City-Ops-FYFP-Combined_0 — Intro — Part 2 of 4

Source: PDF pp. 483-491 · raw: 483 · 484 · 485 · 486 · 487 · 488 · 489 · 490 · 491

FY 2025-26 Requested Budget Five Year Plan Fund & Bureau Name: General Fund, Office of the DCA of City Operations Plan Overview Office of the DCA of City Operations The Office of the Deputy Chief Administrator of City Operations includes the City Operations Deputy Chief Administrator, an Executive Assistant, and two Analyst III’s that are realigned from the Bureau of Human Resources and the Strategic Projects and Opportunities Team respectively. The DCA of City Operations manages the five bureaus of the City Operations and six functions, including: the Bureau of Technology Services, the Bureau of Human Resources, the Bureau of Fleet and Facilities, the Office of Community-based Police Accountability, and the following six functions: 311 Program; Procurement Division, Independent Police Review, Citywide Security, Asset Management, Strategic Projects and Opportunities Team, and Asset Management. This Five-year Plan includes the General Fund organizations of the City Operations Service Area and BHR. Independent Police Review The Independent Police Review (IPR) is an independent civilian oversight agency within the City Operations Service Area tasked to investigate and monitor allegations of misconduct by sworn members of the Portland Police Bureau. IPR serves as Portland’s intake point for community complaints and commendations about Portland Police Bureau officers. It is anticipated that by the end of FY 2026-27, IPR will be phased out to make way for the voter-approved City of Portland Community Board for Police Accountability and the Office of Community-Based Police Accountability (the Oversight System). Once the Community Board appoints a director, discussions will begin regarding how and when IPR is phased out. The 5-year financial plan reflects this anticipated phase out of 14.0 FTE and $3.6 million occurring at the end of the next fiscal year, FY 2026-27. 311 Program The PDX 311 Program provides community members with a single point of contact to access City and County government and the services they provide. Community contacts to 311 have grown by 20 to 25% annually since its creation in 2020, reaching over 201,000 requests in 2024. However, budget reductions and increases in IM&S costs have reduced staffing by 5.0 FTE, required holding positions vacant and eliminated budgets for community education, technology support, and professional development. Required personnel cuts have reduced the program’s ability to assist community members by approximately 50,000 contacts per year. The combination of launching a successful program and reductions in staff mean the 311 Program is nearing its capacity for handling community contacts within desired levels of service.

FY 2025-26 Requested Budget Five Year Plan The PDX 311 team continues to expand and enhance its service offerings to meet the needs of a changing city. Over the next five years, the PDX 311 Program anticipates continued increases in the numbers of community members using the program and a growing need for centralized customer service and dispatch as the City continues its government transition. The 311 Program will also continue its ongoing work across Council and all City Service Areas to support constituent services and redesign customer service forms and processes, such as those to report noise, street maintenance, and tree-related issues, to make it easier for community members to get the services they need from the City. This work will support BTS’s TrackIT Replacement Project, further transition the City to a new suite of customer service tools, including Zendesk, and position the City to make more data-informed decisions. PDX 311 will also continue to support and enhance the City’s capabilities to dispatch and coordinate resources to respond to urgent infrastructure hazards and improve information and referral for other Multnomah County jurisdictions. Procurement Services Division Procurement Services Technology Upgrades In partnership with the Accounting Division and the BTS Enterprise Business Solutions Division, Procurement Services is replacing the BuySpeed system with the SAP Ariba system which will be used to register suppliers, post bidding opportunities and execute contracts. Going live in 2025, the Ariba system will modernize and integrate core City business processes, adding functionality and efficiencies from which both City staff and partners in the business community will benefit. The project is being funded by technology replacement resources set aside in prior fiscal years as well as current year budget savings. Procurement Services also needs to replace its labor compliance-tracking software due to its inability to adapt to changing business needs and requirements resulting in a lack of functionality. These limitations have resulted in business process inefficiencies, requiring the Compliance Team to use two different systems to compile and report on activities related to the City’s Social Equity Contracting Strategy. A contemporary compliance solution would enable the City to capture applicable data, report economic impact back to our community and move Procurement towards centralizing and consolidating compliance tracking and reporting into one system. Implementation is being funded by resources set aside in the current and prior fiscal years. Vendor implementation costs are estimated at $115,000 and annual maintenance should be comparable to costs currently being paid for compliance systems. Clean Air Construction Program In 2018, City Council unanimously voted to adopt a regional approach to improve air quality by reducing harmful diesel particulate matter emissions in the Portland Metro Area by establishing the Clean Air Construction (CAC) Standard and associated regional program. The CAC Standard requires nonroad diesel equipment, diesel concrete mixers, and diesel dump trucks used on agency construction projects to meet progressively stringent particulate matter reduction requirements over a four-year

