Salem city councilors on Tuesday voted to raise a monthly fee on residents’ utility bills alongside an increase in other city fees like those charged to reserve parks or get a hot air balloon permit. 

That came after an unsuccessful effort by Councilor Deanna Gwyn to exempt the “operations fee” on utility bills, which most councilors rejected given that it would increase the city’s already multi-million dollar general fund deficit by another $370,000.

The 2.5% increase would mean the average house pays $16.28 per month on top of water and sewage costs, up from the current $15.88. Rates for businesses and industrial operations would also increase.

The rate at which other city fees will increase varies, with many fees going up slightly.

The changes take effect July 1. 

“I can’t support that…I really struggle with this just because everything is so expensive and people just can’t afford it,” Gwyn said of the operations fee increase.

Gwyn was joined by Councilor Irvin Brown in voting to leave out the fee. Councilors Vanessa Nordyke, Micki Varney, Paul Tigan, and Shane Matthews joined Council President Linda Nishioka and Mayor Julie Hoy in voting against the amendment. 

The council then proceeded to vote unanimously to pass the fee schedule for next fiscal year. 

The routine fee increases are for city services and happen each year to help the city keep up with inflation when paying its bills. The city’s budget proposal assumes these fees will increase. 

They come after voters last week approved the city’s first operating levy to fund library, parks maintenance and Center 50+ operations.

“If we don’t accept this tonight our hole will be deeper tomorrow morning. And I know it doesn’t feel good to increase the costs of the services the city provides, but they are essential to the operation of our organization,” Tigan said.

Councilors discussed the possibility of increasing operation fees for commercial operations in the future as a way to lighten the load on residents. 

The city generates around 21% of income across all of its funds from 1,200 individual fees it charges businesses and residents to pay for services it provides, a staff report from Eggleston said. Those include park reservation and building permit costs.

Eggleston provided councilors with an overview of those fees and highlighted some new fees that have been added for the next fiscal year. Those include a new fee to help pay for ambulance transfers between facilities that will be necessary when the city’s ambulance system transfers from private provider Falck back to the Salem Fire Department beginning July 1.

When it came to increasing the operations fee councilors largely agreed the city needs the money. 

“That $370,000 would cover a lot of public safety positions or other essential positions and I am not interested in letting go of that revenue right now,” Nordyke said. 

Parking 

Salem City Councilors also voted unanimously to advance an ordinance that would set a 12 hours limit to on-street parking once the city’s new paid parking system goes online in July. 

The new parking pay station that will be installed downtown will have a 12 hour limit. Specific time limits will be set in specific parking zones Monday through Saturday beginning July 10, a staff report from Community Planning and Development Department Director Kristin Retherford said. The existing 3-hour free parking will be eliminated, the report said. 

Budget Committee Member Evan Manvel spoke before council during public testimony recommending some changes to the city’s new parking program as outlined in the ordinance. 

One recommendation Manvel had was to remove the city’s 2% cap on downtown parking fee increases because it is an example of a small decision that helps contribute to “structural budget deficits,” he said. 

Manvel said the city is prone to making a number of small decisions that combine to increase its financial woes. 

“Each decision has its merits and its reasons, but together they add up. It is easy for us to point fingers at measures 5 and 50, but we also have to point fingers at ourselves,” Manvel said. 

Manvel said the cap ensures future cuts to fire, police, parks and libraries down the road, and reminded council that the passage last week of a property tax increase to support the library, parks, and Center 50+ does not solve the city’s overall budget deficit. 

Other items

• Salem city councilors also passed an ordinance that affirms the city’s exclusive right to operate an ambulance service within city limits once the Salem Fire Department takes over service from private provider Falck on July 1. 
• Councilors also heard information reports on the Center Street Bridge seismic retrofit, and the Salem Civic Center improvement project.

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

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