Finance Committee begins discussion on Portland budget proposal

Portland City Council's Finance Committee met for the first time Tuesday night to consider City Manager Daniel West's proposed $277 million city budget for fiscal year 2025.

The meeting began with city finance director Brendan O'Connell presenting details of the budget compiled by West on Monday.

Councilors Anna Trevorrow, Anna Brett and April Fournier serve on the Finance Committee along with Mayor Mark Dion. Mr Trevorrow will chair the committee. Also in attendance Tuesday were City Councilors Kate Sykes and Regina Phillips.

Earlier in the meeting, Sykes implored city staff to present actual spending figures rather than projected figures.

“It's a beautiful piece of fiction, but it doesn't tell us how much money we're actually spending,” Sykes said after hearing a summary of O'Connell's budget proposal.

Dion also expressed his opinion.

“I appreciate the question about actual spending, but I'm sure there's something behind these projections,” he said.

Heads of several departments, including public works, parking, and legal departments, provided more detailed reviews of their departments' projected spending. The process will continue Thursday and again on April 24 and 25 until city department heads submit their budgets.

Michael Goldman of the Corporation Council provided a projected spending of $967,362 for the department this year. He said he has one vacancy, but it will likely be filled soon, which could result in a slight increase in the city's costs for next year.

Parking Director John Peverada said the department is expected to spend $1.6 million this year, but also expects to receive $7.7 million in revenue. Revenue from parking meters and garages has increased as more people return to work downtown, he said.

The proposed budget estimates the parking department would spend about $16,000 more in fiscal year 2025 and bring in an additional $450,000 in revenue.

Mr O'Connell said the sector is “probably the only sector where revenues significantly exceed expenditures”. “It will lower other people’s property taxes,” he said.

Council members and staff spoke briefly about the potential need for more parking in the coming years as housing increases in the city.

“There are powerful forces out there who want everyone to ride the bus and ride their bikes,” Peverada said. “If that happens, I think that would be a good thing, but I think the demand for parking would increase.”

“I don't own a car myself and I don't really like the idea of ​​more parking,” Trevorrow says. “But as we add more housing, I think the need for parking will also increase.”

Public Works Director Mike Murray said the department is expected to spend $9.7 million this year. In the proposed budget, his department would receive an additional $831,000 next year for proposed new positions focused on city maintenance, snow removal and traffic signals.

West proposed a $277 million general fund budget on Monday that would only increase the city's tax rate by 4.9% after officials warned that property taxes could rise by nearly 10% in January. did.

The council voted unanimously to refer the budget to the Finance Committee for further consideration, and Tuesday's meeting marked the beginning of that review process.

The city has long struggled to fill about 200 vacancies, often having to hire outside contractors to fill them, which is costly.

Other factors increasing the budget include contractually mandated union wage increases, increased health insurance costs, the expiration of temporary funds from the American Rescue Plan Act, and a $5.7 million increase in bond costs. .

The committee will reconvene Thursday to hear detailed budget breakdowns from the departments of Parks and Recreation, Public Buildings and Waterfront, and Housing and Economic Development.

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