Transportation utility fee, explained

What is the fee?

The transportation utility fee provides local funding to pay for basic road maintenance and safety improvements on Portland streets. Fees will be charged monthly on existing public utility bills to Portland residents and businesses and go into the Transportation Utility Fund to pay for basic road maintenance and safety improvements. Similar fees exist in 31 cities in Oregon.

How will it work?

• In 2027, the transportation utility fee will be charged to residential households at the following rates:  
  • Single-family households: $12/month
  • Multifamily households: $8.40/month 
• Low-income households can use existing financial assistance programs available for the public utilities
• Business/commercial accounts will be charged 4.3% of their existing water/sewer/stormwater bill. This approach will be revised to better reflect a connection to transportation impacts and benefits. 
• The city will collect this fee, starting on Jan. 1, 2027, using existing public utility billing systems

How will the money be spent?

The transportation utility fee is expected to bring in approximately $46 million per year. This is how these revenues will be allocated:

• 75% on maintaining, preserving, and rehabilitating existing transportation infrastructure such as pavement, streetlights, and signals.
• 25% on transportation-related safety expenses, split evenly between advancing Vision Zero goals and work on sidewalks and pathways.

PBOT bases these investments on existing data about our assets and infrastructure. PBOT also prioritizes work in areas where there has been historic underinvestment and where there are higher concentrations of households living on a low income. 

PBOT will provide annual reports to city council, including the results of an external audit. The Fixing Our Street Oversight Committee will provide ongoing oversight, reviewing regular reports throughout the year.

Timeline

• July 2025: In the context of Portland's deepening transportation budget crisis, council adopted Resolution 37712 directing the Public Works and Budget and Finance service areas to "develop a comprehensive strategy to identify and evaluate viable alternative funding sources."
• July–December 2025: City staff developed an Alternative Transportation Funding Report reviewing possible funding approaches and presented it to council's Transportation and Infrastructure Committee on Dec. 15, 2025 which directed staff to further develop four revenue approaches. 
• January 2026: City staff presented these approaches to the Transportation and Infrastructure Committee on Jan. 26, 2026. which directed staff to proceed with public review.
• February–March 2026: PBOT held four in-person open houses (one per council district) Feb. 19 – March 3 with open house materials available online and an online survey open Feb. 19 - March 4. Staff then presented the feedback to the Transportation and Infrastructure Committee March 9.
• April 2026: Council's Finance and Governance Committee of the Whole considered an ordinance and a resolution on April 2 to establish a transportation utility fee and affirm support for a street damage restoration fee. This advanced to the full council, heard at the April 15 City Council meeting where they approved the street damage restoration fee resolution, then continued their discussion on the transportation utility fee at the April 16 City Council meeting where they amended and moved the ordinance to the full April 30 City Council meeting, when the transportation utility fee was adopted.
• In progress now: Public Works service area staff are working closely with the city's Revenue Bureau to develop a process and administrative rules for the new fee.
• In progress now: Staff are also working on developing potential new approaches to a low-income discount for residential properties, and to the rate structure and appeal process for commercial and other nonresidential properties. PBOT will report back to council in late 2026.
• January 2027: The city will start collecting the fee using existing public utility billing systems.