TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Public hearing on the FY 2025 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 the City Council on May 8, 2024. The City Council is required to hold a public hearing on the recommended budget and adopt a final budget prior to July 1, 2024. The City Council may amend the Budget Committee’s recommendation within the following restrictions:
• Property tax levies cannot be increased in total beyond the amount approved by the Budget Committee.
• The recommended expenditures for each fund cannot be increased by more than ten percent (10%).
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ISSUE:
Shall the City Council direct staff to return to City Council on June 24, 2024, with a resolution to adopt the Budget Committee recommended FY 2025 City of Salem Budget with amendments?
RECOMMENDATION:
recommendation
Direct staff to return on June 24, 2024, with a resolution to adopt to Budget Committee recommended FY 2025 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 recommended budget was noticed in the Statesman Journal on May 30, 2024. At the meeting, any person may provide testimony for or against any item in the recommended budget. Testimony that was received between the conclusion of the Budget Committee meetings and this hearing have been included as an attachment to this report.
A fund-level summary of the City of Salem Budget Committee’s recommended budget is also attached to this report. Specific details are available in the budget document and supporting materials.
Budget Deliberation and Recommendation
The City Council can deliberate on the recommended budget including on any changes the City Council may want to make within the previously mentioned restrictions.
The City Council is asked to provide direction on any modifications on the recommended budget on June 10, 2024, in order to provide sufficient time to prepare the necessary resolution for budget adoption on June 24, 2024. The resolution will include any changes approved on June 10, 2024 as well as additional amendments that will presented on June 24.
Additional amendments include rebudgeted purchase orders and carryover projects. Accounting regulations require the City to rebudget outstanding purchase orders and carryover projects prior to June 30, 2024. A detailed list will provided to the City Council on June 24, 2024.
Last year, the City began using an online interactive tool called Balancing Act that lets the public modify a simplified version of the City’s General Fund budget. The tool simultaneously educates the public on the tradeoffs involved with budgeting in a constrained environment and collects valuable information on participants’ budget priorities. The City activated the City Manager’s FY 2025 Proposed General Fund Budget version of Balancing Act from April 26th through May 22nd in both English and Spanish. The simulations received a combined total of 1,750 views and 64 unique submissions. A thorough breakdown of submission data is attached as a memo (Attachment 3).
Other Budget Considerations
The City Council approved the allocation of opioid settlement dollars on their meeting May 28th, 2024 meeting. An amendment will be included for adoption of the City budget on June 24th to reflect this discussion.
1. Add $189,340 of expense to the General Fund budget, including a 1.0 FTE youth and young adult coordinator position to focus on preventing youth substance use and building awareness within the community. Add $189,340 interfund transfer revenue in the General Fund to reimburse for the additional expense.
2. Reduce the materials and services budget and increase the interfund transfers budget by $189,340 in the opioid settlement trust fund cost center to reimburse the General Fund for eligible expenses.
BACKGROUND:
Oregon Budget Law requires the adoption of a balanced budget prior to the beginning of a new fiscal year which for the City of Salem, this is July 1, 2024.
Kali Leinenbach
Budget Manager
Attachments:
1. Recommended FY 2025 City of Salem Budget
2. Written Testimony 1
3. Balancing Act Memo