Bend City Council moved one step closer to a city-wide Transportation Utility Fee (TUF) as they passed a new ordinance and fee structure earlier this week. The first phase of TUF will generate $5 million in new revenue to fund street operations and maintenance. The fee will be assessed on both residential and non-residential utility accounts beginning July 1, 2024. Additional phases will be assessed in 2025 and 2026, ultimately generating $15 million in revenue. Councilors expressed a desire to pause between phases 2 and 3 to assess additional revenue sources to better capture tourism impacts on transportation system, including a weekend or seasonal gas tax as a possible option.   

The Chamber actively participated in the stakeholder processes and helped shape the phased-in approach as well as a robust appeals process and further refinement to non-residential rates in future years. The City’s Economic Development Advisory Board (BEDAB) will continue to work with City staff on refining the non-residential rate structure to implement in 2025.  

More information and the fee schedule can be found on the City’s website: https://www.bendoregon.gov/government/departments/utilities/billing-rates/rates-and-charges/transportation-fee