191294

Ordinance

Revise transportation fees, rates and charges for FY 2023-24, amend Transportation Fee Schedule, and fix an effective date (amend TRN 3.450)

Passed

The City of Portland ordains:

Section 1. The Council finds:

  1. The Bureau of Transportation has reviewed and updated fee and rate charges as part of the FY 2023-24 budget development process.
     
  2. In accordance with City of Portland Finance Policy 2.06, "The City will 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 will 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 will be the highest budget priority."
     
  3. Transportation has consolidated all fee rates and charges in schedules as set forth in Attachment A (TRN-3.450 Transportation Fee Schedule including Exhibit A, Exhibit B, Exhibit C, Exhibit D, Exhibit E, Exhibit F, Exhibit G, and Exhibit H). The consolidated schedules do not preclude the establishment and / or continuation of fees, rates and charges by resolution, ordinance, Code provision or administrative rule, not otherwise specified in the Ordinance.
     
  4. The Approved Budget for the Bureau of Transportation for FY 2023-24 requires adjustments to fee rates and charges for the 12-month period beginning July 1, 2023.
     
  5. In Resolution 37564, passed by a unanimous vote on February 23, 2022, City Council directed PBOT to implement a series of near-term steps to stabilize revenues and begin to send price signals aligned with the recommendations of the Pricing Options for Equitable Mobility (POEM) task force.
     
  6. Pursuant to PCC 17.15.040 A 5 and notwithstanding any other provision, the dollar amounts of the SDC set forth in the Transportation SDC Rate Schedule as well as the North Macadam Overlay Rate Study and the Innovation Quadrant Overlay Project Report shall on July 1st of each year be increased or decreased automatically by the difference of the 5-year moving average of the 20-City Construction Cost Index published by the Engineering News Record.
     

NOW, THEREFORE, the Council directs:

  1. The Bureau of Transportation shall follow the fees, rates and charges in accordance with the FY 2023-24 budget, beginning July 1, 2023 as set forth in Attachment A, and Exhibits A, B, C, D, E, F, G, and H, attached to this Ordinance.
  2. As directed by City Council in Resolution 37564, and updated in the FY 2023-24 Approved Budget, the Bureau of Transportation shall bring base meter rates up $0.20 per hour to adjust for inflationary increases, and adjust rates moving forward according to demand and inflation.
  3. The application of City Code Section 17.15.040 A.5 is waived until July 1, 2024.
  4. TRN-3.450 - Transportation Fee Schedule, including Attachment A and Exhibits A, B, C, D, E, F, G, and H of this Ordinance are adopted as binding city policy

An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)

Passed by Council

Auditor of the City of Portland
Simone Rede

Impact Statement

Purpose of Proposed Legislation and Background Information

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 prior annual update was Ordinance 190840 adopted on May 25th.   TRN-3.450 includes the following schedules;

  • Attachment A          Overview of Transportation Fees and Charges
  • Exhibit A       Parking Services
  • Exhibit B       Transportation Land Use Services
  • Exhibit C       Development and Street Systems Services
  • Exhibit D       Transportation Temporary Use Services
  • Exhibit E       Other Transportation Services
  • Exhibit F       Regulatory Services
  • Exhibit G       Code Enforcement Services
  • Exhibit H       Community Events

This Ordinance is in accordance with City of Portland Finance Policy 2.06, "The City will 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 will 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 will be the highest budget priority."

Highlights of changes for FY 2023-24:

Parking (Exhibit A)

  • On-Street Meter Districts – base meter rates increase by $0.20 per hour as directed by Council in the FY 2023-34 Approved Budget.
  • APP permits – fees will increase by $7.50 per year as directed by Council in resolution 37564.

and Use (Exhibit B), Development and Street Systems Management (Exhibit C)

  • Fee increases reflect current costs; increases to Land Use and Building Plan Check fees are intended to phase in full cost recovery over several years. 

Transportation Development (Exhibit C)

  • Per amendments in the Approved Budget, Transportation System Development Fees are frozen for one year at the FY 2022-23 rates

Temporary Use (Exhibit D) and Code Enforcement (Exhibit G)

  • Other fees are unchanged or increases reflect current costs.

