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Budget 101www.portlandonline.com/communitybudget

City of Portland, Oregon

Fiscal Year 2011-12

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Learning Objectives

Understand how the budget relates to Cityservices.

Understand where City money comes fromand where it goes.

Understand the budget process

How the budget is developed

How the community can provide input

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Jurisdictions

Government services are provided by avariety of jurisdictions in the Portland area.

Each one provides a different set of services.

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Who Provides the Services I use?

XZooXAnimal Services

XHealth & Social Services

XEmployment Office

XHousing

XWater

XSewerXXGarbage

XXBusiness Licenses

RegionalLand UseCity Streets,SidewalksPlanning & Development

K-12 SchoolsSUN SchoolsFundingSUN SchoolsEducation

Parks, Golf,Portland Int'l

RacewayParks & Recreation

Libraries, 211823-4000Info & Referral

Jails, CourtsState PolicePolice, Fire,

911Public Safety

Bus, MaxBridgesHighways,

DMVCity Streets,SidewalksTransportation

TRI-MET

SCHOOL

DISTRICTSMETRO

MULTNOMAH

COUNTY

STATE OF

OREGON

CITY OF

PORTLAND

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City Service Areas

TransportationTransportation Traffic, Parking, Street Car, Road MaintenanceTraffic, Parking, Street Car, Road Maintenance

Public SafetyPublic Safety Police, Fire, Emergency Management & CommunicationsPolice, Fire, Emergency Management & Communications

Parks, Recreation & CultureParks, Recreation & Culture Parks & Recreation, Golf, Portland International RacewayParks & Recreation, Golf, Portland International Raceway

Public UtilitiesPublic Utilities Environmental Services (Sewer), Hydroelectric Power, WaterEnvironmental Services (Sewer), Hydroelectric Power, Water

Community DevelopmentCommunity Development Development Services and Permitting, Planning and SustainabilityDevelopment Services and Permitting, Planning and Sustainability, Neighborhood, Neighborhood

Involvement, Housing, CableInvolvement, Housing, Cable Legislative, Administrative & SupportLegislative, Administrative & Support

Attorney, Auditor, Government Relations, Human Relations, ManageAttorney, Auditor, Government Relations, Human Relations, Management & Financement & Finance

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Budget

A plan for the acquisition and allocation ofA plan for the acquisition and allocation ofresources to accomplish specific purposes.resources to accomplish specific purposes.

The Budget provides the strategic directionThe Budget provides the strategic directionthe City intends to take over the coming fiscalthe City intends to take over the coming fiscalyear.year.

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The Budget and Services

Funding for the CityFunding for the Citys core services ares core services aredivided into two parts:divided into two parts:

General FundGeneral FundIncludes services such as PublicIncludes services such as Public

Safety, Parks & Recreation and CommunitySafety, Parks & Recreation and CommunityDevelopment.Development.

NonNon--General FundGeneral FundFunds infrastructureFunds infrastructurespending such as transportation, water andspending such as transportation, water and

sewer.sewer.

Where the money comes from oftenWhere the money comes from oftendetermines how it can be spent.determines how it can be spent.

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Where does the money come from?

Bond and Note Proceeds Bonds and notes are sold to the public to fund major infrastructure projects.

Beginning Fund Balance The remaining balance of City resources each year, after liabilities are deducted. This

represents a major portion of resources that will be spent in the next year.

Service Charges and Fees Fees and charges collected for services such as water, sewer and parks usage.

Taxes A portion of property taxes collected by the County are available to the City. Other

taxes include the Lodging Tax, Business Income Tax and Gas Tax.

Grants Assistance provided by other organizations to help fund specific programs.

Licenses and Permits The City sells licenses and permits that regulate activities such as construction,

business and use of public spaces.

Miscellaneous Revenue Includes investment interest, Capital Asset Sales, Assessment Collections, Misc.

Sales, Private Grants and Donations, Loan Repayments and Refunds

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Allocating Resources

Many funds are dedicated to specific uses based ontheir source.

Water and sewer fees pay for water and sewer system

maintenance and improvements. Permit fees pay for development services.

The General Fund is the pool of general Cityresources, that are not set aside for specific uses.

These come from property and business taxes.

Allocated based on City Council priorities.

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2010-11 Budget

$3,429,943,414All funds combined, Total Budget

$451,812,997Total General Fund Budget

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Discretionary vs. non-Discretionary

Non-Discretionary funds are restricted to specific uses.

Discretionary funds are allocated based on service priorities.

