Metro's Chief Operating Officer released his budget proposal for Fiscal Year 2010–11 to the Metro Council on Thursday, and it reflects a decrease in spending for the third year in a row. The $425 million proposal, down 8.2 percent from the current budget year, reflects a drop in the agency's revenue while preserving core services and maintaining the agency's commitments to the region's residents.
"The economic climate has caused taxpayers to demand that their governments focus on creating good jobs and on taking care of and making the most of investments they already have," said Metro COO Michael Jordan. "Metro's focus is to continue doing that by exercising fiscal restraint while providing quality services to our current residents, accommodating a growing population and reducing greenhouse gas emissions."
Metro's urban growth estimates indicate the population in the Portland region's seven counties will grow by one million by the year 2030. In that same time period, the cost of providing the public structures - roads, water lines, parks, schools, bridges and other facilities - needed to accommodate housing and job growth in the region is expected to range from $27 to $41 billion. Existing sources of money are expected to cover only about half of that need. Metro will be looking at efficiencies and will approach state and federal partners to help in regional investments. The agency will also help local communities identify financing opportunities outside of Metro funding.
The budget includes all major operating functions of Metro which include the Metro Exposition Recreation Commission and the Oregon Zoo. Nearly half of Metro's annual revenues are derived from its major venues including the zoo, the Oregon Convention Center, Portland Center for the Performing Arts, the Expo Center, and other facilities such as Blue Lake and Oxbow parks and the popular Gleason boat ramp as well as from enterprise activities such as solid waste fees. But Metro is seeing a drop in some revenue streams.
Solid waste disposal in the region remains considerably lower than pre-recession levels, with the largest losses in the construction and demolition debris category. While attendance remains high in all venues, visitors are spending less on food, concessions and gift shop items. Bookings at the Oregon Convention Center and the Expo Center are on pace, but recent trends show shorter events with more modest food and concession offerings.
Metro's proposed wages and benefits for the FY 2010–11 are $77 million, or about 22 percent of the total budget. Labor costs are just 0.1 percent higher than the current year. The agency will cut ten full time equivalent jobs next year, mostly by not filling open positions. Proposed expenditures are about $350 million, down 13.7 percent.
"The central core of this budget reflects Metro's efforts to become more efficient, more effective and completely transparent and accountable to our partners and to residents in the region," Jordan said.