The Portland City Council will vote Monday night on the $276 million municipal budget for fiscal year 2025 after the finance committee recommended several changes.
This will be the council’s final vote on the budget – and the last opportunity for the public to offer comment.
In April, City Manager Danielle West proposed a $277 million general fund budget that would have increased the city’s tax rate by 4.9%, but after moving through the finance committee the city-side of the budget is expected to see an increase of just 3%.
The proposal came as a relief to some after the council was told earlier this year by city staff that a nearly 10% tax increase was possible. The city was able to close about $4 million of a $20 million budget gap by reviewing projected revenue increases and upping some city fees, including those for pay-as-you-throw trash bags and city-owned parking garages.
Pay-as-you-throw trash bags would increase to $1.90 per 15-gallon bag and $3.80 per 30-gallon bag, up from $1.75 and $3.50, respectively.
The city’s Spring Street and Elm Street parking garages also would see rate increases from $3 per hour to $4 per hour, and parking at the Ocean Gateway would increase from $20 per day to $25 per day, though that parking lot is expected to go offline when construction on a new park starts later this year.
The council voted unanimously to send West’s proposal to the finance committee for further review.
When combined with the $161 million school budget, which was approved two weeks ago, the overall tax rate as would increase by $0.71 to $15.12 per $1,000 valuation should the municipal budget be approved. The combined increase would be 4.9%, or about $266.25 on a $375,000 home.
The finance committee amended the budget several times.
The first amendment, by Councilor Anna Bullett, adds an additional $56,000 to the Parks, Recreation and Facilities budget to fund a senior administrative officer position in the department. The role handles human resources work for the department, including recruitment and payroll. In a memo to the finance committee, Bullett wrote that the role is essential because the department has consistently seen turnover.
“Loss of talented staff and lack of continuity carry both a financial and nonfinancial burden,” wrote Bullett in her memo.
Another amendment, made by Councilor April Fournier, reduced the city’s contribution to the Clean Elections Fund by $275,000 after less money than expected was pulled from the fund last election season.
Finally, city staff members also offered an amendment when they learned Portland had received less money than expected in General Assistance funding from the state.
The state’s 2024 budget included a one-time payment of $7.4 million to Portland to help offset the cost of administering social services. City staff hoped they could count on the same support this year but the state offered about $4 million less for fiscal year 2025.
Staff filled the gap by amending the budget to use $2 million in COVID-19 federal grant dollars and $2 million from the city’s fund balance – essentially, a savings account for the city.
“I think it was a strong budget this year. Our staff had to work extra hard to close that gap, and they have come to us with a very reasonable budget,” Councilor Anna Trevorrow, who chairs the finance committee, said in a phone interview Friday. She said she plans to vote in favor of the budget on Monday.
Should the rest of the council follow suit, the new budget would be adopted on July 1.
This story was updated at 11:20 a.m. on June 3 to correct the total proposed budget and tax increase residents would see if the budget is approved.
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