Portland

Metro:
Transit
Service
and
Finance

Portland, OR
Metro area:
Transit Service
and Finance
Linking Land Use, Transportation
and the Environment
Andy Cotugno Senior Policy Advisor |Metro | Portland, Oregon
Portland
Metro:
The Pacific Northwest
Transit
Service
and
Finance
Portland
Metro:
Transit Regional Context
Service
and
Finance
Portland
Metro: Regional Context
Transit
Service
2040 Growth Concept
and
Finance
• 50-year vision for
managing region’s
growth

• One region - many

communities

• Transportation is a
tool to reach land use
goals
Portland
Metro:
Transit 2040 Theme:
Service Growth in Centers
and
Finance

• Compact urban centers built to human scale

• Mixed housing and commerce served with good
transit
• Focus of civic activities and public services
• Parking ratios established
Portland
Metro:
Transit 2040 Theme:
Service Economy Vitality
and
Finance
• Maintain freight
mobility on
highways

• Ensure quality
freight access to
ports and industrial
areas from region’s
highway and rail
network
Portland
Metro:
Transit 2040 Theme:
Service Environmental Health
and
Finance • Network of natural
areas, parks, trails and
open spaces

• Protections for
streams and upland
natural areas

• Tools: Regulation,
Purchase, Incentives,
Education

• Reduce quantity and

improve quality of
runoff
Portland
Metro:
Transit 2040 Theme:
Service Protect Rural Areas
and
Finance
• Maintain tight Urban
Growth Boundary

• Create Green
Corridors along rural
state highways

• Mitigate urban
overflow on rural
routes

• Maintain rural
separation between
Metro region and
neighbor cities
Portland Metro’s Regional Transportation Plan
Metro: Non-SOV (Single Occupant
Transit
Service Vehicle) Goal
and
Large Centers
Finance 45-70%
Small Centers
& Main Streets
Neighborhoods 45-55%
& Industry
40-45%

Auto-Oriented Transit-Oriented
Portland
Metro:
Annual Transit Ridership
Transit
Service
and
Finance
Portland
Metro:
Annual Rides/Capita
Transit
Service
and
Finance
Portland
Metro:
Work Trip Mode Share
Transit 2009
Service
and
Finance
Single Occupant
Population Vehicle Transit
(SOV)

Portland-
Vancouver 2,241,000 75.8% 6.7%
Metro area

City of Portland 574,000 65.1% 13.2%

Source: US Census
Portland
Metro:
Light Rail (LRT/SLR) and
Transit
Service
Frequent Bus
and
Finance
Portland
Metro:
Transit Service vs. Cost
MAX/Rail, Frequent Bus, Other Bus
Transit
Service
and
Finance

39%
Portland
Metro:
Transit
Service
and
Finance
Portland Future High Capacity Transit
Metro:
Transit
Service
and
Finance
Portland Future Streetcar
Metro:
Transit
Service
and
Finance
Portland
Metro:
Transit
Transit Trends
Service
and
1996-2006  MAX provides 34% of
Finance
weekday transit trips
 MAX ridership has
increased 19
consecutive years
 96.9 million boardings
- 63 million bus trips
- 34 million MAX trips
- 315,500 average daily boardings

 23rd largest metro

with 8th largest
annual transit
ridership per capita
Source: TriMet, 2007
Portland Annual
Metro:
Transit Boarding
Service
and
Transit Rides
Finance per capita
Portland
Metro:
Daily Vehicle Miles
Transit
Service
Travel per capita
and U.S. and Portland
Finance 24
DVMT/ Person

Portland Only Portland-Vancouver U.S. National Average

18
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Portland
Transit Operating Funding
Metro:
Transit
• Payroll Tax – 55% of operating revenue
Service – 1972 -78: .3 to .5% of gross payroll
and – 1979 – 2004: .62% of gross payroll
Finance – 2005 – 2015: .62 to .72% of gross payroll
– Corporations, Self-employed, Municipal Government, State
Government (excludes Federal Government)

• Fares – 20% of operating revenues

– $1 to $2.35 cash fare
– 3-zones
– Monthly, Annual, Senior, Student Discount Passes

• Miscellaneous 25%: state & federal

grants; ads; local contribution; contracted
service.
Portland Transit Capital Funding
Metro:
Transit • Federal Formula Categories:
Service – Urbanized area - $32 million/year
and
– Fixed Guideway Modernization - $11 million/year
Finance

• Federal Discretionary
– New Starts – 50-60% of project cost ($400 – 800 million)
– Small Starts (Streetcar) – 25 – 50% of project ($75 million)
– Regional Flexible Funds – 5-15% of project cost ($18-100
million)

• State Discretionary (varies substantially)

