SALEM MAYOR DELIVERS STATE OF THE CITY
-03/05/25
Salem, Ore. – Mayor Julie Hoy delivered the 2025 State of the City message to 250 people today at the Salem Convention Center. The State of the City has been held during a traditional Rotary meeting for more than 40 years. Hosts of the event this year included the Rotary Club of Salem, Salem Area Chamber of Commerce and Salem City Club. Scots-Acapella from McKay High School performed the National Anthem and introductory music. The invocation was done by Maryann Remsburg, Coban University's Senior Development Officer. The Mayor's State of the City message content is included below, or can be viewed on YouTube:
2025 State of the City
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Good afternoon, everyone! Thank you so much for being here today. I’d like to express my sincere appreciation to PGE for their sponsorship of this event and their ongoing partnership with the city.
As we gather for the State of the City address, I want to take a moment to reflect on where we’ve been, where we are now, and where we’re headed.
Before diving into our progress and future plans, I’d like to take a brief moment to share a little bit about myself. As a 34-year resident of Salem, I’ve had the privilege – and sometimes the challenge – of weathering some significant storms, both literal and metaphorical.
Like many of you, I’ve experienced moments of uncertainty. However, as your newly elected Mayor, know that I am focused on the future, and more specifically, on the opportunities we have to make Salem a stronger, more vibrant community for all.
This moment we’re in is unlike any other. It’s a time for us to come together, focus our priorities, and work to make a lasting, positive impact on our city. Collaboration, partnership, and a collective commitment to progress will be key to our success.
How are we moving forward?
This past December, I had the privilege of participating in a unique educational experience in Boston, Massachusetts. I joined 23 other mayors from across the country for a program hosted by Bloomberg Harvard Philanthropies. On the final day of the conference, each of us was presented with a clock—an intriguing gift that counts down the time remaining in our terms of service. The clock came with an inspirational note from former New York Mayor Mike Bloomberg. His message reminds me daily that “The clock is ticking.” I plan to make the absolute most out of each and every day.
My clock currently tells me only 677 days remain, for me in this term as Mayor of our great city. To be successful in the limited amount of time we have together… we must be deliberate in our actions and work diligently toward strengthening our community partnerships. I am thrilled with the progress so far and looking forward to the difference we will make together.
We are committed to expanding our impact with support from good relationships with both Marion and Polk Counties, as well as with the State of Oregon. These collaborations are essential as we work to address some of the city’s most pressing issues. Just this past January, this Council and Marion County Commissioners met for an initial joint session — it was a good beginning, an enlightening conversation which deepened our understanding of Marion County’s role and responsibilities.
I am excited about the steps we’re taking together. Marion County’s programs and services offer big help... and we need it.
I’ve also been engaging with our local state leaders, working hard to build rapport and align on Salem’s priorities. I’m confident that these leaders understand our needs and will advocate for the Capitol District funding we’ve been pursuing to support essential public safety services, including Police, Fire, and EMS.
We are working at the national level as well…
In fact,
Three days after my swearing-in, I had the honor of traveling to Washington, D.C., to attend the U.S. Conference of Mayors. This was another valuable educational opportunity and a chance to meet with our national delegation. I’m grateful for the opportunity to connect with them, share our funding priorities, and discuss how we can work together to secure resources for our city.
The mere mention of Federal Resources… begs the question… What is happening and how might it impact Salem?
Just yesterday morning I was on the phone with a friend, a local non-profit leader. She told me she was looking forward to my state of the city speech. I asked her directly… as a non-profit leader… what she hoped to hear from me today.
She responded… “I want to know that my federal funding is secure.” She quickly added… “But I guess there isn’t much the city can do about that.” My friend is right. There isn’t much I can do about potential changes in Federal Funding.
I am frustrated… as many are… with unanswered questions. These are unsettled times. Another friend called a few weeks back and shared great concern for a treasured, long-term, incredibly faithful employee who is worried about deportation. “What do I tell her?” He asked.
Unfortunately, on these and other fronts we will have to wait and see. My non-profit leader friend said it well, “Like the soldier on the wall… we watch and wait… assessing the situation as it unfolds and ready to act when necessary.”