FY 2025-26 Requested Budget Five Year Plan period, beginning January 1, 2022. As of January 1, 2025, we have successfully reached the highest level of particulate matter reduction for all CAC projects in the regional partnership. Regional partners who have adopted the CAC Standard and who are participating in the regional program include Metro Regional Government, Multnomah County, Portland Community College, Port of Portland, TriMet and Washington County. This partnership was formalized in September 2020 through an intergovernmental agreement (IGA) signed by all partner agencies, in which the City is identified as the CAC Program Administrator. The IGA effective date runs from September 2020 through June 30, 2027 (unless otherwise amended). As the CAC Program Administrator, the City is responsible for supporting a program coordinator FTE and carrying out all day-to-day program activities. The CAC Program, and associated program coordinator, are housed within Procurement Services as part of the Sustainable Procurement Program. Each partner agency financially supports the CAC Program according to a cost share formula detailed in the IGA. For the duration of the CAC IGA, the City’s annual cost share amount totals $136,184 in General Fund resources. Active CAC contracts provide services associated with the Yard software maintenance, technical assistance, marketing, onsite auditing, and a retrofit assessment voucher program. A small grants program has been approved for up to $100,000 annually, which launched in February 2024. Citywide Security Integrated Security is a 24-hour, 365-day service-oriented program with the mission of providing a safe and secure experience for employees, vendors, contractors, and visiting community members at City facilities and worksites. The Integrated Security Program provides strategic direction for the implementation of organizational, operational, physical, and technical security systems across City worksites to ensure that critical City functions continue following a security incident. Specific objectives of the program are to create a centralized organizational structure and system that has integrated and well-conceived plans, policies, and procedures based on industry best practices. Strategic Projects and Opportunities Team A Decision Package proposes to cut 3.0 FTE to wind down the one-time funded Charter Transition work and other SPOT team activities.

FY 2025-26 Requested Budget Five Year Plan Revenue Assumptions The General Five-Year Plan includes a mix of General Fund discretionary, overhead, interagency, and other fund activity. Revenue assumptions include standard inflation factors for staffing and materials and supplies as well as the proposed budget cuts. Expenditure Assumptions In addition to citywide economic trends, policy decisions, and the rising costs of personnel costs and materials and Services, service demand is outpacing current appropriation levels. The city continues to grow in terms of high level indicators such as staff, spending and contract activity. Without a mechanism to request additional resources to address the growing workload, bureaus are unable to sustain the same level of service. Budget cuts further exacerbate the strain on bureau services, negatively impacting their ability to meet service demands on a broader scale. The City Operations Service Area proposes to cut 8.0 FTE and $5.5 million overall, 5.0 FTE and $1.2 million in the General Fund with a focus on efficiencies to sustain service levels. Expenditure Risks to the Forecast and Confidence Level The overall confidence level in the expenditure forecast is assessed as medium to low, reflecting the dependencies outlined and the potential for unknown but probable service changes within the five-year timeframe. City Operations General Fund FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources CY Estimate Plan Plan Plan Plan Plan Beginning Fund Balance 0 0 0 0 0 0 Taxes 0 0 0 0 0 0 Licenses & Permits 0 0 0 0 0 0 Charges for Services 0 0 0 0 0 0 Intergovernmental 958,929 971,263 1,020,703 1,104,466 1,157,609 1,251,186 Interagency Revenue 5,414,244 5,964,732 6,268,353 6,782,759 7,109,120 7,683,794 Fund Transfers - Revenue 2,996,995 2,895,678 3,043,076 3,292,803 3,451,241 3,730,226 Bond & Note Proceeds 0 0 0 0 0 0 Miscellaneous 300,000 272,000 285,846 309,304 324,187 350,393 General Fund Discretionary & Overhead 15,037,972 13,205,439 13,745,790 10,660,698 11,073,358 11,682,837 Resource Total 24,708,140 23,309,112 24,363,768 22,150,030 23,115,515 24,698,436 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Expenditures CY Estimate Plan Plan Plan Plan Plan Personnel 17,648,633 17,360,746 18,240,135 16,620,525 17,419,052 18,827,026 External Materials and Services 4,787,985 3,546,665 3,638,878 3,598,393 3,691,952 3,787,943 Internal Materials and Services 2,271,522 2,401,701 2,484,755 1,931,112 2,004,511 2,083,467 Capital Outlay 0 0 0 0 0 0 Debt Service 0 0 0 0 0 0 Fund Transfers - Expense 0 0 0 0 0 0 Contingency 0 0 0 0 0 0 Debt Service Reserves 0 0 0 0 0 0 Expense Total 24,708,140 23,309,112 24,363,768 22,150,030 23,115,515 24,698,436 Planned FTE Total (Including LT's) 112.0 104.0 104.0 90.0 90.0 90.0

