Bend City Council Work Session & Budget Committee - October 8, 2025
Bend City Council Work Session and Budget Committee Meeting - October 8, 2025
The Bend City Council held a work session beginning at 4:00 p.m. on October 8, 2025, in City Hall Council Chambers, focused on the Transportation Capital Improvement Program (CIP) funding and prioritization. The work session was followed by a Budget Committee meeting to review revenue updates, legislative impacts, and bond spending requirements. Key discussions included midtown projects (Franklin, Greenwood, Hawthorne), southwest and southeast area improvements, ODOT contributions, and the city's financial outlook. No public comments were taken; the meeting was a joint work session and budget committee check-in.
Discussion Items
- Midtown Transportation Projects: Staff presented recommendations from the joint CAB/TBOC subcommittee on Greenwood, Hawthorne, and Franklin. On Greenwood, the recommendation was to maintain the quick-build, continue performance monitoring, pursue an arts grant for a safe crossing at 2nd and Greenwood, and seek additional construction funding. On Hawthorne, staff recommended developing concepts and cost estimates for connections to the rest of the system, including crossing 3rd Street to Juniper Park. On Franklin, the subcommittee recommended proceeding with the full build (4th to Harriman), including a full undercrossing closure for stormwater improvements and uphill bike lanes, with on-street parking retained.
- Franklin Closure Concerns: Councilor Steve Platt questioned whether single-lane traffic could be maintained during the undercrossing closure. Staff estimated a 5-6 month full closure was likely due to deep dry well installation and retaining wall reconstruction, but promised to explore phased options with the contractor. Councilor Megan Perkins emphasized the need to ensure Greenwood traffic signal timing is adjusted before any Franklin closure. Councilor Mike Riley noted that a descoped project (excluding stormwater and uphill lanes) would shift infrastructure costs to developers via frontage improvement requirements.
- Council Direction on Midtown: After discussion, council members expressed support for the full build of Franklin, citing the ability to control the project schedule, the strategic importance of east-west connectivity, and the unanimous recommendation from CAB/TBOC. Councilor Ariel Méndez noted that Hawthorne is uncertain due to federal grant concerns, making Franklin the more reliable investment. Staff will return with a specific work session on minimizing closure impacts.
- Southwest Area: Staff presented three items: swapping Bond and Reed with Chase and Brosterhouse in the CIP (moving Bond and Reed forward with design money available fall 2026), exploring moving up the Century/Bachelor View roundabout (a key gateway), and adding a Southern River Crossing study to the CIP (a near-term TSP project estimated at a few hundred thousand dollars). Council generally agreed to move forward with these.
- Southeast Area: Discussion centered on two internal roundabouts requested by property owners (via COBA) to support development. Council considered whether to fund these with citywide transportation funds or have developers pay through a supplemental SDC. Several councilors (e.g., Perkins, Méndez) favored the supplemental SDC route to avoid using city funds, noting that the city already invested in sewer infrastructure there. Staff will continue working with property owners on a funding mechanism.
- ODOT Contributions: Staff highlighted that the city has about $18 million in geobond money committed to ODOT interchanges (e.g., Murphy ramps, Empire) that may not be spent as planned due to ODOT funding shortfalls. Councilor Méndez suggested exploring multimodal improvements at Empire rather than a highway connector, citing climate-friendly rules requiring enhanced review of interchanges. Council broadly agreed to keep the money on the ODOT system and explore options, with a focus on Empire.
- Ani Project: Staff presented the refined scope (improvements to the undercrossing, shared-use paths, safe crossings, signal at 3rd & Miller) with a cost range of $6-9 million. Council supported proceeding with the design amendment next month, though Councilor Norris expressed concern about the wide budget range and the risk of relying on private development timing for the full Ani east-west connection.
- 15th & Reed Market Roundabout: Staff proposed fully double-laning the existing partial roundabout to address capacity and safety, using RRFBs. National data showed a 47% crash reduction and 98% yield rate for RRFBs; local data from Butler 27th & Empire showed 100% yield at entry and 97% at exit. Council debated whether to proceed now or wait until the rail overcrossing is built. A vote showed majority support to move forward, with Councilor Méndez dissenting in favor of waiting. The project will return for construction approval.
