City of Portland finds $540 million of unexpected revenue for climate projects
Hundreds of millions of dollars the City of Portland didn't expect are on the way over the next five years and will soon be invested throughout the city for various climate projects.
PORTLAND, Ore. (KOIN) — Hundreds of millions of dollars the City of Portland didn't expect are on the way over the next five years and will soon be invested throughout the city for various climate projects.
The city says much of the money will go into climate-driven programs already established like the tree canopy and changing the city's fleet to electric vehicles, but some bigger projects could also be on the horizon.
A surprise boost to the City of Portland's coffers, $540 million in unanticipated energy funds will go back into much-needed areas throughout the city. But how did it happen in the first place? The Clean Energy Community Benefits Fund — passed by voters in November 2018 — anticipated much lower revenue five years out and the additional money came to light by the city's budget office.
"As the revenue started to come in once the program actually matured, we saw the revenue forecasts were not consistent with what we were actually seeing on the actuals," Donnie Oliveira, director of the Bureau of Planning and Sustainability, said.
On Wednesday, city leaders made the announcement, adding that this gives the budget a boost for further investing in climate work across the board, from replacing gas-powered leaf blowers to replacing the Portland Streetcar fleet for better efficiency and even retrofitting existing affordable housing.
"It's not just the emissions, it's also how we're getting people around, it's the investment in the infrastructure to be responsive to heat domes and extreme weather patterns," Oliveira said.
Over the next five years, around $40 million will go to those affordable housing energy-efficient upgrades and repairs, with the hopes of also lowering utility costs for vulnerable residents. Down the line, another $100 million will go to building green affordable housing as the city combats the housing crisis. Millions will also go to the future Keller Auditorium.
"This is the perfect opportunity to leverage the work we already have a longtime investment in and making sure it reaches further and that it was greener," Portland City Commissioner Carmen Rubio said.
The city says they'll look at the funds again in a year or two if more of the retailers paying this tax continue to see boosted revenues.
"We'll approach that with an open mind about the opportunities to invest in our communities," Oliveira said.
As for the next steps, all of the proposals outlined Wednesday will still need to go through the Portland Clean Energy Benefits Fund committee and then to the city council for approval.