PBOT: parking rate and TNC fee hikes, plus state aid, expected to close transportation gap

The Portland Bureau of Transportation told the City Council it is balancing a proposed FY 2025-26 budget of about $626,000,000 while warning the plan is fragile and depends on a mix of local fee changes and pending state support.

PBOT Director Millicent Williams said roughly $256 million of the bureau—s budget is capital spending, about $20 million pays debt service, $100 million is held in reserves for future capital work, and about $230 million supports operations and maintenance. Williams told the council the bureau began the budget cycle with an estimated $38,000,000 forecast shortfall in its general transportation revenues; the city administrator—s guidance and later adjustments reduced the immediate balancing target to approximately $17,800,000.

How PBOT proposes to close the gap: the mayor—s budget relies on three main revenue actions that still require approval. The proposed parking meter changes generate roughly $5,500,000 per year by increasing hourly rates by 25 cents in multiple parking districts and extending evening meter hours from 7 p.m. to 10 p.m. (estimated $1,000,000). A proposed increase to the transportation network company (TNC) passenger fee, from $0.65 to $1.30 per ride, would raise about $5,000,000 annually and requires a council vote to amend the fee schedule. The proposal also assumes $11,000,000 from a state transportation funding package that remains pending at the Oregon Legislature.

Williams told council that several expense categories are constrained even if GTR (general transportation revenues) are the most discretionary line, because some funds are restricted to specific programs. She noted required expenses—md debt repayment and required operational commitments—md limit flexibility. "Reductions to GTR will come from PBOT—s flexible expenditures," Williams said on the record.

Program-level changes: the budget proposal doubles investments in towing and demolition to remove derelict RVs and abandoned vehicles from right-of-way, and it doubles the abandoned-auto program staffing. The administration is proposing a $3.1 million transfer from the Bureau of Environmental Services to expand residential street sweeping in areas that drain to surface water, a phased program that will require equipment purchases and citywide signage before full roll-out. PBOT also expects that some general fund allocations (about $11.5 million planned this year) were reduced, affecting programs such as ADA curb ramp funding, street cleaning, Sunday Parkways, and Vision Zero safety work.

Uncertainties and risks: DCA Donna Paul and Director Williams both called the overall balance "fragile." If any of the three revenue actions (parking meter changes, TNC fee increase, or the state transportation package) do not materialize, Williams said the bureau will return with options to reduce services or find alternatives. The council was told the finance committee will review the TNC fee proposal on May 19 and the parking meter rate proposal will be scheduled for a council vote May 21.

Why it matters: PBOT manages core public safety infrastructure—md paving, signals, street cleaning, and transit relationships—md and choices on parking and TNC fees affect both revenue and user behavior. Councilors pressed staff about what would be cut if state aid does not appear; staff repeatedly warned that delaying investments increases long-term risks and costs.