Salem council approves parameters for up to $45 million in water and sewer bonds

The Salem City Council on April 15 approved a resolution setting parameters for issuing up to $45 million in water and sewer revenue and refunding bonds, a package intended to cover refunds and new projects in the city’s utility system.

A representative from Zions Bank outlined the proposed financing structure and said the city would likely issue about $25 million initially, with a 35‑year maximum maturity and market-driven interest rates. Garrett Gross, an attorney with Gilmore Bell, participated via Zoom to answer legal questions about the resolution and the required documents.

Council members asked how the sale would affect the city’s creditworthiness; the bank representative and Gross said the amount was within reasonable bounds for a city of Salem’s size and that investors will be informed of the scope of projects financed. City Manager Matt Marziale and staff said project specifics will be coordinated with an updated water master plan expected by July.

Councilperson Paul Taylor moved to approve the resolution setting the bond parameters; Councilperson Cynthia Deveraux Rees seconded the motion, which passed unanimously among the four council members present.

The approval authorizes city officers to finalize bond documents within the parameters set by the council and to publish any required notices of public hearing and bond sale. City staff said the next steps include identifying and sequencing specific water and sewer projects to be financed and returning to the council with final terms and project lists.