Bureau of Environmental Services -- Intro

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City of Portland Fiscal Year 2026-27 Proposed Budget Public Works > Bureau of Environmental Services Bureau of Environmental Services Budget Revenues by Major Object 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed External Revenues Bond & Note Proceeds $0 $548,886,470 $0 $236,029,721 Charges for Services $425,202,563 $445,214,999 $444,240,847 $468,829,644 Intergovernmental $771,554 $1,504,901 $1,003,750 $1,369,500 Licenses & Permits $1,848,374 $1,818,662 $875,000 $856,000 Miscellaneous $16,087,181 $18,872,280 $14,383,000 $15,525,646 Internal Revenues Beginning Fund Balance $562,699,454 $369,547,849 $529,748,906 $407,368,329 Fund Transfers - $463,609,283 $417,163,280 $484,826,568 $419,314,986 Revenue Interagency Revenue $2,847,307 $4,766,867 $6,909,080 $5,378,680 Miscellaneous Fund $0 $0 $0 $0 Allocation Grand Total $1,473,065,715 $1,807,775,308 $1,481,987,151 $1,554,672,506 Expenses Expenses by Major Object 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed Bureau Expense $491,229,203 $491,698,732 $500,292,378 $463,451,740 Personnel $109,306,380 $112,642,528 $129,725,073 $122,937,139 External Materials and $118,953,173 $113,551,639 $130,034,692 $132,725,049 Services Internal Materials and $58,961,326 $69,669,905 $73,976,593 $81,881,242 Services Capital Outlay $204,008,323 $195,834,659 $166,556,020 $125,908,310 Fund Expense $617,384,651 $801,543,547 $981,694,773 $1,091,220,766 Debt Service $142,429,776 $379,105,398 $149,954,403 $156,505,416 735

City of Portland Fiscal Year 2026-27 Proposed Budget 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed Contingency $0 $0 $345,949,790 $504,184,847 Fund Transfers - $474,954,876 $422,438,148 $478,476,858 $423,223,781 Expense Debt Service Reserves $0 $0 $7,313,722 $7,306,722 Unappropriated $369,547,849 $514,523,922 $0 $0 Ending Fund Balance $369,547,849 $514,523,922 $0 $0 Grand Total $1,478,161,703 $1,807,766,200 $1,481,987,151 $1,554,672,506 Expenses by Program Offer 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed Funds Management $476,180,626 $738,620,642 $1,002,519,594 $1,112,549,063 O&M - Collection System $36,090,990 $38,779,414 $44,036,512 $44,846,602 Strategy $22,129,617 $15,162,312 $25,907,981 $26,518,505 Administration $4,914 $2,488 $0 $0 Asset Systems ($10,878,044) ($3,434,760) $0 $0 Management Bureau Support $793,941 $185,808 $0 $0 Business Support $52,975,774 $59,278,321 $47,523,002 $45,320,195 Capital Program Mgmt & $284,206,579 $272,372,334 $244,137,785 $210,714,094 Controls CERCLA (Superfund) $0 ($500) $0 $0 Collection System $689,274 $702,807 $0 $0 Communications $79 $4,174 $0 $0 Construction Services $8,704 $6,755 $0 $0 Del Prog - Env Compliance $8,330,299 $8,953,374 $9,594,872 $9,455,002 Del Prog - Systems Dev $4,621,165 $6,794,741 $4,597,935 $4,023,298 Design $6,579,325 $6,934,329 $3,065,753 $2,870,163 Development Services $25 $0 $0 $0 Downspout Disconnection $0 $603 $0 $0 DP - Comm Partnerships $4,312,547 $2,991,502 $3,452,436 $2,487,626 Employee Development $62,497 $64,504 $0 $0 Eng Svcs - Constr & MTL $4,578,022 $4,554,166 $2,261,949 $1,745,722 Engineering $6,557 $468 $0 $0 Env. Monitoring & $211 $1,764 $0 $0 Investigation Environmental Compliance $409 $6,510 $0 $0 Finance $514,621,317 $575,742,237 $0 $0 Information Management $73,459 $12,575 $0 $0 Integrated Planning $7,240,625 $8,719,190 $11,702,094 $10,895,322 Leadership $4,799,564 $5,588,159 $8,917,681 $5,236,197 Maintenance $767,858 $287,529 $0 $0 736

