Why is the City proposing to increase the SMF?

Whether you are walking, running, riding, or rolling, roadways and pedestrian facilities need to be safe and accessible for all. The City aims to invest in more projects for our community to safely navigate city streets, sidewalks, and pathways.

Currently, Lake Oswego has more than $94 million in unfunded pathways projects. Pathway projects prioritized by the City’s Transportation System Plan that involved minor infrastructure improvements have been completed. The remaining prioritized projects require greater funding to address this vast need.

Increasing the SMF will create an increased stream of funding to enable several prioritized projects to move forward each year. These projects can include creating new pedestrian facilities to improve the accessibility and safety of the Lake Oswego community.

What are the proposed SMF rate increases?

Proposed rate increases per category:

Category Current Rate per Month
(FY 2023-24)

Proposed Rate per Month
(FY 2023-24)

Rate Increase per Month
Single Family $10.70 $16.30 $5.60
Multi-Family $7.70 $11.60 $3.90
     Group I $6.60 per 1,000 sqft $10.00 per 1,000 sqft $3.40 per 1,000 sqft
     Group II $14.70 per 1,000 sqft $22.30 per 1,000 sqft $7.60 per 1,000 sqft
     Group III $54.70 per 1,000 sqft $83.30 per 1,000 sqft $28.60 per 1,000 sqft


How is the SMF calculated?

The Street Maintenance Fee is based on the number of trips a property type (single family home, multi-family housing, and commercial) generates, thus the impact to our transportation infrastructure. The rate of each category is based on the trip generation value for each category of property as determined by the Institute of Transportation Engineers. More information on how the SMF is determined can be found here.

When was the SMF created?

In 1994, Oregon passed legislation to authorize transportation utility fees, also called street maintenance fees, road user fees, or street utility fees, to expand the ability of local jurisdictions to generate funds for infrastructure projects.

In 2002, the City Council established a goal of identifying and implementing a sustainable funding source for street maintenance. November 2003, the Lake Oswego City Council approved a Street Maintenance Fee as the preferred, consistent, and reliable source of funding for the City's street infrastructure investment.

Nearly 20 years later, the Street Maintenance Fee is an integral part of our overall transportation funding, creating roughly 1/3 of the total revenue for the Street Fund.

What are neighboring cities’ SMF rates?

Many cities throughout Oregon have adopted transportation utility fees to support their roadway infrastructure maintenance, including our neighbors in the Portland metro area, such as the following:

City of West Linn

Street Maintenance Fee contributes to the maintenance and repair of its public street system, consisting of 107.5 miles of roadway. The SMF typically adjusts every July 1. In recent years, there has been a 5% annual increase to keep pace with inflation.

Rate as of July 1, 2021
     Single Family 
$15.25/month ($183.00/year)
$13.10/month ($157.20/year)
Commercial and Public Properties
     Home-based Businesses
     0 to 50 Trips
     51 to 250 Trips
     251 to 500 Trips
     501+ Trips
$8.28/month ($99.36/year)
$8.28/month ($99.36/year)
$0.92/trip per month
$1.11/trip per month
$1.28/trip per month
Rate Maximums and Caps
     Commercial Maximum
     Public Institution Maximum


City of Oregon City

Pavement Maintenance Utility Fee is adjusted annually for inflation by no more than 3% per year. Since 2013/2014, the PMUF has increased by 3% each year.

Category Rate for Fiscal Year 2021/22
     Single Family 
$14.63/month ($175.56/year)
$9.98/month ($119.76/year)
$0.236 multiplied by the number of applicable trips per day based on type of use and building square footage
Fee based on number of students


City of Hillsboro

Transportation Utility Fee contributes to the maintenance and repair of more than 240 miles of roadway and the Public Work’s Transportation Division’s Bicycle and Pedestrian Capital Improvement Program. The TUF is reexamined no less than once every five years and rates were last adjusted in March 1, 2020.

Category Rate as of March 1, 2020 Base Charge (Non-residential Only)
     Single Family 
$9.11/month ($109.32/year)
$8.20/month ($98.40/year)
     Category 1
     Category 2
     Category 3
     Category 4
     Category 5
     Category 6
     Category 7
$0.27 per 1,000 sq. ft
$0.73 per 1,000 sq. ft
$2.32 per 1,000 sq. ft
$5.26 per 1,000 sq. ft
$14.67 per 1,000 sq. ft
$37.50 per 1,000 sq. ft
$0.06 per 1,000 sq. ft


City of Tigard

Street Maintenance fee contributes to the maintenance and repair of 147 miles of street.

Category Rate as of July 1, 2022
Residential (Single and Multi-family) $7.96 per unit per month
Non-residential $2.61 per minimum required parking space per month


Who approves the SMF increase?

The City Council will vote on the proposed SMF increase in December 2022.

How will the increased funds be used?

The additional funding will be used for projects like pathways, sidewalks, pedestrian safety improvements, ADA accessibility and compliance, and more. This will allow for improved connectivity to community amenities, such as parks, the Library, schools, public transportation, and businesses. This aligns with Council goals and community priorities.

One example of a project currently funded by SMF funds is the planned pathway on Douglas Way. For more information on currently funded pathway projects, visit the 2022 Pathways Program website.

Did the Council consider other funding options?

Yes, the Council also considered a General Obligation Bond. After careful discussion, the Council determined that increasing the SMF was the best option for creating an increased source of funding for the continuous improvement of Lake Oswego’s infrastructure without having to increase property taxes.

What if I can’t afford to pay my utility bill?

If you receive your utility bill from the City of Lake Oswego and are struggling to pay it, you may be eligible for income-qualified utility assistance. To learn more, please contact Utility Billing at 503-635-0265 or utility@lakeoswego.city.


Photo: New ADA compliant pathway.

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