— This post was written by Strong Towns PDX.
Portland has long been a leader in encouraging more density and better land use through repealing parking minimums, allowing plexes on most single-family zoned lots, and adopting single-stair reforms. All of these reforms allow for more units on the same land, which allows Portland to welcome more neighbors at all wages, ages, and stages of life.
The proposed Transportation Utility Fee (TUF) of $12 per month for single-family lots, and $8.50 per month for apartment dwellers means apartment dwellers will pay 600% more on a per-acre basis than homeowners on R10-zoned lots (93% of the parcels in Northwest Heights and 81% of the parcels in Arnold Creek), and 300% compared to those on R5-zoned lots (99% of the parcels in Sabin and 97% of the parcels in Alameda), which becomes apparent when examining the fee on a per-acre basis (see chart below).
Considering apartment dwellers are also more likely to ride transit, walk, and ride a bike to meet their daily needs, leading to even less road maintenance costs, the current TUF proposal is even more regressive than has been acknowledged.
The Quick Fix
We propose scaling the Residential component (70%) of the $46 million in TUF funds based on acreage of the parcel that the dwelling occupies (see orange bars). This “Use-Based Fee” incentivizes living in an apartment or plex. This is supported by Federal Highway Administration (FHWA), as street maintenance also scales based on the size of parcels (see: Transportation Utility Fees).
We estimate to obtain a revenue-neutral $32.2 million, the City could charge:
- $2/month per-door fee, regardless of parcel size
- $0.20/month per 100 square-feet of parcel size
For example:
- An apartment dweller in a 20 unit building on a 5,000 sqft lot would pay $2.50/mo ($2 base fee + ($0.20 * (5000 / 100)) / 20 units), rather than $8.50/mo.
- A household on a 5,000 sqft lot would pay $12/mo, the same as under the proposed TUF.
- A household on a 10,000 sqft lot would pay $22/mo ($2 base fee + ($0.20 * (10,000 / 100))), which better approximates the additional cost of serving larger lots.
A Use-Based TUF is much less regressive on a per-acre basis, costing both apartment dwellers and homeowners on smaller lots less than the proposed fee schedule . Larger lots, while paying somewhat more, still pay less on a per-acre basis.
Contact City Council
If you want a fairer Transportation Utility Fee for Portlanders, email your City Council via the Strong Towns PDX website.
