Adopt a Supplemental Budget for FY 2026-27 to reduce potential risks to City services

The City of Portland ordains.Section 1. The Council finds:The Council adopted the City's FY 2026-27 budget on June 17, 2026.After Council took an initial vote on the now-adopted budget, there was information that was more fully developed that is the basis for supplementing the 2026-27 fiscal year (FY) adopted budget.The Council desires to provide support for employees facing layoffs by appropriating $515,801 to extend their employment and benefits. Affected personnel will be placed on paid administrative leave through September 1, with benefits extended through September 30, 2026. Additional information regarding potential gaps in services during this period was not fully ascertained at the time of adoption of the 2026-27 budget.The Council desires to strengthen the City's fiscal stability and credit rating by appropriating $1.75 million to the Business License Tax Reserve Fund. Council moved $2.5 million from this fund to PF&R to restore Engine 22 in St. Johns in the Approved FY 2026-27 budget. It was recently more fully ascertained that particular reserve funds impact the City's credit rating.The Council desires to avoid certain imminent layoffs and reductions that provide critical services for our community. There is now a different understanding of the greater risk associated with certain layoffs that was not ascertained at the time of adoption of the budget.The Council desires that Portland Police Bureau provide important training to its members. As a result of more fully developed information, Council now better ascertains the scope of training that would not be available if additional funding were not provided for this purpose.Given the above and the more fully developed information, there are unascertained conditions or occurrences or pressing unforeseen necessities to prepare a supplemental budget for the 2026-27 budget.This supplemental budget will appropriate $9.96 million in General Fund Contingency and $2.25 million from other funds to preserve 30 positions across the city, restore cuts to critical public safety functions, extend benefits to all laid off employees through September 30, 2026, and return $1.75 million to the Business License Tax (BLT) Reserve Fund that was reduced by previous Council action.Appropriations described in Exhibit A include $1.118 million for Public Safety Support Specialist (8 FTE and 6 vehicles); $3 million for PPB EM&S (training, certifications, and professional development); $248,000 for PPB Desk Clerks (maintaining public access to precincts); $1.65 million for PF&R (3 two-person rescue units); $408,856 for 311 Customer Service Representatives (2 FTE to maintain current service level); $261,000 for Relay Resource (janitorial contract for city office spaces); and $3.26 million in targeted position restorations identified by both labor and the administration as posing significant risk if not continued for an additional year.When anticipated funds from underspending, interest accruals, and other resources develop in the spring technical adjustment ordinance period in FY 2026-27, the funds will be used to restore the General Fund Contingency in the amount of $9.96 million.The Council notes that recent history indicates that it is reasonable to expect significant underspending. The City Budget Office's preliminary estimates for the recently concluded 2025-26 fiscal year are shown in Exhibit D (which CBO cautions are preliminary and subject to change in final reconciliation). Exhibit B, attached, shows all position changes.Exhibit C, attached, shows General Fund allocations in the FY 2026-27 Adopted Budget, by bureau.NOW, THEREFORE, the Council directs:The FY 2026-27 Appropriation Schedule is hereby amended by adjusting appropriations for certain expenditures in various funds as indicated by the increases and decreases presented in Exhibit A.The number of authorized positions in the FY 2026-27 Revised Budget is hereby amended as presented in Exhibit B.The City Budget Office is directed to file a supplemental budget by April 1, 2027, to restore General Fund Contingency and add $1.75 million to the Business License Tax Reserve Fund by reallocating available underspending and PCEF interest as determined by City Budget Office. The City Budget Office will initially consider spending that has occurred throughout the fiscal year and expected expenses for the remainder of the fiscal year.The actions amending the FY 2026-27 Revised Budget contained in this ordinance are binding City policy.