Portland City Council on Nov. 20 adopted the fall Technical Adjustment Ordinance (TAO), the city’s supplemental budget correction and appropriations package, after rejecting a floor amendment that would have reallocated funds to District 1.

Councilor Smith moved an amendment (referred to as Smith 2) that would have shifted $5,000,000 from the city obligation reserve fund (CORF) to the employee compensation set‑aside and allocated $500,000 to address public‑space and public‑safety issues in District 1. Smith argued the set‑aside has been drawn down and District 1 faces urgent needs.

Jonas Berry, the city's chief financial officer, explained staff identified the compensation set‑aside as the "least risk among all of those options" to meet a one‑time fiscal-year need because the city can use hiring freezes and other underspending to refill it before spring. Ruth Levine, the city's budget director, sought to reassure staff and employees: "using compensation set aside in the current year to balance the tau does not impact anyone's salary. It will not mean somebody won't get a raise." The mayor told council he did not recommend the Smith 2 amendment at this time and said administration staff would work with affected districts on operational supports.

The amendment was seconded and put to a roll‑call vote. The clerk recorded: Clark No; Green No; Zimmerman No; Dunfee Aye; Smith Aye; Ryan No; Coyomalin Yes; Murillo Aye; Pertelgene No. The amendment failed with 4 ayes, 5 noes and 3 absent. Council then voted on the TAO on second reading; the ordinance passed on a 10–0 roll call with two absent.

Councilors raised repeated cautions that using one‑time reserves shifts the timing of difficult budget choices to the spring and that the council and administration must follow through on refill strategies and enterprise‑efficiency work next year. Council members and staff agreed the TAO was necessary to avoid disrupting bureau spending and compliance with state budget rules.

The ordinance passed and council adjourned. Staff said they will return with spring adjustments and further technical clarifications.