Environmental Remediation Fund

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Breadcrumb: Fund Summaries > Public Works. > Environmental Remediation Fund

City of Portland Fiscal Year 2026-27 Proposed Budget Public Works> Environmental Remediation Fund Environmental Remediation Fund Fund Summary 2024-25 Actuals 2023-24 Actuals 2025-26 Revised Budget 2026-27 Proposed Expense $37,561,015 $34,619,411 $48,973,525 $46,915,968 Bureau Expense $5,958,422 $5,691,944 $9,243,625 $12,964,925 Fund Expense $1,915,036 $1,601,167 $39,729,900 $33,951,043 Contingency $0 $0 $37,726,836 $32,348,979 Debt Service $2,158 $2,075 $2,244 $2,334 Fund Transfers - $1,912,878 $1,599,092 $2,000,820 $1,599,730 Expense Unappropriated $29,687,557 $27,326,300 $0 $0 Ending Fund Balance $29,687,557 $27,326,300 $0 $0 Revenue $37,561,019 $34,619,409 $48,973,525 $46,915,968 External Revenues $7,651,161 $17,705,327 $4,267,000 $4,267,000 Charges for Services $6,174,173 $16,515,415 $3,459,000 $3,459,000 Miscellaneous $1,476,989 $1,189,912 $808,000 $808,000 Internal Revenues $29,909,858 $16,914,082 $44,706,525 $42,648,968 Beginning Fund $27,326,300 $15,412,403 $41,536,525 $40,648,968 Balance Fund Transfers - $2,583,558 $1,041,767 $3,170,000 $2,000,000 Revenue Interagency Revenue $0 $459,913 $0 $0 Fund Overview The City Council established the Environmental Remediation Fund in FY 1993-94 to remediate former solid waste disposal sites for which the City is liable. Beginning in FY 2005-06, funding for the Portland Harbor Superfund program moved to the Environmental Remediation Fund with resources provided by a dedicated Portland Harbor charge on utility bills and revenues from the general fund. Including the Portland Harbor Superfund program within the fund is consistent with the purposes of the fund and segregates the program from the sewer system utility within the Sewer System Operating Fund. The City-owned Guilds Lake property is a former municipal incinerator site operated by the City from 1910 through the late 1940s. The acquisition and remediation of this site was financed by the Environmental Remediation 1993 Series A Revenue Bonds issued in November 1993. The Guilds Lake remediation was completed in FY 1994-95. Property management, maintenance, and environmental monitoring of the site are funded as required by the Department of Environmental Quality. Lease income from current tenants on the site supports the fund's operating and capital expenditures. This revenue source, along with the fund's interest earnings and cash transfers, are used for remediation projects and the Portland Harbor Superfund program. The Fund also includes a small sub-fund, Brownfield Revolving Loan program, which began in FY 2015-16 with a $500,000 grant from the City’s General Fund to offer low-interest, flexible-term loans to clean up contaminated soils in historically under-utilized east-side neighborhoods. 1107

City of Portland Fiscal Year 2026-27 Proposed Budget Managing Agency Bureau of Environmental Services Significant Changes from Prior Year Charges for services are expected to be $3.5 million in FY 2026-27 reflecting no changes from the FY 2025-26 revised budget of $3.5 million. Fund transfer revenue from the Citywide Obligations Reserve Fund (CORF) of $1.5 million is expected in FY 2026-27, compared to the FY 2025-26 revised budget of $2.67million; a decrease of 55.2% as the project design work slows down and begins movement toward the next phase. FY 2026-27 beginning fund balance is projected to be $28.8 million, a slight increase of 5.86% than the FY 2025-26 revised budget of $27.0 million resulting from additional Mansanto settlement dollars received in FY 2025-26. Personnel services expenditures are budgeted at $$838.9 thousand, 1.7% lower than the FY 2025-26 revised budget of$854.1 thousand, driven primarily by decreases in personnel allocated to this fund reflecting project design work nearing completion. External materials and services are budgeted at $9.8 million or 56.7% more than the FY 2025-26 revised budget of $6.3 million, largely due to planned spending of the Mansanto settlement dollars in accordance with City Council directives. Internal materials and services expenditures increased by roughly 5% from the FY 2025-26 revised budget of $2 million, largely driven by increases to legal costs associated with the Portland Harbor Superfund. Fund transfer expense decreased by 28% from the FY 2025-26 revised budget to an expected $1.0 million for the 2026-27 adopted budget reflecting lower contributions to the City Obligation Reserve fund for the bureau’s share of the costs as the design element winds down. As a result of the above changes in revenues and expenses, contingency will decrease by $2.7 million or 11.9% from the FY 2025- 26 revised budget of $23.4 million. Contingency will continue to be drawn down as the project moves toward the remediation stage and Mansanto settlement dollars are spent. 1108

Parent: Public Works. · PDF: pp. 1107-1108 ↗