Sewer System Operating Fund

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Breadcrumb: Fund Summaries > Public Works. > Sewer System Operating Fund

City of Portland Fiscal Year 2026-27 Proposed Budget Public Works> Sewer System Operating Fund Sewer System Operating Fund Fund Summary 2024-25 Actuals 2023-24 Actuals 2025-26 Revised Budget 2026-27 Proposed Expense $765,699,638 $775,398,179 $815,397,295 $783,880,361 Bureau Expense $484,458,607 $485,066,172 $490,308,503 $449,394,815 Fund Expense $185,106,430 $211,797,470 $325,088,792 $334,485,546 Contingency $0 $0 $91,547,171 $88,196,218 Debt Service $5,874,481 $4,642,026 $4,998,583 $5,198,124 Debt Service $0 $0 $87,000 $80,000 Reserves Fund Transfers - $179,231,949 $207,155,444 $228,456,038 $241,011,204 Expense Unappropriated $96,134,601 $78,534,537 $0 $0 Ending Fund Balance $96,134,601 $78,534,537 $0 $0 Revenue $765,753,048 $775,396,186 $815,397,295 $783,880,361 External Revenues $446,012,105 $415,599,698 $443,955,347 $469,168,850 Charges for Services $439,036,359 $408,002,913 $440,781,847 $465,370,644 Intergovernmental $278,228 $284,076 $263,500 $277,500 Licenses & Permits $1,818,662 $1,848,374 $875,000 $856,000 Miscellaneous $4,878,856 $5,464,335 $2,035,000 $2,664,706 Internal Revenues $319,740,942 $359,796,488 $371,441,948 $314,711,511 Beginning Fund $78,534,537 $91,065,223 $96,314,601 $117,093,012 Balance Fund Transfers - $236,447,035 $266,343,871 $268,218,267 $192,239,819 Revenue Interagency Revenue $4,759,370 $2,387,395 $6,909,080 $5,378,680 Miscellaneous Fund $0 $0 $0 $0 Allocation Fund Overview The Sewer System Operating Fund accounts for revenues and expenses associated with the development, maintenance, and operation of the City's sanitary sewer and storm drainage system. Fund resources include sanitary and drainage charges, connection charges and certain permit fees (managed outside Portland Permitting and Development), wholesale contract revenues from other governmental jurisdictions, reimbursements for services provided to other bureaus, and reimbursements from the Sewer System Construction Fund for capital improvement program (CIP) expenses. 1130

City of Portland Fiscal Year 2026-27 Proposed Budget Managing Agency Bureau of Environmental Services Significant Changes from Prior Year Resources Charges for services, which include sewer rate charges, connection charges, wholesale contract revenues, and other miscellaneous charges, are forecast to be $458.3 million in FY 2026-27, an increase of 5.6% over the FY 2025-26 revised amount budget of $433.9 million. System development charges are projected to be $6.2 million in FY 2026-27, an increase of 3.3% from the FY 2025-26 revised budget of $6.0 million. This estimate for FY 2026-27 is due to expected lower development activity driven by economic conditions and the council’s choice to waive certain SDC charges for residential housing. Miscellaneous sources are budgeted at $2.3 million, a 36.8% increase from the FY 2024-25 revised budget of $1.7 million. Intergovernmental revenues are budgeted to remain flat at about $0.3 million and primarily reflect Oregon DEQ permit revenue sharing. Interagency revenues fluctuate from year to year and are expected to decrease by 22.1% from the FY2025-26 revised budget to a new expectation of $5.3 million for engineering, materials testing, and project management support for capital projects in Water and PBOT. Beginning fund balance is projected to be $117 million, an increase of $20.8 million from the FY 2025-26 revised budget of $96.1 million. The higher fund balance is primarily due to adjusted cash contributions to the Construction Fund to support future capital investment. Significant Changes from Prior Year Personal services increased 3% ($3.7 million) as compared to the FY 2025-26 revised budget due to increased costs as a result of recent union contracts, cost of living increases, and higher healthcare premiums. The budget includes dollars for merit increases for non-represented employees. The external materials and services budget decreased by $0.3 million indicating the reduced expected spends in CIP based upon historical project delivery’s velocity. The current budget comprehends the environmental cleanup and natural resource damages in the Columbia Slough based on the City’s operation of its stormwater and sanitary conveyance systems. A Consent Judgment sets the City’s obligation to pay a total of $19,500,000 to the State in a series of installments through FY 2026-27. Internal materials and services, services paid to other bureaus, will increase by $2.1 million or 3%. Capital outlay is budgeted at $126.9 million for FY 2026-27 versus $166.5million in the FY 2025-26 revised budget. The $39.6 million decrease or 24% is due to the lower planned capital spending after completion of a large portion of the Secondary Treatment Expansion Project. Cash Transfers and General Fund Overhead Cash transfers to other funds are budgeted at $232.1M million in the FY 2026-27 adopted budget, compared to the FY 2025-26 revised budget of $221.9 million, reflecting an increase of $10.7 million or 5%. Transfers to the Sewer System Debt Redemption Fund are budgeted at $150.07 million, a $5.87 million increase from the FY 2025-26 revised budget of $144.2 million. 1131

City of Portland Fiscal Year 2026-27 Proposed Budget Transfers to the Sewer System Construction Fund are budgeted to be $75.0 million in FY 2026-27, compared to the FY 2025-26 revised budget of $64.1 million. Other transfers include General Fund overhead of $13.6 million, a decrease of $866,281 (6.4%), and transfers to the Pension Bond Debt Fund of $865,235 reflecting scheduled governmental payments on the Pension Bonds. Contingency, which is equivalent to the estimated ending fund balance, is budgeted at $90.2. This is a decrease of $1.2 million (1.4%) compared to the FY 2025-26 revised budget and aligns with the bureau’s liquidity projections to preserve credit quality. 1132

Parent: Public Works. · PDF: pp. 1130-1132 ↗