Salem city councilors to vote Monday on putting $14 million tax levy on May ballot 

Salem city councilors will vote Monday on putting a property tax increase on the May ballot which, if accepted by voters, would help the city balance a nearly $14 million budget deficit and avoid drastic cuts to city services. 

If voters reject the measure at the ballot box, city leaders say they will have no choice but to make sweeping cuts to city services, which could include shutting down a fire station, taking police off the streets, and significantly reducing or eliminating services at the library, parks, and Center 50+. 

The levy would generate roughly $14 million in the first year, according to a staff report from City Attorney Dan Atchison. 

It would increase property taxes by 98 cents per $1,000 of assessed property value or about $230 annually for the average homeowner in Salem. Tax rates are based on a home’s assessed value, which is typically about half of its market value.

What to know as Salem City Council decides on tax levy to pay for library, parks

The passage of the levy would free up other money in Salem’s general fund, which pays for most city services including police and fire. Although levy money could only be spent on the library, parks and Center 50+, it would help avoid cuts to city services across the board. 

The sudden departure of former Salem City Manager Keith Stahley last week cast a shadow of uncertainty over the levy’s future given the city manager’s integral role in budgetary planning. 

Stahley was slated to turn in a budget for fiscal year 2026 to council in the spring. 

The council will also hear from a 9-member budget efficiencies committee composed of local business and nonprofit executives tasked with reviewing Salem’s spending and revenue. After a series of four meetings in recent weeks, the group concluded that there is no excessive waste and inefficiency is basically nonexistent, and that Salem is doing more with less compared to its peer cities. 

Budget efficiencies committee confirms no widespread waste or inefficiency in city budget

The budget efficiencies committee, which met five times between Jan. 29 and Feb. 12, concluded Salem’s budget challenges stem from systemic issues largely outside of the city’s control, according to a letter to the mayor and council.

The group conducted a high-level examination of the city’s budget to search for ways to save. The group was joined by Stahley, the city’s Chief Financial Officer Josh Eggleston and Budget Manager Kali Leinenbach who provided expert knowledge on the city’s finances. The group “did not find inordinate waste among the city general fund operations,” the committee wrote in its letter signed by all nine members. 

The committee said external factors such as the increasing burden of paying out employee retirement benefits, and the fact that property tax rates have been frozen by law since the 1990s create a situation where rising costs continue to outpace revenue. 

“This is not to say that opportunities for efficiency do not exist. Most large organizations have some opportunities for greater efficiency. We do see some opportunities, and urge pursuit of them,” the committee said. “But, we see the inefficiencies as a result of systems and budgetary constraints, rather than a result of the people themselves. In fact, we find that at least some staff are seeking ways to save costs wherever possible (e.g. pausing purchasing of equipment/fleet or avoiding new hires if potentially unnecessary to fill).” 

The committee also urged the city to do whatever it can to avoid negative community perceptions of city government, and said residents have the wrong idea about the city’s finances and stewardship of tax dollars. 

“We believe the community perception is inconsistent with this reality, and it would benefit both the citizens and city staff and officials to find ways to effectively communicate this truth to the community,” the group wrote. 

Other items

City councilors will hear a presentation on an Oregon Department of Transportation project to seismically retrofit the Center Street Bridge which spans the Willamette River connecting Center Street NE with West Salem. The proposed project is likely to occur in two phases due to funding constraints, Public Works Director Brian Martin said in a staff report.

The first phase of the project will have a budget of between $130 million and $200 million, and the second phase between $130 million and $190 million. Funding for phase one will be a combination of funds allocated through a transportation bill that passed the legislature in 2017 and other resources, the report said. Construction on the project is expected to begin in 2026.

Contact reporter Joe Siess: [email protected] or 503-335-7790. 

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.