Portland street fee hearing
PORTLAND, OREGON - June 25, 2014 - A public hearing was held in Junet for people to give input to city leaders on the residential street fee proposal. Mayor Charlie Hales (shown here), City Commissioner Steve Novick and Portland Bureau of Transportation director Leah Treat heard testimony. Stephanie Yao Long/The Oregonian
(Stephanie Yao Long)
For months now, Portland Mayor Charlie Hales outlined the unholy trinity options facing the city: "Do this, do nothing, or do something else," he's said of the street funding debate.
At a Nov. 20 public hearing, Hales provided perhaps his most forceful call for more ideas. He asked for concrete proposals.
On Dec. 4, the Portland Business Alliance obliged.
In a letter sent to City Council offices, the chamber of commerce offered a bullet point list of what it would (and wouldn't) support.
"We have agreed that increased investment is warranted and we have agreed that new fees, including fees on Portland businesses, can be justified if the new revenue is invested solely in transportation and safety improvements," PBA president and CEO Sandra McDonough wrote.
The "No Go" list is familiar. The PBA won't support a street fund plan that includes a new personal income tax. The plan must be fair to small businesses and share the load between residents and business owners. A new wrinkle, the PBA said it would oppose a plan that don't provide relief for low income folks on food stamps, but Commissioner Steve Novick said that specificity may not be possible.
With Wednesday's decision by Novick to revisit the residential half of the $43.8 million plan, the PBA's plan offers a potential blueprint for what elements may make it to the final proposal. (Emphasis below are mine).
1. New revenue to fix Portland streets and do safety improvements, so long as the new revenue is based on a
user-pay concept
and the cost is shared equally between businesses and residents.
2. The general
business fee structure in its current state
, so long as it remains part of an overall package that raises revenue for both the business and residential sectors.
3.
A residential fee of up to $10/month per household
, with exemptions for households receiving food stamps, so long as the fee is part of an overall package that raises revenue from both the business and residential sectors.
4. Exemptions for small business sole proprietors who also live in the city to ensure they only have to pay a fee once, in recognition of the burden on small businesses.
5. Acknowledging that some small businesses, such as realtors, may not generate income in Portland in a given year and therefore
should not have to pay the business fee for that period.
6.
An exemption for small businesses in their first year
of start-up.
7. Dedication of at least 70 percent of the new revenue going toward paving.
8. Referral of a charter amendment which codifies that new and existing transportation revenues will be expended only on maintenance and safety improvements; establishes that the fee rates are unchangeable during the six-year life of this program, creates a six-year sunset of the program, and limits administrative costs to not more than 15 percent.
After the latest delay of a final vote, McDonough walked back at least one key element of the above proposal: the split of the revenue pie that is dedicated to paving projects versus safety work.
The revenue vs. safety debate was a key talking point on the summer work groups tasked with offering recommendations on the original May proposal.
The current plan calls for 56 percent of the annual revenue dedicated to paving, with the remainder for safety projects. Portland's transportation bureau estimates the city needs to spend $91 million annually on paving for a decade to ensure roads are in favorable condition.
"We've said we would like it to be 70 [percent]," McDonough said of the paving split, "the mayor has said he thinks that's too high."
McDonough said she agrees that the city needs safety improvements, and the PBA is willing to work with the mayor and Novick on a "complete package."
Reading:
The Oregonian: It's 'gut check time' for the Portland Street Fund
The Oregonian: Proposal to demolish building in historic district rejected by City Council
The Oregonian Editorial Board: Street fee version 3.0 may be the last
Willamette Week: Uber will leave Portland for three months in deal with City Hall
Portland Mercury: City's latest ad hoc task force will tackle Uber
-- Andrew Theen