– Lottery – 3 of 7 LRT routes: $114 million/12%
$250 million/17%
$ 35 million/22%
Portland Transit Capital Funding
Metro: (continued)
Transit
Service
and
Finance
• Local (varies substantially – higher on streetcar)
– Local Government General Fund
– General Obligation Bonds (TriMet and County)
– System Development Fees (building permit fees)
– Tax Increment Financing (Urban Renewal)
– Local Improvement District
– Parking fees and fines
– Land contribution in lieu of funding
– PDX Airport fees
Portland Revenue Observations
Metro:
Transit
Service
and
Finance • Payroll Tax
– Broad-based – surrogate for income tax but lower cost of
collection
– Very productive at low rate - .68% of payroll = $214
million/year
– Very cost-efficient to collect - .8% of tax collections on
businesses/2.5% of tax collections on self-employed
– Location of employees does not correspond to location of
service – large suburban employers don’t see the value
– Fluctuates with economy – big gains in boom years (10%
+) losses in bust years (-4%)
Portland
Metro:
Revenue Observations
(Continued)
Transit
Service • Property Tax
and
– Broad-based tied to asset value not income
Finance
– Very stable – increases 3%+/year
– Constitutional cap @ $15 per $1,000 of value
– Overcrowded by local governments and schools
– Good for GO Bonds - $10.9 million debt service on $125
million LRT Bonds = $.09 per $1,000 tax rate

• Sales Tax
– Broad-based
– Very Productive
– Regressive
– Fluctuates with economy
– Not available in Oregon; failed at ballot box repeatedly
Portland
Metro:
Revenue Observations
(Continued)
Transit
Service
and • Property benefitting taxes and fees
Finance – Requires creation of benefit district
– Directly relates to benefit to property
– Good link to development
– Every contribution negotiated – typically 1% of property
value paid over 20 years
– Rate steps down with distance from transit

• Development Fees (System Development Charges)

– Identified Capital Improvements to serve growth
– Rate tied to share of growth responsibility – typically trip
generation
– Collected at time of building permit
Portland
Metro:
Revenue Observations
(Continued)
Transit
Service
and
Finance • Urban Renewal (Tax Increment
Financing)
– Requires creation of urban renewal district
– Property tax assessments frozen for existing tax
collections
– Growth in tax base diverted to urban renewal district
– Provides cash flow to support debt for capital
improvements
– Capital improvements tied to redevelopment plan
– Transit capital improvements eligible
– Public tends to distrust at first
– Other tax collectors must support
Portland
Metro:
State Contribution
Transit
Service
and • Hit and Miss – Rural dominated
Finance
Legislature
• Lottery contribution uses a regressive
tax
• Flexing highway funds by region
consistent with regional vision
• Flexing highway funds by state loosely
tied to benefit to adjacent state
highway
Portland
Oregon Mileage Fee
Metro:
Transit
Pilot Project
Service • Group 1 – Control Group: Standard State Gas Tax @ 20 cents per gallon
and • Group 2 - VMT Group: 20 cents per gallon @ 20 mpg
Finance VMT Fee = 1.2 cents per mile for travel within
Oregon
• Group 3 - Rush Hour Group: 10 cents per mile for travel within congestion zone
during rush hour
.43 cents per mile outside congestion zone or outside
rush hour
RESULTS:
• VMT Group reduced total VMT 12%; Rush Hour Group reduced 14%
• Rush Hour Group reduced peak driving 22%
• Good public acceptance; minimal privacy concern
• Can be phased in – Legislature is considering for electric vehicles
• Piggybacks on gas tax collection system
• Little tax evasion potential
• Administration & Enforcement estimated at 3% of net revenue collected above gas
tax
• Final Report: http://www.oregon.gov/ODOT/HWY/RUFPP/docs/RUFPP_finalreport.pdf?ga=t
Portland
Metro:
VMT Fee: Sample Gas Receipt
Transit Leathers Fuels

Service 11421 SE Powell Blvd

Portland, OR 97266
and 06/09/06 12:45 PM
 
Finance Card: VISA
Batch# 00 Seq # 001
Account# 0007
TESTCARD/TEST
Approval 00000N
Trans# 882317
Unit# 00011661166
T# 091181206
 
Pump# 1 Unleaded
Gallons 19.50
Price/Gal $ 2.549
 

•Fuel cost:
 
$49.71
ST Fuel Tax $ (4.68)
*** ODOT VMT *** •Minus Gas Tax: $ 4.68
VMT Fee : 5.12
Sale Total $ 45.03 •Plus VMT Fee: $ 5.12
Rush Hour : 40.0 miles
In_Oregon : 280.6 miles
•Charge: $45.03
Non-Oregon : 0
 
Thank You!
Portland
Metro:
Learn more about Metro at
Transit
Service
and
www.oregonmetro.gov
Finance

Andrew C. Cotugno
Metro
503-797-1763
Andy.Cotugno@oregonmetro.gov