Revise transportation fees, rates and charges for FY 2026-27 and amend Transportation Fee Schedule (amend TRN 3.450)

This Ordinance is the Bureau of Transportation's annual update of transportation fees, rates, and charges, in accordance with City policy. Each year the Bureau of Transportation reviews transportation fees, rates, and charges, and makes changes as necessary to meet City goals and policies, manage the use of the right of way, and fund transportation services. Transportation fees, rates, and charges are part of Binding City Policy TRN-3.450 Transportation Fee Schedule, which is posted in the City's Portland Policy Documents. The most recent annual update was Ordinance #192061, passed on May 21, 2025. TRN-3.450 includes the following schedules: Attachment A Overview of Transportation Fees and Charges Exhibit A Parking Exhibit B Community Events Exhibit C Transportation Dev. & Street Systems Management Services Exhibit D Temporary Street Use Permit Fees for Right of Way Exhibit E Other Transportation Fees, Rates and Charges Exhibit F Regulatory Exhibit G Enforcement Penalty Schedule Exhibit H Transportation Utility Fee This Ordinance is in accordance with City of Portland Finance Policy 2.06, "The City shall maximize and diversify its revenue base to raise sufficient revenue to support essential City services and to maintain services during periods of declining economic activity. City services providing private benefits should be paid for by fees and charges as much as possible to maximize flexibility in the use of City general revenue sources to meet the cost for services of broader public benefit. The City's overall revenue structure shall be designed to recapture some of the financial benefits resulting from City economic and community development investments. Revenue collection efforts that produce positive net income for City service delivery shall be the highest budget priority." Highlights of changes for FY 2026-27: Most fees are rising by the default escalation rate of 6.18%. This is PBOT's weighted average rate of expected cost escalation based on the escalation rates provided by the City Economist and applied to the Bureau's expenditure portfolio. The Street Damage Restoration Fee recently passed by City Council has been added to Exhibit C. New transportation development review fees have been added to Exhibit C. The Transportation Utility Fee recently passed by City Council has been added as Exhibit H.

This Ordinance makes adjustments to fee rates and charges effective July 1, 2026, and in some cases, January 1, 2027. The revenue from the fee adjustments is already included in the FY 2026-27 budget proposal for the Portland Bureau of Transportation. This Ordinance does not authorize additional spending or changes to staffing levels. If this legislation is not passed, the Bureau of Transportation will not be able to effectively meet City goals and policies, manage the use of the right of way, or fund transportation services.

The cost recovery facilitated by this Ordinance will provide the Bureau with critical resources to maintain City infrastructure and thereby facilitate economic and real estate development. Of course, any increase in price creates the risk of reducing the quantity demanded. Past data on parking rates and revenues suggest that the proposed level of price increase is still consistent with growth in demand for parking, and priced parking is a key tool in promoting economic vitality in high demand areas. Price elasticity for other fees is more difficult to assess, because such fees are usually part of a larger set of costs for a particular economic endeavor.

The Portland Bureau of Transportation regularly engages with community stakeholders. In addition, stakeholder advisory committees weigh in on Area Parking Permit surcharges as well as restricted event districts. Finally, the bureau engages with the Development Review Advisory Committee (DRAC) on those development review fees that remain in PBOT's portfolio. These discussions with stakeholders and permittees informed Transportation's annual fee update process. FY 2026-27 fee amounts will be posted online in section TRN-3.450 of the Portland Public Policy documents and will be updated on the Bureau of Transportation webpages and forms. The Portland Bureau of Transportation will notify permittees by mail or email as necessary regarding fee changes. The Portland Bureau of Transportation will continue to involve community and business groups and other interested parties in fee discussions.