Finance committee advances broad package of rates, SDC and fee changes for water, sewer, parking, permitting, solid waste and parks

The Portland City Council Finance Committee on April 7 heard presentations and forwarded to the full council a package of ordinances covering utility rates, system development charges (SDCs), parking and transportation fees, permitting fees, solid waste charges and parks fees for fiscal year 2025–26.

Presenters for bureaus including the Portland Water Bureau, the Bureau of Environmental Services (BES), the Portland Bureau of Transportation (PBOT), Portland Permitting and Development (PPND), the Bureau of Planning and Sustainability (solid waste) and Portland Parks & Recreation described proposed adjustments they said are needed to meet operating costs, regulatory obligations and capital investments.

Bureau staff emphasized affordability programs while also describing tradeoffs between cutting proposed increases and the risk of deferred maintenance, reduced service levels or future larger rate increases. “For 75 percent of Portlanders, our rates are affordable,” Farhad Al‑Adadi of BES said, while outlining multi‑decade asset replacement needs and regulatory cost pressures. Cecilia Hune, finance director for the Water Bureau, said the bureaus develop multi‑decade expense models and then allocate costs across customer classes; staff noted a range of targeted affordability and assistance programs, and that assistance has reached roughly 12,000 customers this fiscal year.

Key proposals and committee developments

- Water and BES rates and affordability: Staff presented a typical single‑family bill impact of about $9 per month under the bureaus’ proposed schedule; low‑income discounts were presented as smaller monthly impacts. The mayor’s guidance earlier in the budget process reduced the proposed increases by roughly 5 percent, a change staff said would save a typical household about 50 cents a month but increase long‑term risk. The committee adopted an amendment directing staff to restore the previously forecasted increases (pre‑5% guidance) and recalculate an exhibit for full council consideration; the amendment passed on a committee roll call and the ordinance was forwarded to full council with a recommendation to pass.

- System Development Charges (SDCs): Staff described that SDCs are one‑time fees charged for new development; proposed index‑linked adjustments include approximately 5 percent for water and BES SDCs, roughly 5.5 percent for parks and about 3.7 percent for PBOT (staff noted PBOT historically discounts its project list). Staff emphasized waivers and deferral programs under Title 17.14 that can reduce SDCs for certain affordable housing, ADUs, temporary shelters and other uses.

- PBOT parking/transportation fees: PBOT proposed performance‑based increases to baseline meter rates to reach a $1–$5 per hour range set out in the parking management manual. The initial presentation described a 25 percent baseline increase in covered districts — translating to roughly 40¢ to 60¢ per hour increases in several subdistricts — and an estimated $6 million per year in additional general transportation revenues. The committee considered an amendment to freeze non‑event hourly meter increases in several districts; that amendment failed. The committee then forwarded the transportation fee ordinance to full council (committee vote 4–1).

- Portland Permitting and Development (PPND): PPND proposed a 5 percent fee increase intended to keep pace with rising costs and avoid further staff reductions. PPND managers said the bureau has already cut positions (about 19 percent recently and 74 positions earlier in the downturn) and projects that reserves could be depleted in 2026 without additional revenue. Staff said a 1 percent fee increase would avoid roughly three layoffs.

- Solid waste: BPS staff outlined the residential franchise system and proposed a $1 per ton increase in the commercial tonnage fee (from $16.60 to $17.60), yielding about $304,000 in additional revenue. Residential franchise rates are set through a separate report and tied to Metro disposal fee decisions; common residential service examples discussed were $42/month for 35‑gallon service and $47/month for 60‑gallon service.

- Parks: Portland Parks & Recreation described modest general fee increases aligned to cost‑of‑living adjustments (about 2.4 percent in many program rates), some larger exceptions for adult programming and a continuation of a “pay‑what‑you‑can” access discount for recreation programs. Staff said most parks fees are intentionally not set to full cost recovery to preserve access.

Committee votes and next steps

The committee forwarded each ordinance to the full council with recommendations to adopt. The water and BES item received an amendment to restore pre‑guidance rates; the transportation fee package was forwarded after committee debate and defeat of a parking‑freeze amendment (vote on the ordinance was 4‑1). Staff said most ordinances will appear on upcoming full council agendas for final readings and adoption.

Public comment at the committee included two Portland Utility Board members who urged council to preserve rate increases aimed at avoiding long‑term system risk and to prioritize equity in any rate exceptions or assistance programs.

The committee’s actions move a broad set of fiscal‑year‑2025‑26 rates and fees toward final council consideration, setting the stage for more detailed council debate on affordability, development costs and how to balance near‑term budget pressures against long‑term infrastructure needs.