Salem council gives first passage to $447.4 million bond order for new high school, schedules May special election
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Summary
The Salem City Council voted 11–0 on Jan. 8 to adopt for first passage a $447,385,518 bond order to build a new high school at 77 Wilson Street, preserve MSBA funding eligibility and refer the measure to committee. The council also authorized a May 5, 2026 special election on a debt‑exclusion ballot question and referred a $29,540 appropriation for election costs.
The Salem City Council voted 11–0 Thursday to give first passage to a $447,385,518 bond order to construct a new high school at 77 Wilson Street and to refer the measure to the administration and finance committee co‑posted with the committee of the whole for further review and presentation.
Councilor David Davis, who moved the first‑passage motion, said the figure "represents the full project cost, as submitted to the Massachusetts School Building Authority," including soft costs, construction and contingencies, and that the MSBA will later set a reimbursement rate that determines the state's share. "The balance between the project cost and the MSBA grant will be the local share of the debt cost each year for the term of the bond," Davis said.
Why it matters: the first‑passage vote preserves the city's eligibility to receive MSBA funds. Councilors emphasized that first passage is procedural and does not finalize design or funding decisions: Councilor Hathworth said, "this is not the end of any process... this is very much in the middle of the process, keeping us eligible to receive those millions of funds from MSBA." Councilors invited residents to the committee presentation for detailed information.
Public comment at the start of the meeting included criticism and questions about wording and true taxpayer cost. Phil Laffey urged clearer ballot wording so property‑tax increases affect all classes equally, calling the proposed language "very inappropriate" and recommending that the question be returned for rewriting. Steve Kapantis said the stated project cost understates the long‑term taxpayer burden once municipal bond interest is added, estimating that interest over a 20–25 year bond could raise the total burden to a substantially higher figure.
The council also moved and approved a council order to establish the debt‑exclusion ballot language and to schedule a special election for the question on Tuesday, May 5, 2026. Councilor Davis explained a debt exclusion "is a temporary allowance to exceed [Proposition] 2½ limits only for the term of the bond payment and only for the purpose of paying down the debt on the project bond." The council referred the special‑election order to the administration and finance committee co‑posted with the committee of the whole.
To cover the cost of holding the special election, the council approved referral of a $29,540 appropriation from free cash to the administration and finance committee. Davis said the appropriation is necessary because the special election was not anticipated when the current fiscal year budget was set.
Next steps: the council scheduled a committee presentation (committee meeting Jan. 21) and a second‑passage vote by the full council on Jan. 22 to allow final action before the MSBA's February meeting, when the state board will set reimbursement details. The special election order and appropriation will be considered by the same committee before returning to the full council.
