Portland City Councilors are set to consider a proposal that could lead to a significant tax increase for local homeowners, which is expected to bolster the city’s parks operations.
The proposed measure, asking voters whether to increase the current parks levy rate from $0.80 to $1.40 per $1,000 of assessed property value, may result in an average annual increase of around $130 for homeowners.
The stakes could not be higher; if the new levy fails, essential funding for community parks services will be severely cut, potentially halving the already tight budget of the parks bureau.
The existing five-year levy, which was passed in 2020, costs homeowners approximately $182 per year based on a median house value of $228,000 in Multnomah County, while commercial property owners pay an average of $251 annually.
Revenue generated from the current levy is used for maintaining community centers, pools, recreational classes, performing trash cleanup, and managing maintenance projects, among other vital services aimed at the community.
The existing levy is set to expire next year, which necessitates the need for the City Council’s proposal for renewal.
As currently planned, the proposed increase would mean that the median homeowner would pay approximately $310 annually, raising an estimated total of more than $456 million by 2031 if the measure passes.
City staff reached the decision for the raised tax rate after extensive negotiations with various stakeholders, including business groups, labor unions, parks advocates, and city council members.
While public input was collected, the input from business and labor lobbyists—whose support is crucial for a successful ballot campaign—took precedence in shaping the proposal’s structure.
The timing of this proposal is particularly critical, as the city experiences a challenging financial landscape with decreasing revenues.
The parks bureau has faced consistent budget cuts, leaving it approximately $55 million short each year to maintain basic operations.
Moreover, the bureau is currently grappling with an impressive backlog of $615 million in deferred maintenance costs for essential repairs and improvement projects.
Historically, the parks levy has focused primarily on funding programmatic needs rather than allocating funds for maintenance.
However, under the new ballot initiative, roughly 2% of levy revenue is earmarked specifically for maintenance, which amounts to approximately $2 million annually.
Several advocates had hoped for a more substantial allocation towards the maintenance of parks, with the Portland Parks Alliance urging that at least 10% of future levy revenues should support major maintenance projects.
Suzanne Bishop from the Parks Alliance expressed disappointment regarding the limited maintenance funding proposed, although she acknowledged that securing any dedicated funds for maintenance is a positive development.
Bishop remarked, “Having said that, we are pleased at the difference our efforts have made to elevate attention to different maintenance in parks.
The fact we got some money set aside is a start. We can always do better.”
The climate for tax increases in Portland appears to be challenging, as an April poll indicated that only about 54% of voters are willing to accept the proposed $1.40 tax increase for maintaining park services.
Councilor Mitch Green indicated that the results from the polling suggest a need for a well-strategized approach to communication with voters.
He proposed focusing on encouraging public support for simply ensuring existing parks are well maintained, rather than expanding to new projects.
“If we can go to voters and say, ‘Let’s just fix what’s broken’ and stretch our dollars, then we can sell this thing in a much easier way that puts us on a financially sustainable path for the next five years,” Green commented.
Furthermore, the ballot proposal includes a strategy to seek new sources of revenue.
If endorsed by voters, the new levy would fund a full-time employee responsible for pursuing new financial partnerships from the private sector.
Councilor Dan Ryan asserted that forging these partnerships might be essential for easing the tax burden on residents.
“We need to be more creative,” Ryan expressed during a council meeting.
City Councilors are expected to cast their vote on whether to refer the measure to the ballot at their next meeting on July 16.
image source from：opb
