Budget-and-Finance---Vol-3_0 — Part 1 of 4

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Breadcrumb: 2 B&F › Budget-and-Finance---Vol-3_0

Budget & Finance Service Area Budget & Finance Service Area

Budget & Finance Service Area This page is intentionally left blank. 2 City of Portland | FY2025-26 Requested Budget

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area Jonas Biery, DCA - Budget & Finance Percent of City Budget Graph OOffice of the Deputy City Administrator of Budget && Finance 3.4% City Budget 96.6% Bureau Programs Office of Budget and Finance DCA 100.0% Bureau Overview Requested Revised Total Change from Percent Requirements FY 2024-25 2025-26 Prior Year Change Operating $262,463,366 $286,532,927 $24,069,561 9% Capital $2,827,757 $2,815,321 $(12,436) (0)% Total $265,291,123 $289,348,248 $24,057,125 9% Authorized Positions 259.50 249.00 (10.50) (4.05)% City of Portland | FY2025-26 Requested Budget 3

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area Office of the DCA of Budget & Finance Program Description & Goals Portland’s City Council approved Resolution 37365 in response to changes in Portland’s form of government Portland voters approved in November 2022. This ordinance established the service area focus for how the City should be organized for governance and delivery of services to the public. The Budget & Finance service area was established in the new organizational structure for the delivery of support services to City bureaus (alongside the City Operations service area). The Office of the Deputy Chief Administrator of Budget & Finance includes the Budget & Finance Deputy Chief Administrator and an Executive Assistant. The DCA manages the following programs and bureaus in the service area:  City Budget Office  Fire and Police Disability and Retirement  Office of the Deputy City Administrator of Budget & Finance – Accounting Division – Revenue Division – Treasury Division – Debt Management – Grants Management – Small Donor Elections – Risk Management – Business Operations – Special Appropriations 4 City of Portland | FY2025-26 Requested Budget

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area Equity Impacts The Office of the DCA of Budget & Finance includes one Equity Manager that provides centralized service to the Budget & Finance service area and the City Operations service area. Program Budget Requested Requested Actuals Actuals Revised No DP Total FY 2022-23 FY2023-24 FY 2024-25 2025-26 2025-26 Requirements Bureau Expenditures Personnel Services 0 0 801,636 855,256 785,256 External Materials and Services 0 0 17,799 5,227,539 5,227,539 Internal Materials and Services 0 0 57,201 47,611 47,611 Bureau Expenditures Total 0 0 876,636 6,130,406 6,060,406 Requirements Total 0 0 876,636 6,130,406 6,060,406 FTE 0.00 1.00 3.50 3.00 3.00 City of Portland | FY2025-26 Requested Budget 5

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area Accounting Division Program Description & Goals The Accounting Division provides centralized accounting operations and financial reporting services; manages the City’s accounting policies, systems, and processes; and oversees grants management for the City. By maintaining the financial health and sustainability of the City, the Accounting Division supports the City’s goal to deliver efficient, effective, and accountable municipal services, and supports the Office of Management & Finance strategies of developing an inclusive, talented workforce, leading Citywide initiatives, and adopting 21st century business solutions. One of the Accounting Division’s performance measures highlights the number of Annual Comprehensive Financial Report (ACFR) review audit deficiency comments from external auditors. Over the past several years, the ACFR has received a clean audit opinion from the City’s independent financial auditors, with zero deficiencies. Zero audit deficiencies is the goal, as it indicates that the City’s systems and processes meet best practices. Another performance measure highlights the number of days the ACFR is completed after fiscal year end. The FY 2023-24 ACFR report was submitted to the State of Oregon Audits Division and the Government Finance Officers Association (GFOA) on December 9, 2024, far in advance of the December 31 deadline. This 120 days to completion goal was set in 2015. Steady progress was made over several years to achieve the goal, and it will continue to be the goal for ACFR production going forward. This accomplishment establishes the City of Portland as a leader in timely financial reporting, compared to other local governments across the country. The Accounting Division provides accounting services and financial support to the City by ensuring transparency in the City’s financial transactions and compliance with City policies, while also providing centralized support to all City bureaus. Program activities include the following:  Preparing financial reports, including the ACFR that complies with current accounting principles and regulatory requirements, and a monthly report to provide financial information to City management  Processing vendor payments, employee reimbursements, accounting journal entries, and general ledger adjustments  Ensuring City accounting operations result in accurate, complete, and timely information  Establishing and maintaining Citywide accounting standards, policies, and associated administrative rules  Assessing processes and internal controls to help improve efficiency and security  Testing for compliance with City policies  Participating in upgrades and enhancements to the City’s financial systems Performance Measures Actuals Actuals Target Target Strategic Performance FY 2022-23 FY 2023-24 FY2024-25 FY2025-26 Target Number of ACFR review audit deficiency comments from external auditors 0 NA 0 0 0 Number of days ACFR is completed after fiscal year end 120 NA 120 120 120 6 City of Portland | FY2025-26 Requested Budget

