Beaverton residents will pay $14.50 more per month on their utility bills starting August 1, after the City Council approved two new fees to address a $16.2 million budget gap.

The charges break down to a $9.50 general services fee and a $5 street maintenance fee for a single-family residence. Together, they're expected to generate $8.6 million in the first year, according to a city staff report presented at the council's July 7 meeting.

And the bills won't stay flat. The general services fee increases 8% annually, rising to $10.26 per month in year two. The street maintenance fee climbs more steeply: $10 per month in year two, $15 per month in year three. The city has not specified the escalation formula beyond year three.

Why the fees exist

The council voted on Tuesday, July 7, to approve both charges. The general services fee passed 6-1, with Councilor Nadia Hasan casting the lone dissenting vote. The street maintenance fee passed unanimously, 7-0.

Interim City Manager Elizabeth Coffey framed the fees as a response to a structural revenue gap. "The challenges that we have is that the revenue is not keeping pace with our expenses," Coffey said. "On average, our property taxes grow anywhere from 3-3.8% per year, and expenses are growing at 6-6.7% per year."

Oregon's Measures 5 and 50 cap how fast property tax revenue can grow, squeezing Beaverton's primary funding source for police, public works, and other departments.

Mayor Lacey Beaty pointed to another constraint: Beaverton has no industrial land, unlike neighboring Hillsboro, which collects significantly more in property taxes from industrial properties. Beaty called the fee "the reality of where we are."

What the money funds

The general services fee preserves existing services, not new programs. That includes police response, library services, graffiti removal, planning and development review, and economic development, according to the city's fiscal sustainability page.

The street maintenance fee addresses a separate problem. State gas tax revenue, which funds the city's street fund, has plateaued as electric vehicles replace gas-powered cars, Coffey said. Meanwhile, repair costs keep climbing. Beaty described Beaverton's 212 miles of city roads as the city's top capital asset and said maintenance has been deferred for years.

Cuts came first

City officials emphasized the fees follow years of belt-tightening. Since the 2022-23 fiscal year, Beaverton has reduced expenses by $11 million and eliminated 42 staff positions.

Council President John Dugger said he struggled with the 8% annual escalator on the general services fee but ultimately supported it "because we have a revenue problem."

The two fees are part of a broader revenue package for the city's $384 million FY 2026-27 budget. Other measures include a new photo enforcement camera projected to bring in $1.3 million and planning and development fee adjustments worth $1.6 million. Combined with additional budget adjustments, the package totals $13.5 million in new revenue.

Residents will see the first charges on their August utility bills.