News Highlight: Portland eyes using clean energy fund, again, as budget shortfall looms | The Oregonian

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As they [city leaders] weigh firing hundreds of workers and reducing programs to close a combined $150 million shortfall across city agencies, City Councilor Eric Zimmerman believes the climate money stash should act as a city contingency fund.

"In my career, I've never seen a contingency fund that big at a municipal level. We're leaving a bunch of money in a bank account instead of putting it to work"

Amid a staggering budget gap, Portland leaders are again eyeing the city's one-of-a-kind clean energy fund - still awash with cash - to help.

As they weigh firing hundreds of workers and reducing programs to close a combined $150 million shortfall across city agencies, City Councilor Eric Zimmerman believes the climate money stash should act as a city contingency fund.

The fund's current balance of over $920 million includes more than $580 million set aside to pay for projects in future years and Zimmerman wants to put some of that unused portion to work now

Mayor Keith Wilson has indicated he's on the same page.

… The ideas to use it to pay for core city services expose a fundamental tension in Portland's budgeting: While the city is flush with restricted money dedicated for new programs and initiatives, it is struggling to maintain basic municipal operations such as roads, parks and public safety.

… Zimmerman, chair of the council's new and powerful Finance Committee, said the clean energy fund "remains an island to themselves by holding that much money."

"In my career, I've never seen a contingency fund that big at a municipal level," he told The Oregonian/OregonLive.

"If there's money sitting there, then why should it not be used?" he said.

… Zimmerman, who has worked as a deputy city manager in Medford and Tigard, as the chief of staff to two Multnomah County commissioners and as a senior adviser to Portland Mayor Ted Wheeler, holding that much money for the future makes little sense in the face of a budget emergency.

Governments typically budget and get money out the door one year at a time, he said, and the clean energy fund should be no exception.

The fund's lack of flexibility is also stark given budgeting gaps faced by city bureaus.

… Zimmerman said he hoped the Finance Committee would reevaluate how the clean energy fund does its accounting and why many of its projects are slow to launch. Ultimately, the City Council has final say over the fund's investments.

"My concern is, we're leaving a bunch of money in a bank account instead of putting it to work," he said.

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