TO: Mayor and City Council
THROUGH:
FROM: Krishna Namburi, City Manager
SUBJECT:
title
Recommendation to create a social service pilot program.
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
If approved by City Council, a one-time social service pilot program in the amount $200,000 would be created before June 30, 2026. Funds would be granted directly to area partners to provide needed services to the community. Eligible uses for the pilot program would include housing assistance, access to healthcare, reducing food insecurity, and legal aid.
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ISSUE:
Shall the City Council authorize the creation of a social service pilot program and approve resolution no. 2026-5 transferring $200,000 within the General Fund?
RECOMMENDATION:
recommendation
Authorize the creation of a social service pilot program and approve resolution no. 2026-5 transferring $200,000 within the General Fund to fund the pilot program.
body
FACTS AND FINDINGS:
On January 14, 2026, the Budget Committee adopted the following motion “Direct staff to reestablish the social services fund to include funds to support our vulnerable members of the community, including housing insecurity, food insecurity, and those impacted by immigration.”
The need in the community is real and substantial. Residents are experiencing disruption and uncertainty in their daily lives. Despite an increase in demand for assistance over the past year, the resources available to community providers and the City have diminished, including funds to support families in need to reduce their housing or food insecurity, provide financial support for legal assistance, or to reduce the impact of increasing cost of healthcare.
In response to the Budget Committee’s recommendation and to address the identified community needs, staff proposes an approach that commits City resources to provide timely assistance and relies on community partners that are trusted by the community and experienced in administering these types of programs.
Pilot Program.
In line with the City’s budget philosophy, new programs with on-going costs should only be undertaken if there is a sustainable funding source. If sustainable funding is not available, a one-time or pilot program may be initiated if one-time funds are identified.
Reestablishing the social services fund anticipates the availability of on-going funding that has not been identified. Staff will evaluate reestablishment of the social services fund as part of the FY 2027 City budget development.
Source of Funding for the Pilot Program.
The proposed $200,000 will address urgent needs in the community.
To fund the pilot program, staff recommends salary savings from specific vacant positions in two areas: Airport and City Manager’s Office. These vacant positions need to be held open at least until July 2026 to realize salary savings.
Airport salary savings. The General Fund has an annual transfer to pay for the staff added for commercial air service in the Airport Fund. If approved, $100,000 of that transfer will be reallocated to this pilot program based on airport positions that are currently being held vacant. The savings from these vacant positions is currently dedicated to a potential minimum revenue guarantee (MRG) for a commercial airline in Salem, as approved by City Council in 2025. It is unlikely that the City will execute a service agreement with an airline by July 2026 or spend the funds on an MRG during that period. Therefore, by continuing to hold these positions vacant to July 2026, the City may redirect these savings to the pilot program without jeopardizing funding for the MRG. This does not reduce the City’s three-year commitment to MRG, but it shifts the expenditure by five months, to begin July 1st, 2026.
City Manager’s Office salary savings. The remaining $100,000 will come from salary savings by holding open a vacant Manager III position in the City Manager’s office through June 2026. Not filing this vacancy will result in continued higher workloads for existing staff and impact the City’s ability to be efficient and proactive in carrying out its work. Holding that position open into FY 2027 is not sustainable.
Program uses.
In line with the Budget Committee’s recommendation, staff recommends that use of the funding be dedicated to housing assistance, access to healthcare, reducing food insecurity, and legal aid. These categories reflect the needs identified by community service providers during the City’s discussions with them as directed by Council in the Emergency Declaration concerning immigration enforcement.
Housing Assistance
$50,000 of the funding would be allocated directly to the Salem Housing Authority (SHA) to fund security deposits and other upfront costs for renters. Currently many Section 8 voucher holders are unable use their vouchers to obtain housing because they lack the available funds to pay for these upfront costs. Lowering barriers would leverage current housing assistance programs and allow residents to obtain housing quickly. SHA has periodically offered this barrier removal program as funds have been available and can provide these funds to the community quickly with relatively little administrative burden. Approval of the staff recommendation would allow the City and SHA to quickly execute a grant agreement allocating $50,000 to SHA to support the barrier removal program.
Healthcare costs, food insecurity and legal aid
Community partners have advised the City that aside from housing, the greatest needs in the community are addressing healthcare costs, preventing food insecurity and access to legal aid. The staff recommends that the City execute grant agreements with Mano-a-Mano, Marion Polk Food Share and Legal Aid Services of Oregon - Salem regional office to accept $50,000 grants from the City and administer the funds consistent with their current services and with the use requirements under the grant agreements.
Staff have discussed this funding opportunity with each of these entities who have indicated they are tentatively willing to accept the grants and work with the City to administer the funds consistent with the proposed pilot program.
The grant agreements would include;
• a limitation on use of the funds as set forth above,
• a 10% cap on administrative costs,
• a deadline of June 30, 2026 to expend the funds, and
• a reporting requirement upon completion of the grant to ensure accountability.
Providing funds through direct grants to established community partners allows assistance to reach those in need as efficiently and quickly as possible while leveraging partner expertise and existing administrative capacity.
As an alternative, City Council could direct staff to distribute the pilot program funds through a competitive request for proposals (RFP) process or allow individual community members to apply directly for assistance. While this approach would provide broader access to funding, it would require development of program criteria, public outreach, application intake, eligibility verification, award determinations, and contract administration. Based on prior experience, this process would take approximately three months before funds could be distributed and would require significant staff time to administer.
When the City eliminated the Social Services Fund, the associated full-time equivalent (FTE) position responsible for administering social services programs was also eliminated. As a result, the City does not currently have dedicated staff capacity to administer a direct assistance or RFP-based program without delaying distribution of funds or diverting staff from other core responsibilities.
If City Council’s priority is to ensure that assistance is delivered to community members as quickly as possible, staff recommends the direct grant approach outlined above. If Council prefers a competitive or application-based process, staff can return with a proposed timeline, program structure, and staffing implications for Council consideration.
Budget Action
Resolution No. 2026-5 transfers appropriations within the FY 2026 General Fund budget:
FROM: General Fund, Non Departmental, Contingencies, 101-60961000-61110, $100,000
FROM: General Fund, Non Departmental, Interfund Transfers, 101-60961000-62110, $100,000
TO: General Fund, Non Departmental, Other Special Payments, 101-60961000-54850, $200,000
BACKGROUND:
On January 14, 2026, the Budget Committee adopted the following motion “Direct staff to reestablish the social services fund to include funds to support our vulnerable members of the community, including housing insecurity, food insecurity, and those impacted by immigration.”
Dan Atchison
City Attorney
Attachments:
1. Resolution No. 2026-5