Salem City Council approves $10M for fiscal year 26 capital improvement projects

The City Council Committee on Administration and Finance convened on June 11, 2025, to discuss the fiscal year 2026 capital improvement plan, including various funding appropriations and bond orders. The meeting, held in the council chamber, was attended by key council members and city officials, including finance director Anna Friedman and capital planning director James LeBlanc.

A significant focus of the meeting was the approval of a general fund capital bond order amounting to $10,026,020. This bond order includes the repurposing of over $2.5 million in unspent bond proceeds, which will help reduce future debt service costs for taxpayers. The council unanimously approved this motion, highlighting the importance of utilizing unspent funds effectively.

The committee also addressed the fiscal year 2026 water and sewer funds capital bond order, proposing an appropriation of $9,450,000. Similar to the general fund, this order will utilize approximately $196,000 in unspent proceeds, reducing the amount of new borrowing required.

In addition to these bond orders, the council discussed short-term capital improvement plan (CIP) appropriations, approving a total of $5,677,457 after amending the budget to remove a duplicate allocation for police plate readers. The funding for these projects is derived from the city’s free cash and interest from ARPA grants, which will help minimize future borrowing needs.

The meeting also included the approval of a $48,718 appropriation from the golf course receipts reserved account for equipment purchases, and a retained earnings CIP appropriation of $689,938 for water and sewer projects. Furthermore, the council approved a $750,000 transfer from free cash to the short-term capital fund to support the fiscal year 2026 capital projects.

Lastly, the committee recommended the establishment of revolving funds totaling $3,135,000 for fiscal year 2026, which require annual authorization to ensure proper management and oversight.

Overall, the meeting underscored the city’s commitment to responsible financial management and infrastructure investment, aiming to enhance community services while minimizing taxpayer burden.