Reserve-Policy-Review-for-PPD — Intro

Source: PDF pp. 880-881 · raw: 880 · 881

Budget Note Title Portland Permitting & Development Reserve Policy Review Primary Service Area Community & Economic Development Due By 1/31/2025 Lead Donnie Oliveira; Elshad Hajiyev Donnie Oliveira; Ruth Levine; Sangeen Khan; Jonas Biery; Staff to include Kyle O'Brien; David Kuhnhausen; Elshad Hajiyev In Budget Concept? No Budget Concept DP # Budget Note Full Text Given the current external downturn in construction activity and the resulting reduction in permitting revenues, the provision of additional General Fund resources will be contingent upon demonstrable recovery in permitting activities or the avoidance of further workforce reductions that will negatively impact current permitting timelines. Recognizing the necessity for Portland Permitting & Development (PP&D), previously known as the Bureau of Development Services, to swiftly scale operations upon recovery, the City will consider releasing earmarked General Fund amounts in the Fall. This funding approach ensures that resource allocation aligns with actual service demand to facilitate timely responsiveness to workload increases. Moreover, in light of PP&D’s financial challenges, including ongoing deficits and reserve levels falling below the 50% minimum reserve level goal, PP&D should reassess reserve policy. The historical build-up of reserves to $90 million in FY 2017-18 under the current policy provided a crucial buffer against financial pressures; however, the current six-month reserve duration may not be adequate in prolonged economic downturns. Therefore, PP&D is directed to evaluate and revise its reserve policy to extend the financial safety net, ensuring greater stability and operational continuity during extended periods of economic uncertainty. The evaluation work group should include the City Budget Office, Deputy City Administrator of Community and Economic Development and Deputy City Administrator of Budget & Finance. This review should aim to enhance the bureau’s financial resilience by adjusting the reserve threshold and duration to more accurately reflect the economic cycles experienced by the city. Report should be submitted to the Deputy City Administrator of Community and Economic Development by January 2025, to ensure the information can be included in the FY25-26 budget development process and effective permitting system, ultimately benefiting stakeholders through simplified procedures and reduced administrative overhead. By September 1, the bureau must complete an evaluation of staffing and details for costs in the overhead model charged to external bureaus and workflow processes to ensure that resources are optimally aligned with the needs of the PP&D. The Report should be submitted to the City Administrator. Work group membership: City Administrator, Deputy City Administrators of Budget & Finance, Community & Economic Development and Public Works, plus finance managers of the participating permitting bureaus to review and determine the cost structure moving forward.

Deliverable Report should be submitted to the Deputy City Administrator of Community and Economic Development in time to ensure the information can be included in the FY 2025-26 budget development process. Next Steps (from June 2024) Determine data needs and requirements for analysis. Status Update (from December 2024) Initial conversations with consultant began, but the budget note is behind schedule. Final Update Status The Community & Economic Development Service Area engaged EQ Consultants to review, analyze, and make recommendations on the PP&D reserve policy. EQ conducted their review in December 2025 and presented their draft recommendations to the DCA office in December st 2024 and the PP&D Financial Advisory Committee in January 2025. On January 31 , 2025, the consultant submitted their final recommendation to DCAs Biery and Oliveira, which included a proposed policy for consideration.

Parent: Reserve-Policy-Review-for-PPD