Salem city councilors will hold a public hearing on the city’s 2027 budget during their Monday, June 8, meeting, offering the public a chance to weigh in before it heads to a final vote later this month.

The new budget, which dictates how much the city will spend on services like police, fire and the library, will take effect on July 1. 

Councilors will also discuss what issues they want their lobbyist to prioritize in the state capitol during the upcoming 2027 legislative session. They  will also discuss annual changes to city fees and charges. 

Councilors will also hold a public hearing on state revenue sharing funds for the next year, allowing residents to chime in on how the city spends state dollars.

Residents have a chance to weigh in on 2027 budget

What’s happening: 

• The city council will be considering its budget for the next fiscal year, which starts in July. They’ll be considering the recommended budget that the city’s budget committee approved on May 6.
• All councilors sit on the budget committee, along with other community members.
• The council is required by law to hold a public hearing before adopting a final budget, according to a staff report from Chief Financial Officer Josh Eggleston. Councilors can amend the budget after getting public feedback, but cannot increase property tax levies, or increase approved expenditures by more than 10%, including reappropriations. 
• After the public hearing, staff will prepare a final budget resolution with any changes, which will then be considered for adoption on Monday, June 22. The new budget will take effect on July 1. 

More on budget talks: 

• When the budget committee approved the new budget proposal, funding to replace the roof, gutters, siding, trim and paint on the city’s Navigation Center was accidentally omitted. That funding will be added into the budget that councilors will consider later this month. 
• The Navigation Center project is paid for using a state grant that is already earmarked for the project. 
• Also added on will be funding for bicycle lanes and pavement on State Street between Northeast 13th Street and Northeast 17th street. The budget will reflect an increase of $3.7 million for beginning working capital and $700,000 for construction contracts. 

Also before the council

Legislative priorities 

• Councilors will also consider approving its priorities and policy statements guiding the city’s advocacy work for the 2027 legislative session, a staff report from the city’s legislative committee showed.
• The committee consists of Salem Mayor Julie Hoy and Councilors Irvin Brown, Deanna Gwyn and Vanessa Nordkye. 
• A number of bills were highlighted by the legislative committee including bills related to public records and responses; public housing property management and operations; and technology, cybersecurity, data and artificial intelligence among others. 

Changes to city fees and charges 

• Each year the city’s finance department puts together a new fee schedule reflecting most city fees and sends it to council for consideration, a staff report from Eggleston showed.
• This year’s budget accounts for about $228 million in revenues generated from 68 revenue types and over 1,500 individual fees. In the next year, 20% of those budgeted revenues are expected to come from fees and charges. 
• City fees and charges can include for services like lien searches, code enforcement, ambulance contracting and fire safety, building permitting and inspections, parking rent, apartment licensing and more. 
• One notable increase includes between $1 and $2 more for city parking permits.  

State Revenue funds 

• Through a state revenue sharing program, 14% of state liquor revenues goes to cities, which have discretion on how those dollars get used, a staff report from Eggleston showed.
• In the past these funds have been used to support services paid for out of the general fund and to offset the cost of police patrols. 
• Salem residents will have the opportunity to comment on the proposed uses of state funds already included in the city’s 2027 budget. 
• The city’s budget committee recommended using $1.8 million in state funds to offset the costs of police patrols, which is consistent with past uses. 

Status on mayor and council motions  

• Councilors will get a report on the status of motions made by the mayor and city councilors from between January 2025 and May 2026, a staff report from Assistant City Manager Courtney Knox Busch showed. 

Contact reporter Joe Siess: [email protected]. 

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