Revenues

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Breadcrumb: 6 pw › PW---FYFP---ALL_0 › Executive Summary › Non-Discretionary Revenues and Expenses › Revenues

set at 5% of annual gas tax and on-street parking revenues. Pursuant with City policy, PBOT’s financial plan calls for annual contributions of $700,000 to the Reserve Fund until the 10% target of GTR revenue is met. The Transportation Reserve Fund will begin FY 2025-26 with a balance of $12.1 million. PBOT also maintains a nominal operating contingency to provide a buffer for seasonal requirements such as snow, ice and landslides. However, the current level of operating contingency provides no buffer for emergencies such as major landslides, flooding, or earthquakes. In recent years it has not been sufficient to cover PBOT’s winter storms in particular – in FY24 these increased PBOT’s expenses by more than $4 million. Non-Discretionary Revenues and Expenses Revenues Taxes include revenue generated for the Fixing Our Streets program by the City’s ten-cent local gas tax and Heavy Vehicle Use Tax (HVUT). Proceeds from these taxes are held in subfunds within the Transportation Operating Fund and dedicated exclusively to projects identified under the Fixing Our Streets program. The local gas tax and HVUT were renewed by ballot measure and an act of City Council, respectively, in the spring of 2024. Both programs are now slated to sunset on December 31, 2028. Licenses and Permits include cost recovery revenues for the processing of construction and street use permits, as well as regulation of taxis and transportation network companies (TNCs). Like discretionary revenues, PBOT’s various cost recovery fees and charges have been impacted by the COVID pandemic. Construction and street use permits are projected to slowly recover. Like TSUPs, these revenues are not expected to fully recovery until the end of the five-year forecast. Notably, in its recent search for operational efficiencies, PBOT has identified development-related fees that are not achieving cost-recovery as intended. In preparation for the next round of fee ordinance updates in the spring of 2025, PBOT has already begun taking a comprehensive look at its fee schedules – many of which need to be revised to achieve cost recovery. Charges for Services include a variety of fees for service such as System Development Charges (SDCs) paid by developers to mitigate impacts of new construction on the transportation system, as well as land use and building plan review fees. As with the enormous revenue drop experienced by the Portland Bureau of Planning and Development, PBOT has seen a precipitous fall in its SDC collections – from $14.1M in FY2020 to a current forecast of $4.3M in FY2025 – with a highly uncertain recovery date. According to an estimate prepared by EcoNorthwest in 2024, PBOT is only expected to rebound to roughly two-thirds of its pre-COVID annual SDC revenue by the end of the forecast period. Intergovernmental includes revenue from cost-sharing agreements such as for Portland Streetcar (Tri-Met) and the Portland Aerial Tram (OHSU). Long-term revenues for Portland Streetcar assume increasing operating contributions from Tri-Met as a result of improved service on the A and B lines. 9

Parent: Non-Discretionary Revenues and Expenses · PDF: p. 1402