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area Equity Impacts The Accounting Operations section provides back-office services to every bureau and is involved in ensuring that the City’s bills are paid. These services support everything the City does and ensures that the bureaus provide direct services to the community. The Accounting Reporting section publishes the City’s financial statements and helps to ensure that the City maintains its AAA credit rating, which helps to facilitate the City’s ability to sell debt and keep interest expenditures low. This helps to support capital programs throughout the City. Changes to Program The Accounting Division began providing project and capital asset accounting services to support PBOT in closing a backlog of capital projects and recording the related capital assets during FY 2024-25. Accounting will continue to provide these services as needed to PBOT and other bureaus. The City’s new procure to pay system, SAP Ariba, went live on February 10, 2025. This project will enhance cyber security, bring more standardization to procurements, help mitigate increasing costs in the materials and services area, and provide tools that will make it easier for small, women owned and BIPOC owned businesses to do business with the City. Program Budget Requested Requested Actuals Actuals Revised No DP Total FY 2022-23 FY2023-24 FY 2024-25 2025-26 2025-26 Requirements Bureau Expenditures Personnel Services 2,296,180 3,296,596 3,219,755 3,178,232 3,178,232 External Materials and Services 128,225 89,461 106,412 118,217 118,217 Internal Materials and Services 457,785 482,786 464,587 518,947 518,947 Bureau Expenditures Total 2,882,190 3,868,843 3,790,754 3,815,396 3,815,396 Fund Expenditures Debt Service 40,000,000 0 0 0 0 Fund Expenditures Total 40,000,000 0 0 0 0 Requirements Total 42,882,190 3,868,843 3,790,754 3,815,396 3,815,396 FTE 19.14 20.00 19.00 19.00 19.00 City of Portland | FY2025-26 Requested Budget 7

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area Business Operations Program Description & Goals Business Operations is the centralized provider of financial management, administrative, and business services providing lead service or all service provision to the following customer organizations: • Twelve-member Council and Council Operations • Mayor • City Administrator • Budget and Finance Service Area • City Operations Service Area Major functions include financial oversight of budget development, budget monitoring, and daily financial transactions and personnel related business services, including timekeeping, medical claims, and personnel actions. The Communications Team responds to public records requests and media inquiries and provides bureau-specific communications support services in Budget & Finance and City Operations. Business Operations offers dedicated subject matter experts that serve as strategic partners to customer bureaus. The Business Operations team provides assistance with identifying and implementing process improvements, building organizational capacity, delivering administrative and personnel support, forecasting and modeling financial impacts of business decisions, and providing communications support to bureau programs, policies, and initiatives. Business Operations workload performance measures include the percentage of accounts payable processed within 30 days, the number of employees served by the Business Services Team and the total budget served by financial management teams. Business Operations efficiency measures include the percentage of customer bureau staff served per FTE on the Business Services Team, and the percentage of Business Operations budget relative to budget served. Business Operations provides service to 10 bureaus, 17 Funds, $1.1 billion in total appropriations and just over 660 staff through three key centralized services functions: • Budget development, monitoring, reporting and accounting. • Timekeeping, personnel actions, org maintenance, purchasing and invoice payment. • Communications and strategic planning. The Business Operations Division Manager coordinates centralized financial support for five major organizations within the City including the elected Council, Mayor, City Administrator, Budget & Finance Service Area and City Operations Service area. 8 City of Portland | FY2025-26 Requested Budget

