Finance committee advances $80 million revenue bond to fund ADA curb ramps required by settlement

The Portland City Council Finance Committee voted April 7 to send to the full council an ordinance authorizing limited tax revenue bonds of up to $80 million to finance curb ramps and related street improvements required by a 2018 settlement agreement with the Civil Rights Education and Enforcement Center.

City finance staff said the borrowing is intended to cover a project funding gap and produce short‑term budgetary savings. “What we have before you today is a proposed financing strategy that includes bond issuance which will require council authorization,” Jonas Beery, deputy city administrator for budget and finance and the city’s chief financial officer, told the committee.

The settlement agreement requires the Portland Bureau of Transportation to build 1,588 compliant curb ramps per year for 12 years, for a total of 18,000 ramps. Jeremy Patton of PBOT Finance said the bonds would pay both the shortfall in ramp funding and amounts that would otherwise be cash‑funded in fiscal years 2025–27.

Staff described the proposed financing as limited tax revenue bonds secured by the city’s general fund. They said the city intends to manage repayment so roughly half of the annual debt service would be covered by PBOT transportation revenues and half by general fund resources. Matt Gearock, the city’s debt manager, was present to answer technical questions about the sale process.

Terms and timing presented to the committee included: a borrowing authorization of up to $80,000,000 plus estimated issuance costs of just over $1,000,000; a planned repayment term of 15 years; and an assumed interest rate of about 5 percent for budgeting purposes (staff said market rates could be lower). Staff said they expect a roughly 12‑week issuance timeline, with a preliminary official statement, an independent rating agency review and, if approved by council, a sale that could close in the current fiscal year or in the next.

Beery and PBOT staff told the committee the issuance would generate short‑term cash flow savings of about $6,000,000 for PBOT and about $6,000,000 for the general fund in fiscal year 2025–26, but would raise debt service in later years. Staff emphasized this is the first step of a two‑step financing plan and that a future council action would be required to finance any additional remaining shortfall through the end of the settlement term.

The committee moved the ordinance to the full council with a recommendation to pass. The motion was made by Councilor Green and seconded by Councilor Novick; the roll call recorded Peralta Guinea — Aye; Novick — Aye; Green — Aye; Avalos — Aye; Zimmerman — Aye. Staff said the ordinance is planned to appear on the full council agenda on April 16.