- Bond and Reed Roundabout: Staff presented two designs: a hybrid multi-lane (cost $4-5 million) and a full double-lane ($6-7 million). Council sought capacity analysis. Engineer Matt Kettleson noted that the hybrid design would operate near capacity for 20 years and that the intersection currently causes backups toward the parkway. Councilor Méndez advocated for investing in multimodal alternatives rather than widening, citing congestion survey data. After discussion, a vote was taken: 5 in favor of the smaller hybrid design (Riley, Kebler, Perkins, Franzosa, Méndez) and 2 in favor of the full double-lane (Platt, Norris). Staff will proceed with the hybrid design and bring back more performance data.
- Century/Bachelor View Roundabout: Council expressed unanimous support to move this roundabout up in the CIP for safety and speed reduction. Staff will explore funding and bring options to the mid-biennium budget.
- Southern River Crossing Study: Council approved adding the study to the CIP, noting it is a near-term TSP project not currently on the CIP. The study is estimated at a few hundred thousand dollars and is not bond-funded.
- TABOC Scope Expansion: Council agreed to task the Transportation Bond Oversight Committee (TBOC) with considering a broader scope to review the entire transportation program, not just the geobond side, to provide holistic advice for future CIP adjustments.
Budget Committee Check-in
- Fiscal Year Close: Staff reported that FY2025 ending fund balances are in line with projections, except for timing issues (e.g., a $4 million Juniper Ridge land sale closing after June 30). Carryforward adjustments will be presented later.
- Revenue Updates: SDC and development revenues ended FY2025 slightly above projections, and July/August 2025 are higher than last year despite fee increases. Room tax was 4% higher than projected. The special transportation funding from the state will provide approximately $1 million more this year and $2.4 million next year, rising to $2.7 million annually. These funds are restricted to transportation uses.
- Federal Legislative Impacts: Finance Director Samantha reported that tax-exempt bond status remains secure; tariff impacts have been minor but are expected to increase; federal grants (CDBG, PRO Housing) are moving forward with minor processing delays; larger projects (Hawthorne Bridge, air traffic control tower) are still proceeding cautiously. The state budget forecast has been reduced by $888 million, with a 25% risk of recession, driven by federal policies affecting Oregon Health Plan, SNAP, and other programs.
- Go Bond Spending Requirement: The 2024 geobond issuance of $65 million requires 85% ($55 million) to be expended by June 2027. Currently, $47 million remains to be spent in two years. Staff is working to accelerate projects to meet this deadline to avoid bond call or credit rating impacts.
- Economic Development and Housing: The city is taking a more active role in economic development through the 'Invest Bend' plan, aiming to support small businesses and use urban renewal funds strategically. The HOME committee is evaluating incentive tools (revolving loan fund, infrastructure bank, credit enhancement) and site-specific TIFFs (tax increment financing). A pause on new TIFF awards is in place while the committee reviews the program. The city has a goal of 3,900 housing permits over two years.
- Homelessness and TSSA: Staff clarified that additional TSSA costs are covered by Juniper Ridge land sale proceeds already budgeted, and that a transition plan for the TSSA beyond 2026 is being developed for the January joint meeting with the county. No new funding source has been identified for ongoing services beyond ARPA.
Key Outcomes
- Midtown (Franklin): Council directed staff to proceed with the full build concept, including the undercrossing closure, but to return with a specific work session on minimizing closure duration and impacts. Staff will also develop options for Hawthorne connections and continued monitoring of Greenwood.
- Southwest Projects: Council agreed to swap Bond and Reed with Chase and Brosterhouse in the CIP, moving Bond and Reed design forward for fall 2026. Council supported exploring moving the Century/Bachelor View roundabout earlier (no formal vote). The Southern River Crossing study will be added to the CIP.
- Southeast Area Roundabouts: Council chose not to directly fund the two internal roundabouts with citywide funds; instead, staff will work with property owners on a supplemental SDC or LID mechanism. This direction preserves city CIP capacity for other priorities.
- ODOT Contributions: Council gave staff direction to explore using the ~$18 million in bond money for a multimodal project at Empire or other ODOT locations, rather than leaving it idle. No formal vote; staff will report back.