Other Transportation Services (Exhibit E)

  • Special Event Traffic Control Device Rental Program – several new fees to recover the cost of barricades and cones used for for-profit events such as races and marathons.
  • Other fees are unchanged or increases reflect current costs.

Regulatory (Exhibit F)

  • Financial Hardship – a new $5.00 fee collected from anyone subject to the Derelict RV Fee to go into a special fund, which will be used to help subsidize the cost of towing and storage services for people facing financial hardship.
  • Other fees are unchanged or increases reflect current costs.

Community Events (Exhibit H)

  • Community Event – Metered Parking Space – For Non-Profit – a new reduced fee ($9.00) for non-profit organizations that often seek fee reduction waivers from the Commissioner’s Office.
  • Other fees are unchanged or increases reflect current costs.

Financial and Budgetary Impacts

This ordinance makes adjustments to fee rates and charges effective July 1, 2023.  The revenue from the fee adjustments is already included in the FY 2023-24 Approved Budget 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 Transportation will not be able to effectively meet City goals and policies, manage the use of the right of way, and fund transportation services.

Community Impacts and Community Involvement

The Portland Bureau of Transportation regularly engages with community stakeholders, such as the Bureau and Budget Advisory Committee on budget, which are heavily influenced by fees.  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 development review fees.  Last year, the DRAC was informed of the Bureau’s plan to phase in full cost recovery over several years.  These discussions with stakeholders and permittees informed Transportation’s annual fee update process.

In response to the pandemic, the Portland Bureau of Transportation did not advance any increases to fees during the FY 2020-21 cycle and advanced limited increases in FY 2021-22 and FY 2022-23. In addition, the bureau has supported local individuals and businesses through fee reductions, waivers and suspended permitting requirements. The bureau has also continued to support the community by largely maintaining service levels despite substantial declines in discretionary and cost recovery revenues, the cost of which the bureau has borne temporarily through a draw on reserves. The fee changes contained herein do not alter or increase costs to users for subsidized recovery programs, including the Healthy Business Program.

FY 2023-24 fee amounts will be posted online in section TRN-3.450 of the Portland Public Policy documents and will be updated on 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.

100% Renewable Goal

N/A

Budget Office Financial Impact Analysis

This ordinance establishes rates, charges and fees to generate revenue for the bureau's projected expenditures in FY 2023-2024. Under amended rates, base parking meter rates will increase $0.20 per hour. This rate ordinance will generate $4.15 million in operating revenue to support the Mayor’s FY 2023-24 Proposed budget for the Portland Bureau of Transportation. This represents a $4.15 million reduction from the bureau's initial forecasted parking meter revenue for FY2023-24, which included assumption of the previously approved parking meter increase of $0.40. To balance, contingency in the Transportation Operating Fund will be reduced by $4,150,000 in FY 2023-24, adding to ongoing program reductions, including reducing positions, for FY 2024-25.  

This ordinance also includes a freeze of system development charges (SDCs) at FY2022-23 rates. An assumed increase in SDC rates and associated revenues was included in PBOT's FY 2023-24 Requested Budgets and 5-year rate forecasts. Accordingly, a one-year SDC rate freeze is expected to reduce Transportation Operating Fund resources by $400,000 which the bureau will absorb through a corresponding reduction of $400,000 in contingency. 

This legislation does not specifically create or eliminate positions in future years. Future position decisions will be made by the Council within the annual budget process. 

Agenda Items

420 Time Certain in May 24, 2023 Council Agenda

Passed to second reading

Passed to second reading May 31, 2023 at 9:30 a.m.

Passed

  • Commissioner Dan Ryan Yea
  • Commissioner Rene Gonzalez Yea
  • Commissioner Carmen Rubio Yea
  • Commissioner Mingus Mapps Yea
  • Mayor Ted Wheeler Nay

Requested Agenda Type

Regular

Date and Time Information

Requested Council Date
Portland Policy Document