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Salem City Council considers ending downtown business parking tax

Downtown Salem parking will be free for Small Business Saturday

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Salem City Council will vote on Jan. 26 on whether to advance a bill repealing the Downtown Parking Tax District and give a refund to businesses that paid the tax after the city implemented paid on-street parking in July 2025.

Higher-than-expected revenues from the new paid-parking system prompted staff to make the recommendation.

During the first six months of paid on-street parking in downtown, the city collected $1.19 million in revenue and is continuing to outpace projections.

Crews installed 146 new meters over the summer. Parking costs $1.50 an hour and is enforced from 8 a.m. to 8 p.m. Monday through Saturday. Parking is free on Sundays and holidays.

Downtown visitors pay via the Beep Beep Salem app, with a card or coins at a parking meter, or by finding a free spot at a downtown parkade.

City staff report that paid parkade permits for residents and downtown employees have increased since paid parking was implemented.

“This indicates paid parking is encouraging people to purchase permits, freeing up on-street spaces for customers,” staff said in a report to council.

August, October and December had the most pay station revenue. The average monthly revenue was $199,014.

The average vehicle parking time is 90 minutes, which staff said is a positive sign of usage and turnover.

“This means people are coming downtown to dine, shop, or run errands, rather than spaces being occupied by employees or residents, which was a significant issue prior to the conversion to the paid system,” staff said.

When the city implemented paid parking, many businesses reported that they wanted to see the end of the downtown business parking tax.

The Downtown Parking District taxed downtown businesses annually for parking, and the city used the revenue to pay for parkade maintenance, security and the parking program. The model failed to generate enough money for the operating costs, which led the city to seek more stable funding through paid on-street parking.

The average parking tax paid by businesses downtown is $1,043 a year.

According to the report to council, refunds for the tax retroactive to July 2025 will be completed by June.

Other Salem City Council agenda items

  • A vote on whether to add four full-time ambulance medic positions to adjust to the city’s higher-than-expected number of emergency calls at a cost of more than $640,000. The vote was originally on the Jan. 12 agenda but was pushed to Jan. 26 to coincide with a mid-year report on the city’s ambulance services.
  • A vote on directing City Manager Krishna Namburi to submit a Regional Scenario Plan, which outlines transportation and land use alternatives to reduce greenhouse gas emissions, for approval with the State Department of Land Conservation and Development.
  • A vote on creating a mid-year sanitary sewer project to repair the West Salem pump station access road. High flows from a December storm damaged a culvert and access road to the pump station at its crossing with Glenn Creek. Urgent repairs costing $700,000 from the Utility Rates Fund are needed.
  • A vote on authorizing a claim settlement agreement for $200,000 between the city and a former employee.
  • A vote on authorizing Namburi to resolve a workers’ compensation claim for $550,000 for deceased firefighter Maurice Stadeli.
  • A vote on whether to allow Marion County to enforce its new vendor rules in city limits.
  • A quarterly update on economic development activities in the city.
  • An update on progress made in the Safe, Clean and Healthy Salem initiative.
  • A proclamation recognizing Feb. 1 as Blue Star Mothers Day.
  • A proclamation recognizing February as Black History Month.

How to participate in the Salem City Council meeting

The meeting is at 6 p.m. Jan. 26. While city hall is undergoing seismic retrofitting, council meetings will be held in Loucks Auditorium at the Salem Public Library at 585 Liberty St. SE.

Meetings 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 to cityrecorder@cityofsalem.net by 5 p.m. the day of the meeting. Or citizens can preregister between 8 a.m. and 2 p.m. the day of the meeting at cityofsalem.net/Pages/Public-Comment-at-Salem-City-Council-Meeting.aspx to speak during the meeting via Zoom.

Whitney Woodworth is the Statesman Journal’s watchdog reporter for city hall and covers economic development. Send comments, questions and tips to her at wmwoodworth@statesmanjournal.com or follow at @whitneywoodworth.bsky.social

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