The Portland City Council Finance Committee voted Nov. 3 to send the fiscal year 2025–26 fall supplemental budget technical adjustment ordinance to the full Council with a recommendation of "do pass." The committee approved the procedural motion after a day of technical presentations and debate over prior-year encumbrance carryovers for contracts such as sidewalk cleaning and graffiti removal.

Jonas Biri, the city’s chief financial officer, told the committee the technical adjustment ordinance (TAO) is intended to "align the budget to fiscal year end results" and is not a vehicle for policy changes. "There’s no question that budget work is complicated and complex and not always intuitive," Biri said, urging the committee to advance the ordinance so bureaus can operate within budgets that reflect actual obligations and so staff can build the FY26–27 base budget.

The TAO package was supported by city financial staff, who described a multi-month review process: data gathering began in July, a City Budget Office memo describing key changes was published Oct. 16 (Exhibit 7), the ordinance was first presented to this committee Oct. 20 and discussed in a council work session Oct. 22. Biri also said staff had responded to approximately 80 questions from council offices and completed additional briefings.

Council members focused much of the discussion on encumbrance carryovers—money budgeted in the prior fiscal year that is being requested to carry forward to pay contracts or complete work now in progress. Councilor Green cited staff analysis showing the city may exceed planned costs in some programs and sought clarity on purchase orders that appeared unspent or duplicative. "It seems to me like writing a check that you can’t cash yet," Green said, pressing staff on when prior-year obligations are proper carryovers versus funds being used to start new programs.

Ruth Levine, the City Budget Director, clarified that a graffiti-related encumbrance Green referenced appears under BPS (the bureau tab identified in the city worksheets), and that multiple purchase orders can exist for related services. Anne Hill, director of the public environmental management office, explained contractor WB Family Construction (operating as GRS Graffiti Removal Services) performs both graffiti removal and sidewalk cleaning (power washing and enzyme treatments). Hill said a $338,000 purchase order cited in the materials is for sidewalk cleaning and enzyme work and that some encumbrances fund work already underway: "We got that money in July, and then it took till October to get that contract negotiated and signed, and then, for them to get people hired," Hill said.

Councilor Perogany placed on the record an amendment drafted by Councilor Smith proposing to strike roughly $6.1 million from the $18.5 million in encumbrance carryover requests and redirect portions of that funding to business and worker stabilization packages (including a $1 million East Portland ESD seed fund, $1 million for a "glitter" program, and $2 million for storefront support). The chair moved the Smith amendment onto the record for discussion, but the proposal did not receive a second and therefore was not considered further.

After reconvening from a recess, committee members reiterated competing priorities: a desire for stricter controls and transparency over carryovers and an immediate need to keep bureaus able to pay obligations and continue services. The committee ultimately approved a motion to send the TAO to full Council with a recommendation of "do pass." Councilor Novick moved the recommendation and Councilor Perogany seconded. The clerk recorded the roll call: Councilor Green voted No; Councilor Perogany, Councilor Novick and Councilor Zimmerman voted Aye. The chair announced, "With 3 yeses, the motion carries." The committee’s recommendation means the ordinance will be scheduled for full-Council consideration on Nov. 12.

The meeting closed after housekeeping remarks, a notice about the next Finance Committee meeting on Nov. 10, and a brief personal-privilege announcement from the chair about the passing of community leader Bill Dickey.