The city is looking for ways to bring in revenue to make up for shortfalls in the budget. A memo was sent to city councilors informing them that without finding ways to drum up new revenue, PBOT would need to cut another $15 million from its budget over five years.
Last week, the city leaders voted unanimously to raise the price of metered street parking. It was reported that the increase will be fully implemented by next summer. The transaction fee is expected to bring in $2 million a year, and the base parking rate hike about $24 million in its first five years. The expectation is to help make up for a hole in Portland’s Transportation Bureau budget.
The council also directed PBOT to set mid and longer-term proposals for generating revenue and to move away from dependence on fossil fuels.
The 20-cent “equity and mobility transaction fee” will be placed on all parking meter transactions starting in July. The bureau will phase in increases to parking permit costs over four years. The hourly parking meter rates will increase by 40 cents per hour a year later.
The Transportation Bureau believes that pandemic-related declines in revenue is the cause behind the agency’s reductions in its budget by about $12.6 million. Those cuts includes reducing the agency’s head count more than 40 employees and will also result in less funding for ADA compliant curb ramps, crosswalks and sidewalks; decreased equipment maintenance and repair; and slower responses from road crews during extreme weather emergencies.
Agencies are working to get a handle on their budgets as things normalize. PBOT’s budget for the current fiscal year, 2021-2022, is $571 million, including $403 million in operating and capital costs, and $168 million in previously committed expenses, including debt. The bureau expects to see a revenue drop by about $88 million from what it had forecast before the pandemic hit.
Discussions by leaders also focused on those residents in need. The new equity and mobility fee is reported to be focused on programs that provide low-income Portlanders with incentives to use public and active transit.
