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Looking to stem a financial crisis that\u2019s been years in the making, the Portland City Council will host an important debate at meetings tomorrow (Wednesday, 4\/15) that, if ultimately supported, would result in a significant increase to their annual revenue. On the agenda of the Committee of the Whole<\/a> is an ordinance to adopt a transportation utility fee (TUF) and the regular City Council meeting will consider a resolution to adopt a street damage restoration fee (SDRF). If both fees were passed as currently proposed, they\u2019d generate an estimated $69 million a year in new revenue.<\/p>\n To put that number into perspective, $69 million is about 40% of PBOT\u2019s annual General Transportation Revenue. GTR is important because it\u2019s discretionary \u2014 meaning the money is not obligated to specific projects or grant sources and PBOT can spend it however they see fit. This new funding would be very significant to PBOT given that just over 70% of its current budget is restricted.<\/p>\n The TUF, which would be an additional line-item on Portlanders\u2019 utility bills, could bring in about $47 million a year. The City\u2019s current plan is to charge a flat rate of $12 per household, and $8.40 for folks who live in multifamily dwellings (a low-income discount program would also be created). The commercial rate would be 4.3% of the business owner\u2019s utility bill. The SDRF would be charged to agencies and contractors who cut open city-owned streets to perform projects (these could be public agencies or private companies). In the past, PBOT would foot the bill to repair damaged pavement. The current plan is to add a $10.38 per square-foot charge to all \u201cstreet opening permits\u201d to account for the damages. The city estimates that would bring in about $22 million per year in new revenue.<\/p>\n Funds from the SDRF would be spent on damage done by the permit holder and the rest would go toward administration of the program. 75% of funds raised by the TUF would be spent on general maintenance and street preservation, including \u201cthose that support the City\u2019s Vision Zero goals.\u201d<\/p>\n Council members have already voiced strong support for both of these fees and there doesn\u2019t appear to be strong, organized opposition to either of them (so far Councilor Dan Ryan is the only member to lodge a \u201cno\u201d vote). The only questions that remain appear to be how the fees might be tweaked around the edges.<\/p>\n Given that the TUF ordinance language says how \u201cno less than 75%\u201d of the revenue must be spent, there\u2019s likely to be spirited debate on Council about how to spend the remaining 25%. We already have two proposed amendments related to that issue.<\/p>\n District 3 Councilor Tiffany Koyama Lane wants the ordinance to state that no less than 25% of the revenue must be spent on, \u201cactivities that move us closer to our Vision Zero goals.\u201d Koyama Lane\u2019s amendment<\/a> would also explicitly prohibit the money from being spent on \u201cmajor roadway expansion.\u201d She also wants to add language that would call out the Sidewalk Improvement and Paving Program (SIPP) as one of the eligible expenditures. SIPP was passed by Council in May 2025 as an unfunded mandate to build sidewalks in Districts 1 and 4.<\/p>\n This amendment makes sense for Koyama Lane, given that she\u2019s positioned herself as Council\u2019s Vision Zero champion. But keep in mind, the ordinance as written would already fund Vision Zero-related activities. The language says that at least 75% of the revenue must include, \u201cmaintenance activities that help the City achieve Vision Zero goals,\u201d which includes, \u201cbicycle and pedestrian facility maintenance.\u201d<\/p>\n District 2 Councilor Sameer Kanal wants to strengthen the City\u2019s commitment to a low-income discount. His amendment<\/a> would force city leaders to work with the Public Works Service Area (of which PBOT is a part of) to provide a report on how to implement a TUF discount program and deliver to City Council before the end of this year.<\/p>\n District 4 Councilor Eric Zimmerman wants to make sure the TUF provides revenue directly to the SIPP program. Zimmerman\u2019s amendment<\/a> would add SIPP to Vision Zero as one of the investment areas that some of the maintenance projects align with when PBOT is considering how to spend the 75%. When it comes to the remaining 25%, Zimmerman wants the ordinance to dedicated half of it (12.5%) to the SIPP and the remaining half to go to Vision Zero.<\/p>\nThe background<\/h2>\n
The amendments<\/h2>\n