The City of Salem’s second-quarter financial and operational report reflects stable financial management and ongoing efforts to address staffing needs.

Key trends include:

Resources:

• Over 90 percent of budgeted General Fund property taxes were received by Q2, a 3.7 percent increase from last year.
• Beginning Working Capital in the General Fund decreased by 9.7 percent compared to FY 2025, reflecting its use for expenses to provide services.
• Other General Fund revenues rose by 5 percent, driven by state reimbursements and repayment of federal housing funds.
• The Emergency Services Fund saw a significant increase due to the launch of City-provided ambulance services, while the Downtown Parking Fund grew as paid parking began in July.

Spending:

• Total spending in the General Fund came to nearly $80.3 million.
• Total spending in all other funds reached $175.7 million, with personal services accounting for 26 percent and materials and services making up 60.9 percent.
• Four major funds—Utility, Self Insurance Benefits, Emergency Services, and Capital Improvements—represented 67% of total expenses outside of the General Fund.

Staffing:

• The citywide vacancy rate dropped to 7.2% from 8.2% in the first quarter. Of 117 vacant positions at the start of Q2, 103 remained unfilled by the end. Most vacancies were in the Fire, Police, and Enterprise Services departments.