Council’s Bond Opposition Grows

Another Salem Common Council member has joined the opposition against obtaining a bond issue to pay for waterline upgrades.

The vote came during a special called meeting on Monday, Feb. 26, which was held before a packed meeting room of about 30 people.

It was the second vote against the proposed $3.3 million bond issue. The first was held during the Council’s regular meeting on Feb. 12 where three council members – Roger Pennington, Dylan Moore, and Randy Lee opposed it.

Prior to the Feb. 26 vote, Councilman Steve Crane said the city shouldn’t acquire more debt, which is a change from his positive bond vote earlier in February.

Crane urged the Council to hold off on the bond issue and instead seek grants to pay for the ongoing waterline replacement along Main Street. He said the city has “credibility and confidence issues” with its water utility customers.

“I think too much has happened too fast,” Crane concluded.

Pennington said although a revised rate study showed a difference of less than a dollar in needed rate increases without the bond, his concern remains adding to the city’s debt load. He added that the last water rate increase occurred in 2021 and it should have been apparent before now that the water utility was struggling to keep up with operational costs.

In addition to funding the waterline replacement project and helping with operational costs, the bond was going to provide a mandated cash reserve for the utility.

Moore said he shares the same concerns about adding debt and asked about the possibility of obtaining grants from the state. Mayor Justin Green said the city doesn’t qualify for those grants because water rates are too low: to qualify for grants, utility customers are required to shoulder more of a burden in supporting the utility.

Moore said he believes there is a “dire need” for the Main Street waterline replacement project, but he remains concerned about debt as well as the additional non-construction costs related to a bond issue.

When Pennington said the Main Street project only represents a small portion of the city’s waterlines, Green countered by saying the 80-year-old waterlines are main trunklines that deliver water to customers beyond those on Main Street.

Moore made a motion against pursuing the bond issue and a second was given by Crane. No council member opposed the motion.

No members of the public chose to comment.

The city currently carries a $4 million debt for its sewer utility and $14 million for its water utility.

There does seem to be a consensus among the Council’s members that water rate increases are needed and inevitable.

By: Becky Killian, Staff Writer