The Salem City Council on Oct. 13 approved a measure to reduce the city’s general‑fund transfer to the airport by $100,000 per year for three years and apply those funds toward a minimum revenue guarantee (MRG) intended to recruit commercial airline service.

The council recorded a 6–3 vote. Councilors Nordyke, Teigen, Nishioka, Matthews, Gwynn and Mayor Julie Hoy voted in favor; Councilors Varney, Brown and Vang voted no. The measure passed after debate on the council about funding sources and possible operational impacts at the airport.

What the action does: City materials and staff said community partners had pledged approximately $400,000 per year for three years toward a viable MRG; staff and councilors described an industry standard target of roughly $500,000 per year for three years as a competitive goal for recruiting a carrier. The council motion reduces the city’s planned general‑fund transfer to the airport by $100,000 per year and assigns those funds to help close the $100,000 shortfall in the pledged MRG.

Council debate and concerns: Opponents warned the move could pressure airport staffing or require service reductions if commercial service does not materialize. Councilor Varney said reducing the airport transfer "means staff reductions" and opposed using labor funding to subsidize commercial service. Director Brian Martin (Public Works) said staff are not planning immediate layoffs; he described two current vacancies at the airport and said the city could operate with 7.5 FTEs rather than the nine allocated previously if flight activity remained low. He also noted that airlines often seek fee concessions (fuel flowage, landing fees, parking) when negotiating initial service.

Other context and next steps: Staff and the council noted a 90‑day process tied to the Transportation Security Administration that could decertify the airport if federalized service is interrupted — the council was advised the November 90‑day marker could trigger defederalization steps. Airport staff and a consultant have been engaging carriers and said having a concrete MRG would allow them to begin negotiations. Staff also said they will continue pursuing grants and other funding sources to reduce general‑fund exposure.

Ending: The council’s action is intended to hold open a recruitment window for commercial air service while staff pursue longer‑term funding options; if no carrier materializes staff said they would revisit staffing and fee structures in the next budget cycle.