TO: Mayor and City Council
FROM: Keith Stahley, City Manager
SUBJECT: Consideration of the Revenue Task Force recommendations and next steps to achieve sustainable city services.
title
Consideration of the Revenue Task Force recommendations and next steps to achieve sustainable city services.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Natural Environment Stewardship; Safe and Healthy Community; Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy; Welcoming and Livable Community.
end
FACTS AND FINDINGS:
At the July 15, 2024 City Council work session, the Revenue Task Force recommendations were presented by four members of the Revenue Task Force. These recommendations included near-term options consisting of a business license fee, franchise fee increases, and an increase to the urban renewal frozen base. The medium-term options included a local option property tax and a personal income tax. The long-term options were payment in lieu of taxes, intergovernmental agreements, and property tax reform. Attachment 1 to this report includes the full Revenue Task Force recommendation packet and additional information on these specific measures.
Council took no action at the July 15, 2024 work session and agreed to return at the next scheduled work session to continue the discussion. Questions to address include:
1. How do we build trust, understanding and support for the services and programs we provide?
2. What is the problem that we’re trying to solve and what are we hoping to accomplish?
3. Should we develop a work plan and budget to engage with our community?
4. Should we poll our community to understand what voters may be willing to support?
5. When is the best time to have a funding measure on the ballot?
Staff will be prepared to support council’s consideration of the Revenue Task Force’s recommendations and discussion of next steps towards creating more sustainable city services.
BACKGROUND:
In 2023, the City Council held multiple work sessions on continuing General Fund services and forming a Revenue Task Force. On November 27, 2023, Salem City Council formed a Revenue Task Force. At their December 11, 2023, City Council approved the Revenue Task Force Charter and discussed membership selection process and timeline. On January 22, 2024, Salem City Council approved the slate of 25 members and two alternates for the Revenue Task Force.
Keith Stahley
City Manager
Attachments:
1. Revenue Task Force Recommendations