TL;DR (generated · confidence: high)

Budget note directing Portland Bureau of Transportation (PBOT) and City Budget Office to standardize revenue and expense forecasting methods citywide. PBOT faces a $189.1M Transportation Operating Fund deficit by FY 2028-29, complicated by a $71M unfunded CREEC settlement liability for ADA curb ramps and uncounted 8% healthcare labor cost increases. PBOT is studying parking enforcement revenue accuracy and equity impacts. Status through December 2024 shows ongoing revenue tracking and FY 2025-26 budget preparation.

Key points (each cites a PDF page):

Transportation Operating Fund projected deficit of $189.1 million by FY 2028-29 (p. 1480)
CREEC settlement requires 1,500 ADA-compliant curb ramps over 12 years (2018-2030), representing $71 million unfunded liability (p. 1480)
8% healthcare labor cost increase not included in PBOT's budget forecast (p. 1480)
City Budget Office directed to standardize forecasting assumptions and timelines across all city service areas (p. 1480)
PBOT directed to conduct study on parking enforcement to assess revenue assumptions accuracy and equity impacts (p. 1480)
PBOT tracking revenue changes from new enforcement methods with observed upticks in vehicle registration fines (p. 1481)
State revenue share from vehicle registrations expected to appear within approximately one year (p. 1482)

💰 $189.1 million · $71 million · 📋 Civil Rights Education and Enforcement Center (CREEC) · parking enforcement study · 🏛️ Portland Bureau of Transportation · City Budget Office · Public Works

Update-Revenue---Expense-Forecasting-Methods-Budget-Note

Source: PDF pp. 1480-1482 · raw: 1480 · 1481 · 1482

Breadcrumb: 6 pw › Update-Revenue---Expense-Forecasting-Methods-Budget-Note

To: Ruth Levine, City Budget Office Director From: [Service Area Lead], [Title] CC: Mike Jordan, City Administrator Deputy City Administrators Mayor & Council Date: February 14, 2025 Re: FY 2024-25 Adopted Budget Note Updates Budget Note Title Update Revenue and Expense Forecasting Methods Primary Service Area Public Works Due By Lead Jonas Biery Jeramy Patton Will Terry Jonas Biery Staff to include Priya Dhanapal Claudio Campuzano Kyle O'Brien In Budget Concept? No Budget Concept DP # Budget Note Full Text Accurate and comprehensive budget forecasting is essential for bureaus’ development of sound financial sustainability plans. The Portland Bureau of Transportation’s most recent five-year financial forecast submitted with the bureau’s FY 2024-25 Requested Budget details a deficit in the Transportation Operating Fund expected to reach $189.1 million by FY 2028-29. While new and alternative revenue sources included in the bureau’s requested budget remedy a portion of this shortfall, other potential liabilities remain. These include the Civil Rights Education and Enforcement Center (CREEC) settlement, requiring the City of Portland to construct a minimum of 1,500 ADA compliant curb ramps for 12 years (from 2018-2030). This legal requirement represents a $71 million unfunded liability that should be fully reflected in forecasts. Likewise, an 8% increase in healthcare labor costs were not included in the bureau’s forecast due to lack of timely information for budget development. The Portland Bureau of Transportation’s The Public Works Deputy City Administrator along with PBOT’s Bureau Director and Finance Manager are directed to work in conjunction with the Office of the Budget & Finance Deputy City Administrator to standardize budget and forecasting practices. The City Budget Office is also directed to reassess standardization of budget assumptions and timelines and ensuring uniform application of those standards across the City with all service areas prior to budget submission. Additionally, PBOT is directed to conduct a study in FY24-25 on the implementation of increased parking enforcement to gauge both accuracy of revenue assumptions and equity impacts.

Deliverable PBOT is directed to conduct a study in FY24-25 on the implementation of increased parking enforcement to gauge both accuracy of revenue assumptions and equity impacts. Next Steps (from June 2024) Using this budget note to look at ways to standardize forecasting assumptions citywide Presentation in October on fiscal issues Parking enforcement data will come later (Winter-spring) Status Update (from December 2024) The broader work around consistent forecasting will occur as part of the FY 2025-26 budget process. Regarding the study on parking revenues, PBOT is tracking revenue changes throughout the year to see if the new methods are working. PBOT is already seeing upticks in revenue from vehicle registration fines. The share of State Revenues related to vehicle registrations, however, won’t show up for another year or so given the methodologies the state applies to allocating out these revenues. PBOT will be able to provide an update on street parking revenues as part of the budget process.

Final Update Status PBOT is tracking revenue changes throughout the year to see if the new methods are working. PBOT is already seeing upticks in revenue from vehicle registration fines. The share of State Revenues related to vehicle registrations, however, won’t show up for another year or so given the methodologies the state applies to allocating out these revenues. PBOT will be able to provide an update on street parking revenues as part of the budget process.

Parent: 6 pw · PDF: pp. 1480-1482