Portland City Council Considers New Utility Fee for Road Maintenance

The proposed ordinance would impose a monthly flat fee on residents and businesses to help fund PBOT's chronic infrastructure funding gap.

Apr. 3, 2026 at 1:49am by Ben Kaplan

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A serene, photorealistic painting of a lone city street lamp on a quiet Portland street, with warm sunlight casting deep shadows across the pavement, capturing the city's infrastructure challenges in a contemplative, cinematic style.The aging infrastructure and chronic underfunding of Portland's transportation network is a growing concern, sparking debate over new revenue sources like a proposed utility fee.Portland Today

The Portland City Council is considering a new Transportation Utility Fee that would impose a monthly flat fee on residents and businesses to help generate revenue for the chronically underfunded Portland Bureau of Transportation (PBOT). The fee is meant to fund basic road maintenance and safety improvements, with 75% of the revenue going directly to street repairs. While some council members and community members support the fee, others have raised concerns about its regressive nature and the need for low-income waivers.

Why it matters

Portland has struggled to adequately fund road maintenance and infrastructure improvements, leading to deteriorating streets and safety issues. This new utility fee is an attempt to create a stable revenue source for PBOT, but it faces pushback from some residents who argue it will disproportionately impact lower-income households.

The details

The proposed Transportation Utility Fee would charge single-family homes $12 per month, multi-family homes $8.40 per month, and businesses 4.3% of their utility bill. The revenue would be used for basic street maintenance (75%), as well as Vision Zero safety initiatives. While some council members and community members support the fee, others have raised concerns about its regressive nature and the need for low-income waivers to prevent evictions.

  • The Portland City Council's Finance and Governance Committee discussed the proposed ordinance on April 3, 2026.
  • The committee pushed the discussion to their next meeting on April 15, 2026, to allow for further consideration of potential changes to the fee structure.

The players

Sameer Kanal

Councilor for District 2 and chair of the Finance and Governance Committee.

Olivia Clark

Councilor for District 4.

Priya Dhanapal

Deputy city administrator.

Kiel Johnson

A community member who spoke in support of the fee.

Santiago Nolasco Galicia

A community member who spoke against the fee, citing its regressive nature.

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What they’re saying

“Without additional stable revenue sources, PBOT will increasingly be forced to scale back basic maintenance, safety improvements and core transportation services.”

— Priya Dhanapal, Deputy city administrator

What’s next

The Portland City Council's Finance and Governance Committee will discuss the proposed Transportation Utility Fee again at their next meeting on April 15, 2026, where they may consider changes to the fee structure, such as basing it on lot size or providing carveouts for transit riders.

The takeaway

The proposed utility fee highlights the ongoing challenge Portland faces in funding critical road maintenance and infrastructure improvements. While some see the fee as a necessary step to address the city's transportation funding gap, others are concerned about its potential impact on lower-income residents. The council's next discussion will likely focus on finding a balanced approach that meets the city's needs while protecting vulnerable communities.