TL;DR (generated · confidence: high)

This section explains Oregon's Local Budget Law (Chapter 294) governing Portland's budget process and the roles of the Budget Officer and Budget Committee. It describes public involvement mechanisms, including the transition from Budget Advisory Committees to new engagement models aligning with the city's reorganized government structure. The section covers the four stages of budget approval: committee review, public testimony, adoption before July 1st, and post-adoption amendments via the Technical Adjustment Ordinance.

Key points (each cites a PDF page):

Oregon Local Budget Law (Chapter 294) requires standard budget procedures and ensures citizen involvement in budget preparation and administration. (p. 25 ↗)
The Tax Supervising and Conservation Commission (TSCC), a five-member citizen board appointed by the Governor, reviews budgets of all governmental jurisdictions in Multnomah County. (p. 25 ↗)
The City Budget Director serves as Budget Officer and prepares the Mayor's Proposed Budget under the Mayor's direction; the Budget Committee consists of City Council members. (p. 25 ↗)
In April 2026, the City held budget open houses and scheduled a public hearing on the Mayor's Proposed Budget for April 21, 2026. (p. 26 ↗)
The Portland Utility Board (PUB), established by City Council Ordinance 187174 on June 10, 2015, comprises 11 appointed community members advising on water, sewer, and stormwater services budgets and rate-setting. (p. 26 ↗)
Budget Advisory Committees (BACs) are being reevaluated to align with the city's new organizational structure where bureaus are grouped into service areas rather than operating in silos. (p. 26 ↗)
City Council votes to officially adopt the budget before July 1st; changes between approval and adoption are limited and defined by Local Budget Law. (p. 27 ↗)
Post-adoption budget changes are made through the Technical Adjustment Ordinance (TAO) with supplemental budgets, allowing the budget to be modified up to three times per year. (p. 27 ↗)

Dates/FTE: April 2026 · April 21, 2026 · June 10, 2015 · July 1st · Programs: Local Budget Law (Oregon Revised Statutes Chapter 294) · Budget Advisory Committee (BAC) · Portland Utility Board (PUB) · Government Transition Advisory Committee (GTAC) · Technical Adjustment Ordinance (TAO) · Ordinance 187174 · Parties: City of Portland · Tax Supervising and Conservation Commission (TSCC) · Oregon Department of Revenue · City Council

Budget Process

Source: PDF pp. 25-27 ↗ · raw: 25 · 26 · 27

Breadcrumb: Budget Overview > Budget Process

City of Portland Fiscal Year 2026-27 Proposed Budget Budget Process Local Budget Law Local government budgeting in Oregon is governed by Local Budget Law, Chapter 294 of the Oregon Revised Statutes. The law has two major objectives: Provide standard procedures for preparing, presenting, and administering local budgets Ensure citizen involvement in the preparation of the budget Budgeting in Oregon is an effort shared by residents and elected and appointed officials. Residents involved in the budget process work to ensure the services they require and want are adequately funded. City officials are responsible for building a budget that reflects the public interest and is structurally correct. The Tax Supervising and Conservation Commission (TSCC), a five-member citizen board appointed by the Governor, reviews the budgets of all governmental jurisdictions in Multnomah County. The TSCC, together with the State Department of Revenue, is responsible for ensuring the City budget complies with Local Budget Law. Budget Officer and Budget Committee To give the public ample opportunity to participate in the budget process, Local Budget Law requires that a Budget Officer be appointed and a Budget Committee formed. The Budget Officer prepares the Proposed Budget under direction of the Mayor. The Budget Committee then reviews and revises the Proposed Budget before it is formally adopted by the governing body. For the City, the Budget Officer is the City Budget Director, and the Budget Committee consists of the members of the City Council. Notices are published, budgets are made available for public review, and opportunities for public comment are provided. Opportunities for public comment were offered online and via a public hearing on the Mayor’s Proposed Budget. These actions encourage public participation in the budget decision-making process and give public exposure to budgeted programs and fiscal policies prior to adoption. Preparing the Proposed Budget Bureaus work with the City Administrator to analyze and prepare budget options in accordance with direction given by the Mayor. Acting as the Budget Officer, the Budget Director is responsible for overseeing the preparation of the Mayor’s Proposed Budget for presentation to the City Council, sitting as the Budget Committee. The Proposed Budget is the culmination of an extensive process of budget development, analysis, and revision. Public Involvement The City engages in a proactive public outreach effort as part of the budget process. In the past, to ensure that all stakeholders were involved in the budget development process, bureaus were directed to utilize the Budget Advisory Committee (BAC) process that included management, labor, customers, and internal and external experts. These committees reviewed the bureaus’ draft budget requests, and provided input on proposed decision packages. BACs played a role in the City’s former government structure, where each bureau independently developed its own proposed budget. This siloed approach meant that BACs were primarily focused on a single bureau’s programs and needs, without considering the broader financial needs of other services and programs across the City. 25