- Ani Project: Council approved moving forward with the refined scope and will bring a design amendment to the next meeting for final design.
- 15th & Reed Market Roundabout: Council voted (5-2) to proceed with the full double-lane design. The project will return for construction approval.
- Bond and Reed Roundabout: Council voted (5-2) to proceed with the hybrid multi-lane design (the smaller option). Staff will incorporate this into the mid-biennium CIP adjustment, pending further capacity analysis.
- TABOC Scope: Council tasked staff with engaging TABOC to consider expanding its oversight to the entire transportation program, not just the geobond, for future advice.
- Budget Committee: No formal actions were taken; the meeting was informational. Staff will continue to monitor revenues, federal impacts, and bond spending, and will return with carryforward adjustments and a mid-biennium budget proposal.
Meeting Transcript
Okay. So we're gonna go ahead and get started with our work session today. We're in a little bit different seating arrangement because we're also going to be joined by the budget committee in a little bit. Um, everyone is present, Councilor Princesa. Hopefully, we'll be joining us as soon as possible. And so we are gonna start with um our big old CIP transportation prioritization discussion. All right, let me share my screen real quick. And while you're doing that, Ryan, Councilor Norris, do you want to go ahead and just name out your yes? Let's just put that on the record. Yes, I need to declare an actual conflict when we get to that portion of the Southeast area transportation because of my employer Hayden Holmes. Um this would have a financial impact on them. So, insofar as we're giving direction in that area today, you're not gonna be participating. I won't be participating, and I should probably take away. Okay, uh, just to set Ryan up here, too. So, really, the the council through the budget process approves a five-year capital improvement program for transportation water sewer infrastructure at the airport. We have a CIP. Um, when we passed the budget uh this last June, we said we know that there's a lot of moving parts with transportation. We have federal grants, we have community concerns, we have values around economic development, around housing, and so we want to really be thoughtful, thoughtful about any potential changes to that CIP. So, really what I see today is as being some some building blocks, just some big changes that could potentially take place this spring with the transportation CIP. And that CIP is split into both a transportation construction fund, which is primarily funded through SDCs, and then our geo bond, which is approved by the voters. So we're gonna talk both kind of high level about some values that you have as council to help inform some potential changes to that CIP that would be formalized this spring. There is some immediate uh contracts that are in play, media projects that we want some direction on. So you're gonna see kind of two different pieces tonight. Actual direction on things that will help us keep projects moving, as well as some large uh kind of or some influential uh values to determine how we make some changes to the CIP moving forward uh approve this spring. With that, perfect. Thank you, Eric. So for the record, Ryan Oester, I'm the engineering director here for the city of Ben. Ben assisting me, Russ Grayson, chief operating officer. You're all familiar with him. And then, of course, in the midst of this conversation, uh, we've got legal here that could support answer some questions. I've got some of our consultants behind me here, my business analyst. So happy to call any of them up if necessary. So, context and background. So you all got a handful of handouts from me. It was a part of posted as well. Uh, the biggest things to remember is, and I actually added one underneath your agenda. So our current five-year CIP for the Geobond and the Transportation Fund, as Eric described, as well as the official letter from the joint cab T Bach committee. And then the third attachment was kind of a progress report or update because we're almost to the date five years after the adoption of the 2020 transportation system plan. So that was a pretty in-depth document just describing to each of you where we are in terms of our near-term, midterm, long-term, programmatic capital, all of that bundled together. So a good reference document, should you need that as well. So this afternoon, we will start by giving you an update from that midtown discussion. You know, we were here before you on September 24th. You asked us to go back to the joint cab T Bot Committee. So we'll cover their recommendations, ask a few questions to council on that, then we'll go kind of more geographically around town. We'll talk about the southwest area, the southeast area, have a discussion about some ODOT uh ideas we have. Yeah, and then really to Eric's uh statement, then we'll dive into some specific questions. Everything before that is gonna be just kind of a general direction or guidance that you'll see with our mid-biennium budget adoption. But then we do have a handful of things we would like councils head nod on this evening to progress on active current projects. So we've included this slide up front. We have it shown again at the back of the presentation, and it's just continued to grow as we built it.
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