Source: City of Portland FY 2010-11 Adopted Budget, Volume 1, page 90

General Fund - FY 2010-11

Discretionary Resources

81.8%

$369,586,997

Non-Discretionary Resources

18.2%

$82,226,000

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Property Taxes

Utility License

Fees

Business

Licenses

Transfers fromOther Funds

Service Charges

& Other

Intergovernmental

Lodging TaxesBeginning Fund

Balance

General Fund Resource Summary

100.0%$ 451,812,997Total General Fund Budget

2.6%11,607,626Beginning Fund Balance

3.2%14,524,258Lodging Taxes

5.7%25,893,139Intergovernmental

6.0%26,998,422Service Charges & Other

11.6%52,519,607Transfers from Other Funds

12.8%57,831,084Business Licenses

15.6%70,478,905Utility License Fees

42.5%$ 191,959,956Property Taxes

PercentBudgetResource

Source: City of Portland FY 2010-11 Adopted Budget, Volume 1, page 27

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Public Safety

Transportation

& Parking

Reserves and

Other Transfers

Community

Development

Leg, Admin

& Support

Parks,

Recreation, &

Culture

General Fund Expenditure Summary

100.0%$ 451,812,997Total General Fund Budget

0.0%15,000Public Utilities

1.8%8,303,205Reserves & Other Transfers

2.5%11,472,212Transportation & Parking

7.5%33,837,617Community Development

13.4%60,731,096Parks, Recreation, & Culture

17.2%77,726,519Leg / Admin / Support

57.5%$ 259,727,348Public Safety

PercentBudgetResource

Source: City of Portland FY 2010-11 Adopted Budget, Volume 1, page 28

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Current Financial Outlook

Portland is in a better position than most regions. Our sources of revenue are more stable (less cyclical). Early and aggressive budget actions taken by the Mayor

and City Council the last 2 years.

Public investment in the economy is still essential.Focus on: Public infrastructure and housing. Local businesses and workforce development.

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Financial Outlook Continued

Public safety bureaus: cuts of 0.75%.

Non-public safety bureaus: cuts of 1.5%.

General Fund forecast shows a surplus of $11.2

million in FY 2011-12 (assuming current servicelevels), however, those resources will be required tooffset expenditures in future years.

Current General Fund 5-year forecast cannot sustaincurrent service level expenditures without programreductions or new revenue sources.

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FY 2011-12 Budget Process

Requested BudgetDevelopment

RequestedBudget Review

Budget Approval& Adoption

Nov Dec Jan Feb Mar Apr May Jun

Budget

Kickoff

Forecasting and

Budget Instructions

Bureau BudgetRequests

CommunityBudget

Forums *

Mayor ProposesBudget

CommunityBudget

Hearing *

Council AdoptsBudget

Bureau Budget Advisory Committees MeetBudget Committee

Review

CommunityPartnership

Events *

FinancialPlanning Reviews

Utility RateReview Hearings

Council ReviewsBudget Requests

Council FocusesBudget Initiatives

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November - December Council Goal Setting Sessions

Strategic Issue Identification & Affirmation

Financial Forecast Budget Guidelines to Bureaus

Council goals and priorities Strategic issues and challenges City financial condition Financial forecast

Bureaus meet w ith their own advisory

committees & hold community meetings

Preliminary Budget Stage

Get Involved: Bureaus meet with their own advisory committees& hold community meetings

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Requested Budget Stage

Feb Bureaus Submit Requested Budgets Jan March

Citywide Community Forums Community Partnership Events

Online Commentary Public Surveys Council Work Sessions with Community Budget Advisors &

Bureaus

2-3 Public Forums in the Community (Small GroupDiscussions w ith Bureau Directors & City Council),

Survey Period, Communi ty Partnersh ip Events

Get Involved:

2-3 public forums in the community Surveys Community partnership events

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Proposed Budget Stage

March - late April Mayors Proposed Budget internal meetings

Financial Planning analyzes requested budgets and

writes issue papers Discussions with Financial Planning, bureau directors,

and commissioners

Mayor announces budget decisions Online testimony is taken

community partnership eventopportunitiesOnline testimony opens

as soon as Mayors decisions announced!

Get Involved:

Ongoing community partnership events Online testimony once the Mayors decisions are announced

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Approved Budget Stage

May - June Community hearing

City Council hearing & budget approval

Tax Supervising Conservation Commission(TSCC) Hearing Independent review and hearing on the Approved Budget

Evening Hearing on Proposed Budget in

the Community for Public Testimony,

electronic and wr itten testimony continues

Get Involved:

Evening Hearing for public testimony on theProposed Budget

Electronic and written testimony continues

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Adopted Budget Stage

Late June

Technical adjustments

Budget adopted in late June

Budget monitoring process in fall, winter, spring trackprogress on budget decisions

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