I believe it is important to stay in that which we know to be true… to make decisions based on reality and not that which is only, at this point, yet to be identified.
Just last week I was up on the Little North Fork on the Santiam River with Legislative staff surveying the damns and the source of our Sweet Mountain Water. If you haven’t read the book by author Frank Maudlin, former City of Salem Public Works Director and Civil Engineer, I highly recommend it. It is the story of Salem’s high quality drinking water.
It is quite something to read the history of change as we moved from drinking Willamette River water to the pristine North Santiam.
You may be aware that a biological opinion of a few years back mandates the US Army Corps of Engineers draw down the Detroit Reservoir to historic low levels to support salmon migration – as early as this fall. As a city, we support efforts to protect endangered fish. As a water provider to 200,000 residents and businesses, we also need to protect our precious drinking water.
Much time and energy is currently being spent in anticipation of this challenge. We are exploring our options and gathering support in response.
No matter what… I know we will get by and survive whatever reality may come. We are strong, intelligent, capable, driven and resilient.
As we now zoom into the State of our City, I want to take a moment to acknowledge our dedicated leadership – from my colleagues on Council to the people who help make it all possible.
I am incredibly fortunate to serve alongside an exceptional group of leaders who embody the true spirit of dedication and service. These individuals are the heart and soul of Salem’s governance.
Please join me in recognizing these committed public servants. I’m proud to serve with them, and it’s an honor to introduce them to you now:
Ward 1: Paul Tigan
Ward 2: Linda Nishioka
Ward 3: Shane Matthews
Ward 4: Deanna Gwyn
Ward 5: Dr. Irvin M. Brown
Ward 7: Vanessa Nordyke
Ward 8: Micki Varney
In case you don’t already know... all of us here, me included, are all volunteers. These are unpaid positions which we’ve accepted through election, and we dedicate countless hours working for the betterment of Salem. We do this because we care deeply about our community and its future.
It’s also important to note that the Ward 6 seat is currently vacant and will remain so until the May 20th, 2025, election. If you know anyone living in Ward 6 for at least the last year who may be interested in running for this seat, I encourage you to let them know the filing deadline is March 11th. The next Councilor for Ward 6 will likely be sitting here with us next year.
If you find the idea of running for office a little daunting right now, I urge each of you to consider volunteering to serve on one of our city’s boards or commissions. As an advisor to the City Council, your unique perspective and involvement will help us shape and prioritize the initiatives that matter most. You can find more information on the City’s website, where current vacancies and application details are available.
Since taking the Oath of Office, I’ve been deeply moved by the incredible individuals I’ve met—those who dedicate their time and energy to improving our community. Every day, I witness the passion, hard work, and determination that go into making Salem a better place to be. From urban planners to first responders, and the countless volunteers who step up to serve, their stories inspire me. They remind us that Salem is more than just a collection of statistics; it’s about the people who are behind the work. For that, I have been impressed, moved in fact, and profoundly grateful.
Now, I’d like to introduce you to the highly skilled leadership team that is working tirelessly behind the scenes to keep our city running smoothly. Please join me in recognizing these individuals, who are always available to answer any questions you may have. We are in very capable hands with:
Acting City Manager: Krishna Namburi
Deputy City Manager for Community Services: Scott Archer
City Attorney: Dan Atchison
Chief Financial Officer: Josh Eggleston
Police Chief: Trevor Womack
Fire Chief: David Gerboth
Public Works Director: Brian Martin
Community Planning & Development Director: Kristin Retherford
Chief Strategy Officer: Courtney Knox Busch
Many of you are aware, Salem has recently undergone a leadership transition with the resignation of our former City Manager. While leadership changes can present challenges, they also offer us an opportunity to pause, reflect, and ensure we’re heading in the right direction.
Despite these transitions, I can confidently say that the state of our city is strong. I’m working closely with my fellow Council members and City staff to ensure a seamless transition, and I’m excited about the work ahead. It’s an-all-hands on deck kind of moment at the city. There’s a great deal of momentum, and I am very optimistic about the future of Salem.
Now onto fueling our economy and community growth…
While we certainly face challenges, I’m also happy to share some good news. Economic development in Salem is alive and well. We continue to build strong relationships with SEDCOR and Erik Andersson who tirelessly works to attract and retain businesses in our city.
