TO: Mayor and City Council
THROUGH: Krishna Namburi, Interim City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
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Local Option Levy Oversight Committee
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Welcoming and Livable Community.
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SUMMARY:
summary
In May 2025, Salem voters passed a five-year Livability Levy to fund Parks, Recreation, Library, and Senior services. Included in the ballot measure explanatory statement was a requirement for an Oversight Committee to review levy expenditures and provide an annual report to the City Council. This report outlines a proposed structure and scope for City Council consideration.
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ISSUE:
Shall City Council approve the proposed structure and formation of the Livability Levy Oversight Committee?
RECOMMENDATION:
recommendation
Approve the proposed structure and formation of the Livability Levy Oversight Committee.
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FACTS AND FINDINGS:
Membership - Seven members appointed by the Mayor
• Three Councilors
• Four community members (residents of Salem)
o One representing each functional area funded by the levy
§ Parks and Recreation
§ Salem Public Library
§ Center 50+
o One community at large member
Primary Responsibility:
The Oversight Committee will review expenditures of the levy funds to ensure they are used exclusively for the purposes outlined in the ballot measure. Some areas of review would include:
• Annual financial audit results
• Five-Year Forecast
• Proposed budget
• Quarterly financial reports
Meeting Frequency - Quarterly
Reporting:
The Committee will provide annual reports detailing how the levy funds have been spent to the City Council.
Transparency and Visibility:
All committee meetings will be open to the public, ensuring transparency and public accountability. Meeting materials will be posed to the City’s website.
Audit Requirements:
The levy revenue will be subject to an independent audit annually to confirm compliance with the measure's restrictions.
BACKGROUND:
The Livability Levy measure explanatory statement included the language related to accountability:
Funds from this levy will maintain and be restricted to the following services:
● Parks cleaning, maintenance, operations and programs, including playgrounds, ball fields, riparian and natural areas, trails, splash pads, restrooms, picnic shelters, and other park amenities;
● Recreation Services operations and programs, including youth programs and camps, youth and adult sports, fun runs/walks, concerts, and movies in the park.
● Public Library operations, programs, and restored hours at the main branch and west Salem branch; and
● Center 50+ operations and programs for older adults.
Revenue from the levy would be deposited in a dedicated City fund and audited annually, to ensure the revenue is only used for the purposes allowed under this measure. An oversight committee will review levy expenditures and provide annual reports. Committee meetings will be open to the public.
Status of Accountability Measures:
Dedicated Fund - Through adoption of the Fiscal Year 2026 Budget, the City Council will create the Local Option Levy Fund (Fund 151) as recommended by the Budget Committee.
Oversight Committee - Through this report, staff are proposing a structure for the Livability Levy Oversight Committee.
Audited Annually - The first audit of the Livability Levy funds will occur in the fall of 2026 following the close of the first fiscal year that the City will receive levy funds.
Attachments:
1. None