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area The Communications Team provides strategic direction, messaging and content, change management support, media relations strategy, public records response, website support and graphic design for programs and projects spanning the City Operations and Budget & Finance service areas. This team works closely with the Central Communications Team in the City Administrator’s Office, ensuring alignment with citywide communications strategies and systems. Financial management services include the management of finance systems and processes, budget development, monitoring, reporting, financial analysis services, accounting functions, accounts payable services, and other financial services. Employee services include timekeeping and payroll, personnel actions and organizational maintenance, purchasing and invoice payment, and other support services. Equity Impacts Business Operations strives to connect equity work with the broader vision of the City, incorporating principles and practices of racial equity into bureau services wherever possible. Business Operations is the managing partner for budget development, incorporating the budget Equity Assessment Tool into processes and budget submissions. As a buyer of service contracts and having a role in assisting customer bureaus procure services, Business Operations advances social equity in contracting goals and promoting the maximization of awards to MWESB firms. As a service provider for personnel actions and onboarding for customer bureaus, Business Operations encourages racial equity goals in hiring practices, training goals and monitoring, and provision of onboarding resources and materials for resources such as racial equity committees. Program Budget Requested Requested Actuals Actuals Revised No DP Total FY 2022-23 FY2023-24 FY 2024-25 2025-26 2025-26 Requirements Bureau Expenditures Personnel Services 5,218,180 5,524,276 6,596,105 7,538,942 7,208,942 External Materials and Services 249,922 346,271 300,484 153,599 153,599 Internal Materials and Services 879,729 1,044,604 1,209,434 1,334,930 1,334,930 Bureau Expenditures Total 6,347,831 6,915,151 8,106,023 9,027,471 8,697,471 Requirements Total 6,347,831 6,915,151 8,106,023 9,027,471 8,697,471 FTE 33.00 31.00 37.00 39.00 37.00 City of Portland | FY2025-26 Requested Budget 9

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area Debt Management Program Description & Goals The City of Portland issues a variety of debt instruments to raise capital for public infrastructure projects, acquire equipment and facilities, and refinance existing debt. The Public Finance Division (previously referred to as Debt Management) directs the City’s debt financing activities to ensure access to both public and private capital markets in a timely manner that addresses bureau needs. The City’s debt consists of publicly issued long-term bond issues, private placements of debt obligations, and credit facilities. The goal of the Public Finance Division is to administer the City’s financings in a manner that achieves the lowest borrowing cost and the least financial risk. A primary driver of the City’s borrowing cost is its credit rating(s), a measurement of risk by investors. The City’s public bond issues are assigned a credit rating by one or more national rating agencies, including Moody’s Ratings and S&P Global Ratings. Credit ratings are based on an independent analysis by financial market professionals and indicate the credit-worthiness of the City’s debt obligations. For more than 40 years, the City’s unlimited tax general obligation debt has been rated Aaa, the highest possible rating by Moody’s Investors Service. In February 2017, Moody’s upgraded the rating on the City’s limited tax revenue bonds to Aaa. The underlying ratings of the City’s water system revenue bonds and sewer system revenue bonds range from Aa1 to Aa2 by Moody’s Ratings and AA+ to AA by S&P Global Ratings. The City’s publicly issued revenue bonds secured solely by urban renewal area tax increment revenues are rated A1 by Moody’s Ratings. The Public Finance divisions’ daily activities are critical to the achievement of the City’s financial, capital investment, and infrastructure maintenance goals. Through informed financing decisions, Public Finance supports the City by delivering efficient, effective, and accountable municipal services with these practices:  Conservatively managing the issuance of new borrowings in accordance with the City’s debt policies.  Acquiring up-to-date information on financial markets to capitalize on opportunities on both new and existing borrowings; providing financial expertise and innovative solutions to analyze bureau projects and meet bureau business needs; maintaining communications with the City’s credit rating agencies, investors, and creditors.  Complying with State of Oregon and federal laws regarding debt, including IRS arbitrage rebate and other tax-exempt regulatory requirements. Performance Measures Actuals Actuals Target Target Strategic Performance FY 2022-23 FY 2023-24 FY2024-25 FY2025-26 Target Citys unlimited tax General Obligation bond rating (1=Aaa) 1 1 1 1 1 10 City of Portland | FY2025-26 Requested Budget

