Committee recommends 3% cost-of-living increase for mayor starting Jan. 1, 2026; removes school-committee review requirement

The Salem City Committee on Administration and Finance voted to recommend a 3% cost-of-living increase to the mayor’s salary effective Jan. 1, 2026, after a discussion comparing mayoral pay across nearby municipalities and debate about budget priorities.

The committee also voted unanimously to recommend no action on a separate review of school committee compensation this year and to remove an ordinance line that required the council committee to review school committee pay on a biennial basis.

The discussion began with a presentation of comparative data by Lisa Cammarata, who described a multi-jurisdiction survey of mayoral base pay, stipends and noncash compensation. "We did everything we could to try to get something as comprehensive and representative of what's happening with all of these communities," Cammarata said, noting gaps in public reporting of stipends and noncash benefits.

Supporters of a cost-of-living adjustment said small, regular increases reduce the need for large, disruptive raises later. Councilor Stott, who made the motion to apply a 3% increase, framed it as an effort to keep Salem competitive with peer cities and to avoid a large catch-up raise in future years. "If we take no action tonight, nothing's gonna change for 3 years, and I think that's way too stagnant," Stott said.

Opponents said the city faces tight budget constraints and urged caution. Councilor Cohen and Councilor Harvey both argued for pausing raises this year so limited funds could be used to address staffing shortages and low hourly wages for some municipal workers. Cohen said the city should wait until there is better certainty about state and federal funding before increasing elected officials’ pay.

Committee members also discussed noncash benefits that affect total compensation, including vehicle usage and mileage reimbursement. Steve Kapantis, speaking during public comment, urged the committee to compare total compensation rather than base salary alone: "you should considering all of the fringe benefits and then see what the market value is," he said. Aaron Paternoster also spoke during public comment, noting that, because inflation has risen over recent years, "if an increase is not approved, then essentially what's being approved is a pay cut compared to the cost of living."

On procedural matters, the committee approved two related school-committee actions. Councilor Stott moved and Councilor Harvey seconded a motion that the committee "have reviewed the school committee compensation and we recommend no action." The motion passed 5-0. Stott later moved, with Councilor Watsonfeld seconding, to strike the ordinance sentence that required the committee to review school committee compensation during the council’s biennial organization; that motion also passed 5-0.

On the mayor's salary, Stott moved a 3% cost-of-living increase to take effect Jan. 1, 2026 (FY 2026). The final motion—limited to a single 3% increase starting Jan. 1, 2026—carried by voice vote, with the chair recording three hands in favor and two opposed (3-2).

What was decided - School committee compensation: committee recommends no action on a review this year (motion passed 5-0). - Ordinance amendment: committee recommends striking the ordinance line that scheduled a biennial review of school committee compensation (motion passed 5-0). - Mayor compensation: committee recommends a 3% cost-of-living increase effective Jan. 1, 2026 (motion passed 3-2).

Next steps The committee’s recommendations will be reported to the full City Council for consideration; the committee’s actions do not themselves change ordinance text or pay until the full council acts.

Ending Committee members thanked staff for the comparative pay research and noted the decision was made with both short-term budget pressures and longer-term recruitment and retention needs in mind.