A city bond sale is essentially a way for Salem to borrow money upfront for large public projects and repay that debt over time. In this case, Salem has sold another round of bonds to keep moving forward on its voter-approved Safety and Livability Bond program, a 10-year, $300 million package that funds street work, sidewalks, fire stations, affordable housing-related land purchases, libraries, cybersecurity upgrades and Civic Center seismic improvements.
The latest borrowing drew strong interest from investors. In a March 24 competitive sale, Salem received 13 bids for a $94.5 million tax-exempt series and six bids for a $5.5 million taxable series, with a combined true interest cost of 4.52%, according to the city. Salem also said the sale is expected to generate about $3 million above the face value of the bonds, money that can help cover higher-than-expected project costs or support additional eligible work within the bond measure. City officials described this as the second of three planned bond sales under the 2022 program.
For Salem business readers, the significance is not the financing jargon. It is the project pipeline that financing keeps alive. The bond measure funds work that affects contractors, engineers, suppliers, commercial corridors and future development patterns across the city. Salem says the overall package includes street and sidewalk improvements, bicycle and pedestrian upgrades, fire engines and equipment, two future fire stations, branch libraries, affordable housing land purchases, technology upgrades and earthquake-safety work at the Civic Center.
Some of that work is already visible. Salem’s bond project pages show Emery & Sons Construction Group is handling the Silverton Road NE pavement rehabilitation project, while Roy Houck Construction is building the 2026 pavement rehabilitation package on Commercial Street SE and Doaks Ferry Road NW. The city also maintains a growing list of completed bond-funded projects, showing the borrowing is tied to active construction and not just long-range planning.
The bond sale also came after Moody’s assigned Salem an Aa2 rating with a stable outlook for the 2026 general obligation bonds, matching the rating received for the city’s 2023 bonds. The city said the latest sale is not expected to push Salem’s bond tax rate above $1.20 per $1,000 of assessed value, citing existing debt payoff and refinancing opportunities. That matters as Salem tries to keep major capital projects moving while staying within the framework voters were told to expect.
Oversight of the broader program remains with Salem’s Bond Oversight Steering Committee, which tracks project timing, costs and bond-related matters as the city moves toward the final planned bond sale in the coming years.