Salem City Council votes unanimously to put property tax increase before voters in May

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Salem city councilors voted unanimously Monday to put a property tax increase before voters in May that, if passed, would help pay for the public library, parks maintenance, and programming at Center 50+. 

If voters accept the five-year levy, property taxes would increase by 98 cents per $1,000 of assessed property value, or about $229 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. 

The tax would generate about $14 million in fiscal year 2026 and that money would go specifically toward restoring hours at the public library that were cut in 2024 and maintaining Salem’s parks and Center 50+. 

Though the money isn’t earmarked for public safety, it would free up money in the city’s general fund to pay for police and fire, which also face potential cuts if the levy fails. The city is struggling to balance a nearly $14 million budget deficit.

Councilors voted after expressing their support for the levy prompting applause from members of the public in attendance. The levy has been a major focus of council meetings for months.

Mayor Julie Hoy spoke in support of the levy after campaigning for mayor saying the city needed to cut waste and look for efficiencies before seeking more taxes. At the time, she attributed the city’s budgetary woes to mismanagement and poor stewardship of tax dollars.

Her change of heart came in part after an efficiencies committee of business and nonprofit executives reviewed city spending over the past month. The committee found that there is no widespread waste happening in the city, and that much of the city’s budgetary woes are caused by factors largely out of its control. 

The committee’s findings are significant given widespread public distrust of city government which poses a significant challenge for the city as it prepares to launch a campaign to gain voters support of the levy in May. 

Hoy said she was filled with gratitude for the committee’s work and hopes that its findings will help create a better understanding and trust with the public. 

“When I decided to run for council I had a lot of comments from the public about how the city is doing it wrong. About how there is something really wrong. That there can’t be this kind of deficit. And I wanted answers for that. And the only way to really get it is to have the people who seem to know which questions to ask to come in and have a look,” Hoy said. 

Hoy said she hopes the committee’s findings can be widely communicated.

“So that we can stop casting doubt on what’s going on behind the curtain and start to move forward effectively and for the right reasons,” Hoy said.

Leading up to the vote on the levy, Hoy said one reason she supports asking voters to approve the property tax increase is because the levy funds will be separate from the general fund and will be audited regularly to ensure taxpayer dollars are being used as intended. 

“This is one of those pieces. Building trust in the community. With the community. And I am hopeful for the outcome,” Hoy said. 

Hoy said in her monthly newsletter Monday morning that she urges voters to accept the levy and that she was moved by the outpouring of public support for the city services and programs that it would preserve. 

About ten people sent in public comment leading up to the city council meeting, largely in favor of the levy. Several other people spoke during public testimony, also largely in favor. 

Ryan Erickson-Kulas of the Highland Neighborhood Association said getting the levy passed is a crucial step in keeping Salem a city with strong public resources. Erickson-Kulas was not speaking on behalf of the neighborhood association but as a Salem resident.

“The city of Salem faces a $13.8 million budget deficit. That is math and math doesn’t lie. If we do nothing we risk devastating cuts to essential services,” Erickson-Kulas said. “Some citizens have suggested deeper reviews of budgets…but that has already occurred again and again.”

However, one resident, Jessie Preis urged the city council during public testimony not to vote to put the levy on the ballot.

“I believe it would be a waste of everyone’s time, energy and money when it is destined to fail at this time,” Preis said. “Mayor Hoy just spent two campaigns convincing voters we needed trust, transparency and no new taxes.” 

Preis said the city should focus more on building back trust with residents before asking voters to vote for a tax increase. 

“Please hold the line this year. Rearrange the way some things are currently organized, earn

back a bit of trust from citizens, and make some hard choices,” Preis said. “Perhaps next year we will have some solid plans for a long-term fix that might have a chance of being approved.” 

The city measure won’t be the only property tax measure on local ballots.

In addition to the Salem city tax increase in May, Salem voters will be asked to approve a $140 million bond to fund Chemeketa Community College construction projects over the coming years. 

That measure replaces an expiring tax, so it would keep tax rates flat if voters approve it. Voters in November rejected the college’s first effort to seek funding.

Voters in West Salem will also see a Polk County levy to support fairgrounds operations on their ballots.

The Salem property tax increase has already gotten an endorsement from the Marion County Democrats.

“A strong possibility exists that reopening these services will be harder for Salem than voting yes to temporarily fund their continuance, “Marion County Democrats Chair Paige Barton said in a statement. “The city needs these five years to work on a long-term solution.”

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

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