City of Portland Fiscal Year 2026-27 Proposed Budget 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed Maintenance and Repair $0 $0 $0 $0 Materials Test Lab $34,884 $62,284 $0 $0 NA $0 $0 $0 $0 O&M - Treatment $32,674,378 $36,442,679 $45,864,054 $50,018,753 O&M - Watershed $6,411,831 $8,057,047 $12,712,054 $9,147,370 Portland Harbor $3,000 $500 $0 $0 Source Control $0 $325 $0 $0 Support Center $0 $132 $0 $0 Sustainable Stormwater $1,102 ($1,046) $0 $0 Systems Development $354,432 $152,678 $0 $0 Tech Svcs - Env Info $7,624,920 $9,151,890 $8,202,820 $9,648,956 Tech Svcs - Info Sys, Map $9,277,625 $10,266,975 $7,490,629 $9,195,638 Treatment $3,570,177 $1,301,123 $0 $0 Wastewater $2,272 $0 $0 $0 Watershed Management $8,932 $2 $0 $0 Watershed Revegetation $1,817 $166 $0 $0 Grand Total $1,478,161,703 $1,807,766,200 $1,481,987,151 $1,554,672,506 Positions - FY 2026-27 Proposed Budget FTE Accountant II 2.0 Accountant III 1.0 Accounting Supervisor 1.0 Administrative Specialist II - CPPW 2.0 Administrative Specialist III 1.0 Analyst I - CPPW 4.0 Analyst II - CPPW 22.0 Analyst III 7.0 Analyst III - CPPW 9.0 Analyst IV 3.0 Auto Equip Oper II: Tractr-Trailr-CL 1.0 Botanic Spec II-Generalist 5.0 Botanic Spec II-Ntrl Resource Ecologist 1.0 Botanic Spec III-Ntrl Resource Ecologist 4.0 Botanic Technician II-Green Infrastructure 4.0 Business Systems Analyst II 4.0 Business Systems Analyst III 3.0 CAD Technician II 6.0 CAD Technician III 2.0 Capital Project Manager I 2.0 737

City of Portland Fiscal Year 2026-27 Proposed Budget FTE Capital Project Manager II 13.0 Capital Project Manager III 7.0 Capital Project Manager IV 4.0 Communications Engineer 1.0 Coordinator I (E) - CPPW 1.0 Coordinator I (NE) - CPPW 1.0 Coordinator II - CPPW 18.0 Coordinator III 4.0 Coordinator III - CPPW 7.7 Coordinator IV 1.0 Deputy Director III 1.0 Director III 1.0 Electrician 11.0 Electrician/Instrument Technician 2.0 Electronic Systems Technician 3.0 Engineer II 9.0 Engineer III 18.0 Engineer-Chemical/Environmental 1.0 Engineer-Civil 23.0 Engineer-Electrical 2.0 Engineer-Geotechnical 2.0 Engineer, Chief 1.0 Engineering Associate-Civil 3.0 Engineering Associate-Electrical 1.0 Engineering Associate, Sr-Chemical/Envir 1.0 Engineering Associate, Sr-Civil 12.0 Engineering Associate, Sr-Electrical 3.0 Engineering Associate, Sr-Mechanical 1.0 Engineering Manager 4.0 Engineering Supervisor 14.0 Engineering Technician II 13.0 Engineering Technician III 11.0 Enviro Regulatory Coordinator - CPPW 8.0 Environmental Program Coordinator 7.0 Environmental Regulatory Coordinator 5.0 Environmental Specialist-Generalist 24.0 Environmental Supervisor 8.0 Environmental Technician I 2.0 Environmental Technician II 25.0 Facilities Maintenance Technician-CL 2.0 Facilities Worker 1.0 Field Science Specialist 6.0 738

