Community Infrastructure Bond FAQ

What can general obligation bond funds be used for?

The Oregon Constitution limits what local governments can use bond dollars for to capital costs. These costs can include the purchase of land, construction, remodeling, upgrades, equipment, and payment of capital costs.

What is excluded from the use of general obligation bond funds?

The Oregon Constitution limits the use of General Obligation bonds to capital projects like repair of facilities, construction, and the purchasing of land and equipment. Bond funds may not be used to fund operational expenses like supplies or employees.

A bridge crossing the Willamette River is not part of the proposed bond measure.

What sort of oversight would there be if the bond passes?

Salem City Council would appoint an advisory board that would serve as oversight for use of the bond funds. This would be in addition to financial reporting requirements reviewed by an outside auditor as part of the annual financial audit.

Why has the City Council referred the bond measure to voters?

The City of Salem may issue bonds to pay for infrastructure. The bonds would be paid back through property taxes levied on properties. Due to some of the City's existing bonds being paid back in the next several years and reduced debt service payments, the City could issue up to $300 million in bonds over the next 10 years while maintaining the City’s current tax rate.