The Metro Council approved a $385 million budget June 23 for the coming fiscal year, which starts July 1. But what's that money going to be spent on? Here are some answers of where Metro's cash is coming from, and where it's going.
One important caveat – a report with the exact details on some of the numbers in this story is still being finalized, and some of these numbers are based on a draft budget released in late April. The line-itemed adopted 2011-12 budget will be available in a few weeks.
How much money is Metro expecting to spend next year?
The adopted fiscal year 2011-12 budget has about $322 million in expenses, including $33.3 million to be set aside for contingency funds. The budget is forecast to leave about $63.2 million unspent in the operating fund.
How does Metro spend $317 million?
The biggest expense in the budget – $69.5 million – is the Metro Exposition and Recreation Commission, or MERC, which runs the Oregon Convention Center, Expo Center and the Portland Center for the Performing Arts. Another $76 million funds the solid waste and parks department (yes, it's the same department), including the cost to process trash and recycling.
Other big-ticket items include $30.6 million in debt service on Metro's natural areas and zoo bonds, $27.2 million to run the Oregon Zoo, and $15.5 million for Metro's planning department.
How much has the budget changed from last year's?
Metro's budget was $430 million in 2010-11, so the agency is set to spend about $45 million less this year than last. Most of that drop is in capital outlay and debt service – the agency isn't forecast to spend as much bond money on acquiring natural areas this year, for example.
What about before that?
That's a harder question. The budget summaries from 2008-09 and 2009-10 are audited numbers – how much the agency actually spent. The numbers from 2010-11 and the newly adopted 2011-12 budget still exist in the realm of the financial planner – there's a fair amount of "What if?" in the budget (like the $33 million contingency fund) that doesn't actually get spent. We should know later this summer how much Metro actually spent in the fiscal year that ends June 30.
Wait, Metro cut $45 million from its budget but only cut 5 positions?
Metro's capital outlay fund dropped by $26 million from the current to upcoming fiscal year; its debt service fell by $6 million, and its Materials and Services budget fell by another $12 million. In fact, the personal services budget – payroll and benefits – increased by about $2.7 million.
It cut jobs but is spending more on payroll?
And that's with senior managers taking a salary freeze, and with employees not covered by the agency's union collective bargaining agreements taking a hit on their benefits. Health care costs in particular continue to rise; the agency is negotiating with its employee unions on how to deal with that. Metro's contributions to PERS are also rising.
So where does the money come from?
Mostly from trash and visitor venues. About $109 million in revenue comes from Metro's enterprise activities, about half of which comes from fees charged for solid waste disposal. Another $49 million in revenue comes from the MERC facilities and the Oregon Zoo.
How does Metro's budget impact my taxes?
Property taxes are forecast to make up only about $39 million of Metro's $219 million in revenue, with the owner of a median-priced urban home worth $220,000 expected to get a property tax bill of $48 in November. That's down 22 percent from 2010-11, again, mostly because Metro's spending less out of its bond programs.
The Metro Council spent a fair amount of time discussing the budget at Thursday's meeting. What was left to talk about?
Two councilors had proposals they wanted funded in the upcoming budget, totaling about $235,000 in expenses.
Councilor Carl Hosticka has been pushing for up to $250,000 to begin studying a boat launch for human-powered craft (canoes, kayaks, etc.) in the Tualatin River. That's why representatives from Tualatin Riverkeepers have been a steady presence at Metro Council meetings and work sessions lately – there's no put-in/take-out spot for canoes between Hillsboro and Tualatin on the river.
In the end, Hosticka reduced his request to about $100,000. That won't fund construction (nor would the original request), but it will get the ball rolling on study work and community outreach to pick the best site for a canoe launch for the Tualatin River Water Trail. The hope is that grants and donations will ultimately pay for construction of the project.
Two councilors voted against the amendment: Kathryn Harrington expressed concern about Metro being on the hook for more long-term costs, and Carlotta Collette said she wants the agency to focus more on habitat restoration in its natural areas before making those natural areas more accessible to people.
The other proposal came from Councilor Rex Burkholder, who wanted to see Metro extend its limited-duration staffer dedicated to the Climate Smart Communities program for one more year. In all, about $135,000 was budgeted to continue staffing the program, and the amendment passed 7-0.