City of Portland Fiscal Year 2026-27 Proposed Budget FTE Field Science Technician 5.0 Financial Analyst I - CPPW 2.0 Financial Analyst II - CPPW 2.0 Financial Analyst III 2.0 GIS Technician III 1.0 Hydrogeologist 1.0 Industrial Machinist 1.0 Industrial Maintenance Millwright 32.0 Industrial Maintenance Millwright, Appr 1.0 Industrial Painter 1.0 Instrument Technician 12.0 Instrument Technician, Apprentice 2.0 Laboratory Analyst II-CL 6.0 Laboratory Analytical Specialist-CL 6.0 Laboratory Coordinator-CL 3.0 Laboratory Manager 1.0 Landscape Architect 3.0 Maintenance Supervisor I - E 1.0 Manager I 8.0 Manager II 14.0 Manager III 3.0 Materials Testing Technician II 5.0 Materials Testing Technician III 1.0 Office Support Specialist I 1.0 Office Support Specialist II 2.0 Office Support Specialist III 3.0 Planner II. City-Water Resources 1.0 Planner, Sr City-Water Resources 4.0 Planner, Supervising 1.0 Public Information Officer - 1.0 Public Works Inspector 16.0 Public Works Inspector, Sr 11.0 Risk Specialist I 1.0 Risk Specialist II 4.0 Statistician 1.0 Storekeeper/Acquisition Specialist I-CL 1.0 Storekeeper/Acquisition Specialist II-CL 3.0 Storekeepr/Acquisition Specialist III-CL 1.0 Supervisor I - E 5.0 Supervisor II 12.0 Wastewater Operations Specialist 5.0 Wastewater Operator II 47.0 739

City of Portland Fiscal Year 2026-27 Proposed Budget FTE Wastewater Operator III 3.0 Wastewater Operator, Trainee 3.0 Grand Total 603.7 Performance Performance Metrics - Fiscal Year FY 2022 - FY 2023 - FY 2024 - Program Offer Measure Polarity 23 24 25 Bureau-wide ECOLOGICAL HEALTH: Watershed Health Index for Higher Is 5.4 5.4 5.3 Water Quality Better Bureau-wide Amount of time loss, in hours per employee, due to Lower Is 1.3 2.2 1.5 injuries and illnesses Better Bureau-wide Feet of streambank restored (not cumulative) No Polarity 2,980.0 285.0 1,960.0 Bureau-wide Number of sanitary sewer overows Lower Is 136.0 134.0 152.0 Better Bureau-wide Number of stormwater ooding events due to Lower Is 112.0 95.0 77.0 system capacity Better Bureau-wide Linear feet of sanitary and combined sewer pipe Higher Is 24,641.0 20,399.0 43,233.0 repaired or replaced to improve condition and Better capacity Bureau-wide Percentage of CIP budget spent Higher Is 93.0% 85.0% 93.0% Better Bureau-wide WASTEWATER TREATMENT: Number of gallons of No Polarity 25,504 26,898 24,842 wastewater processed (in millions) Bureau-wide SEWER FLOWS EXCEEDING SYSTEM CAPACITY: Lower Is 4 3 2 Number of combined sewer overow events Better Bureau-wide SEWER MAINTENANCE EFFECTIVENESS: Sanitary Lower Is 2.60 2.75 3.53 sewer overows per 100 miles of main Better Bureau-wide LONG-TERM FINANCIAL STABILITY: Debt Service Higher Is 1.41 1.85 1.59 Coverage Ratio for the Bureau of Environmental Better Services Business Support Maintain the bureaus rst lien debt service coverage Higher Is 8.6 6.5 6.4 ratio at 1.5 or greater Better Business Support Maintain bureaus combined rst and second lien Higher Is 1.4 1.5 1.6 debt service coverage ratio at 1.3 or greater Better Business Support Average single family household bill as a percent of Lower Is 1.3% 1.3% 1.3% median income Better Business Support Percentage of dollars awarded to disadvantaged, No Polarity 35.0% 35.9% 28.0% minority-owned and women-owned(D/M/W) rms in professional services Del Prog - Env Percentage of industrial enforcement tests in full Higher Is 99.0% 98.5% 99.2% Compliance compliance Better 740

