability & Retirement Fund budget by $3,810,000 with increased tax anticipation notes and interest revenue, to support cash flow.

     s.  Increasing the Office of Sustainable Development’s (OSD) budget by $600,000 for the Sustainable Industries initiative.

     t.  Increasing the Police Bureau’s budget by $52,422 to recognize three grants recently accepted by Council.

     u.  Increasing a special appropriation for PDC by $100,000 to support a citywide market study for the Portland Farmers Market.

     v.  Transferring $380,000 from the special appropriation for Project 57/Voluntary Substance Abuse Treatment to the Bureau of Housing and Community Development for the Housing Rapid Response program.

     w.  Increasing General Fund contingency by $235,081 to reflect a higher payment from the Housing and Community Development Fund for indirect cost recovery, and increasing the Housing and Community Development Fund budget by the same amount (backed by grant funds) to make the payment.

     x.  Carrying over $377,500 in the Facilities Services Operating Fund to pay for the remaining costs of moving the Planning Bureau to the 7^th floor of the 1900 Building.

     y.  Carrying over $1,464,900 in the CityFleet Operating Fund to pay for the E-85 fueling system and vehicles requested but not yet ordered and/or delivered.

     z.  Carrying over the following amounts within the General Fund:

         • $360,173 at OSD for sustainable economic development grants, education, and outreach

         • $40,000 at the Office of Neighborhood Involvement for youth violence prevention grants

         • $117,056 at PP&R for the purchase of three vans

         • $377,500 at the Planning Bureau for remaining costs associated with moving the bureau to the 7^th floor of the 1900 Building

         • $272,250 in special appropriations for Diverse Empowered Employees of Portland, the Human Relations project, the Immigration & Racial Profiling project, the Independent Police Review audit contract, and the Family JusticeCenter.

         • $450,000 in special appropriations for the Miracles Club.

NOW, THEREFORE, the Council directs:

a.  The FY 2007-08 budget for the City is hereby adopted in the total amount of $3,046,938,195.

b.  In accordance with the FY 2007-08 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, 2007 from the funds and for the purposes listed in Attachment 1, Appropriation Schedule – FY 2007-08 (Volume One, Table 2 in the budget document). 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 2007-08 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 2007-08 Adopted Budget (Volume One, Tables 2 and 3 in the budget document), 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, interfund 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 2007-08 (Volume One, Table 2 in the budget document) 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 One, Table 3 in the budget document 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.  Any budget adjustment that changes an internal materials and services amount or an interfund transfer amount must be agreed to by both parties.

     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 2007-08 Adopted Budget.

g.  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 2007-08 budget monitoring reports and the FY 2008-09 Requested Budget. Financial Planning will include bureaus’ performance results in budget monitoring and Requested Budget analyses.

h.  The FY 2007-08 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.

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

Section 2.  The Council declares that an emergency exists because it is necessary to adopt the budget and establish appropriations without delay in order to provide authority to transact the financial affairs of the City for FY 2007-08; therefore, this ordinance shall be in full force and effect from and after July 1, 2007.

Emergency Ordinance No. 181084, passed by City Council June 27, 2007 and effective July 1, 2007.