TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Public hearing on State Revenue Sharing funds
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Safe and Healthy Community.
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SUMMARY:
summary
The state revenue sharing program allocates fourteen percent of state liquor revenues to cities, which have discretion on the use of the revenue. Historically this revenue has been used to support General Fund services and offset the cost of Police Patrol.
The purpose of the public hearing is to provide residents an opportunity to comment on the proposed uses of state revenue sharing funds in the Approved FY 2027 City of Salem Budget.
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ISSUE:
Shall the City Council adopt Resolution No. 2026-19 electing to receive a share of certain revenues from the State of Oregon General Fund?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2026-19 electing to receive a share of certain revenues from the State of Oregon General Fund.
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FACTS AND FINDINGS:
Notice of this public hearing was published on May 26, 2026, in the Salem Reporter. Residents have had an opportunity to review the Budget Committee’s possible uses of state revenue sharing funds since notification.
The Budget Committee recommended that the FY 2027 budget for state revenue sharing funds of $1,807,100 be used to offset the costs of Police patrol. This is consistent with how these funds have been budgeted and used in past years.
To receive state revenue sharing funds in FY 2027, the City must certify to the State of Oregon before July 31, 2026, the following:
1. The two required public hearings on both the possible and the proposed uses of state revenue sharing funds have been held;
2. The City of Salem levied property taxes in FY 2025-26; and
3. A City Council resolution is adopted electing to receive the revenue.
BACKGROUND:
To receive state revenue sharing funds in FY 2027, State of Oregon law (ORS 221.770) requires the City to certify by resolution or ordinance to the State of Oregon that two public hearings have been held on the uses of the funds. The first hearing must cover the possible uses of state revenue sharing funds. The Budget Committee held an initial public hearing on April 29, 2026. During the public hearing, no member of the public testified on the possible uses of revenue sharing funds in the FY 2027 budget.
The second hearing must cover the proposed uses of state revenue sharing funds (the hearing before the City Council tonight). This second hearing precedes the City Council approval of the proposed uses of the funds through the adoption of the FY 2027 City of Salem Budget on June 22, 2026.
Kelli Blechschmidt
Management Analyst II
Attachments:
1. Resolution No. 2026-19