City Budget OfficeFinancial Analysis for the City of Portland

FY 2022-23 Budget Kick-off

City Budget Office

December 2, 2021

Welcome!If you have questions during the presentation, please use the ‘raise hand’ function.

This meeting is being recorded for others to be able to view online

Agenda

Item Presenter

Welcome & CBO Updates Jessica Kinard

Budget Process Christy Owen

Budget Equity Tool Asena Canbaz-Lawrence

OMF Interagency Agreements

Aaron Beck

Performance Measures Jessica Kinard

BFM & PatternStream Robert Cheney

Questions? Team

Focus for today is on technical components/ decision points irrespective of guidanceWe will not be able to address the following today:- Mayor’s Guidance for General Fund and other funds, as applicable- Final December forecast for the General Fund & Recreational Cannabis

Fund- ARPA Guidance- Final amount of non-rep merit for planning purposes

- Citywide decision point to be determined by the Mayor and Council as part of proposed and adopted budget

- CBO has assumed funding in GF CAL to create parity in assumptions with typical represented step increases

- Bureaus should budget all merit expenditure allocations in account 511900

Introducing new CBO team members and roles!Financial & Policy Analysts• Shannon Fairchild, Team Lead• Jane Marie Ford, Team Lead• Douglas Imaralu• Noah Myrhum• Yung Ouyang• Joshua Martin (Hatfield Fellow)• Anthony Locke (Starts mid-December)• Lorena Guadiana (Starts late December)

Office & Citywide Support• Josie Chavez, Executive Assistant and Operations

Specialist (Started August)• Peter Hulseman, City Economist (Started Sept)• Asena Canbaz-Lawrence, Shared Equity Manager

(Started August)

Systems Analysis & Management

• Robert Cheney, Senior Systems Analyst

Citywide Analysts

• Ruth Levine (Started mid-Nov)

• Steven Abraham (Starts Dec 6th)

Performance Management & Analysis

• Ning Jiang, Communications & Community Engagement Analyst (Started in November)

• Lillian Nguyen, Citywide Performance Management Lead (Starts mid-January)

FY 2022-23 Budget

December General

Fund Forecast Released

January 26th

Bureaus submit

requested budgets

Early MarchCBO

Reviews due to Council

MarchCouncil Work

Sessions

AprilBudget

Outreach Events

April 28th

Mayor’s Proposed Budget

Released

May 11-12th

Approved Budget Work

Session

June 8th

TSCC Hearing

June 9thAdopted Budget –

1st reading

Components of Bureau Requested Budgets – Due January 26th

7

There are no substantive changes to the required submission documents for FY 2022-23

Submitted materials include:• Organization-wide qualitative and quantitative information• Program offers for all bureau programs• Performance measure report• Requested Decision Packages• Five-year financial plans, capital project information, & fee study

(if applicable)• Budget equity assessment tool

Position Management ProcessThere were 185.5 FTE added in the Fall BMP. It was not feasible to get this many positions into SAP on a short turnaround.

Process was augmented slightly to accommodate- broken out below.

CBO analysts will be in correspondence with bureaus throughout process to help with position maintenance prior to 12/20

Positions Adopted for start of FY 2021-22:

BHR continues to review P-4s and enter

positions into SAP until November 24

November 24- BHR provides CBO the list

of positions not entered in SAP

December 8: CBO runs Personnel interface SAP to BFM positions+

Fall BMP position

December 9-20: Time to verify

position counts in bureau base

budgets

December 20-23: CBO stages

forward to V52, opens all forms

CBO verifies Adopted Budget #s against Positions PA Report, notates eliminations or adds

Personnel Costing InformationDetail reconciliation/timelines for this in DecemberPCF reports will be updated after final load (12/8-9 range)This is where the full COLA versions will be finalSome premiums do not currently come over in the interface (shift

differentials etc.)

PPA and DCTU Current Year COLA is not in SAP, and not in BFMThese bargaining agreements have not been finalizedCAL includes the 1.6% COLA for General Fund discretionary backed

bureaus, including those without signed bargained agreementsUse the tech form entry to enter the expense for the 1.6% for current year

COLA that is not in the base budget for bureaus outside of the General Fund.

New Cost Categories for Personnel PlanningLanguage pay premiumCouncil has adopted a language pay differential policy ($1/hour premium, including

overtime hours worked)We do not know how many employees by bureau this will impact.There is no new resource, expectation is absorbed in current resourcesRecommend planning for this in Premiums

Oregon’s Paid Family Medical Leave Act (PFMLA)State delayed implementation until January 2023Council approved a CAL-target adjustment for this expense in the Fall BMP of FY

2020-21. Non-General Fund Bureaus can cost out the estimated City portion of the expense

using the PCF projection report specific to PFMLABHR will be managing the premium collection and remittance process to Oregon

State. The State, and therefore the City, are in the process of finalizing rules and processes.

New Cost Categories for Personnel Planning, Cont.

BHR has completed the most recently required Citywide pay equity analysis.

Bureaus/funds where there is cost impact will be notified by BHR

At present, there is no dedicated resource set-aside to pay for pay equity adjustments, it is currently an expense bureaus would have to absorb

Questions on Pay Equity should go to BHR, Tracy Warren.

Capital Set-Aside: Last 3 YearsBudget Year FY 2020-21 introduced the Benefit Cost Analysis (BCA) tool for submissions and review of Capital Set-Aside requests.