City of Portland Fiscal Year 2026-27 Proposed Budget With the transition to the new government structure—where bureaus are now grouped into service areas and budget development is guided by Deputy City Administrators and the City Administrator—budgeting is now approached holistically, ensuring that financial planning reflects the City’s overall priorities and resources. As a result, the City is reevaluating how BACs may align with this new framework. Reviews conducted by the City’s Budget and Finance Staffing and Budget Process consultant and the Government Transition Advisory Committee (GTAC) found the effectiveness of BACs varied significantly. Both GTAC and the consultant recommended the City conduct a comprehensive assessment of all advisory bodies before making further changes. The City Budget Office is working with the City’s Engagement Officer to explore new approaches to community engagement that build on past lessons and ensure clear purpose and structure moving forward. As part of this transition, BACs may evolve into engagement models that better align with the City’s new organizational structure and budget process, with the goal of fostering more effective and inclusive community engagement. In April 2026, the City convened budget open houses to allow community members to provide their input to the Mayor and City Council. The City Budget Office continues to collect and make available the shared electronic public comments and testimony on the budget via a form provided on the CBO website. Additionally, the City will convene a public hearing with open public comment on the Mayor’s Proposed Budget on April 21, 2026. Direct Public Testimony Community members may directly contact the Mayor and Commissioners with input for the budget. In addition to participating in advisory committees like the PUB and community budget forums described above, community members also have several opportunities to personally testify on bureau budget requests: Annual Budget Hearings – the City Council, sitting as the Budget Committee, holds one or more public hearings before the budget is approved. The public may testify on any budget topic during these hearings or submit testimony via email. Tax Supervising and Conservation Commission Hearing – public testimony is taken during the TSCC hearing on the City’s Approved Budget. Adopted Budget Hearing – testimony is taken at the City Council session for the final adoption of the budget. Portland Utility Board On June 10, 2015, City Council adopted Ordinance 187174 creating a Portland Utility Board (PUB). The PUB is an appointed body of 11 community members who advise the City Council on financial plans, capital improvements, annual budget development, and rate setting for the City’s water, sewer, and stormwater services. Budget Website The City maintains a community budget website at www.portland.gov/budget ↗. The site contains community resources to learn about and participate in the budget, submitted budgets, historical documents, and more. Approving the Budget In accordance with Local Budget Law, the City Council will convene as the Budget Committee to consider the Proposed Budget. Announcements advertising the Budget Committee meetings are printed in local newspapers. The public is encouraged to attend and provide testimony on the Proposed Budget. The timing and frequency of the public notices are governed by Local Budget Law. The Budget Committee meets to accomplish the following four actions: Receive the budget message and budget document Hear and consider public testimony 26

City of Portland Fiscal Year 2026-27 Proposed Budget Review and approve a balanced budget Approve the rate for property taxes The Budget Officer may provide a copy of the Proposed Budget to each member of the Budget Committee at any time prior to the first Budget Committee meeting. The budget becomes a public record at this point. At the first Budget Committee meeting, the Mayor delivers the budget message, explaining the Proposed Budget and significant changes in the City’s financial position. After the initial meeting, the Budget Committee may meet as many times as needed to revise and approve the budget. The City Budget Office summarizes the changes from the Mayor’s Proposed Budget to the Approved Budget. This information and copies of the Proposed Budget are sent to TSCC for review and analysis. Tax Supervising & Conservation Commission Hearing TSCC is responsible for reviewing, holding hearings, and producing a report on the budgets of every jurisdiction in Multnomah County. They hold a required public hearing, with Council in attendance, on the Approved Budget. The outcome of this hearing is a letter certifying that the budget is in compliance with Local Budget Law. The letter may contain recommendations and/or objections. The City is responsible for addressing any objections or recommendations. Adopting the Budget City Council votes to officially adopt the budget before the start of the new fiscal year on July 1st. Changes that are allowed between the time the budget is approved and final adoption are defined by Local Budget Law and are limited. Changes normally include technical adjustments and carryover amendments. Amending the Budget Changes after budget adoption are completed through the Technical Adjustment Ordinance (TAO), which includes a supplemental budget. During the TAO, bureaus can request to transfer appropriation. In supplemental budgets, bureaus may ask to increase appropriation. The TAO and other supplemental budgets provide Council the opportunity to change the budget three times a year. 27

Parent: Budget Overview · PDF: pp. 25-27 ↗