On the agenda: Salem City Councilor Julie Hoy calls for repeal of payroll tax
Another vote on the contentious employee-paid payroll tax is coming up at Monday's Salem City Council meeting.
Councilor Julie Hoy is bringing forth a motion to repeal the Safe Salem tax before the issue goes on the special election ballot in November.
In a 5-4 split, the council voted last month to impose a .814% tax on wages for people working in Salem, regardless of where they live, as early as July 2024.
It is expected to generate $27.9 million annually and cost a person earning the average hourly rate of $29.90 the equivalent of $506.24 a year. The funds generated could only be used for community safety, which includes police services, fire, emergency medical services, 911 call services, code enforcement and unsheltered services.
The tax has drawn sharp criticism and immediate community backlash.
After hours of testimony and deliberation, the council voted to skip sending the issue to voters and instead opted to implement it themselves. Councilors Hoy, Vanessa Nordyke, Deanna Gwyn and Jose Gonzalez voted against the payroll tax.
Mayor Chris Hoy and councilors Virginia Stapleton, Linda Nishioka, Trevor Phillips and Micki Varney voted in favor of it.
Within days, the Oregon Business & Industry, a statewide chamber of commerce and trade association, launched an effort to refer the tax to voters.
Officials with Let Salem Vote said the proposal was vague, the tax was too high, the administrative burden was significant and there was little assurance as to how the funds would be spent.
"At a minimum, the community deserves a chance to vote," Angela Wilhelms, OBI’s president and CEO, said.
The group successfully got the more than 3,986 verified signatures needed to qualify for the November ballot.
Meanwhile, Stapleton joined forces with residents and volunteer planning and budget committee members to start a Save Salem campaign to promote a "yes" vote on the measure and, they said, prevent cuts on critical city services.
Stapleton said the group was created to show the community what was at stake if they fail to address the nearly $30 million budget shortfall.
According to the city, a $15 million reduction would be the equivalent of decreasing services by 65 police officers, six fire stations ($2.3 million each), or all park maintenance ($9.3 million) and the library services ($6 million) combined.
"While the Safe Salem payroll tax will directly support emergency response and homeless services, we are calling this campaign Save Salem because the city can't balance a $30 million shortfall without drastic cuts to emergency response, the library, parks, Center 50+ and other vital community programs,” former budget committee Chair Paul Tigan said. “What’s on the ballot is nothing less than Salem's character.”
In her motion, Hoy called for the passage of an ordinance repealing the tax and a special council meeting to conduct a second reading on the ordinance to get it passed in time to get the issue off the ballot in November.
"Repealing this ordinance will allow us to reset and take the time we need to bring the community together on what solutions to our budget crisis they support," Hoy said in her motion. "Repealing the payroll tax ordinance will, I believe, be a first major step toward healing. While the looming budget deficit is bad enough … a trust deficit is an even bigger problem."
She predicted the city will spend $220,000 of taxpayer money to hold the special election only to watch the proposal fail.
"We can work together to build trust," Hoy said. "I hope you will join me in support."
Other agenda items include:
A resolution for internal borrowing of $1.8 million from the city's Utility Fund to the Airport Fund for property acquisition and improvements for additional parking at Salem Municipal Airport. The city is considering buying an adjacent property at 2790 25th St. SE near the airport now that commercial service is set to begin.
Acquisition of a property for the Macleay Road SE/Caplinger Road SE Pedestrian Improvement Project. The project includes curb construction, ADA-compliant sidewalk, asphalt widening and a pedestrian crossing with a center island. Construction is scheduled for 2025.
Acquisition of property for the 2024 Pavement Rehabilitation Project on Commercial Street from Fabry Road Southeast to the Interstate 5 ramps.
A vote on adopting the final order to affirm the planning administrator's decision to approve the application for a 436-unit apartment complex in West Salem in the 2100 block of Doaks Ferry Road NW. The administrator previously approved the application, and the West Salem Neighborhood Association appealed the decision. The City Council re-affirmed the decision during its last meeting on Aug. 14.
How to participate in the meeting
The meeting is at 6 p.m. It will be held in person at the City Council Chambers at the Salem Civic Center, 555 Liberty St. SE and also can be watched on Comcast Cable CCTV Channel 21 or on the Salem YouTube channel in English/American Sign Language and Spanish.
Those wishing to comment in person can sign up on the rosters at the chamber entrance before the start of the meeting.
Written public comments on agenda items can be emailed by 5 p.m. Monday to cityrecorder@cityofsalem.net. Or preregister between 8 a.m. and 2 p.m. Monday at cityofsalem.net/Pages/Public-Comment-at-Salem-City-Council-Meeting.aspx to speak during the meeting via Zoom.
For questions, comments and news tips, email reporter Whitney Woodworth at wmwoodworth@statesmanjournal.com, call 503-910-6616 or follow on Twitter at @wmwoodworth
This article originally appeared on Salem Statesman Journal: Salem payroll tax: City Councilor Julie Hoy calls for repeal
