Meg Hibbert
Contributing writer
Salem real estate owners will pay 2 cents less per $100 value next year, if the proposed 2027 Fiscal Year Budget is adopted as presented. And full-time city employees will get a 4 percent raise.
Salem City Councilmembers and the public got their first look at the proposed $119.1-million budget at the April 13 Council meeting.
City Manager Chris Dorsey told them “The City of Salem is optimistic about the financial future of our great city.”
His presentation noted projected 2027 revenue, compared to the FY 2026 budget, reflects a net decrease of .27 percent. “One item of interest is that the city’s interest earnings projection will be reduced by about $1 million due to lower interest rates,” Dorsey told Councilmembers.
Primary sources for city revenue are real estate tax, personal property tax on vehicles, and local sales and use tax. The city expects a $1.5 million revenue loss in machinery and tools tax due to the closing of Yokohama tire plant in March.
Sports tourism is critically important to Salem’s economy, Dorsey pointed out. From July 1, 2025, to June 30, 2026, five NCAA National Championships will be played in volleyball, basketball and softball.
The city will host 65 total sporting events, including softball, baseball and senior softball, high school league championships and two major pickleball tournaments, which bring visitors to Salem who spend money for lodging, food and gas.
Salem City Council, the city manager and assistant city manager are scheduled to meet with department heads on Wednesday all day and part of Thursday this week, after press time, to go over the budget.
Mayor Renee Turk, Vice Mayor AnnMarie Green and Councilmembers Randy Foley, Hunter Holliday and John Saunders were all present at the April 13 meeting. It adjourned at 7:21 p.m.