City of Portland Fiscal Year 2026-27 Proposed Budget FY 2022 - FY 2023 - FY 2024 - Program Offer Measure Polarity 23 24 25 DP - Comm Partnerships Number of participants in community events, Higher Is 8,782.0 11,908.0 10,825.0 workshops, stewardship, and restoration events Better Eng Svcs - Constr & MTL Construction management costs as a percentage of No Polarity 13.0% 98.0% 11.7% total construction costs O&M - Treatment Percentage of biochemical oxygen demand removed Higher Is 93.0% NA 94.0% Better O&M - Treatment Cost to operate and maintain the treatment plants Lower Is $1,099.0 NA $2,384.0 per million gallons treated Better O&M - Treatment Percent of methane benecially used Higher Is 30.0% NA 6.0% Better O&M - Treatment Tons of biosolids benecially used Higher Is 11,400.0 NA 11,593.0 Better O&M - Treatment Percentage of urgent public health and safety Higher Is 95.0% 95.0% 99.0% related service requests responded to within two- Better hour timeframe O&M - Watershed Number of trees planted Higher Is 7,712.0 14,476.0 8,314.0 Better O&M - Watershed Number of green streets inspected Higher Is 2,522.0 2,523.0 2,523.0 Better Strategy Number of education and engagement activities and No Polarity 43.0 0.0 72.0 events about Portland Harbor Superfund Strategy Number of bureau education programs delivered Higher Is 343.0 321.0 350.0 Better Tech Svcs - Env Info Percentage of Level I/Phase I Environmental Higher Is 70.0% 59.0% 70.0% Assessments completed on time Better Tech Svcs - Env Info Number of lab analyses performed each year No Polarity 56,389.0 54,330.0 56,619.0 Overview Bureau Mission The Bureau of Environmental Services’ (BES) mission is to manage Portland’s wastewater and stormwater infrastructure to protect public health and the environment. We are a mission-driven, high-performance organization, leading the City in preserving and restoring the health of Portland’s watersheds. Bureau Overview, Services, and Assets The Bureau of Environmental Services (BES) operates and maintains citywide sanitary sewer and stormwater collection and treatment systems with approximately $27.9 billion of assets and serving a population of approximately 650,000. The bureau is also the City's lead agency for watershed protection, restoration, and recovery of threatened salmon and steelhead species. The bureau is funded primarily by retail sewer and stormwater charges, but revenues also include wholesale contract revenues from surrounding jurisdictions, system development charges, and reimbursements for services provided to other bureaus. Financial Context 741

