Accept the 2024-2025 Parks Levy and Parks Levy Oversight Committee Annual Report

2024-25 Parks Levy Annual ReportThe purpose of this report is to review and share with the public the current status and achievements, as well as ensure transparency, of the five-year 2020 Parks Local Option Levy (Parks Levy). In Year 4 of the five-year Parks Levy, PP&R has transparently tracked the use of Parks Levy funding and successful delivered on the commitments made to voters in the Parks Levy ballot language.Portland voters passed the Parks Levy in November 2020 for implementation beginning in Fiscal Year (FY) 2021-22. In Year 4 of the Parks Levy, FY 2024-25, community centers, pools, and facilities were able to remain open for community use and programming while growing financial assistance use. Maintenance services increased in parks and natural areas. Expanded community partnerships helped reach diverse and underserved communities. PP&R continues to make progress on all fifteen commitments listed in the Parks Levy ballot measure.In accordance with the ballot commitment to conduct an independent audit, PP&R conducted a mid-point performance audit of the Parks Levy in December 2024. The audit found that funds were used in compliance with voter-approved commitments, and dollars were clearly tracked using strong financial systems and tracking mechanisms.Parks Levy Oversight Committee Annual ReportThe Parks Levy's explanatory statement committed that, "A community oversight committee will be appointed to review levy expenditures and to report annually to City Council."The Parks Levy Oversight Committee is composed of five members, selected from an open public applicant pool, appointed by the PP&R Director. The committee meets quarterly and reviews program implementation, advises on transparency and communication strategies, and will counsel on the independent audit process.Per the Parks Levy Oversight Committee's Charter, the committee presents their own annual report to City Council of committee activities including on adherence to Parks Levy language, fiscal accountability, and transparency.This report is a response to PP&R's 2024-25 Parks Levy Annual Report and PP&R's actions in Year 4 of the Parks Levy.

The FY 2024-25 Parks Levy Annual Report and Parks Levy Oversight Committee (PLOC) Annual Report have no related proposed legislation and no potential impact.

The commitments made in the voter pamphlet, and tracked in the 2024-25 Parks Levy Annual Report, were developed with community input and approved by Portland voters. Ballot measure language included a focus on providing services to underserved communities including, but not limited to, communities of color and households experiencing poverty. In addition, as part of the Healthy Parks, Healthy Portland framework, PP&R has committed to centering the voices and the needs of underserved communities, building on the ballot language of the Parks Levy.Both the 2024-25 Parks Levy Annual Report and the Parks Levy Oversight Committee Annual Report will be available on the PP&R website with accessibility text and translation services available. The Executive Summary from the 2024-25 Parks Levy Annual Report, and the full Parks Levy Oversight Committee Annual Report, will be translated into Portland's four most common languages. All online reports will be available as an accessible PDF. Reports from Years 1 through 3 are currently available online.Parks Levy Oversight Committee members are members of the public and are invited to present their report to City Council.

There are no financial or budgetary impacts directly resulting from the presentation of these reports. In Fiscal Year 2024-25, PP&R spent $63,766,239 Parks Levy funds. PP&R received $47.77 million Parks Levy revenue in FY 2024-25.In the first three years of the Parks Levy, revenue was higher than expenses and PP&R generated a Parks Levy fund balance of $49 million. Years 4 and 5 of the Parks Levy have higher expenses than revenue. PP&R is using the fund balance built in the first levy years to pay for the higher expenditures in its final years. In FY 2024–25, PP&R spent $12.76 million of the fund balance, in addition to the $47.77 million of new tax revenues it received in FY 2024–25. This brought the fund balance to $36.25 million. PP&R anticipates spending that remaining fund balance, in addition to the new annual revenue generated in FY 2025–26, to deliver services in Year 5 of the Parks Levy.

Not applicable.