TO: Mayor and City Council
THROUGH: Krishna Namburi, Interim City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
City of Salem Fiscal Year 2025 Quarter 3 Financial Report
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance
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SUMMARY:
summary
The Fiscal Year (FY) 2025 Quarter 3 (Q3) Financial Report reflects all activity posted through the closed months ending March 31, 2025.
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ISSUE:
Information only.
RECOMMENDATION:
recommendation
Information only.
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FACTS AND FINDINGS:
The quarterly reports compare budget to actuals as well as year-over-year changes for the General Fund, all other City funds, and information on position vacancies.
The Q3 report for the City reflects financial activity from July 1, 2024, through March 31, 2025.
At the end of Q3, citywide resources totaled $798,727,914 and expenditures were $363,204,865.
On the first page of the City’s Q3 report, the General Fund activity shows resources by category and expenditures by department.
General Fund resources through March totaled $181,922,770. Over 46% are from property taxes, which is the largest source of revenue in the General Fund. Overall, resources received are 86.8% of total budgeted amounts. Beginning working capital is lower by 4.2% compared with last fiscal year as a portion of fund balance was spent to pay for services in FY 2024.
The largest expenditure category in the General Fund is personal services totaling $103,933,821 or 80.2% of total expenditures. So far, 73.1% pay periods have been completed. The second largest expenditure category is materials and services totaling $24,371,122 or 18.8% of total expenditures. Overall, General Fund expenditures are 67.8% of budgeted amounts. At the end of Q3, Police and Fire comprise the majority of expenditures by department, Police at over $46 million or 35.6% and Fire at nearly $37 million or 28.5%.
The second page shows Q3 activity for all other City funds. The Utility Fund had the most expense at over $91 million or 39.2% of total other fund expenditures. This is expected as the Utility Fund is the second largest operating fund.
The last page shows a summary of position vacancies across the organization. The total number of authorized positions to start the period in January 2025 was 1,423.50 full time equivalent (FTE) and no new positions were added through March 2025. The quarter started with vacancies of 184 FTE and ended with 176 FTE. The funds with the largest number of vacancies at the end of the quarter were General Fund with 65 FTE, Emergency Services Fund with 59 FTE, and the Utility Fund with 30 FTE.
One nuance is that while most career positions added in the Emergency Medical Services Fund for the City to begin ambulance transport services remain vacant, 13 Single Role EMT and 15 Single Role Paramedic employees have been hired but are working as seasonal employees. These employees are currently in training until being deployed as full-time career employees on July 1, 2025.
BACKGROUND:
The Budget Office has provided quarterly reports to the Budget Committee and published them online for the public for over a decade. These reports are typically provided to the Budget Committee at their winter and spring meetings when they review the forecast and budget. During adoption of the FY 2025 budget, City Council requested that these reports be provided directly to the City Council within 45 days of the end of each quarter.
Emese Bihari
Management Analyst II
Attachments:
1. City FY 2025 Quarter 3 Financial Report