TL;DR (generated · confidence: high)

This section outlines PBOT's revenue challenges and reserve requirements. The bureau faces multiple financial headwinds: over-reliance on downtown parking and citations, State Highway Fund revenue not indexed to inflation, motor vehicle fee dependence conflicting with climate goals, and inflationary pressures outpacing revenue growth. Current maintenance investments fall short of pavement targets. City ordinance mandates a Transportation Reserve Fund with Emergency and Countercyclical Reserve components to address natural disasters and economic downturns.

Key points (each cites a PDF page):

Majority of bureau's discretionary revenue (on-street parking, parking citations, temporary street use permits) generated downtown (p. 1401)
Downtown recovery lagging other regions, presenting additional risk to GTR (p. 1401)
State Highway Fund revenues not indexed to inflation, loss compounded by fuel economy increases and vehicle electrification (p. 1401)
PBOT almost entirely reliant on motor vehicle fees for discretionary revenue, conflicting with city climate and congestion targets (p. 1401)
Labor costs consistently outpaced other inflation indicators; expenses growing faster than revenues (p. 1401)
Current maintenance investment levels insufficient to meet city's pavement and asset condition targets (p. 1401)
City ordinance requires PBOT to maintain Transportation Reserve Fund with two components: Emergency Reserve and Countercyclical Reserve (p. 1401)
Service fee recovery methodology has not kept pace with evolving demands such as greater public involvement for land use applications (p. 1401)

📋 Transportation Reserve Fund · Emergency Reserve · Countercyclical Reserve · 🏛️ PBOT

Reserves and Contingency

Source: PDF p. 1401 · raw: 1401

Breadcrumb: 6 pw › PW---FYFP---ALL_0 › Executive Summary › Discretionary Revenue › Reserves and Contingency

public right of way also presents new opportunities to capture the value the ROW creates, as well as mitigate negative externalities such as congestion and greenhouse gas emissions. Dependence on Downtown Much of the Bureau’s discretionary revenue – including the overwhelming majority of on-street parking, parking citations and temporary street use permits – is generated downtown. Recovery in downtown is lagging other parts of the region, presenting additional risk to GTR. State Highway Fund State Highway Fund revenues are not indexed to inflation. The concomitant revenue loss is compounded by increasing fuel economy and electrification of Oregon’s automotive fleet. Fossil Fuels and Electric Micro-mobility Options PBOT is almost entirely reliant on fees generated by motor vehicles for its discretionary revenue. This reliance is clearly at odds with the City’s climate, safety, and congestion-reduction targets. Emerging technologies such as e-scooters, e-bikes and autonomous vehicles stand to change traditional auto commuting patterns for the good, presenting both challenges to existing revenue streams and opportunities to align PBOT’s discretionary revenue with modern commuting preferences. Inflationary Pressures Projected inflation rates result in expenses growing faster than revenues. PBOT has also experienced in recent years growth in expenses from central administrative services providers that have exceeded inflationary targets. Labor costs have consistently outpaced other inflation indicators. Without an ongoing revenue stream indexed to inflation, the bureau will need new resources to balance its forecast. Long-Term Maintenance Requirements Current investment levels in maintenance are insufficient to meet the City’s targets for pavement and other asset conditions. Infrastructure conditions are detailed further in Appendix A. Assets not listed in the Status and Condition Report, including streetcars, represent further long-term liabilities as capital investments will be required to replace an aging fleet. Full Cost Recovery Although City financial policy directs bureaus to recover the full cost of services provided, the methodology for these fees has not kept pace with evolving service demands, such as greater public involvement for land use applications or applicant support at the permit center and tipping fees at the Sunderland Yard recycling facility. Reserves and Contingency City ordinance compels PBOT to maintain a Transportation Reserve Fund (212000). The fund has two components: the Emergency Reserve, to address unexpected one-time requirements caused by natural disasters; and the Countercyclical Reserve, for economic downturns. The targets for each are 8

Parent: Discretionary Revenue · PDF: p. 1401