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The Portland Housing Bureau has found roughly $20 million in additional unspent funds, two city councilors say, on top of another pot of $21 million that the bureau found late last year.
The second tranche of unspent dollars, the existence of which was disclosed to councilors over the weekend, comes as the council is currently discussing how best to use the $21 million that was found by bureau officials back in November.
Council President Jamie Dunphy in a Tuesday afternoon statement said that while the exact number is still unclear, that “greater than or equal to” $15 million in unspent funds has been identified in two funds within the housing bureau: a fund populated by revenues from short-term rental fees, and a second fund with revenues from the Transient Lodging Tax.
Dunphy noted that financial staff are still trying to figure out how much of the millions found is already committed to existing projects, or projects in the pipeline.
“While the timing of this information is difficult, I do not believe these were hidden maliciously, but are instead a relic of the old government system of accounting,” Dunphy wrote. “Accusations and fantasies of wrongdoing would be counterproductive. It is not in the interest of this City to teach our staff to be afraid to share problems when they see them.”
The Oregonian first reported on Monday afternoon that the bureau had disclosed additional funds, but at that point it was unclear just how much money it had found. Two councilors now say the additional amount found is around $20 million, according to what Dunphy told them in one-on-one conversations, but the Housing Bureau has not provided a specific dollar figure.
Councilor Loretta Smith said in a statement that she received a call from Council President Jamie Dunphy on Sunday, informing her that an additional $21 million was discovered, this time in the bureau’s Housing Investment Fund.
“This unexpected discovery raises serious concerns about our financial oversight,” Smith said. “I am deeply troubled by the possibility that departments may be withholding vital financial information from the council.”
The unspent millions in the Housing Bureau come at a time when the city has, and is again poised, to reckon with deep budget cuts. The first bucket of money was not disclosed to councilors in time for them to factor it into its midfiscal-year adjustment process in November.
A spokesman for the Housing Bureau did not respond to multiple requests for comment on Monday afternoon and evening, saying that he would provide a statement “as soon as we’re able.”
