BEND, Ore. — The Bend City Council voted Wednesday to advance to Phase 2 of the city’s Transportation Fee program, effectively raising monthly utility charges for residents and businesses beginning this summer. The funds, earmarked for road and sidewalk maintenance, are intended to help sustain and improve Bend’s growing infrastructure needs.
The Transportation Fee, which first took effect in July 2024, is designed to provide a stable funding source for essential city services such as pavement restoration, street sweeping, striping, bicycle enhancements, snow removal, and concrete work on sidewalks.
Under the Phase 2 structure, beginning July 1, single-family homes will see their monthly rate rise from $5.60 to $10.50. Residents in multi-unit housing such as apartments and duplexes will pay $7.75 per unit, up from $4.15. Those receiving utility billing assistance will see an increase from $2.80 to $5.25 per month. Business rates will range from $6.25 to $20.50 per 1,000 square feet, based on intensity of use.
The city estimates that Phase 1 will generate approximately $5 million in the current fiscal year. With the Phase 2 increases, the city aims to double that figure, targeting $10 million annually to address maintenance backlogs and improve transportation safety and accessibility across the city.
Jacob Larsen, Community Relations Manager for the City of Bend, said a third phase could be introduced in 2026, with the goal of raising $15 million annually. He noted that the City Council plans to continue discussions around additional revenue options that could influence future rate adjustments.
The Transportation Fee has drawn some criticism from residents due to the lack of a public vote. However, city officials maintain that because the fee is not classified as a tax, it does not require voter approval.
“This is about investing in our city’s infrastructure for the long-term,” Larsen said. “These funds are critical to maintaining safe, reliable streets and sidewalks for everyone in Bend.”
The next steps will include public communication campaigns to inform residents about the changes and how the funds will be utilized.
