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Portland City Council has delayed until November its vote on a controversial street fee after concerns were raised about how it would affect low-income residents and small businesses.

Also, the council on Wednesday pushed back until June 11 a vote on a charter amendment that would lock into place the use of revenues collected from the street fee. The amendment, if approved, would then be referred to voters on the Nov. 4 ballot.

In the meantime, a work group will be convened to assess ways to improve the street fee plan before the council’s scheduled vote on Nov. 12.

“A lot of people said they were concerned,” Mayor Charlie Hales said of the decision to delay the vote. “It’s time to work on some of the particulars.”

Hales blamed Congress for failing to index federal gas tax increases since 1993. The 18.4-cent gas tax, which provides for highway improvements, would be closer to 30 cents per gallon if it were indexed for inflation, he said.

The city often has had to choose either maintenance or new sidewalks, Hales said.

“We know this will have an impact on everybody, but it will hurt worse if we wait,” he said.

Under a plan pitched last week by Commissioner Amanda Fritz, the street fee would be phased in over three years starting in July 2015. Single-family households would pay monthly fees of $6 the first year and then $9 and $12 in ensuing years, according to Fritz’s plan. Low-income and multifamily residents would pay less over that time.

Businesses’ fees would be calculated via a formula based on business type – likely trips generated per month and square footage occupied.

Revenues generated by businesses would be scaled to match those by residents over the three-year period. The city estimates that it would generate $127.8 million in revenues over three years.

To calculate the amount that a business would owe under the proposed street fee, visit .