TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Adoption of the fiscal year (FY) 2027 City of Salem budget
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
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SUMMARY:
summary
The City of Salem budget for FY 2027 is required to be adopted by Oregon budget law prior to July 1, 2026. Adoption of this resolution will allow authorized spending to occur in the coming fiscal year.
end
ISSUE:
Shall City Council adopt Resolution No. 2026-31 to adopt the FY 2027 City of Salem budget?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2026-31 to adopt the FY 2027 City of Salem budget.
body
FACTS AND FINDINGS:
Resolution No. 2026-31 and Exhibit A (Attachments 1 and 2) establish an expenditure budget of $824,560,640 as represented in the display below.
Working capital: $436,159,010 Expenditures: $824,560,640
Revenues: $699,953,920 Unappropriated Balance: $311,552,290
Total Resources: $1,136,112,930 Total Expenditures: $1,136,112,930
The City of Salem FY 2027 City Council Amendments Summary (Attachment 3) provides a financial summary of budget changes following the Budget Committee approval.
Rebudgeted Purchase Orders and Reappropriated Expenditures
Each year, the City reviews and carries over budget authority from one fiscal year to the next for some equipment or services. Carryovers occur for purchases or projects that are started but will not be completed before the end of FY 2026 and additional expenditure authority is needed to pay for those purchases or projects in FY 2027. City Council authorized budget appropriation for these outstanding purchases as part of the FY 2026 budget or through a mid-year action. A detailed list of carryover items for the General Fund totaling $314,310 are shown in Attachment 4 and carryovers for other funds are shown in Attachment 5. These amendments were reviewed and remain within the 10 percent limit for changes to the Budget Committee’s recommendation for each affected City fund as prescribed in Oregon budget law.
Working Capital
For the FY 2026 budget, the additional working capital for reappropriated purchase orders, projects, and items is considered restricted because of the addition of equivalent expense. With the approval of the carryover requests, General Fund working capital will increase from the Budget Committee recommended amount of $33,017,150 to $33,194,080.
Additional Budget Adjustments
After the Budget Committee approved the FY 2027 budget, it was determined that a project to replace the roof, gutters, siding, and trim as well as paint the exterior of the Navigation Center was inadvertently omitted from the budget. Budget appropriations have been increased for both beginning working capital and construction contracts in the Capital Construction Fund by $700,050. The project will be funded by an existing State of Oregon grant that can only be used for the Navigation Center.
This adoption report also adds the State Street: 13th Street NE to 17th Street NE Bicycle Lanes and Pavement project back to the budget as it is an active and ongoing construction project. This addition increased budget appropriations for beginning working capital by $3,697,010 and construction contracts by $700,000. This project was removed during the Budget Committee process so that Councilors with a conflict of interest as determined by the Oregon Government Ethics Commission could participate in voting and deliberations on the budget.
BACKGROUND:
This spring, the Budget Committee reviewed and discussed the proposed budget and forwarded the approved budget to City Council on May 6th. There was also a public hearing held on the budget at the June 8th City Council meeting.
Kali Leinenbach
Budget Manager
Attachments:
1. Resolution No. 2026-16
2. Resolution No. 2026-16, Exhibit A
3. City of Salem FY 2027 City Council Amendments Summary
4. City of Salem FY 2026 Carryovers for the FY 2027 Budget, General Fund
5. City of Salem FY 2026 Carryovers for the FY 2027 Budget, Other Funds