Salem Mayor Julie Hoy used her annual State of the City address Wednesday to argue that the city has made measurable progress over the last year by refocusing on budgeting, public safety and basic city services, while cautioning that Salem still faces financial pressure and operational work ahead.
Speaking at the Salem Convention Center, Hoy framed the past year as a reset after what she described as leadership transition, public frustration and a projected $13.8 million budget shortfall. She said her administration’s approach has been to get Salem “back to basics,” emphasizing reliable government over big promises.
That meant starting with the budget.
Hoy said the voter-approved five-year operating levy passed in May helped stabilize services including the Salem Public Library, Center 50 Plus and parks, while protecting public safety functions. But she also made clear the levy was not, in her view, a cure-all. Rising health insurance costs and continued pressure from the Public Employees Retirement System, or PERS, remain major long-term concerns for Salem and other Oregon cities.
She said the city is now taking a longer-range view of its finances, with a five-year budgeting horizon, more pilot programs and a new performance auditing effort through the council’s finance committee.
On public safety, Hoy pointed to several changes she said are already improving conditions in downtown and northeast Salem, areas that have drawn repeated complaints from residents and business owners. Those changes include increased police visibility, the expansion of the homeless services team to seven days a week, more frequent cleanup efforts under the Safe, Clean and Healthy Salem initiative, and the January launch of the REACH team, a joint response unit involving Salem Fire and Marion County behavioral health staff.
Hoy called the REACH model a more targeted way to respond to calls involving emotional disturbance, overdose and other behavioral health emergencies, saying, “Not every crisis is a crime.” Early city reporting shows the program handled 49 encounters in its first month, an initial sign the pilot may reduce unnecessary ambulance transports, emergency room visits and repeat 911 calls.
She also highlighted Salem Fire’s transition to a city-run ambulance service, which brought 51 new medics into the department last summer, and publicly thanked outgoing Police Chief Trevor Womack as he prepares to retire after 34 years in policing.
Beyond public safety, Hoy argued that basic city functions are beginning to create conditions for broader economic momentum. She cited more than $78 million in new commercial and industrial permit valuation in 2025, more than 1,000 land use applications and permits for roughly 855 housing units. At the same time, she acknowledged that developers continue to complain about slow and cumbersome permitting, criticism she said is fair.
“Salem needs to be seen as a partner,” Hoy said, adding that the city should be ready to help when businesses want to expand or invest.
Her speech also touched on tourism, downtown revitalization and infrastructure. Hoy pointed to paid on-street parking, the repeal of the downtown parking tax, urban renewal grants and the Marion Parkade renovation as practical steps intended to support downtown recovery. She also highlighted airport funding, emergency backup power for senior housing, park upgrades, major corridor work including McGilchrist and Silverton Road, and preparation for possible drinking water impacts tied to the Detroit Reservoir drawdown.
The broad message of the speech was that Salem has improved, but not finished the job. Hoy said the city has “turned the corner,” but whether that progress lasts will depend on disciplined decisions and continued public engagement.
For a city still managing cost pressures, public safety demands and growth expectations at the same time, that claim will be tested less by the speech itself than by what residents see over the next budget cycle.