City of Portland Fiscal Year 2026-27 Proposed Budget The bureau has experienced expenditure reductions since the pandemic and have required directing the diminishing net resources on the highest risk and highest priority assets and operations. This shift is demonstrated by continued investment in treatment, collection, pumping assets, and critical operations while making strategic reductions in other areas. To meet current service levels, the bureau requires a 5.9% rate of increase which is 0.75% higher than the previous forecast of 5.15%. With direction to keep rates of increase at the previous forecast level, the bureau has identified approximately $3.3 million of reductions to the FY 2026-27 budget. Budget Approach/Prioritization BES took a holistic approach across the bureau to fund internal and City-wide needs in alignment with resource investment shifts. BES began this budget cycle by identifying approximately $19 million in operating needs across all areas of the bureau. Based on limited resources, and our efforts to keep rates of increase as low as possible, the bureau elected to defer $12 million of those identified operating needs. Of the remaining $7 million, approximately $3.3 million were unavoidable inflationary increases beyond what was forecast; and $3.7 million were identified as the most critical items to meet minimal operating and permit-compliance requirements and could be funded internally by making reductions or were within planning targets. With budget guidance to keep rates at the prior year’s estimate, the bureau was required to make additional reductions of approximately $3.3 million. Due to the backlog and long-term operating impacts of reduced infrastructure investment, the bureau determined early on that to meet the $3.3 million reduction target, reductions would not be taken from capital investment. As a result, the reductions were focused on operations only. With the operating reductions over the last few years, there is little ability to make operating reductions without impacting levels of service and increasing risk of permit violations. Regardless, the bureau focused on the areas with the least impact on critical operations and lowest risk to permit compliance failures. Summary of Budget Decisions Reduce Business Support Program ($430,000, -2 FTE) Reductions include two vacant Coordinator II positions and a reduction to janitorial services. Reduction of one of the Coordinator II positions will result in delays in providing administrative support functions that guide BES employees toward efficient, cost-effective processes and practices. The other is in Engineering and is needed to support the Engineering Standards and Practices committee, which supports CIP specifications and details which are needed as foundational elements to consistency and quality. Eliminating this position would relocate functions to other engineering staff who are already working at capacity on priority projects; this would create risk of project delays and ultimately higher costs. Currently, two employees are assigned 50% of their time to the program in order to compensate for the Coordinator II vacancy. • 5% reduction in overall capital project delivery support in the bureau’s Sewer, Stormwater and Restoration Division. Reduce Project Management Office Program ($1,197,951, -1 FTE) This reduction includes a vacant Analyst II position supporting project delivery stewardship, which will shift workload to others including project managers. Shifting work to project managers will take away from their core work, creating risk of project delays leading to higher costs. This also includes a $1 million reduction to the budget for emergency repairs, urgent non-capital projects, decommissioning and other similar capital-adjacent work, which creates higher risk to the finances of the bureau to navigate unforeseen events. • The Bureau will reduce the transitory dollar budget by 15%, from $6.9 million to $5.9 million. Reduce Contract Funding for the Integrated Planning Program ($230,000) This reduction to professional services contracts will increase work assigned to staff, resulting in longer turnaround times for non- urgent requests. The reductions will come from: 742

City of Portland Fiscal Year 2026-27 Proposed Budget • 46% reduction in contracts supporting City-required GIS conversions and • 50% cut to consultant coding support for improving asset condition evaluation processes with AI. Reduce Leadership Program and Security Services ($1,120,436, -2 FTE) Reductions include a vacant Manager III, vacant Analyst III, and reduction to security services contracts. The Manager III reduction is in support of BES and Water consolidation requiring reassignment and consolidation of three divisions following core services realignment. The Analyst III reduction will have a negative impact on the program’s capacity to provide comprehensive internal administrative and support services to facilitate smooth operations bureau-wide. • 16% reduction to security services will result in reduced proactive security presence at selected sites and an increase in the reliance of reactive controls like alarms and video. Reduce Communications within the Strategy Program ($66,600, -0.3 FTE) Reduces the portion of a Coordinator III position that is not supporting the capital improvement program. This will lead to a lower level of communications and engagement support for non-capital projects including maintenance and emergency projects, resulting in residents and businesses receiving little to no information about construction or property impacts. Reduce Technical Services – Environmental Compliance Program ($222,972, -1 FTE) This reduction removes a vacant Analyst II position and reduces seasonal support. The reduction of the Analyst II position will create delays in writing and revising codes, rules, and manuals resulting in higher risk of outdated city codes, engineering, and regulatory standards. Reduction to seasonal support will push work to higher paid staff and reduce the ability to attract entry level candidates into public sector career paths. Relative Capacity Impacts: • 33% loss in Analyst capacity and productivity on writing and updating BES codes, rules, and manuals to meet BES regulatory objectives and requirements, as well as in BES engagement in cross-bureau regulatory reform including work focused on supporting development and housing. • 100% loss of seasonal staff dedicated to identifying illicit dry-weather discharges to the Municipal Separate Storm Sewer System stormwater outfalls. Reassignment will reduce Spill Protection & Community Response staff availability for responding to spills and complaints by 33% for the July through September outfall inspection season. 743

Parent: Bureau of Environmental Services