Mayor Julie Hoy voices support for property tax increase during State of the City address 

Mayor Julie Hoy endorsed a property tax increase that will appear on Salem voters’ May ballots during her State of the City address on Wednesday where she also acknowledged that the city’s fiscal woes are largely outside of its control.

The speech, Hoy’s first State of the City since taking office in January, marked a departure from her campaign rhetoric, which focused largely on the need to spend city resources more efficiently and identify areas of waste.

She addressed a crowd of hundreds over lunch at the Salem Convention Center, as the city’s seven councilors sat next to her onstage. 

 “We remain committed to being fiscally responsible and transparent with our community, and I sincerely hope for your support as we move forward with the livability levy,” Hoy said. 

She described the overall state of Salem as strong, touching on economic development successes, a boom in building permits for new apartment buildings and the growing number of businesses investing in the community.

“We continue to work alongside Salem’s development community to remove barriers to building more housing, providing more clarity around permitting, and connecting developers with incentives to construct affordable housing,” Hoy said. 

After Hoy concluded her address, the audience stood and applauded.  

Hoy mentioned some of the chaos and uncertainty surrounding federal funding following President Donald Trump’s efforts to freeze or cancel trillions of dollars in funding authorized by Congress. 

“The mere mention of federal resources begs the question, ‘What is happening and how might it impact Salem?’” Hoy said. “I am frustrated as many are with unanswered questions. These are unsettled times.” 

Hoy expressed her desire for better collaboration between the city, state and Marion and Polk counties. She discussed the homelessness and cost of living crises, citing city efforts to incentivize affordable housing development as one way Salem is helping.

“Many in our community are struggling,” Hoy said. “Homelessness is a complex issue, and it’s crucial that we address it with compassion and urgency.” 

She mentioned City Manager Keith Stahley’s recent resignation, which occurred after she began speaking with city councilors about their thoughts on his performance. The city issued multiple conflicting statements following his abrupt departure, which Hoy described on Wednesday as a “leadership transition.”

“While leadership changes can present challenges, they also offer us an opportunity to pause, reflect, and ensure we’re heading in the right direction,” Hoy said. “Despite these transitions, I can confidently say that the state of our city is strong. I’m working closely with my fellow council members and city staff to ensure a seamless transition, and I’m excited about the work ahead. It’s an all-hands-on-deck kind of moment at the city.” 

In her discussion of city finances Hoy outlined steps city leaders have taken to review the city budget, including convening an efficiencies task force of business and nonprofit executives earlier this year.

She endorsed that group’s report, which found the city’s budgetary woes are mostly due to rising employee benefit costs and stagnant property tax revenues.

“After their thorough review, they found that while we’re operating with fewer resources than many of our peer cites, there is no evidence of waste,” Hoy said.

As a solution to Salem’s $14 million projected budget deficit, city leaders are asking voters in May to approve a property tax increase that would fund parks, library, Center 50+ and other livability services. 

Hoy told the group that voting for the measure is also voting for public safety. She said the city’s police and fire unions have endorsed the levy. 

“Public safety is a priority for us all. We have heard the people of Salem loud and clear,” Hoy said. “Public safety remains our number one priority, and the proposed levy will actually help to preserve the general fund for essential services like police, fire, and emergency medical response over the next five years.” 

Hoy said if accepted by voters, a committee would be established to provide oversight on the levy funds which will undergo yearly audits. The committee would also provide the council with an annual report. 

However, Hoy also said local economic development remains strong, touting the Mill Creek Corporate Center and the expansion of Salem’s airport to incorporate commercial air service among other milestones. 

“These are just a few examples of the economic progress happening here in Salem, and I want to give credit where credit is due,” Hoy said. “These efforts have been years in the making, and I want to extend my sincere congratulations to everyone involved.”

Hoy also touched on Salem’s drinking water and how the federal government’s efforts to reduce water levels at Detroit Lake for preservation purposes could affect Salem’s water supply. 

In her speech she stressed that times are challenging but struck a positive note in her call for the community to come together.

“This moment we’re in is unlike any other. It’s a time for us to come together, focus our priorities, and work to make a lasting, positive impact on our city,” Hoy said. “Collaboration, partnership, and a collective commitment to progress will be key to our success.”

READ IT: Mayor Hoy’s full State of the City speech

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

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