City of Salem Work Session - September 23, 2026

The City of Salem City Council held a work session on September 23, 2026, to continue developing a financial roadmap and consider restructuring the city operations fee. The CFO presented a general fund forecast showing a deficit of nearly $5 million in FY2028, growing to $12.4 million by FY2031; adding the local option levy fund would increase the projected FY2031 deficit by $17.5 million. The forecast does not include several program and service costs, including approximately $1.3 million for REACH, seven-day-a-week HST, and Clean Team expansion. Staff also identified several funds as critical or on a watch list, including the local option levy, transportation services, building safety, and the airport. No procurement, contract award, or spending allocation was considered.

Council discussed an illustrative restructuring of the operations fee, including account-specific trip-generation calculations and a simpler tiered approach. The examples included a current minimum charge of $80.75 and a calculation of $0.22 per estimated trip; staff emphasized that rates, revenue estimates, and account data require further validation and that no fee amount or structure was being adopted. Council generally supported further development of the tiered option, with additional consideration of fairness, account groupings, and possible exemptions, followed by community engagement and further council review. The council also supported continuing work on revenue options while emphasizing service outcomes, cost efficiencies, sustainability, and clear public communication. The agenda addition of a presentation was approved; no fee or funding decision was made.