MEASURE NO. 24-191-mp3

City of Salem

Referred To The People By The City Council

City of Salem Fire Department General Obligation Bond Authorization

Question: Shall the City issue $24,719,000 in general obligation bonds to construct and upgrade fire stations and purchase emergency vehicles? If the bonds are approved, they will be payable from taxes on property or property ownership that are not subject to the limits of sections 11 and 11b, Article XI of the Oregon Constitution.

Summary: This measure authorizes the City to issue general obligation bonds in an amount not exceeding $24,719,000. If approved, the bonds would be used to finance the costs of capital construction and capital improvements, including, but not limited to, the following:

• Build, furnish and equip two new fire stations to serve West and East Salem;

• Rebuild, furnish and equip two existing fire stations in South and West Salem;

• Purchase new fire trucks and other emergency response vehicles and refurbish an existing truck;

• Install emergency backup power at fire stations;

• Reinforce existing fire stations to better withstand earthquakes;

• Pay bond issuance costs.

The bonds would mature in 15 years or less from the date of issuance. To reduce interest costs and corresponding tax levies, the City may issue the bonds in one or more series and as a combination of short-term and longterm obligations.

Explanatory Statement:

The Salem Fire Department has identified several capital improvements thatwould enhance emergency response. The City of Salem seeks voter authorization to issue general obligation bonds to finance the costs of capital constructionand capital improvements, including, but not limited to, the following:

• Build, furnish and equip two new fire stations to serve West and East Salem

• Rebuild, furnish and equip two existing fire stations in South and West Salem

• Purchase new fire trucks and other emergency response vehicles and refurbish an existing truck

• Install emergency backup power at fire stations

• Reinforce existing fire stations to better withstand earthquakes

• Pay bond issuance costs

New Stations

Since 1982, the last time Salem built a permanent fire station, the City has increased in size by over 20 percent and in population by approximately 50,000. The Department is responding to 10,000 more incidents annually since 1982. Bond proceeds would be used to construct two new stations. The first station would be located in East Salem near State Street and Interstate 5. This station would improve response times to an area with high emergency demand. The second station would be located in the northern region of West Salem. Another station in West Salem would improve geographic coverage and allow for a more effective response to the area should the Center and Marion Street Bridges be inaccessible.

Station Replacement

Two existing fire stations, Station 5 (West Salem) and Station 7 (South Salem), would be rebuilt. The stations would be reconstructed to house additional fire trucks, increasing the resources available to serve the areas. A 1996 engineering study concluded that Station 7 is vulnerable to collapse in an earthquake and it is not cost effective to seismically upgrade the station. Station 5, West Salem’s only station, has had a number of recurring maintenance issues since being brought into Salem in the 1950’s.

Station Upgrades

All fire stations would receive backup power generation equipment and seismic reinforcement. The installation of backup power would make stations more disaster ready. In a disaster, fire stations may be used to provide temporary shelter, information, and medical care. Reinforcement would help ensure that fire and emergency medical services are available during a disaster.

Fire Trucks

Existing fire trucks are over 15 years old. The fire department has experienced an increase in vehicle breakdowns and maintenance costs. Bond proceeds would be used to ensure a reliable emergency response fleet by replacing equipment, including, but not limited to, the following:

13 fire engines             3 grass fire vehicles

2 ladder trucks            1 breath air support vehicle

2 water tenders           1 aircraft rescue and firefighting vehicle

An existing ladder truck would be refurbished to extend its useful life and provide the Fire Department with a reserve unit.

Financial Impact

The estimated property tax impact of this measure would be approximately 24.1 cents per $1,000 of assessed valuation. It is estimated that a taxpayer owning property with an assessed value of $150,000 would pay $36.17 in additional taxes annually for 15 years.

Submitted by:

Janet Taylor, On behalf of the Salem City Council


Arguments In Favor of the measure

No arguments opposed to this measure were filed.

Return to November 7, 2006 Voter Pamphlet Main Page