TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
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Public hearing on the 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 Committee recommended a budget to City Council on May 6, 2026. The City Council is required to hold a public hearing on the approved budget and adopt a final budget prior to July 1, 2026. The City Council may amend the budget approved by the City of Salem Budget Committee within the following parameters:
• Property tax levies cannot be increased in total beyond the amount approved by the City of Salem Budget Committee.
• The approved expenditures for each fund cannot be increased by more than ten percent (10%) including any reappropriations.
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ISSUE:
Shall City Council direct staff to return to City Council on June 22, 2026, with a resolution to adopt the Budget Committee approved FY 2027 City of Salem Budget with amendments?
RECOMMENDATION:
recommendation
Direct staff to return to City Council on June 22, 2026, with a resolution to adopt the Budget Committee approved FY 2027 City of Salem Budget with amendments.
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FACTS AND FINDINGS:
Public Hearing
Pursuant to Oregon Local Budget Law, the public hearing on the Budget Committee approved budget was noticed in the Salem Reporter on May 26, 2026. At this meeting, any person may provide testimony for or against any item in the recommended budget (ORS 294.453).
A fund-level summary of the City of Salem Budget Committee’s approved budget is attached. Specific details are available in the budget document and supporting materials.
Budget Deliberation and Recommendation
The City Council can deliberate on the budget including any changes the City Council may want to make within the previously mentioned limitations. Decisions about changes to the budget should be made on June 8, 2026, to provide sufficient time for staff to prepare the budget resolution for adoption on June 22, 2026. In addition to any changes made by the City Council on June 8, 2026, the adoption resolution will include rebudgeted purchase orders or carryover items. A detailed list of these items will be provided on June 22, 2026.
Other Budget Considerations
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. An amendment will be included with adoption of the City budget on June 22nd to include this project in the budget, increasing appropriations 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.
Also on June 22nd, there will be an amendment to add the State Street: 13th Street NE to 17th Street NE Bicycle Lanes and Pavement project back to the budget. 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. This action will increase budget appropriations for beginning working capital by $3,697,010 and construction contracts by $700,000. It will also prevent City Councilors with a conflict of interest from voting on the adoption of the City budget the evening of the 22nd.
BACKGROUND:
Oregon Budget Law requires the adoption of a balanced budget prior to the beginning of each new fiscal year, which is July 1st for the City of Salem.
Kali Leinenbach
Budget Manager
Attachments:
1. Approved FY 2027 City of Salem Budget