FY 2025‐30 Requested Budget Five Year Plan Fund & Bureau Name: General Fund, City Operations ‐ Bureau of Human Resources Bureau of Human Resources Plan Overview The Bureau of Human Resources (BHR) is focused on providing core services to attract, retain, develop and support employees through a safe, equitable, inclusive work environment. BHR will accomplish this by valuing equity, communication, collaboration, anti‐racism, fiscal responsibility and transparency. These core values have been adopted by City Council as the City’s universal values throughout each Bureau. The following is a summary of programmatic priorities framing BHR’s expected accomplishments over the next five (5) years. This summary includes the anticipated changes in BHR programs and staffing resources to meet City demands for central services. The Human Resources budget model has not adapted to the changing needs of the organization. This is not a sustainable solution and a plan for continued increases in on‐going funding will be needed within the 5‐year plan. It is the Bureaus’ hope that changes in the way the City funds central services will resolve BHR’s severely underfunded programs and services. Please note: Health & Financial Benefits and Occupational Health programs are within the Bureau of Human Resources but have separate funding and are described within the Health Fund and Portland Police Association (PPA) Health Fund five (5) year plans. Classification, Compensation, and Pay Equity Classification, Compensation, and Pay Equity develop and maintain the City’s classification, compensation, and pay equity program. The classification framework provides a consistent standardized description of work and the required knowledge, skills, and abilities. The compensation system seeks to achieve market competitiveness and internal equity. The Pay Equity program manages compliance with the Oregon Equal Pay Act by analyzing and adjusting pay using quantifiable factors. In addition to increases in ongoing work to support the City’s evolving organizational structure, the Classification, Compensation, and Pay Equity team will be responsible for completing the following projects:  Classification and Compensation study for 2,000 plus positions in FY 25‐26 and FY 26‐27  Recruit, onboard, and assist the salary commission crossing over FY 26‐27 With the organizational structure changing to meet the voter approved form of government, support from the classification, compensation, and pay equity team will be needed to ensure we have the appropriate classifications and compensation to remain competitive in the market. Workforce Recruitment and Training (WRT) Workforce Recruitment and Training (WRT) provides a holistic portfolio of services to attract, develop, and retain a diverse and talented workforce. The WRT program administers recruitments; facilitates monthly Citywide New Employee Orientation; oversees CityLearner (the Citywide Learning Management System), SuccessFactors Onboarding, and manager/supervisor training; conducts qualitative research

