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 3 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
City of Salem Fiscal Year 2026 Quarter 3 Financial Report for the City of Salem reflects activity posted in the current fiscal year through March 31, 2026.
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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 Q3 report for the City shows financial activity posted July 1, 2025, through March 31, 2026. Citywide resources totaled $843,344,845 and expenditures were $398,601,823.
The first page of the Q3 report shows General Fund activity by category of resources and expenditures by department. General Fund resources totaled $180,424,697
representing 86.4 percent of budgeted amounts. The largest resource category for Q3 is property taxes at 49.0 percent. Property tax receipts in FY 2026 are 5.4 percent higher than the same time last year. The largest expenditure category in the General Fund is personal services totaling just over $103.5 million for the quarter or 82.5 percent of total expenses. 19 of 26 pay periods have been recorded which represents 73 percent of pay periods for the fiscal year. Overall fund expenditures are 67.6 percent 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 $87.6 million or 32.1 percent of total expenditures. The Emergency Services Fund experienced a significant year-over-year change due to starting City-provided ambulance service in the current fiscal year. 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 four during the quarter to 1,424.50 full-time equivalent (FTE) positions. This increase is a result of a mid-year addition of four EMS positions approved by City Council. There were 103 positions vacant to start the quarter. Vacancies stayed relatively flat and ended the quarter at 104 positions.
BACKGROUND:
The Budget Office has prepared quarterly financial reports and provided them to the Budget Committee for decades. Both current and historical quarterly reports can be accessed online and are available starting in FY 2016. During adoption of the FY 2025 budget, City Council approved a motion requesting reports for the General Fund be provided directly to City Council within 45 days of the end of each quarter. Staff now provide both the City and URA quarterly reports in this timeframe for consistency.
Shengnan Thomas
Management Analyst I
Attachments:
1. City of Salem Fiscal Year 2026 Quarter 3 Financial Report