Oregon Cities Push for More Infrastructure Funding & Homeless Camp Removal Powers!

Race Day Live  Oregon cities are asking the state government for more funding to improve roads, water systems, and sewers.

They also want more control over homeless camps and flexibility in using hotel tax revenue. City leaders made these requests during their biannual City Day at the Capitol.

However, their discussions were briefly overshadowed by an announcement that the Trump administration planned to cut federal funding for states and cities.

Some of the cities’ requests, such as increased infrastructure funding, have support from both Democrats and Republicans. However, rolling back state laws that limit cities’ ability to remove homeless camps may face resistance in the Legislature.

Last June, the U.S. Supreme Court ruled in favor of the city of Grants Pass, allowing it to enforce a law that bans homeless people from using blankets or cardboard for protection while sleeping outdoors.

Previously, a lower court ruled that such laws were cruel and violated the U.S. Constitution. However, the Supreme Court decision gave cities the power to regulate homelessness.

Following this ruling, many cities across the country created stricter rules against homeless camping. However, Oregon cities must still follow a state law from 2021, which limits how cities can restrict homeless people from sleeping in public areas.

According to this law, restrictions must be “objectively reasonable” in terms of time, place, and manner. Homeless individuals can also sue cities if they believe the restrictions are unfair.

Grants Pass is now facing a lawsuit from Disability Rights Oregon and the Oregon Law Center. The lawsuit was filed on behalf of five disabled homeless individuals.

The city had designated two campsites for homeless people but later closed one and limited hours at the other, leaving many people without a place to stay.

North Bend Mayor Jessica Engelke, president of the League of Oregon Cities, said the cities do not want to criminalize homelessness. Instead, they want clearer guidelines on how they can regulate homeless camping.

The term “objectively reasonable” is open to different interpretations, leading to confusion for both city officials and homeless individuals.

Lawmakers are also discussing changes to state law. One idea is to require anyone filing a lawsuit against a city to provide a clear explanation of why an ordinance is unreasonable, giving the city a chance to fix the issue before a lawsuit is filed. Three bills have been introduced to repeal the 2021 law, but none have been scheduled for discussion yet.

Oregon cities are also pushing for more money to improve infrastructure, especially water and sewer systems needed before building new homes.

In 2023, the Legislature approved nearly $100 million for infrastructure projects, but city officials say much more is needed.

Bend Mayor Melanie Kebler said her city needs $66 million to install two major sewer pipes. Because Bend sits on lava rock, underground construction is more expensive than in other areas.

Once the sewer project is complete, the city plans to build over 1,200 homes and create 2,800 permanent jobs. Other cities across Oregon have similar housing projects on hold due to a lack of infrastructure funding.

Gov. Tina Kotek and legislative leaders agree that infrastructure funding is a priority. Kotek said she plans to include infrastructure investments in the state budget to help cities build more housing.

House Speaker Julie Fahey added that many cities, including Eugene, have land available for new housing, but development is delayed due to a lack of water and wastewater systems.

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Another major concern for cities is the restriction on how they can spend hotel tax revenue. A law passed 20 years ago requires 70% of new hotel tax revenue to be used for tourism marketing. City officials say this rule is outdated and prevents them from using funds for critical needs.

Toledo Mayor Rod Cross said this law made sense 20 years ago when tourism needed more promotion. However, now that tourism is thriving, cities need the flexibility to use some of the revenue for essential services like road repairs and emergency response.

In places like Newport, where the summer population can grow from 10,000 to 50,000, city services struggle to keep up. The police department has only 28 employees, which is not enough during peak tourist seasons.

Cross argues that allowing cities to use more hotel tax revenue for infrastructure would benefit both residents and tourists.

Well-maintained roads, parks, and public services would make cities more attractive to visitors, leading to long-term tourism growth.

Oregon cities hope lawmakers will consider their requests during the next legislative session. While some proposals may face challenges, city leaders are determined to push for changes that will improve infrastructure, housing, and public services across the state.

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