Opinion: Affordability in Portland is facing death by a thousand cuts

Weinstein, Bob

For OregonLive/The Oregonian

Weinstein is a retired teacher, a former U.S. Senate staffer, and a former longtime mayor of Ketchikan, Alaska. In 2024, he also ran for District 4 on the Portland City Council.

Working families in Portland are being squeezed from all sides, and City Hall continues to tighten the screws. There is more to what we are seeing than a string of regrettable price hikes. It is the outcome of city officials’ persistent inability to oversee the budget and make plans for upcoming requirements. Unfortunately, through constant tax and fee increases, the new 12-member Council is carrying on the tradition of imposing its failure on citizens and small businesses.

The Portland City Council has authorized or proposed a slew of additional fees in recent weeks, which together reduce affordability. The Council most recently decided to put a parks levy on the ballot for November. However, the Council is proposing a 75% rate increase, which would raise the tax from $0.80 to $1.40 per $1,000 of assessed value, rather than asking voters to accept a straight renewal at the present rate. This is in addition to the property taxes that Portland residents already pay, which are raised annually to fund basic city government operations due to a 3% increase in assessed value.

According to the ballot proposition, a property owner whose property is valued at the median of $221,600 will have to pay $310 annually for parks, which is $133 more than it is now, or roughly $11 per month. That might make sense. However, the monthly impact on a taxpayer whose property is valued at $400,000 will be far worse, as their annual payment will increase to $560, which is more than $46 per month, or a $20 monthly increase.

Furthermore, only $2 million of the estimated $86 million in annual revenue from the tax increases will be used to solve the city’s backlog of significant park maintenance, which is estimated to be worth over $600 million. This is minuscule compared to the rest. Though taxpayers have paid much more, parks and recreation centers will still probably have to close because of dangerous circumstances.The Council had the option of limiting the tax’s size while increasing the share of the proceeds allocated to capital maintenance, or it could have arranged the charge to prioritize vital infrastructure. Asking struggling residents for further information was the easiest route to do instead.

And that’s only the start. The city authorized a 6.34% increase in water, sewage, and stormwater services as part of this year’s annual budget. The Water Bureau’s enormously overbudget endeavor to construct a water filtration plant, whose cost has tripled to $2 billion, is at least partially to blame for that surge. Where is the responsibility? Councilors merely passed the expense on to ratepayers instead.

To make matters worse, parking meter prices have increased and business hours have been extended from 7 p.m. to 10 p.m., which is detrimental to nearby establishments who aim to draw in evening clients. The cost of a ride-share just tripled, going from 65 cents to $2. Permit costs for electrical, plumbing, mechanical, and residential and commercial projects were raised by 5% in July. It’s easy to see that City Hall has no intention of changing its ways and continues to reach into the same pockets.

The fact that the burden is not limited to the city highlights yet another basic governance shortcoming: the total lack of coordination amongst the various governmental levels. A startling 33% increase in health inspection costs for eateries and lodging facilities was authorized by Multnomah County. This is not a small adjustment; rather, it is a significant financial setback that may endanger the tenuous recovery of our neighborhood eateries and lodging facilities, according to the Oregon Restaurant & Lodging Association.

Where are officials from the city, county, Metro, and Portland Public Schools communicating with each other regarding the overall effects of their decisions? Where is the regional affordability strategy that takes into account how school district levies, county fees, municipal permits, and Metro taxes all end up on the same kitchen table? A larger lack of leadership is reflected in this compartmentalized style to governance, where each jurisdiction handles its own issues without considering the citizens who must deal with and bear the costs of them all.

They are not taxes on wealth or luxury. Seniors on fixed incomes, working families, and renters are the groups most affected by these unfair fees and charges. Every additional expense makes it more difficult to raise a family, remain in Portland, and trust that affordability is a top concern for those in authority.

The city needs to stop treating its citizens like ATMs if it is to rebuild trust and make Portland livable for the middle class. Affordability is the totality of all government-imposed expenses, not only rent or mortgage payments. More families will be priced out of the city they love until our leaders acknowledge that.