TO: Mayor and City Council
THROUGH: Krishna Namburi, Interim City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Transfer of appropriations within the City’s Fiscal Year (FY) 2026 Budget to fund legal services required to join pending litigation.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance.
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SUMMARY:
summary
A transfer of $25,000 in appropriations from General Fund contingency is needed to join pending litigation that challenges certain conditions required by various federal grants. The grant conditions conflict with Salem Revised Code, City policy and state law.
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ISSUE:
Shall City Council adopt resolution 2025-23 authorizing a transfer of $25,000 in appropriations within the City’s FY 2026 budget to fund legal services required to join pending litigation?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2025-23 authorizing a transfer of $25,000 in appropriations within the City’s FY 2026 budget to fund legal services required to join pending litigation.
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FACTS AND FINDINGS:
The City is preparing to make a legal challenge to certain conditions required by the Federal Aviation Administration and Federal Highway Administration in grants for the City of Salem. The federal conditions relate to restricting the City’s policies and laws concerning employee engagement, human rights under Salem Revised Code and a requirement that the City cooperate with federal agencies in the enforcement of federal immigration law. The required conditions are not permitted under federal law and regulations and the U.S. Constitution and would require the City to violate Oregon law that prohibits the City from using resources to assist in the enforcement of federal immigration law. The City intends to seek injunctive relief to prevent these conditions from being applied to the City in relation to federal grants benefitting the Salem - Willamette Valley Airport and City transportation projects.
The City intends to join federal litigation initiated by the City of Fresno, California, in the Northern District of California. Joining this litigation already underway will accelerate the City’s request for relief and, if successful, give the City broader protection than filing a separate, independent, action. In order to join this action, the City would like to engage the outside counsel that currently represents the City of Fresno in this matter. The firm requires a retainer in the amount of $15,000. They have indicated that the approximate cost of the legal work to obtain an injunction to be less than $15,000. To provide additional funding in the event the costs are higher than anticipated, this request to transfer appropriations is for $25,000.
FROM: General Fund, Non Departmental, Contingencies, 101-60961000-61110, $25,000
TO: General Fund, Legal Attorney, Legal/Court Services, 101-19200000-52650, $25,000
BACKGROUND:
Oregon State budget law allows the City Council to approve a transfer of appropriation from one fund to another when a specific need is identified.
James Wharton-Hess
Sr. Fiscal Analyst
Attachments:
1. Resolution 2025-23