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area Equity Impacts Equity is impacted by providing the necessary capital to cost-effectively fund numerous social-based investments and infrastructure across the City. For instance, the Public Finance Division assists Prosper Portland in the issuance of short-term debt for active urban renewal areas which fund community economic development and affordable housing projects. Additionally, the Public Finance Division continues to work closely with the Portland Bureau of Transportation on strategic infrastructure improvements through programs like Build Portland, which includes numerous ADA-compliant sidewalk improvement projects throughout the City. Changes to Program There are no material changes to the Public Finance division during this Fiscal Year. However, to support the Citywide budget cuts, the FY 2025-26 Requested budget includes a $20,000 reduction to External Materials and Services. Program Budget Requested Requested Actuals Actuals Revised No DP Total FY 2022-23 FY2023-24 FY 2024-25 2025-26 2025-26 Requirements Bureau Expenditures Personnel Services 738,342 790,676 939,778 1,005,088 1,005,088 External Materials and Services 94,217 63,348 334,966 337,872 317,872 Internal Materials and Services 103,075 102,450 124,597 147,488 147,488 Bureau Expenditures Total 935,634 956,474 1,399,341 1,490,448 1,470,448 Requirements Total 935,634 956,474 1,399,341 1,490,448 1,470,448 FTE 3.64 3.50 3.50 3.50 3.50 City of Portland | FY2025-26 Requested Budget 11

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area Grants Management Program Description & Goals The Grants Management Division (GMD) is part of the City of Portland’s Budget and Finance Service Area. The Grants Management Division is comprised of three specialized teams:  Incoming Grants Team  Outgoing Grants Team  Application Coordination Team Explanation of Services The Grants Management Division, Incoming Grants Team plays a critical role in ensuring that federal, state and private grants are managed responsibly and in compliance with all applicable regulations. This team provides a range of services to ensure effective administration and oversight of grant awards. Key components and responsibilities include:  Regulatory Compliance – ensure that all federal grant activities comply with relevant federal regulations, laws, and guidelines, such as the Office of Management and Budget (OMB) Uniform Guidance (2 CFR Part 200).  Award Management – responsible for managing the grant lifecycle, from initial award to closeout. This includes ensuring that all terms and conditions of the grant agreement are met and that federal funds are used appropriately.  Monitoring and Reporting – regular monitoring and auditing of grant activities to ensure compliance with federal requirements.  Financial Management – ensures proper financial management of federal grant funds, including budgeting, disbursement, and accounting.  Risk Assessment and Management – develop internal controls and procedures to prevent and detect non-compliance.  Policy Development and Implementation – develop and implement policies and procedures to ensure compliance with federal grants.  Audit Coordination – coordinates with external auditors and federal agencies during audits and reviews. Ensure that all required documentation and records are available and that any audit findings are address promptly.  Continuous Improvement – evaluate and improve processes and procedures to enhance compliance with federal grants. This includes staying up to date with changes in federal regulations and incorporating best practices into operations.  Disaster recovery damage collection coordination and federal reimbursement.  Emergency Operations Center Finance Team during federal declared disasters. 12 City of Portland | FY2025-26 Requested Budget

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area The Grants Management Division, Outgoing Community Grants Team is essential in ensuring responsible management and adherence to City policies for outgoing grants from the City to the community. This team offers a variety of services to guarantee efficient administration and thorough oversight of the city’s outgoing grant programs. Key components and responsibilities include:  Program Oversight  WebGrants Administration, Training, and Support  Policy Development and Compliance  Template Development  Technical Assistance for bureaus and grantees  Grant Opportunity Website for City grants to external grantees The Grants Managment Division, Application Coordination Team (ACT) supports Bureau- and Office-led applications for grant funding, centralize and coordinate the City’s pursuit of private, local, state, and federal funding opportunities. This team provides a range of services to ensure effective administration and oversight of grant applications and is the submitting authority for all City grant applications on behalf of the City of Portland. Key components and responsibilities include:  Support Bureaus and offices on grant applications  Maintain database of current grant opportunities, applications, and awards  Provide Grant writing support to bureaus through a dedicated staff  Conduct grant research for City priority needs  Provide expertise on sub-recipient awards and partnership guidance  Coordinate with Bureau grant and financial staff  Provide grant resources and training opportunities to Bureau staff, such as How to read a Notice of Funding Opportunity; How to write a successful grant narrative Performance Measures Actuals Actuals Target Target Strategic Performance FY 2022-23 FY 2023-24 FY2024-25 FY2025-26 Target Number of grant audit findings NA NA 0 0 0 Equity Impacts With the continued implementation of the Grants Management System and the distribution of COVID response funds, the Grants Management Division supports citywide goals of increasing economic opportunities and financial support to under-represented communities and culturally specific organizations. City of Portland | FY2025-26 Requested Budget 13

