This story was updated on Tuesday, Oct. 29, following the council meeting.
Salem city councilors on Monday unanimously approved two new three-year union contracts covering most civilian city workers and police sergeants. The contracts are expected to cost the city about $25 million over three years, mostly due to wage increases and benefits, and come as Salem faces a substantial budget deficit.
Additionally, councilors unanimously approved pay increases for police leadership for this year, including increases for some union employees. The police leadership pay increases are expected to cost the city about $210,000 this year, and for union-represented employees the estimated cost to the city $325,000.
Councilors did not discuss the contracts or pay raises prior to approving them.
Councilors also unanimously authorized the removal of the brick sign at the Salem-Keizer border which is consistently destroyed by crashing drivers costing thousands of dollars in repairs.
Union contracts – APPROVED
Councilors unanimously approved a three-year union contract between the city and the American Federation of State, County and Municipal Employees, the union representing most city employees outside the police and fire departments.
The contract covers about 620 workers, union President Steve Hall said.
Hall said the union is not ignorant to the city’s budget woes and said the situation remains a concern.
“If the general fund continues to have issues and there ends up being layoffs down the road, the people that are still here need to be compensated to the point that they are willing to stay in the city. Otherwise the floodgates are opened,” Hall said. “If there is some uncertainty on job security and your pay is not keeping up after Covid and with inflation, then the city may have more problems. Because you are losing skill sets and people that have been here a while who might be willing to walk. We are trying to avoid as much of that as possible knowing full well that the more money we get in our contract, the more that may impact the general fund.”
The new contract is expected to cost the city about $22.5 million over its life, a staff memo said. In the first year it will cost $4.3 million, in the second year $7.6 million and $10.5 million in third. City officials anticipate the first year costs will be absorbed by department budgets for fiscal year 2025.
It immediately provides employees with a 7% cost of living increase in wages retroactive to July 1, a staff memo said. Employee wages will then be increased by 4% in the second and third year of the contract.
Employees will also get increased disability insurance coverage, training pay incentives, and severance pay for certain employees.
Negotiations between the union and the city began in February 2024 and a final tentative agreement for the three-year contract was reached during mediation on Oct. 1. Union members ratified the agreement on Oct. 23, the memo said.
Councilors also unanimously approved a new three-year union contract between the city and the union representing police sergeants, which will provide employees wage increases, and other benefits. The police union contract is expected to cost the city $2.1 million over the course of the three years.
The contract means police sergeants will get a 7% pay increase retroactive to July 1, the staff memo said.
In the second year of the contract, employees will get another 4% pay increase. Starting in January, the contract will also change the amount employees pay for health insurance to $65 per pay period, rather than 5% of pay.
City councilors also unanimously voted to approve pay grade changes increasing pay for city employees who are not represented by a union, including high ranking police department employees, and some union-represented employees for the next fiscal year.
The pay increases for high ranking police employees include raises and other benefits for the deputy police chief and police lieutenants. The police chief will not receive a raise, but will get enhanced retirement benefits. The police pay increases were proposed as a way to maintain equity within the department, encourage opportunities for promotions, and to improve employee morale, the memo said.
The pay increases are estimated to cost the city $210,000 for police employees, and $325,000 for union-represented employees this year. Those costs will be absorbed into this year’s budget.
Pay proposed for emergency medical services personnel – APPROVED
The city council also accepted a pay schedule for the 60 new full-time emergency medical services positions created in preparation for the city’s takeover of Salem’s ambulance services from private provider Falck.
In March, city councilors unanimously approved bringing emergency medical services inside the Salem Fire Department. The transition goes into effect on July 1, 2025, the date the city’s contract with Falck lapses.
In the meantime the fire department will be busy recruiting, hiring and training the new employees. According to the staff memo, a full time emergency medical technician will make between $22.38 and $30.47 depending on experience and the type of shift worked. Paramedics will make between $30.75 and $41.86 per hour depending on experience and type of shift. Emergency medical services trainers will make between $39.36 and $50.24 per hour.
Sign removal – APPROVED
The problematic brick Salem-Keizer gateway sign at the intersection of North River Road, North Stark Street, and Northeast Broadway Street will be getting torn down soon after city councilors unanimously voted in to remove it.
The sign, which is attached to a large circular brick structure situated on a traffic island, will be replaced with more conventional signs that can easily be replaced if destroyed by an errant driver.
The current sign dates back from the 1990s and it has been repaired multiple times in the past three years costing the city around $72,000. The sign has been damaged in crashes at least once a year since 2021 and the costs to repair it tend to increase with each crash.
The sign was first struck by a drunk driver in 1995, a year after it was completed, causing extensive damage. The sign was rebuilt but then another driver crashed into it in 1997. Over the years, city staff attempted to avoid crashes by installing more reflectors, turf instead of asphalt and other features to help drivers avoid the obstacle.
Both Salem and Keizer officials have discussed tearing down the sign which declares the two neighboring cities are “working together.” In August, Keizer City Manager Adam Brown said in a public statement that he spoke with Salem City Manager Keith Stahley about the sign, and that both agreed the sign should be taken down.
Fixing the sign would have been Salem’s responsibility because it’s within city limits, but Keizer provides electricity for the property. The repairs have typically been paid for by Salem’s transportation fund, which is mostly funded through state gas taxes.
Other items
- On Monday, city councilors approved a resolution to redesignate the city of Salem Electronic Commerce Zone. The Electronic Commerce Zone is a state incentive in the Enterprise Zone boundary to encourage businesses that are predominantly internet based. Salem has carried the Electronic Commerce Zone designation for over 20 years, and the Enterprise Zone incentive for 30 years.
- City councilors also authorized the city manager to submit a grant application for the Environmental and Climate Justice Community Change Grant Program in partnership with the Mid-Willamette Valley Community Action Agency. If successful, the city would enter into an agreement with the U.S. Environmental Protection Agency to accept the funds. The city’s application would consider a $12 million project to build resilience hubs which would be used to service the community during non-emergency times and to provide essential services and shelter during emergencies and severe weather events. The application will also consider $8 million for projects intended to provide energy efficiency upgrades for low-income housing.
CLARIFICATION: This story was updated to clarify the Salem Police Chief did not receive a 4% raise for the current fiscal year but will only receive enhanced retirement benefits.
Contact reporter Joe Siess: [email protected] or 503-335-7790.
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Joe Siess is a reporter for Salem Reporter. Joe joined Salem Reporter in 2024 and primarily covers city and county government but loves surprises. Joe previously reported for the Redmond Spokesman, the Bulletin in Bend, Klamath Falls Herald and News and the Malheur Enterprise. He was born in Independence, MO, where the Oregon Trail officially starts, and grew up in the Kansas City area.