• Projects submitted were evaluated• The onset of the pandemic led to a 1-time waiver of financial policy• Recently Council waived policy a second time in the FY 2021-22 Fall BMP

Projects submitted in FY 2020-21 were resubmitted for consideration in FY 2021-22.

FY 2022-23 Budget process will restart the submission and review of Capital Set-aside requests

• Resourced by 50% of one-time General Fund resource• Financial policy states capital set-aside is dedicated to Parks, Transportation, and

Emergency Preparedness

Capital Set-aside

December Forecast provides resource

City Financial Policy for 50% of resource

dedicated to capital set-aside.

Bureaus prepare requests

Use the BCA framework tool

Submit requests with Budget submission

Use decision package type for Capital Set-aside

projects

Include BCA tool in the submission

Asset Managers review BCA tools

CBO convenes asset managers for review and discussion of BCA tools

and projects

Ability to gather feedback

CBO Reviews

CBO issues reviews with recommendations for

available capital set-aside projects

Budget Process Logistics & MaterialsFY 2022‐23 Budget currently virtual, potential to become hybrid

• Electronic submissions• Virtual Council Work Sessions & Hearings

Work Session dates are final (20 hours in March, 2022)• Final Schedule in early February• Structure to include focused areas for Council discussion

Potential for Council Sessions to resume in person for the Approved and Adopted Budget

• This is “potential” and not “certain”Budget Manual, round 1, released this week• As subsequent guidance is released, the manual will be updated.• CBO website will have updated links to tools and resources for bureaus

Budget Equity Assessment Tool

Asena Canbaz-Lawrence I she/her I Small Bureaus Equity Manager

City Core Values

• Equity • Anti-Racism• Transparency • Fiscal Responsibility • Collaboration• Communications

City’s Commitment to Equity & Fiscal Responsibility • Champion Citywide Equity Goals

& Strategies.

• Consider how financial decisions will impact communities that have been systemically oppressed.

• Remove institutional and systemic barriers to resources and opportunities.

Budget Equity

Assessment Tool

• Resolution - binding fiscal values-based policy.

• Bureaus are required to use the tool on all budget proposals and base budgets.

• Two Sections: • Section 1: Base Budget • Section 2: Equitable Engagement and Access

• Decision Packages • Separate intake field for equity implications of an

individual decision package

Budget Equity

Assessment Tool: Intent

Through utilizing the tool, bureaus provide more equitable services across our communities in Portland.

• Track service levels and investments.

• Helps assess equity impacts of City initiatives to ensure investments help reduce disparities and improve outcomes.

• Encourage and improve public participation in local government,

Bureau Budget Equity Tool

Apply an RBA Framework.

Consider who is “better off.”

Designed to facilitate conversations during the development of bureau

base budgets.

Engage Equity Managers, Equity Practioners & Office of Equity Staff.

Use of the Budget Equity ToolAnyone involved in the budget process should be familiar with the budget equity tool questions. 

Share the tool early

OEHR Resources

Anyone making decisions in the budget process should contribute to the budget equity tool

Leadership should review the tool at least twice 

Early to provide direction 

Prior to submission to approve final decisions and impact

Equity managers should be treated as key advisors in the process. It is not their responsibility to complete the document, but they should advise decision‐makers on opportunities to enhance equity in decision‐making which will inform completion of the tool. 

Integration of the Tool with Budget Submission

BFM, the City’s Budget Software has a specific form for the Budget Equity Tool

Supporting documents to assist bureaus in entering the inputs from the Tool into the BFM form

The Form allows for reporting, analysis, attachment of performance measures, without reliance on piecing Word documents together.

How is the Budget Equity Tool Used?

Office of Equity provides a review of each bureau’s budget equity form to the City Budget Office, City Council, and Bureau leadership.

CBO’s Use of the Budget Equity Tool

CBO REVIEWS & RECOMMENDATIONS

PROGRAM OFFERS AND PERFORMANCE DATA

EVALUATION OF TRADEOFFS

Planning for the Equity Assessment in the Annual Budget Calendar

Start early

Bureau Budget

Equity Tool

Designed to facilitate conversations during the development of bureaus base budgets

The questions and framework for FY 2022‐23 are consistent with the FY 2021‐22 Tool

• The questions have been reorganized to match the BFM input boxes

OEHR is reviewing current tool, with potential to modify for future usage

• Considering a tool with year‐round applicable use• OEHR will coordinate with equity managers/practitioners as new processes are scoped developed for bureaus

Questions?

OMF Interagency Agreements

Presenter: Aaron Beck

Performance Management

Citywide Measures‐ Continuing in FY 2022‐23

New measure category in            FY 2020‐21

Track population‐level outcomes that involve multiple or all bureaus

Many measures are disaggregated by race & disability status

Located in Adopted Budget in the “Performance Overview” section

No Changes Proposed to Data Reporting

Performance Measures assigned to Program Offers

Continue in FY 2022‐23 with annual targets optional

Strategic targets still required for all measures

Monthly reporting option is removed 

Measures will not be graphed in published books

Performance Advisory Committee (PAC) 

• On HOLD, but plan to re‐launch in January

• Advise the CBO Performance team on Citywide performance management strategy

• Share ideas and experience with other performance champions

• Open to bureau and Council staff• Ongoing meetings: 4th Wednesday of 

the month, 2‐3pm

BFM & Patternstream

Demo Environment‐ Sandbox

BFM Form Access

Patternstream Dates

BFM Training Dates: Coming in early January

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Questions for the Team?