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Council approves budget housekeeping and second‑passage CIP bond orders totaling about $19.5 million
Summary
The Salem City Council voted to rescind long‑standing unissued bond authorizations, approved a $2,119,896 year‑end transfer to close fiscal 2025, and gave second passage to bond orders for fiscal 2026 capital improvement projects.
The Salem City Council on June 26 approved several fiscal housekeeping and capital finance measures, including rescinding legacy authorized but unissued bond appropriations, transferring $2,119,896 to close fiscal year 2025 costs, and carrying second‑passage bond orders for fiscal 2026 capital improvement projects.
Councilor Merkel, who moved the measures, said the rescissions remove outdated bond authorizations dating back 10 to 25 years that never issued and could present an inaccurate picture of the city’s future debt capacity. “These authorized but unissued bond appropriations from 10 to 25 years ago, didn't occur for the full appropriation. Leaving these on the books shows an inaccurate picture of our future debt capacity and will ultimately negatively impact our bond rating,” Merkel said.
The council also approved transfers totaling $2,119,896 to fund remaining fiscal 2025 costs; Councilor Merkel noted the transfers were time‑sensitive under state law and thanked the finance team for the cleanup. She referenced Massachusetts law that permits certain interdepartmental transfers only during the first 15 days of the new fiscal year.
On capital financing, the council gave second passage to a bond order for $10,026,020 for fiscal 2026 CIP projects and to a separate enterprise fund bond order of $9,450,000; both measures passed by roll call with 10 in the affirmative and one member absent.
What this means: the rescissions and transfers are administrative steps intended to clean up the city’s authorized debt records and close the prior fiscal year. Second passage of the bond orders advances planned CIP projects toward financing; further steps (such as sale of bonds) and implementation will follow administrative procedures outside the council vote.
