Bend MPO reviews options for State Highway Fund distribution as revenues shrink

Bend, Ore. — The Bend Metropolitan Planning Organization’s Technical Advisory Committee on March 4 discussed how to allocate State Highway Fund (SHF) dollars for fiscal years 2028–2030 after the MPO learned the funding stream will be about $300,000 a year smaller than prior federal Surface Transportation Block Grant (STBG) levels.

Andrea Napoli, BIM and PEO senior planner for the MPO, told the committee that the MPO will bring final distribution scenarios to the policy board later this month and was “not necessarily asking for a formal recommendation” from the TAC but instead wanted “high level feedback” to shape those scenarios. Napoli said the region expects about $1.4 million a year in SHF dollars going forward, down from roughly $1.6 million under STBG.

The discussion focused on how much of the SHF dollars to continue directing to the City of Bend’s street preservation program — historically between roughly 45% and 48% of the MPO’s allocation — versus preserving a competitive project fund, planning/staffing support and a modest reserve. Napoli described the most recent three‑year distribution as: about 45–48% to City of Bend street preservation (roughly $700,000–$800,000 annually under the 2025–27 cycle), about 29–26% to the competitive call‑for‑projects (roughly $427,000–$465,000), about $350,000–$370,000 for MPO planning and consultant work, and a roughly 5% reserve of about $80,000.

Why it matters: Bend’s street preservation budget has relied in part on MPO allocations while the city phases in a local transportation utility fee (TUF). City staff said TUF Phase 3 remains on hold, leaving the city partly dependent on MPO funds for maintenance and preservation. Committee members noted the lower SHF baseline makes tradeoffs sharper: reducing the allocation to street preservation would shrink a predictable revenue stream for the city but could free funds for competitive, multimodal projects or to target low‑stress greenway routes.

Discussion and key positions

James Durope, a citizen member of the TAC, urged shifting money away from basic operations and toward grant‑type, project funding so the city would not grow dependent on a possibly diminishing external revenue source. “If I was to look at the MPO as a completely outside source of funds, I would say that the City Of Bend Street preservation program should be decreased significantly, and the MPO should focus more on grant based applications,” Durope said.

City of Bend staff member David Abbas said MPO dollars have been important for the city’s pavement work and that the $6.7 million figure (cited in the presentation as an aggregate across years) represents about 15% of the city’s street preservation budget. Abbas said a withdrawal of MPO support before the city’s TUF Phase 3 is implemented would be “noticeable” and that lost funding would force choices to tighten budgets or reduce programs.

Other TAC members recommended preserving the planning and reserve line items. Ken Schottweiler (ODA) and several others supported keeping the roughly $80,000 reserve and maintaining MPO capacity for planning work. Some members proposed a compromise: reduce the share devoted to general street preservation while earmarking some funds specifically for local greenway or low‑stress network projects so the MPO could continue advancing multimodal objectives even if overall SHF dollars decline.

Clarifying details captured from the presentation and discussion

- Reserve: The MPO has set a reserve target of about $80,000 per year; the current reserve is described as a new, one‑time account entry at that amount. - Revenue levels: Under STBG the MPO received about $1.6 million per year; SHF is projected to provide about $1.4 million per year (about $300,000 less annually). Napoli said SHF dollars are expected to remain flat. - Typical allocations (most recently approved 2025–27 cycle): roughly 45–48% to City of Bend street preservation (approx. $700,000–$800,000/year), 26–29% to the MPO competitive project application process (approx. $320,000–$465,000/year depending on the cycle), ~ $350,000–$370,000/year for MPO planning/consultants/staffing, and a ~5% reserve. - Competitive project program: The program is criteria‑based, open to jurisdictions and nonprofits in the MPO area; recent solicitations saw most applications from the City of Bend for bike/ped safety projects. - Next steps/timeline: The MPO will notify eligible entities and issue a call for projects starting Sept. 1 with an Oct. 1 application close window for the 2028–2030 funding cycle.

Discussion vs. decision

The TAC provided feedback and preferences but did not take a formal vote on a new distribution. Napoli and staff will prepare scenarios reflecting the input for the MPO policy board to decide later this month. Committee members signaled support for retaining planning capacity and a reserve, while some urged shifting street‑preservation shares toward competitive grants or earmarked multimodal projects.

Votes at a glance

- Motion to approve the January 2 draft meeting summary: approved by voice vote; movers/second not recorded in the transcript.

Ending

Napoli and MPO staff will prepare distribution scenarios based on the TAC input and present them to the policy board. The TAC will be asked to help administer the upcoming competitive call for projects this fall (Sept. 1–Oct. 1).