City Operations prepares for $1 billion budget amid structural changes

During a recent meeting of the Portland City Council Finance Committee, significant discussions centered around the upcoming fiscal year 2025-2026 budget, which is projected to total approximately $1.02 billion and will support 743 city employees. This budget reflects a new organizational structure that will integrate several departments, including central communications, grants, and the city budget office, starting July 1.

The committee highlighted a decrease of about $19 million in budget resources compared to the current fiscal year. This reduction is attributed to capital activities related to the facilities fund and the replacement of capital assets. The presentation included detailed charts illustrating how funding is allocated across various city operations, emphasizing the challenges faced by human resources in meeting service demands amid limited appropriations.

City officials noted that while some areas would see reductions, efforts were made to ensure that critical services remain intact. The majority of cuts will occur within the Office of City Operations, particularly affecting strategic projects and fleet services. However, the committee also proposed two key additions to the budget, including an upgrade to the city’s SAP system, which is essential for managing employee payroll and human resources.

These discussions underscore the city's ongoing efforts to balance budgetary constraints with the need to maintain essential services for Portland residents. As the city prepares for the new fiscal year, the Finance Committee's decisions will play a crucial role in shaping the operational capabilities of city departments and their ability to respond to community needs.