Council opts to present voters with lower of two proposed property tax increases
Listen to the audio version of this article (generated by AI).
The Salem City Council will ask voters to approve the lower of two proposed property tax increases to fund the library, parks and Center 50+.
The council decided on Monday to pursue a five-year tax levy which would cost the average Salem homeowner about $229 a year. Councilors will formally vote to put the levy on the ballot at a Feb. 24 meeting. Voters would then decide on the measure in May.
Ahead of the decision, councilors heard from dozens of Salem residents who shared their support of the tax increase with written and spoken testimony, their ages ranging from elementary school to seniors.
The microphone was lowered for Zoey and Hannah Harper, sisters who came to testify.
“I like when my parents bring me to the library to read me some books. Please support the library,” Zoey said.
The vast majority of public testimony, about 45 minutes in person and over 50 pages written, supported the levy options. Many said that though they’d pay a higher rate, they believed a lower rate would have the best chance of passing given Salem’s constrained household budgets and a lack of trust between the city council and constituents.
Councilors discussed two proposed levy rates, either $1.09 or $.98 cents per $1,000 of assessed property value. Both options would prevent cuts to Center 50+, parks maintenance, recreation programs and the city library while adding back hours cut from the library in 2024. The more expensive option would have added additional library employees and more hours.
Councilors unanimously approved moving forward with the lower rate.
It would raise a projected $14 million in 2026, enough to address the $13.8 million budget shortfall in the next year.
The shortfall will grow faster than the levy’s income. The levy is projected to bring in around $16 million a year by 2030, when the budget deficit will have grown to around $24 million, according to the city’s five-year forecast.
If approved in May, the levy would return to Salem voters for approval every five years.
The money would allow city leaders to restore hours at the main library branch from 38 to 48 hours a week, and double the West Salem branch’s opening hours to 20. The library hours were cut in January 2024.
The funding would also help lessen the impact of citywide cuts to other departments, including police and fire.
In voting for the lower rate, several councilors echoed the sentiments of those who testified. The higher rate would have added additional library hours.
“We need to maximize the chances of this passing. To many people in this community, that difference is a huge financial difference. Ninety-eight cents and not a penny more,” Councilor Vanessa Nordyke said. “We have to recognize given the mood of this city right now that we are already asking a lot of them.”
In the coming weeks, councilors will continue to tweak language on a draft ballot to go before voters. Councilor suggestions included making language clearer for the amount it would cost families per month, and clarifying phrasing that the funds would only be allocated to the library, parks and Center 50+.
Representatives of the Friends of the Salem Senior Center, Salem Parks Foundation and Salem Public Library Advisory Library Board shared support of the levy during public testimony, and said they’re ready to launch a campaign in support of the levy.
During the meeting, Mayor Julie Hoy said she supported the levy amount. Throughout her mayoral campaign, she said the city could largely stem its budget deficit through “efficiency and effectiveness.”
Last week, a new city committee of financial executives confirmed what’s been clear through over a year of budget meetings: cutting costs alone wouldn’t plug the budget deficit.
Ward 3 resident Rachael Atchison during her testimony said that without a library, parks or senior center, Salem would be “a dried up husk of a place.”
She asked the city council to take risks, and be fervent in their support of the levy.
“We have a mayor who was recently elected on a campaign which denied that there was a budget crisis, and called for no new taxes. For this levy to pass at any dollar amount per thousand, it will especially require her vocal energetic support. It is the people who voted for Julie Hoy that will probably need the most convincing,” Atchison said. “My hope is that she not only understands what political capital is, but is actually willing to spend some advocating for this levy.”
Councilors indicated that, even if passed, the levy would be just part of an effort to address the city’s deficit, alongside longer term options, like the $7 million payment from the state that Salem lawmakers are seeking in the state legislature.
Councilor Shane Matthews said he wants voters to have clarity from the beginning that the levy won’t fill the whole deficit.
“The only way to protect the other things in the general fund will be potentially passing other revenue of some form,” he said. “Voting for this does not fully fix the problem, voting for this is only a piece.”
Contact reporter Abbey McDonald: [email protected] or 503-575-1251.
A MOMENT MORE, PLEASE– If you found this story useful, consider subscribing to Salem Reporter if you don’t already. Work such as this, done by local professionals, depends on community support from subscribers. Please take a moment and sign up now – easy and secure: SUBSCRIBE.
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.
