City Council Reviews Phase 2 Transportation Fee Rates

On Wednesday, April 16, the Bend City Council gave input to City Staff on rates for Phase 2 of the Transportation Fee. The Phase 2 draft fee schedule is available at bendoregon.gov/transportation-fee.

The City Council decided to implement the Transportation Fee through a phased approach. Phase 1, which began on July 1, 2024, is on-track to generate $5 million for fiscal year 2024-2025. In Phase 2, set to start July, 1, 2025, the City aims to generate an annual revenue of $10 million based on operation and maintenance needs of the transportation system. Council will consider adopting Phase 2 rates following a public hearing at the Council meeting on May 7, 2025.

Written comments can be sent to transportationfee@bendoregon.gov  and will be provided to City Council prior to the May 7 public hearing. Comments will be taken at the public hearing, in person or online.

Phase 2 of the fee has two key objectives. The first is to generate additional revenue needed to maintain City’s transportation system, enhance service frequency and quality, and improve the safety and condition of City roads, bike lanes, and sidewalks. The second is to account for both building size and business type in how non-residential utility accounts are assessed the fee. In Phase 1, non-residential fees have primarily been based on building size. The methods for calculating costs based on business type impact were discussed in public meetings by City Council and the Bend Economic Development Advisory Board (BEDAB).

An information session will be held in Council Chambers on April 24 at 5 p.m. to provide an overview of changes to non-residential fees as part of Phase 2 of the Transportation Fee. This session is specifically geared toward the business community and will offer an opportunity to hear from City Staff and the Bend Economic Development Advisory Board.

Transportation Fee revenue is used for operations and maintenance of the City transportation system, including pavement restoration, street preservation, signs, striping, sidewalk and other concrete work, bicycle and multi-modal system enhancements, street sweeping and cleaning, winter operations such as snow removal and implementation of programs identified in the 2020 Transportation System Plan. Funds are restricted to activities performed by the Transportation and Mobility Department and cannot be used for other City purposes.

The City has historically relied on the State Gas Tax and a small portion of local property taxes to pay for street operations and maintenance. That funding is no longer keeping up with Bend’s transportation maintenance needs. The Transportation System Plan, our guidebook for Bend’s transportation future into 2040, forecasted this funding shortfall and recommended the Transportation Fee as a funding tool to properly care for our transportation system for years to come. Council will continue to monitor transportation funding needs and other sources of revenue.

Learn more about the transportation fee at bendoregon.gov/transportation-fee.