Capital Program Mgmt & Controls

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Breadcrumb: Service Area Summaries > Public Works > Bureau of Environmental Services > Capital Program Mgmt & Controls

City of Portland Fiscal Year 2026-27 Proposed Budget Public Works > Bureau of Environmental Services > Capital Program Mgmt & Controls Capital Program Mgmt & Controls Budget Revenues by Fund 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed External Revenues $660,653 $5,029,688 $0 $0 Grants Fund $10,974 $3,176,158 $0 $0 Sewer System $649,679 $1,853,530 $0 $0 Operating Fund Internal Revenues $0 $0 $160,000 $0 Sewer System $0 $0 $160,000 $0 Operating Fund Grand Total $660,653 $5,029,688 $160,000 $0 Program Expenses by Major Object Program expenses only include personnel, internal materials and services, external materials and services, and capital. 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed Capital Outlay $196,208,192 $162,448,987 $160,293,173 $124,838,310 External Materials and $41,706,255 $60,153,250 $41,619,040 $41,693,189 Services Internal Materials and $23,338,000 $25,442,568 $8,499,106 $9,388,087 Services Personnel $22,954,131 $24,327,529 $33,726,466 $34,794,508 Grand Total $284,206,579 $272,372,334 $244,137,785 $210,714,094 Program Description and Goals The CIP/Project Delivery Program includes the bureau's entire Capital Improvement Program (CIP) budget as well as the operating budget of the CIP Project Management Office (PMO). The CIP/Project Delivery Program consists of two work units and the bureau's CIP, which is comprised of approximately 400 projects in various stages of development, design, and construction each year. The PMO has overall responsibility for developing, monitoring, and facilitating the delivery of the annual and long-term CIP, with PMO project managers providing overall project management for the largest and most complex projects. The PMO builds the framework 746

City of Portland Fiscal Year 2026-27 Proposed Budget that allows the Bureau to deliver results repeatedly and efficiently, while dedicated project managers help deliver the results in close collaboration with Engineering Services and other Bureaus on the Bureau's highest priorities. For more routine projects, the PMO maintains a large group of on-call professional, technical, and expert support contracts for capital projects, while providing training and support related to project management within our established framework for staff across the bureau. These projects result in reliable and fiscally responsible delivery of stormwater and wastewater infrastructure that serves the community, protects the environment, and meets the City's regulatory obligations. The PMO's primary goal is to increase the predictability of project delivery performance through the implementation of a dedicated project manager model and implementation of capital project delivery processes and procedures built around recognized industry practices. A key measure of the PMO's success in increasing project output to meet system sustainability needs is the CIP delivery rate (% of CIP budget spent) which has a long-term (strategic) target of 95% delivery of the planned CIP. Continued process and organizational improvements are underway to support a more consistent and predictable delivery rate. It should be noted that delivery of the CIP involves significant bureau staff and resources beyond those included in this Program Area. Services Manage bureau CIP; Standard project delivery; Major project delivery; Project governance processes; Project budget management; Project scheduling; CIP performance, monitoring, reporting Equity Impacts Equity considerations are included in capital project prioritization through the planning and portfolio prioritization processes that advance projects to the CIP and PMO. Once projects are prioritized in the overall CIP, the PMO facilitates when and how those projects are budgeted and delivered. More information is in the Capital Summary Section. The program is working to integrate explicit equity considerations into project management tools and templates where appropriate, such as project charters and work plans, to ensure those considerations carry through from project inception to completion. Due to its responsibility in managing CIP funds, the largest area of equity impacts in this program is in the contracting efforts for the annual CIP, which include both design and construction contracts. To facilitate delivery of more routine work for the Bureau, the PMO administers more than 40 on-call contracts for CIP project support services such as civil and structural engineering, permitting, and water quality expertise. Program staff encourage equitable contracting, monitor utilization of historically underutilized businesses, and provide one-on-one support to consultants and contractors regarding the City's contracting and project delivery processes. The PMO typically oversees stand-alone contracts and Requests for Proposals, where project managers are skilled in understanding and implementing City procurement policies as recommended by Central Procurement. For example, the Secondary Treatment Expansion Program (STEP) is managed in this program area and has made up a significant portion of the overall CIP for the past several years ($68M in FY 2025-26). STEP is utilizing an alternative contracting approach incorporating the City's first Community Benefits Agreement (CBA), which incorporates strategies to diversify both subcontracting and workforce hiring in the construction industry, and is seen as a model for other large alternative delivery projects. Changes to Program Inflation has impacted the current and planned future CIP and the amount of infrastructure improvement projects that can be accommodated within the financial forecast. The near-term CIP continues to emphasize projects addressing imminent threats or risk to human health and safety, asset failure, and projects addressing regulatory compliance. Projects addressing longer-term needs, and those with less urgency, have been postponed where possible. The FY 2026-27 CIP Budget of $197.4 million is a 13% decrease compared to last year's budget. This overall decrease is primarily fueled by the substantial completion of the $630M Secondary Treatment Expansion Program (STEP) project. See the '5-Year Financial Plan' or 'Capital Summary' for additional 747

City of Portland Fiscal Year 2026-27 Proposed Budget information related to the CIP. The operating component of this program offer is very small compared to the total program offer budget. Operating expenses remain similar to the previous FY, with minor movement of external and internal materials and services budget within the program to better align with actual spending. 748

Parent: Bureau of Environmental Services · PDF: pp. 746-748 ↗