Bend City Council Work Session - September 10, 2025: Transportation Funding and Parking District Discussion
Bend City Council Work Session - September 10, 2025
On September 10, 2025, the Bend City Council held a work session to discuss transportation funding, including a legislative special session update, the status of the transportation fee, and a request from the Bend Park & Recreation District (BPRD) for a fee exemption. The council also reviewed proposed parking management districts and strategies. Key decisions included pausing Phase 3 of the transportation fee, offering a 50% reduction to BPRD, and directing staff to develop parking management plans for priority areas.
Discussion Items
Transportation Funding
- Legislative Special Session Update: City Manager Eric King reported that a state transportation package (approx. $700 million) has passed the House and is pending Senate vote. If approved, Bend would receive an additional $1.5 million in new revenue this fiscal year and $2.7 million in a full fiscal year, indexed to future years. This is less than the $5 million target in the city's Phase 3 plan.
- Transportation Fee Status: Transportation Director Russ Grayson reviewed the fee implementation. Phase 1 (July 2024) generated $4.96 million. Phase 2 (July 2025) is on track for $10 million annually, with $837,000 billed so far. Only 15 resident contacts were received. Phase 3, originally planned for $5 million additional revenue, is under discussion. The phase would fund a concrete crew, sidewalk infill, and multimodal improvements.
- Council Direction on Phase 3: Councilors expressed support for an indefinite pause on Phase 3, citing the pending state revenue, other financial pressures on residents, and the need to evaluate alternative funding sources. Councilor Ariel Méndez suggested exploring a general fund allocation increase, parking fees, and a seasonal gas tax (subject to voter approval). Councilor Megan Norris added a vehicle registration fee. The council agreed not to pursue the larger funding tools this biennium but to consider parking revenue and general fund reallocation at the October 8 budget committee meeting.
- BPRD Transportation Fee Exemption: BPRD requested a full waiver of its transportation fee ($17,000 Phase 1, ~$28,000 Phase 2). The fee is based on off-street parking. Joint maintenance costs for 11 miles of shared facilities are about $22,000–$23,000 annually. Councilors debated between a full waiver and a 50% reduction, citing precedent with the school district. Consensus was reached to offer a 50% reduction, with further discussion at a joint city-BPRD meeting in February 2026.
Parking District Discussion
- Parking Management Overview: Parking Services Manager Toby Mox presented a phased approach to creating parking management districts. Phase 1 areas include the Arizona/Colorado industrial couplet (Box Factory, Jackstraw) and the Old Bend neighborhood expansion. Phase 2 includes Galveston Avenue and Wood River Village. Phase 3 areas (OSU-Cascades, Columbia Park, etc.) will be monitored.
- Council Direction: Councilors unanimously supported moving forward with Phase 1 and Phase 2 plan development. They emphasized robust community engagement, especially for Galveston, and requested that staff identify whether each district should be a parking benefit district. Staff will develop plans, conduct 60-day public comment periods, and return to council for adoption. Implementation is targeted for summer 2026.
- Partnership Opportunities: Discussion included potential partnerships with private parking operators (e.g., Jackstraw using same app as city), shuttle services for events, and coordination with BPRD and the Old Mill District for summer concert parking.
Key Outcomes
- Unanimous consensus to pause Phase 3 of the transportation fee indefinitely.
- Council agreed to not pursue other major local funding sources (e.g., gas tax, vehicle registration fee) this biennium, but will consider parking revenue and general fund reallocation at the October 8 budget committee meeting.
- BPRD transportation fee exemption: Council directed staff to offer a 50% reduction, with the possibility of revisiting the issue at a joint meeting in February 2026.
- Parking district plans: Staff directed to develop parking management plans for Phase 1 and Phase 2 areas, with community engagement and council check-ins before public comment periods.
- Upcoming meetings: September 17 regular business meeting (including temporary safe stay area discussion), September 24 work session on Midtown Crossing, and September 29 special joint meeting with the county.
Public Comments & Testimony
No public comment was taken during this work session. The agenda noted that the meeting was open to the public but no public comment period was scheduled.
Meeting Transcript
Okay, so welcome everybody to this Ben City Council work session on our new meeting schedule. Um so we will be doing these work sessions on the second and fourth Wednesday of most months. Um today we've got a couple of topics. Um we'll start with roll call to make sure who is here. Um Council Franzo, you want to start us off. Oh it's someone in the back. I couldn't see him response. I know, yeah. Gina Franzo says she, her. Melanie Keebler, she her. Megan Perkins, she her. Megan Norris, she her. Steve Platte here. And Councilor Riley is excused today. Okay, so we're gonna start with conversation on transportation funding, and we've got Russ here. Before I turn it over to Russ, I'm gonna uh kick this off. I mean, I think um council will probably appreciate that transportation is probably one of the hardest things that you do, right? It's hard because there's lots of competing interests and values, it's hard because funding uh funding challenges, and you know, we're we're dealing with our our own here at the local level, and of course the state is also grappling with this issue, and there's a difference between capital and maintenance and different funding streams, etc. So, you know, just kind of setting that stage. We spent uh quite a bit of time as a community developing a transportation system plan that has a vision up till 2040. Within that transportation system plan, we said we we've got to fund it. We it's not just about a plan. We want to want to make sure that what our our vision actually is uh baked in reality, and so we can actually fund it. So we created a template, a funding strategy that had multiple uh multitude of strategies. We've been implementing that. Russ is gonna talk about kind of where we are in that big picture. The state is kind of going through that same process, right? The state has done some things to increase capital projects, uh, but this operations and maintenance problem is definitely staring them in the face. And so they've we're gonna talk about the transportation funding at that state level, kind of starting at that high level, what kind of influence that has and impact that has here at the local level, and then we're gonna talk about our own strategy of what we are doing here locally and how that interface between the state and local, what kind of decision points that council wants to have. So I'm gonna state right up front, we're gonna do a better job, I think moving forward of just uh sharing the why with you all. Like what's the question we're asking? And that question is does council want to pursue additional funding at the local level. We came up with a a phased approach to the transportation fee. So Russ is gonna go into a lot more detail about where we are and what's left of that strategy that we came up with uh a couple of years ago that we're in the middle of implementing. And then if if so, do you want to continue with the transportation fee or are there other funding sources you want to look at at the local level? But before we can answer that question at the local level, we want to you know raise back up and talk about what's happening at the state. Uh so as we all have been following the 2025 long session concluded. Uh disappointingly on the transportation front where there wasn't a uh a package that was uh advanced. So uh the governor kind of stepped in and tried to work out a proposal that was you know maybe kind of meeting people a little bit closer, more of an iterative approach, saying maybe we can't solve this big transportation problem if we can chunk it out and really start step one. And so what uh she called a special session that happened at the end of August uh with the House voting on the package, uh Labor Day weekend, but it's uh somewhat stalled in the Senate. This vote is scheduled for next week, Wednesday. Um there was uh a member that was having some health issues, they wanted to make sure they had a full uh full roster of folks to vote. Um so we we know what that package it's been published now, we've commented on it the year and participated in the hearings as she talked about at the last council meeting. So I just wanted to talk about what the impact of that session, if that's if that is approved, what that what that would mean for Bend. Uh so because we are a couple of months into the fiscal year, so this was like a 700 million dollar package. What that means based on the highway trust fund split, which is not being proposed to change. It's a uh 50% of the that gas tax title and registration fees, all those fees that pay for operation operations and maintenance statewide. 50% of that revenue goes to ODOT to maintain the state system. 30% uh is shared with counties, 20% cities. So our portion, if the package continues to hold, which it's past the house, it's just that last step with the Senate.
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