Bend Streets Funding


Bend has a pavement management strategy to maximize cost effectiveness of preservation and maintenance. Regular preventive maintenance extends the life of a street and costs less over time. Every $1 spent on preservation saves $5 for rehabilitation or $12 for reconstruction.

See the 5-Year Street Maintenance Plan - with and without Fuels Tax revenues.

street maintenance map

Watch the presentation given at the February 29 Fuels Tax Informational Open House.

Needs crackseal for $10K per lane mile:

crack seal





Needs overlay - $91K per lane mile:









Needs reconstruct - $422K-$633K per lane mile:








During the recession, the City cut back its pavement preservation work. Continually increasing traffic volume has added to streets’ wear and tear. The City of Bend has accumulated $80 million worth of deferred street maintenance needs and road conditions are declining.

Existing funds are not keeping up with the growing backlog of deferred street maintenance.

The City of Bend has one of the lowest property tax rates in the state. State law restricts Bend’s ability to increase the permanent property tax rate. As a result, the City has limited property tax income and has to make decisions about allocating resources. Property taxes in Bend - the General Fund - pay primarily for the Fire Department, Police Department and Streets.

Other street funding comes from federal and state gas taxes. However, the federal gas tax rate hasn’t increased in 22 years. In Oregon, the gas tax has increased only once in the past 22 years.

Some street maintenance and improvements are paid for by the City’s share of state-allocated revenues, which includes the state fuel tax. This revenue is based on a formula that includes Bend’s permanent population but does not account for the impact of tourism on city streets.

Following input from a citizen advisory group, called the Street Maintenance Funding Committee, the City Council allocated more of the General Fund from property taxes to street funding. The Street Maintenance Funding Committee also noted a need for additional, sustainable funding to keep road conditions from declining and to maintain streets in the most cost-efficient way.

The Council chose to put a 5-cent per gallon fuel tax on the March 8 ballot. Local fuels taxes must be approved by voters. Twenty four other Oregon cities have approved a local gas tax.

If the measure is approved, residents and tourists would pay the 5-cent per gallon fuel tax that would generate an estimated $2.5 million annually.

There are many factors that influence the price of gas, a fuel tax being just one. The cost of a 5-cent per gallon tax to a consumer who fills a 20-gallon tank three times in a month would be $3/month.

The 5-cent per gallon tax proposed in Measure 9-105 would provide funding for preservation of City streets, including repair and maintenance. Proceeds could only be used for street preservation purposes. City streets include bike-lanes, sidewalks and curb ramps.

If approved, the measure would take effect on July 1, 2016. If the measure is adopted, the fuel tax would expire if not reauthorized by the City’s voters by June 30, 2026.