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area Changes to Program In FY 2024-25 the Grants Management Division the Grants Management Division increased resources to support the oversight of the Outgoing Grant Policy and created an Application Coordination Team. The Application Coordination Team is working with Service Areas to identify funding needs, align funding opportunities with the funding needs and recently added an FTE to support bureaus with the development of grant applications. The FY 2025-26 Requested budget includes an $80,000 reduction to External Materials and Services to support Citywide budget cuts. Program Budget Requested Requested Actuals Actuals Revised No DP Total FY 2022-23 FY2023-24 FY 2024-25 2025-26 2025-26 Requirements Bureau Expenditures Personnel Services 2,049,150 2,236,499 3,358,397 3,228,545 3,228,545 External Materials and Services 46,806 35,423 43,961 118,079 38,079 Internal Materials and Services 157,593 180,745 197,980 278,145 278,145 Bureau Expenditures Total 2,253,549 2,452,667 3,600,338 3,624,769 3,544,769 Requirements Total 2,253,549 2,452,667 3,600,338 3,624,769 3,544,769 FTE 13.14 10.00 8.00 8.00 8.00 14 City of Portland | FY2025-26 Requested Budget

Jonas Biery, DCA - Budget & Finance Budget & Finance Service Area Revenue Collection Program Description & Goals The Revenue Division provides regional centralized revenue collection and administrative support for the City of Portland, Multnomah County, and Metro business income taxes; City, County, and Metro personal income taxes (including the Arts Tax); City and County hotel/motel taxes; tourism improvement and enhanced service districts; property liens; central accounts receivable; and the Clean Energy Surcharge. The Revenue collection program collected $1.5 billion for the City and its regional partners in FY 2023-24. The Revenue Division manages on million taxpayer accounts and annually emails one million letters; processes 500,000 tax returns; takes 116,000 phone calls; and sends/receives 30,000 emails. The Revenue Collection Program is tasked with maximizing City and partner agency revenue sources with a policy of fair and firm enforcement of tax and fee codes. Primary functions include tax return processing, non-filer and under-filer identification, and debt collection using a range of fools up to and including collection agencies and litigation. The program tracks cost per dollar collected, as well as the estimated business tax gap (the difference between estimated taxes owed and taxes paid) to ensure that collection efforts remain focused on maximizing revenue yield. In FY 2020-21, the Revenue Division retired numerous legacy tax administration platforms and launched a single new Integrated Tax System (ITS). ITS also provided the division with a new taxpayer portal, referred to as Portland Revenue Online (PRO). In FY 2023-24 the business income and transient lodging taxes collected approximately 30% of all General Fund revenues. Equity Impacts The Revenue Collection program provides Arts Tax forms and instructions in 11 different languages. PRO, the e-services taxpayer portal, is available in both English and Spanish. Revenue collected by the Revenue Collection program helps to fund equity efforts in all General Fund bureaus. An example of this is the General Fund budget for the Office of Equity and Human Rights, which was $4.5 million in FY 2023-24. Changes to Program The Integrated Tax System (ITS) launched in September 2020. The system’s first upgrade is underway with an anticipated project completion in FY 2025-26. The division is also currently underway on a replacement project for the Liens Accounting System, which will integrate Liens Accounting functions into the ITS, further leveraging the capabilities of that system. City of Portland | FY2025-26 Requested Budget 15

Parent: 2 B&F · PDF: pp. 204-218