Facing millions in budget shortfall, the city of Salem must either find new revenue options or make cuts to essential services. Their decisions in the coming weeks could make or break the budget for years to come.
On Wednesday, April 19, Salem’s Citizen Budget Committee will hold its first of four meetings to consider the City Manager’s proposed $749.6 million budget for 2024, and make adjustments before the city considers adopting it in June.
The committee includes Mayor Chris Hoy, all eight city councilors and nine residents who review city financial reports and forecasts, adopt the city’s property tax rate and recommend budgets to the City Council.
The proposed budget seeks to expand service and address dwindling general funds set to run out by June of 2025, leaving no money to cover payroll on existing essential services.
The budget includes a proposed increase to the city operations fee on resident’s utility bills starting July 1, with revenue going to add park rangers, code enforcement, downtown security and Salem Outreach and Livability Services staff.
The city is also considering a payroll tax, which would come from employee paychecks for work done within the city, which councilors discussed during a work session on April 5.
The committee’s first meeting will be Wednesday, April 19, at 6 p.m. in the Salem City Council Chambers, 555 Liberty Street S.E.
Public written testimony is due to [email protected] by 3 p.m. Wednesday, or in-person during the meeting. To comment remotely, sign up online between 8 a.m. and 2 p.m. on Wednesday.
The meeting will be livestreamed to the CC: Media YouTube Channel.
Jim Scheppke, a local activist and former state librarian, submitted his analysis of data comparing Salem to other cities of similar size and services, which found that the library has 34 fewer staff than the average for comparable libraries in Oregon, and operates with much less funding.
He said it has resulted in reduced hours and programming, and questioned the requests for dozens of additional staff in the police and fire department.
“Yes, other city departments may be understaffed, but no other Salem city department is grossly understaffed, offering terribly substandard library services that unfortunately Salem citizens have come to accept,” Scheppke said.
Mary Nikas, chair of the Marion County Democratic Central Committee, submitted a resolution the committee unanimously passed which opposed the proposed city operations fee increase.
The committee asked the council to consider the impact that large businesses and institutions, such as Costco, Willamette University and the Capital have on city resources compared to individual homeowners and renters.
“The City Operations Fees being charged to homeowners and renters, when compared to the pittance charged to multi-billion dollar businesses and institutions, is grossly unfair and inequitable,” the resolution said.
After Wednesday, the budget committee will meet to work on the budget once a week, on April 26, May 3 and May 10. On April 26, they will hold a public hearing about the Capital Improvement Plan, a five-year forecast of major projects, and review the Salem Urban Renewal Agency’s budget.
In advance of Wednesday’s meeting, Salem Reporter asked every city council member via email to weigh in on the options, and the process.
Linda Nishioka – Ward 2
During the April 6 work session, city staff laid out three potential options to address the budget issues the city faces. Which option, if any, do you currently favor?
“We are still in our budget session discussions. I believe the best choices for increasing revenue will come forth over the next few weeks.”
The options include a payroll tax that Salemites would see taken from their paychecks. Do you support exempting low-wage Salemites, an idea that Councilor Nordyke brought up during the discussion?
“Again, there is much to discuss and consider over the next few weeks. We want to hear from our constituents on this and other budget and revenue matters.”
What have you heard from constituents about this possible new tax?
“The constituents that I have spoken with understand the budgetary challenges Salem faces due to Ballot Measures 5 and 50. All Oregon cities are facing the same revenue issues and trying to figure out how to grow out of the financial box that these measures have put us in. Most may not like paying more, but they all want continued services.”
Under the proposals, most of the new funding would go to new services or expansions, beyond sustaining existing levels of services. How would you explain to your constituents a plan to expand city services when there is concern the city currently expects it can’t pay for services already in place?
“Salem has had growth over the last 15 years. Along with this growth is an increased need for services. If we do not increase revenue then services that Salemites receive may no longer be available.”
Is raising revenue the only practical way to maintain city spending?
“Yes, raising revenue is the only practical way to maintain services.”
Jose Gonzalez – Ward 5
During the April 6 work session, city staff laid out three potential options to address the budget issues the city faces. Which option, if any, do you currently favor?
“Increasing the city utility fee.”
The options include a payroll tax that Salemites would see taken from their paychecks. Do you support exempting low-wage Salemites, an idea that Councilor Nordyke brought up during the discussion?
“I would not be opposed if it was a temporary option but I don’t want these people to get trapped. The way low income programs work, all combined, make it hard for people to rise out of.”
What have you heard from constituents about this possible new tax?
“A few understand but most don’t think it will make a difference and do not want their taxes raised, since almost every aspect of their lives has been affected from high inflation.”
Under the proposals, most of the new funding would go to new services or expansions, beyond sustaining existing levels of services. How would you explain to your constituents a plan to expand city services when there is concern the city currently expects it can’t pay for services already in place?
“I would share what the city tells us but I would prefer we find a way to close the gap first.”
Is raising revenue the only practical way to maintain city spending?
“It might be, I have not seen any other options and we’ve asked for ideas staff has to trim current spending to help but I haven’t seen them.”
Micki Varney – Ward 8
“At this very early point in the decision-making process I haven’t made a decision favoring one option or the other. They all have their advantages and disadvantages and I am still mulling over additional options as well as tweaks to what has been proposed so far. A portfolio approach would provide sustainability. I believe that whatever decision is made will be a hardship on many, including me. But, I have a responsibility to ensure the city has the resources it needs to provide essential services to residents, to maintain an infrastructure system adequate to serve Salem’s growing community, to address the top concerns identified by Salem residents: homelessness and crime, all while ensuring that the City of Salem has a balanced budget. Doing nothing is not an option. I also have a duty to the residents of Salem to utilize whatever communication and research tools I have available so that I can make the most responsible and forward-looking decision I can. That process includes conferring with the budget committee, the finance committee, and community members through multiple forums. The community has put their trust in us (City Councilors) as policy decision makers; I certainly do not take that responsibility lightly.”
Mayor Hoy and Councilors Virginia Stapleton and Julie Hoy said it was too early in the budget and community outreach planning process to answer the questions about the proposal.
Councilors Trevor Phillips, Deanna Gwyn and Vanessa Nordyke did not respond before Salem Reporter’s Monday deadline.
Update: This story has been updated to include statements submitted Monday evening by Councilors Linda Nishioka and Julie Hoy. Data from Jim Scheppke has been updated to compare Salem’s library staffing levels to cities within the state, rather than nationwide.
Contact reporter Abbey McDonald: [email protected] or 503-704-0355.
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Abbey McDonald joined the Salem Reporter in 2022. She previously worked as the business reporter at The Astorian, where she covered labor issues, health care and social services. A University of Oregon grad, she has also reported for the Malheur Enterprise, The News-Review and Willamette Week.