For instance, M.i.i. AERO, formerly Metal Innovations, Inc., has completed its relocation to Salem from the Aurora Airport. The first phase of their 4-acre campus development includes the renovation of two hangars totaling over 20,000 square feet.
This is such a great story for so many reasons. In addition to the new employment opportunities, having M.i.i. AERO in Salem benefits the Airport and the aviation economy. The company has a maintenance contract with Avelo and has already been able to assist with maintenance requests while planes have been on the ground in Salem.
This growing aviation collection is bringing up the next generation of pilots at a satellite location of the Career Technical Education Center on the airport campus, Salem-Keizer students access training and certifications as they prepare for rewarding careers in aviation. Through powerful industry partnerships with companies like Avelo, CTEC students prepare for high-wage, high-demand careers in all aspects of aviation.
- Knowing that more than 20 years ago the city partnered with the state to develop the Mill Creek Corporate Center as one of the key shovel-ready industrial parks in Oregon, it is with pride I note the continued economic development activity there. PacTrust continues to invest in an inventory of buildings to attract new employers like Agility Robotics, which is going into production in its RoboFab facility.
- In a neighboring Mill Creek site, work is finishing up on Gensco's new H-VAC manufacturing and logistics building, bringing jobs and investment to the city.
- And our very own Don Pancho Mexican Foods, founded here in Salem in 1979, is growing yet again, investing in the former Norpac building to make it into a state-of-the-art production facility for its tasty products. I am thankful that Don Pancho and Reser's will continue to grow into the future in Salem.
On another note, I’m excited to announce that the Salem-Willamette Valley Airport will soon offer flights to Las Vegas starting again this May. So, for those of you who enjoy the vibrant energy of Vegas, now is the time to book your tickets… and perhaps I’ll see you there!
These are just a few examples of the economic progress happening here in Salem, and I want to give credit where credit is due. These efforts have been years in the making, and I want to extend my sincere congratulations to everyone involved.
On a light and artistic note…
I know many of you regularly walk through our downtown. I hope you’ve noticed some extra beauty gracing our sidewalks. Twenty utility boxes throughout the downtown area have been wrapped with artwork, showcasing designs from our Library, Civic Center, and Convention Center. Sixteen have already been completed, and I encourage you to take a stroll and enjoy them as the weather transitions from winter to spring.
On to our City’s Fiscal Situation…
Each year, as a Council, we come together with nine community volunteers to review and set the City’s budget.
My first encounter with the municipal budget in Salem was in early 2023. Based on concerns I’d heard from our community, I felt strongly that our budget needed more transparency and a deeper review. So, last spring, I proposed a motion for quarterly budget reports to be presented directly to the City Council.
This move was aimed at making our financial decisions more visible and providing an opportunity to adjust course as necessary. It was a step toward building community trust and ensuring transparency.
One area that has raised concern among many of you is the Five-Year Financial Forecast—the projected outlook for our city’s revenue and the costs associated with providing critical services. In response, last Fall, we established the Forecast Review Team, which invited community members into the conversation. Together, this team helped reduce the gap in our City’s General Fund from an initial $17.7 million to $13.8 million dollars.
Last week, we heard from another valuable group of volunteers: the Efficiency Committee. This group, composed of local business leaders, took a deep dive into our General Fund budget over five sessions. After their thorough review, they found that while we’re operating with fewer resources than many of our peer cities, there is no evidence of waste. However, the challenges we face—including rising PERS costs, limited property tax revenue, and understaffing—are real and cannot be solved with efficiency measures alone.
We will continue looking for cost-saving opportunities, and we welcome your feedback and ideas.
Additionally, our City Council’s Finance Committee has launched a Performance Auditing program, aimed at finding smarter ways to work. Recently, we completed a review of the City Manager’s Office, and we’re now focusing on our Urban Renewal Agency and Risk Management functions.
I encourage you to join us for a detailed discussion of these topics during our meeting on April 21st. I’m confident that together, we will ensure the fiscal health of our city.
I have been in office for fifty days now and I have learned so much.
Through these financial processes, I’ve learned that there are robust measures in place to safeguard the City’s financial health. I have also learned that an adjustment in our Forecasting and a General Fund review did not make a budget shortfall disappear entirely.