FY 2025‐30 Requested Budget Five Year Plan internally and externally regarding recruitment, selection, engagement, and training; and develops and publishes Citywide HR analytics on a monthly basis. With the City projecting budget shortfalls over the next few fiscal years, the WRT team will be focused on supporting employees with career transition services which include, resume development, interviewing techniques, and other placement activities. Employment and Labor Relations Employee Relations provides people‐centered consultation to aid in equitable and inclusive decision making to achieve excellence in employee experiences and organizational effectiveness citywide. Employee Relations assists bureaus in reviewing processes, practices, procedures, and policies through a lens that promotes well‐being and trauma‐informed outcomes for all City employees. Labor Relations strategically prepares for negotiations, responds to grievances, and is a collaborative partner to 14+ employee bargaining units. Labor Relations helps bureaus comply with the City’s labor agreements through management training and guidance on contract provisions. Employee and Labor Relations guides City Council’s goal to deliver municipal services with the City’s core values as the compass. Support is demonstrated by planning thoughtful labor negotiation strategies, providing targeted management, and elected official training, fiscal responsibility, and increasing workforce productivity through performance management efforts. The Employee and Labor Relations team has helped bureaus and City leadership navigate Council direction on Future of Work, including developing and conducting training for managers/supervisors, assessing exceptions and accommodations related to this new approach, and bargaining any impacts with labor unions. Employee Relations has continued to fund ongoing work with Limited Term positions. The workload continues to grow in amount and complexity. One‐time resources through IA’s or other funds is a Band‐ Aid. Ongoing resources are needed to support the City. The Labor Relations team has seen a dramatic rise in interim bargaining with its labor unions, resulting in near perpetual bargaining year‐round, in addition, the Labor Relations team has seen an increase in “micro units” across the City, adding three new contracts in just the last year. Labor organizations have also grown their membership by organizing several new formerly non‐represented City staff into their units. All of these developments have resulted in increased workload for a small team. The work continues in complexity, and nuance, and strengthening this group will be vital to the internal success of the city’s infrastructure – its employees. Over the next 5 years, there will need to be an increase in staffing to support bargaining and union relationships in a way that is proactive, planful, and produces desirable outcomes. Operations and Strategic Support Human Resources and Payroll Services manages, administers, and coordinates the City’s human resources and payroll systems. Program tasks include oversight of position management (the process by which bureaus determine how jobs are defined, how many positions are needed, and what the organizational structure should look like), personnel administration, payroll, time administration

FY 2025‐30 Requested Budget Five Year Plan programs, the contract for the child development center (CityKids), and payments to third party fund recipients. Human Resources and Payroll Services comply with federal, state, and local wage and hour laws, labor contracts, administrative rules, and business requirements. Emerging case law, collective bargaining agreements, and legislative changes are incorporated into system requirements as needed. In FY 24‐25 we discovered gaps in our payroll program that led to key processes not occurring, this discovery led to a large‐scale process to review, adapt, and document process. This project includes a compliance audit, system updates and configuration changes, and training staff. Payroll is a vital service to City employees and must be done in a way that give confidence to our customers. Over the next 5 years, the City will need to invest in personnel and systems to reach optimal service standards. Human Resources Strategic Support provides bureau oversight and direction, maintains systematic compliance of the City’s administrative rules and policies, provides consultation to bureau directors and City Council, manages the bureau’s budget, administers pre‐employment medical programs, coordinates internal bureau functions, and assists with new employee onboarding. Operations and Strategic Support is responsible for the City’s implementation, administration, compliance, and customer service needs associated with Washington and Oregon’s Paid Family Medical Leave Act (PFMLA). Washington State Paid Family Medical Leave contributions were retroactive to March 2020, and Oregon State Paid Family Medical Leave contributions began January 1, 2023. Washington State Paid Family and Medical Leave benefits began effective March 2020, and Oregon State Paid Family and Medical Leave benefits began effective September 1, 2023. Nearly all the City’s workforce are covered under the Oregon State Paid Family Medical Leave Act. These are critical functions that will need ongoing and building support of the next 5 years. SAP is beginning to end support of the City’s on‐premises SAP HCM software and is requiring users on their legacy system to transition to their new platform because they will no longer support our platform in 2026/2027. As a result, Operations and Strategic Support has begun the implementation of SAP Success Factors Employee Central and migrating the City’s SAP HCM application, data and HR business processes into the SAP Success Factors software platform. The first phase of the project is underway, with Core Data in Employee Central in Success Factors being implemented. This includes Personnel Administration, Organizational Management, Employee Services, Employee Development, Performance Management, and Onboarding. The second phase to implement Employee Central Time and Payroll applications will begin in FY 25‐26. Additional one‐time resources for the remainder of phase one and all of phase two will be required in future budget cycles. People and Culture The People and Culture division’s mission within the Bureau of Human Resources is to ensure the Citywide core values of anti‐racism, equity, communication, collaboration, transparency, and fiscal responsibility are centered and operationalized throughout Human Resources programs, policies, procedures, and practices. The People and Culture division is responsible for reinforcing a consistent Citywide culture and values through communications, deploying and leveraging data to inform decisions, policy development, strategic planning, advocating on behalf of the Chief Human Resources Officer and the mission of the bureau, and collaborating with equity managers and the Office of Equity & Human Rights.

