In accordance with City Charter, Keith Stahley, Salem City Manager has finalized the Proposed FY 2025 Budget. The Proposed FY 2025 Budget will be distributed to Citizen Budget Committee members Friday, April 12, 2024. The Proposed FY 2024 Budget will also be available online late Friday afternoon.

This budget proposal comes at a time of uncertainty. Over the past 10 years Salem’s population has grown by over 23,000 people, driving a demand for more and different City services. Some City services have funding that meets the growing needs of the community. The General Fund has not kept pace with increasing demand. In 2023, voters did not approve a new revenue source for the General Fund to continue services causing us to adopt a mid-year supplemental budget eliminating vacant positions. The reductions in the Proposed FY 2025 Budget reflect difficult choices made after thorough deliberation to move toward fiscal sustainability.

The formal submittal of the City Manager’s Proposed FY 2025 Budget marks the beginning of the deliberations process for the Citizen Budget Committee. Comprised of resident members, the Mayor, and City Council, the 18-member Citizen Budget Committee is the fiscal planning advisory board. Its role is to review quarterly financial reports and the five-year financial forecast, then to analyze and recommend a budget to the City Council and adopt the City’s property tax levy rate.

The City’s $724.6 million proposed budget for 2025 covers the period from July 1, 2024, through June 30, 2025, and includes estimates of revenue and costs of services and capital projects.

Salem’s Citizen Budget Committee begins their work on the City Manager’s proposed 2025 budget at the first of four scheduled meetings Wednesday, April 17, at 6 p.m. at Salem Council Chambers, 555 Liberty Street SE., in Salem. Weekly Wednesday meetings continue April 24, May 1, and May 8. All will be held at Council Chambers. The April 24th meeting will include a public hearing for the proposed Capital Improvement Plan (CIP) and review of the Salem Urban Renewal Agency (URA) budget.

Any person may provide written testimony on the City and Urban Renewal Agency budgets for consideration by the Budget Committee. Send written testimony to budgetoffice@cityofsalem.net by 3 p.m. the day of the meeting. In-person public comment will also be available at the meeting. To provide testimony through video conference, sign up online the day of the meeting between 8 a.m. and 2 p.m. The meetings areavailable to view online through the CC:Media YouTube channel or Comcast channel 21.

Budget Process Overview

The City’s Budget Document is the primary tool to determine program and policy priorities.

• Early September 2023– Leadership Team begins discussion of potential budget scenarios
  • Developed Budget Operating Principles (insert link)
• September 18, 2023 – City Council continues discussion of structural budget imbalances and receives a five-year reduction scenario
• October, 2023 –five-year financial forecast begins development
• January – March,  2024 – City Departments develop budgets and submit for review and approval by the City Manager
• January, 2024 – financial forecast presented to Budget Committee
  • Budget Committee meetings, 6:00 PM Council Chambers
    • March 14, 2024 - Proposed Reduction Scenarios presented to Budget Committee
    • March 21, 2024
    • April 17, 2024
    • April 24, 2024
    • May 1, 2024 - Budget Committee deliberates on a Budget Recommendation
    • May 8, 2024 – Budget Committee recommends budget to the City Council
• May – Community presentations regarding Recommended Budget
• June - City Council hold a public hearing and adopts Annual Budget