Salem auditor reports year‑end figures, highlights quarter‑percent income‑tax revenue and rising interest earnings

Auditor Salvino presented the city's end‑of‑year financial recap at the Jan. 28 Salem City Council meeting, reviewing carryover values, income‑tax receipts, the quarter‑percent levy contributions and notable changes in interest earnings.

Why it matters: The auditor's report outlines the city's available funds, the role of the quarter‑percent income‑tax levy in street and road repairs, and one‑time or grant‑driven variances that affect budgeting decisions.

Key figures and explanations given in the meeting - Income‑tax receipts: Auditor Salvino said 2024 year‑to‑date income tax receipts were close to $7,600,000, compared with about $7,200,000 in 2023, a 6.05% increase year‑over‑year. He identified the total reported in the packet as "close to $7,600,000." - Quarter‑percent levy: Since inception (about 2016), the auditor said the quarter‑percent levy has generated about $11,600,000; for 2024 the quarter percent produced roughly $1,500,000. Salvino told council that the quarter‑percent levy funds street repairs and has materially supported repaving work. - Property tax and other revenue items: Salvino said property tax receipts rose about 16% from 2022 to 2024. He also noted larger interest earnings in 2024 compared with 2022, with interest income cited as rising from approximately $75,000 in an earlier year to about $712,000 more recently. - Grants and reimbursements: The auditor explained an outlier in administration expenditures in 2024 was attributable to a reimbursable GRAMA (grant) that required the city to advance $225,000 from the general fund into the Lincoln Plaza Fund; the auditor said the city expects to collect that amount back in 2025.

Explanations offered Salvino said changes in bank investment strategy and shifting higher interest rates in recent years produced larger interest earnings. He described a decision by the city's investment committee to move more funds into interest‑bearing accounts after a bank analysis suggested higher returns while maintaining liquidity within a 24‑hour notice period.

Council Q&A and context Council members asked whether the quarter‑percent levy is necessary to maintain roads; the auditor said without that levy the city would likely rely on patching rather than full repaving. He described the levy as vital to street repairs and said the levy has materially increased road funding since 2016.

Ending Salvino invited council members to follow up with questions by email or in person and reiterated that some line‑item variances were tied to one‑time reimbursable grants rather than recurring operating expenses.