FY 2025‐30 Requested Budget Five Year Plan As a new program, the Culture division is setting baseline targets to improve the overall employee experience, centered on historically marginalized and underrepresented members of the City’s workforce, specifically Black, Indigenous, people of color, and people with disabilities by using essential data to inform targets and goals. This will include centralized exit surveys, employee engagement surveys, and existing bureau analytics. In order for this program to be successful, a future financial investment is needed for staffing and technology. The People and Culture division cut ongoing funding for 1 FTE and $316K in FY 2024‐25 as part of that year’s constraint requirements. These resources were later added back with one‐time funding; however, these resources expire starting in FY 2025‐26. With funding uncertainty and the Bureau’s inability to invest more fully in this program, the remaining resources will be realigned to better support the City. Revenue Assumptions The General Five‐Year Plan includes a mix of General Fund discretionary, overhead, interagency, and other fund activity. Revenue assumptions include standard inflation factors for staffing and materials and supplies as well as recognized budget constraint. Expenditure Assumptions In addition to citywide economic trends, policy decisions, and the rising costs of personnel services and benefits, service demand is outpacing current appropriation levels. Without a mechanism to request additional resources to address the growing workload, bureaus are unable to sustain the same level of service. This challenge is exemplified by the increasing number of city staff requiring human resources support, the rise in financial activity (even after adjusting for inflation) driving demand for financial services, and the expansion of capital activity necessitating enhanced procurement and financial support. Mandating budget cuts on top of the already limited resources available to support growth further exacerbates the strain on bureau services, negatively impacting their ability to meet service demands on a broader scale. Expenditure Risks to the Forecast and Confidence Level The overall confidence level in the expenditure forecast is assessed as medium, reflecting the dependencies outlined and the potential for unknown but probable service changes within the five‐year timeframe.

FY 2025‐30 Requested Budget Five Year Plan Bureau of Human Resources FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Resources CY Estimate Plan Plan Plan Plan Plan Charges for Services $ 26,000 $ 26,000 $ 26,000 $ 26,000 $ 26,000 $ 26,000 Intergovernmental $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 Interagency Revenue $ 1,135,000 $ 680,000 $ 509,688 $ 551,515 $ 578,052 $ 624,779 Miscellaneous $ 407,040 $ 453,185 $ 476,253 $ 515,336 $ 540,132 $ 583,794 General Fund Discretionary & Overhead $ 20,766,880 $ 16,977,579 $ 17,811,121 $ 19,146,644 $ 20,028,736 $ 21,525,639 Resource Total $ 22,344,920 $ 18,146,764 $ 18,833,062 $ 20,249,495 $ 21,182,920 $ 22,770,212 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Expenditures CY Estimate Plan Plan Plan Plan Plan Personnel $ 17,092,326 $ 15,351,834 $ 15,933,159 $ 17,239,876 $ 18,052,914 $ 19,510,665 External Materials and Services $ 2,919,385 $ 760,400 $ 780,170 $ 799,674 $ 820,466 $ 841,798 Internal Materials and Services $ 2,333,209 $ 2,034,530 $ 2,119,733 $ 2,209,945 $ 2,309,540 $ 2,417,749 Expense Total $ 22,344,920 $ 18,146,764 $ 18,833,062 $ 20,249,495 $ 21,182,920 $ 22,770,212 Planned FTE Total 92.1 87.5 86.5 86.5 86.5 86.5

Parent: City-Ops-FYFP-Combined_0 · ← Part 1 · Part 3 →