The Bend City Council adopted Phase 2 of the Transportation Fee at its Wednesday, May 7, 2025, City Council meeting.
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. Phase 2 will go into effect on July 1, 2025. In Phase 2, the City aims to generate an annual revenue of $10 million to help meet the operations and maintenance needs of the transportation system.
The Transportation Fee is a recurring fee collected from people and businesses in Bend through their monthly utility bill. The fee is a charge, like a monthly sewer charge, to ensure users share the costs of operating and maintaining the City’s transportation system. Over 30 cities in Oregon have a Transportation Fee, including the City of Bend.
The most notable changes in Phase 2 include an increase in fees to support the $10 million annual revenue target and an updated rate structure for non-residential utility customers. This new rate structure reflects the estimated intensity of transportation system use based on the type and scale of development. This approach is already used in many other cities. Phase 2 rates were shaped by five meetings of the Bend Economic Development Advisory Board (BEDAB), held between December 2024 and March 2025.
In Phase 2, single-unit residential accounts will pay $10.50/month. Multi-unit attached housing (such as an apartment) accounts will pay $7.75/month (per unit). Most businesses will be charged based on building size and business type, with rates ranging from $6.25 to $20.50 per 1,000 square feet per month, depending on the intensity of use. Intensity of use is generally measured by the average number of trips per day frequenting that type of business, per 1,000 square feet of building space, based on data from the Institute of Transportation Engineers (ITE) Trip Generation Manual.
The City maintains a growing transportation system that includes more than 900 lane miles, 500 sidewalk miles, and 200 miles of striped, separated and buffered bike lanes. Limited funding, a growing transportation system, and cost escalation have resulted in an increasing backlog of maintenance needs. Transportation Fee funding helps the City maintain its core duties and levels of service for its growing transportation network, while also adding programs and services the community has asked and planned for as part of the Transportation System Plan.
Since the Transportation Fee was implemented, the City has made progress on key goals, including improving pavement conditions, building sidewalks and safer crossings, buying equipment to clear bike lanes and paths, and hiring more staff to support transportation programs and services identified as community priorities in the City’s adopted Transportation System Plan. With Phase 2 funding, the City plans to do even more, including filling more sidewalk gaps and adding a crew focused on street markings and winter operations.
To learn more about the Transportation Fee, visit bendoregon.gov/transportation-fee.
