Portland budget adopted June 18: 2027 street fees and Aug. 3 layoffs
Portland City Council adopted the $8.5B FY 2026-27 budget June 18—keeping fire, parks and police coverage, cutting homeless services, and adding 2027 street fees.
Portland City Council on June 18 adopted a $8.5 billion budget for the fiscal year that starts July 1, closing a record general fund shortfall of $170 million.
The adopted plan keeps open all 31 fire stations, funds 157 parks, and maintains 11 community centers and 11 swimming pools. It also keeps all Portland police officers and investigators on the job.
At the same time, the budget discontinues approximately 140 positions on the city payroll. After accounting for vacant positions, the city expects about 100 layoffs to begin Aug. 3. KPTV reported the budget was adopted with nine yes votes, two no votes, and one abstention.
Two new transportation-related charges are also set up for implementation starting in 2027: a Transportation Utility Fee that will be collected on water, sewer, and stormwater bills on or after Jan. 1, 2027, and a Street Damage Restoration Fee tied to utility trenching, also scheduled to be implemented by Jan. 1, 2027.
What stayed funded in FY 2026-27
In its adopted-budget summary, the city emphasized that it is preserving core public-safety and recreation facilities while it works through the financial gap. That includes:
- All 31 fire stations remaining open
- 157 parks, plus 11 community centers and 11 swimming pools
- All police officers and investigators continuing to work
The city said the overall balance comes from a mix of fund transfers, spending cuts, and new revenue—rather than a single solution.
What’s cut or changed: homeless services, parks operations, and police support
Among the biggest impacts in the adopted budget are reductions to homeless services, parks operations, and some police-related spending.
For homeless services, the adopted budget includes:
- Ending a $31 million transfer to Multnomah County to provide homeless services (Portland will provide those services directly instead)
- Cutting shelter services by $18 million (31%) to $40 million
- Reducing street outreach support by $1.7 million (37%) to $2.8 million
Other cut areas called out in the city’s adopted-budget summary include:
- Police: cutting $21.0 million in materials and services, technology, administrative support, and programs (including public safety support specialists)
- Fire: reductions totaling $4.1 million, including fewer hours for some teams
- Parks: reductions totaling $11.4 million, including operational efficiency steps such as reducing community center operating hours and maintenance reductions
Workforce impact: “140 positions discontinued” vs. layoffs starting Aug. 3
City officials describe the staffing changes with two related—but not identical—numbers: approximately 140 positions discontinued from the city’s payroll, and about 100 layoffs expected to begin Aug. 3 after accounting for vacancies.
Because the fiscal year begins July 1, residents may notice service and staffing adjustments over the summer, with layoffs expected to start later in the process.
New street funding in 2027: the Transportation Utility Fee
Ordinance 192171 creates the Transportation Utility Fee and ties collection to existing utility billing. The ordinance states the fee will be collected by the Public Works Service Area on the utility bill on or after Jan. 1, 2027.
The city projects typical household impacts of about $12 per month for a typical single-family home and about $8.40 per month for an apartment (per dwelling unit).
Low-income relief is addressed in the ordinance through multiple steps:
- People already enrolled in the existing low-income discount program for water/sewer will automatically receive a discounted Transportation Utility Fee.
- For eligible renters in multifamily properties, the city must develop an equivalent relief pathway, including a simple and accessible application process, and provide a report and recommendations to Council no later than Dec. 31, 2026.
For non-residential users, the ordinance directs PBOT to put in place an appeals process prior to the Transportation Utility Fee implementation date (Jan. 1, 2027) for relief when a business’s water-sewer-stormwater bill is disproportionate to its transportation impact based on regional averages for similar types of businesses.
New fee for trenching: Street Damage Restoration Fee starts Jan. 1, 2027
Resolution 37745 supports modifying street opening permits for utility excavation so the city can recover more than administrative and inspection costs—specifically costs related to long-term pavement degradation associated with excavation in the public right-of-way.
The resolution’s adopted “resolved” language supports a Street Damage Restoration Fee at a “100% damage recovery amount” as part of the Transportation Fee Schedule, with implementation by Jan. 1, 2027. The resolution’s background materials, however, also referenced a 75% damage-recovery rate before the council action shifted to the 100% amount.
The city’s budget summary projected this fee would raise $20 million, and said the revenue would be invested in pavement management, preservation, rehabilitation, and reconstruction.
What Portland residents should watch next
- Early 2027 utility bills: look for the Transportation Utility Fee line item first, since collection is tied to water, sewer, and stormwater billing on or after Jan. 1, 2027.
- Relief applications and appeals: the timeline for multifamily low-income relief and the non-residential appeals process matters for renters, landlords, and small businesses planning for the 2027 charge.
- Service and staffing changes this summer: even though the fiscal year starts July 1, layoffs are expected to begin Aug. 3.
Sources
- Portland’s adopted FY 2026-27 budget summary (June 18, 2026)
- KPTV vote-count coverage (June 18, 2026)
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