Despite numerous challenges facing Portland, Mayor Keith Wilson struck an optimistic tone during his first annual State of the City speech on Friday, May 2.

Although the city’s economy is still recovering from pandemic-related disruptions and is facing a hostile Trump administration, Wilson said he believes the state of the city is “rising” to meet the challenges.

“I’ve never been more optimistic about Portland’s future and our ability to solve the issues we face. I continue to believe our best days are ahead of us and the Portland Renaissance we all want is at hand,” Wilson said at the traditional address hosted by the City Club of Portland at Franklin High School.

A transcript of his speech was provided to the Tribune prior to the event.

Wilson had no previous political experience when he took office in January along with the new 12-member City Council elected under the City Charter reforms approved by Portland voters in November 2020. He said all of them are committed to working together with shared values, which is necessary to counter the executive orders signed by President Trump that run counter to what Portland stands for.

“Like all of you, I have followed developments in the federal administration with deep concern. It is increasingly clear that if we fail to act, we risk mission takeover by an administration that does not share our values or compassion. Our shield against federal overreach and cruelty is our ability to work together swiftly, effectively and with shared purpose,” Wilson said.

Adding to the challenge is the $93 million general fund shortfall that will require spending cuts and fee increases to balance the city budget before it takes effect on July 1.

Wilson will not release his proposed budget until Monday, May 5. More coverage can be found at PortlandTribune.com.

But Wilson previewed some of his decisions at the May 2 speech. Among other things, he promised to keep community centers open. And he is not proposing to use the flush voter-approved Portland Clean Energy Fund to prop up city bureaus, as recommended by some councilors.

“There are many different types of leadership. One of the most important is green leadership. Green leadership means restoring the original promise of the Portland Clean Energy Fund. We voted for the Portland Clean Energy Fund to meet our climate goals, pure and simple,” Wilson said.

Some layoffs will result from consolidating central services of bureaus that are now overseen by a professional city administrator. Many bureaus have long had their own communications offices, human resources departments and similar core functions. They will be merged into units that serve all bureaus, which will require fewer employees, Wilson said.

Despite the pending layoffs, Wilson also will propose some staff increases. They include adding $1 million and 14 new positions to expand the operating hours for Portland Street Response and to support the Public Environment Management Office that deals with graffiti, illegal dumping and abandoned cars.

Wilson also promised to support additional hiring at the Portland Police Bureau and its missions to stop human trafficking and other crimes.

“If we want the response times we once had, our budget must reflect that funding. We’re also continuing to support the Office of Violence Prevention and Ceasefire, both of which have helped turn the tide on homicides in Portland,” Wilson said.

Addressing both the related affordable housing and homelessness crises also were high on Wilson’s agenda. He touted the joint proposal from Oregon Gov. Tina Kotek announced Thursday, May 1, to ask the council to waive construction-related System Development Charges for the next three years or 5,000 housing units, whichever comes first. These fees can be tens of thousands of dollars and are often a difficult cost to bear early in a housing project.

“Let me be clear on what I want to accomplish: in the next 36 months, I want to spark $2.7 billion in housing production. That will add 5,000 new front doors across every income level,” Wilson said.

Wilson also remained committed to creating enough overnight indoor shelters for every homeless person in the city by the end of the year, a major campaign promise. He admitted the challenge has increased since he took office because Multnomah County now is using a different tracking system, which has identified 7,000 homeless people in the city, far more than previously reported. But Wilson said the alternative being pushed by the Trump administration is unacceptable.

“President Trump has vowed to forcibly move those living unsheltered into government camps. Every one of my leadership meetings starts with a countdown to Dec. 1. That’s the day we’ll have a safe bed available for every Portlander, every night. There are 213 days remaining. We will not leave our neighbors on the street to suffer through another winter,” Wilson said.

The plan is expected to cost $28 million. The Metro Council voted on Thursday, May 1, to give the city $15 million in regional Supportive Housing Services funds. Multnomah County has agreed to contribute $10 million and Wilson said he believes the 2025 Oregon Legislature will cover the rest.

“No single government body can solve this crisis alone. That’s why I’m calling on — and working with — all our partners to join us. That includes the state, Metro, regional county governments, community leaders, businesses and nonprofits. We have to lean in, and every dollar we spend on unsheltered homelessness must restore quality of life for all,” Wilson said.

During the speech, Wilson cited several upcoming projects that he believes will help the city recover. They include: the reopening of the main building at the Portland Mercado in Southwest Portland that caught fire in January 2023; the upcoming James Beard Public Market in downtown Portland that will be home to almost 40 businesses showcasing Oregon foods and beverages; a $43 million investment by Daimler Truck North America into their advanced engineering facility in North Portland; and the effort to attract a Major League Baseball team with a new stadium located along the west bank of the Willamette River in South Waterfront.

Wilson also said that, contrary to the Trump administration, Portland welcomes foreign trade.

“After all, Portland’s economy is shaped by many factors, but our engagement in the global trade sector is essential to our long-term success. To our international allies — in cities and countries around the world — let me be very clear: Portland values you. We welcome trade, collaboration and partnership. This city is unwavering in its commitment to breaking down barriers — not building them. We support open, inclusive trade, cultural and educational exchanges, and the promotion of international tourism. Portland is not represented by those who would close our doors to the world. We stand for connection, cooperation, and shared prosperity” Wilson said.