Portland City Council on Oct. 29 moved forward an ordinance authorizing the issuance of revenue bonds in an amount sufficient to provide up to $41,000,000 to finance improvements to the city's fleet maintenance facilities and related costs, advancing the measure to second reading for a final vote.

The Finance Committee staff summary said the ordinance (document 2025-404) authorizes bonds pursuant to statutory bond authority and estimated a principal amount not to exceed $43,900,000 after accounting for issuance costs. Christopher Hare, council policy analyst, told council the bond proceeds would finance construction and upgrades to a maintenance garage, office and parts area, electric vehicle chargers and other project costs.

During a lengthy council discussion, Matt Gearock, debt manager, said debt service will be embedded in interagency charges and spread across bureaus that use the facility; he estimated annual debt service at about $3,300,000 over 20 years. Aaron Beck, business operations, explained that the cost will flow through fixed vehicle rates so bureaus with vehicles will pay proportionally based on their fleet use.

Millicent Williams, director of the Portland Bureau of Transportation (PBOT), described the project as a 23‑year lease (with two 10‑year extensions) for a new facility commonly called the Cutter Garage that will replace the cramped, aging Kirby Garage. She told council that funds and authority in the ordinance are restricted to payment of project costs.

Councilors pressed staff on why the city is leasing rather than purchasing property and how the city’s investment would be protected if the landlord later sold the site. Williams said the city attempted earlier purchase efforts but found them cost‑prohibitive; the lease provides option value and flexibility while the city continues asset‑management work to locate and secure city‑owned parcels for future facilities. Staff said the lease includes a right of first refusal if the property is listed for sale and rights on an adjacent warehouse.

Staff also detailed ongoing costs beyond debt service. The bureau proposed a major‑maintenance reserve set at about 3% of replacement value to avoid the “zero” historic maintenance funding at Kirby Garage and to keep the new facility in good repair. Williams said the combined annual costs for debt service, lease, operations and a replacement‑value reserve are estimated near $7,000,000.

Councilors emphasized two policy priorities during the discussion: (1) clearer internal‑service rate transparency so bureaus (the customers of the facility) understand how charges are set and (2) workforce development. Williams and other staff noted plans to partner with Portland Community College on apprenticeship and training opportunities tied to the project.

There was no public testimony at the council meeting on Oct. 29. The ordinance was discussed at finance committee Oct. 20 and will return to council for a second reading and final action.