Auditing Salem
The Ledger's review of Salem's budgets, audits, debt and redevelopment money. Every story in the series, sorted by subject, with the figures the records show and links to the official documents.
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Auditing Salem: What the city's audit and budget show
Salem's auditors said the city's fiscal 2025 statements present fairly and reported no findings. The city owed $52.2 million in bond and note principal in June 2025, and its fiscal 2027 general fund budget is $15.25 million. This series examines the records behind those numbers.
Read the explainer →Key figures
- $15.25 millionFiscal 2027 general fund budgetAuditing Salem: What the city's audit and budget show →
- $52.2 millionBond and note principal owed, June 30, 2025Auditing Salem: What the city's audit and budget show →
- $45 millionWater and sewer bond ceiling authorized April 2026Salem's sewer plant financing: a $9 million state loan and a $45 million bond ceiling →
- $9 millionState wastewater loan authorized at 2.4%Salem's sewer plant financing: a $9 million state loan and a $45 million bond ceiling →
- $300,000Capital-fund transfer to fiber in fiscal 2025Salem Fiber covered operating costs in 2025 but relied on a $300,000 transfer; the 2027 budget has none →
- $863,765Additional city money for Chutes & Ladders ParkSalem approves two reimbursement agreements with Salem Fields developers for a sewer line and a park →
- $1.1 millionFiscal 2027 utility transfers to general fundSalem plans $1.1 million in utility transfers to its general fund for 2027 →
Debt and bonds
Salem's sewer plant financing: a $9 million state loan and a $45 million bond ceiling
A state board authorized a $9 million wastewater loan to Salem in October 2025, and the City Council in April 2026 authorized up to $45 million in water and sewer bonds, part of it to refinance existing sewer debt. City officials have said developers are expected to prepay $30 million to $35 million before bond or loan money is used.
Budgets, reserves and taxes
Salem plans $1.1 million in utility transfers to its general fund for 2027
Salem's fiscal 2027 budget moves $1,117,000 from six city-owned utilities to the general fund, which the city says helps avoid property tax increases or service cuts. The fiber utility contributes nothing, and the utilities also pay separate administrative charges.
Salem Fiber covered operating costs in 2025 but relied on a $300,000 transfer; the 2027 budget has none
Salem's fiber utility earned $25,917 more than its operating expenses in fiscal 2025, but interest costs left it $101,157 short before a $300,000 transfer from the capital improvement fund, and its cash fell. The fiscal 2027 budget plans no such transfer and says no more bond money is left.
Contracts and spending
Salem approves two reimbursement agreements with Salem Fields developers for a sewer line and a park
In June 2026, Salem's council unanimously approved reimbursing Flagship Development $329,006.53 for an oversized sewer line and an agreement with Flagship Homes for Chutes & Ladders Park that commits $467,141 in impact fees and an additional $863,765 in city money.