Salem City Council Approves Final FY2027 Budget

After more than three months of consideration, negotiation and amendments, City Council voted at its June 22 meeting to approve the City of Salem's $824.56 million budget for Fiscal Year 2027.

Salem's official budget process began in early April with City Manager Krishna Namburi proposing a balanced budget to City Council and the City's Community Budget Committee. The adopted budget highlights long-term fiscal responsibility, developing effective and strategic pilot programs, as well as a focus on community priorities.

Salem's unique budgeting process organizes funding based on six goal areas: safe and healthy community; welcome and livable community; natural environment stewardship; safe, reliable, and efficient infrastructure; strong and diverse economy; and good governance. Concentrating on outcomes allows the Budget Committee and City Council to align its work with Salem's vision, mission, and values found in the City's Strategic Plan.

Facing significant budgetary concerns with costs outpacing revenue in previous years, community members overwhelmingly approved the 2025 Livability Levy. The levy restored and maintains library services, protects parks and recreation programming, as well as supports services at Center 50+. The levy provided substantial relief to the City's General Fund that provides funding for public safety, community services and community development.

"This budget reflects not only Council's priorities, but the community's needs," said Mayor Julie Hoy. "Our community works best when we work together. This budget reflects and focuses on our common desire for economic sustainability and public safety."

Budget Priorities for FY2027:

• Safe and Healthy Community: Operating budget of $225.8 million or 27.7% of the total budget. Our goal is to provide emergency services while proactively addressing the impact of crime, fire, natural disasters and health emergencies to residents, visitors, businesses, and property owners.
• Welcoming and Livable Community: Operating budget of $62.1 million or 7.6% of the total budget. The city aims to be safe and well-maintained with a mix of quality housing to all residents, access to parks, recreation, historic and cultural resources, and the arts.
• Natural Environment Stewardship: Operating budget of $51.0 million or 6.2% of the total budget. The budget protects natural resources including all waterways, Salem's tree canopy, and our natural ecosystem, as well as reduces the impact from development and City operations on both the environment and all residents.
• Safe, Reliable, and Efficient Infrastructure: Operating budget (and construction) of $292.8 million or 35.9% of the total budget. The city strives for an integrated municipal asset system of streets, bridges, bike paths, sidewalks, civic buildings, technology and utility infrastructure.
• Strong and Diverse Economy: Operating budget of $16.9 million or 2.1% of the total budget. Salem needs a diverse economic base, robust job growth, business retention and recruitment, and a thriving, resilient downtown.
• Good Governance: Operating budget of $167.5 million or 20.5% of the total budget. The goal is to manage the enterprise to be fiscally sustainable, provide quality service equitably across our community, proactively engage all residents, be forward thinking, and build capacity and partnerships to prepare for the future.