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 1 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 1 (Q1) Financial Report for the City of Salem reflects activity posted in the current fiscal year through September 30, 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. Actuals shown in this report could be subject to change if adjustments are identified during the audit for FY 2025.
The Q1 report for the City shows financial activity posted July 1, 2025, through September 30, 2025. Citywide resources totaled $488,113,878 and expenditures were $117,940,816.
The first page of the Q1 report shows General Fund activity by category of resources and expenditures by department. General Fund resources totaled $45,518,542 representing 21.9% of budgeted amounts. The largest resource category for Q1 is beginning working capital at 69.4%. Beginning working capital decreased year over year by $3.5 million or 9.9% and was spent down to pay for General Fund services.
The largest expenditure category in the General Fund is personal services totaling just over $32.3 million for the quarter or 82.5%. This includes six of 26 pay periods or 23% of pay periods for the fiscal year. Overall fund expenditures are 21.3% of budgeted amounts.
The second page shows all other City funds, including the new Local Option Levy Fund. The Utility Fund constitutes the largest portion of expenses at $26.6 million or 35.6% of total expenditures. Two funds have recorded more expenses than revenues through the first quarter: the Local Option Levy Fund because property taxes will not be received until November and the Self Insurance Risk Fund because insurance premiums are paid in July, but rates paid by other city funds are recorded monthly throughout the fiscal year.
The last page shows a summary of position vacancies across the City. The total number of authorized positions remained the same during the quarter at 1,418.50 full-time equivalent (FTE) positions, but decreased from quarter four of FY 2025 by 5 FTE reflecting position eliminations approved in the FY 2026 adopted budget. There were 126 positions vacant to start the quarter and moved down to 117 positions 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 these reports 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 1 Financial Report