That’s why I’m asking for your support for the Livability Levy, which will appear on the May ballot. This Council passed the motion unanimously in support of our Library, our more than 90 parks, our recreation programs, and Center 50+. The outpouring of support for these treasured community resources has been overwhelming, and it’s a testament to what we can accomplish when we work together toward a common goal.
Today, I am thrilled to announce that both Salem Fire and Salem Police have endorsed the Livability Levy.
As I mentioned earlier, public safety is a priority for us all. We have heard the people of Salem loud and clear.
I’ve been asked why are pursuing a Livability Levy instead of a Public Safety Levy. Public safety remains our number one priority, and the proposed Levy will actually help to preserve the General Fund for essential services like police, fire, and emergency medical response over the next five years. Revenue from the Livability Levy will be placed in a dedicated fund and managed by a committee to ensure transparency and accountability. This committee will report annually to the City Council, and levy expenditures will undergo yearly audits.
We remain committed to being fiscally responsible and transparent with our community, and I sincerely hope for your support as we move forward with the Livability Levy.
I’ve had the privilege of joining our first responders on ride-alongs, which has given me a firsthand understanding of the challenges they face in our community. It’s clear that while we’ve made some progress there is still much work to be done. Public safety is not just about enforcement—it’s about creating a safe and supportive environment for everyone.
Our businesses, which are essential to economic growth, need a safe and welcoming environment to thrive. Our residents deserve to feel secure when they go to bed at night or walk through their neighborhoods and parks. Also, we must ensure that those experiencing homelessness have access to the support and resources they need. We need the right resources and accountabilities in place… for the best possible return on what has become an incredibly significant financial investment.
Through my ride-alongs with police and fire, I’ve seen the immense strain on personnel and equipment in response to those experiencing crisis.
The fact is… we need more resources and better services in place to serve those in need in our community. That’s why I mentioned earlier, my commitment to expanding our partnerships with Marion and Polk Counties, and the State of Oregon. Together we can tackle the ongoing challenges and provide pathways to more positive outcomes.
Bear with me now as I draw back the curtain on the very important topic of homelessness. There is more to it than meets the eye.
Many in our community are struggling. Homelessness is a complex issue, and it’s crucial that we address it with compassion and urgency. Last year, over 1,200 students in the Salem-Keizer School District were experiencing homelessness. Meanwhile, local organizations like Marion Polk Food Share report that many families are struggling to afford the rising costs of housing and food.
With food banks seeing record-high visits, it’s clear that many of our neighbors are living on the edge.
We continue to work alongside Salem’s development community to remove barriers to building more housing, providing more clarity around permitting, and connecting developers with incentives to construct affordable housing We offer a multi-unit housing tax incentive to promote housing in core areas of our urban centers. We’ve put some of our federal dollars from HOME Investment Partnership and our Community Development Block Grant into housing projects. We’ve also started using some of the $10 million from the 2022 Safety and Livability Bond to support affordable housing projects, including a 183-unit affordable housing project.
Our Community Planning and Development Department reports an increase in building permits and housing development. From July 2024 to January 2025, we permitted 582 new multi-family units, compared to just 182 during the same period the previous year. Together, we are working to ensure more affordable housing is available to those in need.
I believe it is also important to acknowledge our need for all types of housing. Housing which meets the needs of all income levels. Home ownership should still be part of the American dream. The ability to build equity can help to break the cycle of poverty.
In Conclusion… I have a question for you…
What does the state of our city mean to you? Be curious. Answer that question. Bring the skills and talents you possess to the community. Get involved.
Salem is not just a city—it’s a community. It’s a collection of people working together to create a better place for all, including you. The work we’ve done thus far makes me incredibly proud and we have 677 days to go!
I have deep faith and hope that, together, we can tackle the difficulties facing Salem. The team assembled in this room—elected officials, community leaders, city staff and residents—have exactly what it takes to lead us forward. I am committed to ensuring that all voices are heard, and that we create a livable, thriving community for everyone who calls Salem home.
We are small enough to know each other but big enough to overcome the challenges we face.
The state of our city is strong and growing stronger every day… because we are stronger together. Thank you.
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