TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
City of Salem Fiscal Year 2026 Quarter 2 Financial Report
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 Fiscal Year (FY) Quarter 2 (Q2) Financial Report for the City of Salem reflects activity posted in the current fiscal year through December 31, 2025.
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ISSUE:
Information Only.
RECOMMENDATION:
recommendation
Information Only.
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FACTS AND FINDINGS:
The City of Salem quarterly financial report compares budget to actuals as well as year over year changes for the General Fund and all other City funds. The Q2 report for the City reflects financial activity posted from July 1, 2025, through December 31, 2025. Citywide resources totaled $709,953,015 and expenditures were $255,995,861.
The first page of the report shows General Fund activity by resource category and departmental expenditures. General Fund resources were nearly $147.3 million representing 70.6 percent of budgeted amounts. This significant increase in total resources from the first quarter is the result of the largest portion of property taxes being received in November and December. Property taxes are the biggest source of revenue for the General Fund. The largest expenditure category in the General Fund was personal services totaling just over $65.1 million or 81 percent of expenditures. This represents 12 of 26 pay periods or 46 percent of pay periods for the fiscal year. Overall expenditures are 43 percent of the annual budgeted amounts.
The second page shows all other City funds including the new Local Option Levy Fund. There were many shifts in resources comparing year-over-year activity which are outlined in the report. The Utility Fund constitutes the largest portion of expenses at $57.6 million or 34 percent of expenditures of other funds. Expenses in Emergency Services increased with the City being solely responsible ambulance transport services in Salem. Other differences in actual expenses showing a high percent change are either small dollar amounts or due to timing of payments or projects.
The last page shows a summary of position vacancies across the City. The total number of authorized positions increased by two during the quarter to 1,420.50 full-time equivalent (FTE) positions. Council approved a mid-year request to add two police officer positions for the Safe, Clean, and Healthy Salem initiative pilot. There were 117 positions vacant to start the quarter which decreased to 103 vacancies by quarter end.
BACKGROUND:
The Budget Office has produced and provided quarterly reports to the Budget Committee and online for more than a decade. During adoption of the FY 2025 budget, City Council approved a motion requesting this report be provided directly to the City Council within 45 days of the end of each quarter.
Kali Leinenbach
Budget Manager
Attachments:
1. City of Salem FY 2026 Quarter 2 Financial Report