Salem chamber comes out in support of city property tax increase
Apr 14, 2025
Salem’s business leaders have come out in support of a property tax increase set to go before voters on May 20 which, if passed, would help maintain city services currently on the chopping block including parks and recreation, the library, and Center 50+
The Salem Area Chamber of Commerce issue
d its endorsement of the levy Sunday night and said the property tax increase is critical to avoiding the looming threat against essential city services as the city grapples with a systemic budgetary crisis.
“Passage of the city of Salem’s livability levy will ensure protection of our police, fire department, and emergency services from immediate budget cuts in the general fund,” the chamber said in its endorsement.
Also endorsing the measure are the city’s fire and police unions, as well as the Home Builders Association of Marion Polk Counties, according to statements in the Marion County voter’s guide.
Last year the chamber and the home builders association pushed for an outside audit of city finances leading to the creation of a committee which found the city was already operating efficiently.
Tom Hoffert, the chamber’s chief executive officer, noted the endorsement during a Monday speech at a chamber candidate forum. He’s slated to speak Tuesday evening at a free Town Hall hosted by Salem Reporter to examine the levy proposal.
The city’s preliminary budget for the 2026 fiscal year, released last week, proposed slashing 51 full-time jobs across city departments, including more than half of public library staff and 30% of parks maintenance and recreation staff. It did not make any cuts to police or fire positions, but did slash discretionary overtime spending, which allowed police officers to do more community outreach activities.
Two part-time Center 50+ employees are also on the chopping block which would affect programming for seniors.
The cuts would mean the end of youth programs and that splash pads and water fountains at many of Salem’s parks would run dry this summer. The West Salem branch of the Salem Public Library would shutter while the main library branch would only be open 20 hours a week.
The proposed budget cuts wouldn’t take place if voters approve the levy, which would be a tax hike of about $220 per year for the average Salem home.
The levy would generate about $14 million in its first year and the money would go toward preserving city services. In its endorsement the chamber said it would continue to assist the city in providing budgetary transparency and said creating trust with the community remains a priority.
“The city’s levy will create a dedicated fund for city parks, Center 50+, and libraries, while establishing an oversight committee tasked with properly deploying these levy funds for their intended purpose, as noted by voters,” the chamber said. “The Salem chamber will continue to partner and engage with the city leadership for ongoing efficiency efforts, to assist city leadership with budget transparency and commitment to impactful prioritization across each annual budget process. Through these strategic efforts, we seek to assist city leadership and employees in trust-building exercises between the city, our local business community, and residents.”
The entire Salem City Council including Mayor Julie Hoy also endorsed the property tax increase.
She addressed her support in an April 10 video on her Facebook page urging voters to pass the levy.
“We want to be able to sustain our library, our Center 50+ and our parks at their current levels. We want to be able to do that. We don’t want anybody to lose their jobs. So, let’s get out there,” Hoy told voters. “Let’s get this levy passed so we can have the kinds of programs that you want to have here in Salem.”
One of Hoy’s primary messages during her mayoral campaign was that the city of Salem’s budgetary woes were primarily a result of misguided priorities and misuse of taxpayer funds as opposed to structural issues.
Since she assumed her role as mayor, her stance has changed and she has admitted publicly that the city needs more money to continue operating at the level residents expect.
In February a committee of local business leaders tasked with reviewing the city’s budget in search of ways to save concluded the city’s budgetary woes are largely due to structural problems outside of Salem’s control. Those problems include employee benefit costs, and restrictive state tax laws limiting the city’s ability to shore up revenue.
The group said finding efficiencies alone will not fix the city’s issue and that Salem is already successfully squeezing more services out of dwindling resources compared to comparably-sized cities like Eugene.
The political action committee leading the charge for the levy campaign is the Yes for Salem Livability committee. There is no organized opposition campaign.
So far the measure’s biggest campaign finance contributions have come from individuals.
Two organizations that endorsed the measure also contributed already including Friends of the Salem Senior Center, which gave a $2,000 cash contribution, and from Friends of the Salem Public Library which gave a $400 cash contribution.
The only Salem city councilor to contribute so far is Paul Tigan who gave about $229.
For those interested in learning more about the levy, Salem Reporter is hosting a 90-minute town hall on Tuesday at 6 p.m. at the Elsinore Theatre. The event will include an expert panel including Salem city Councilor Dr. Irvin Brown, Salem Chief Financial Officer Josh Eggleston, and Hoffert. Tickets are free and can be reserved online.
Contact reporter Joe Siess: joe@salemreporter.com or 503-335-7790.
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