Community Facilities

Funding Summary

Funding sources consist of:

System Development Charges (SDC) are charges assessed on all new development to recover planned future facilities that will provide them service. These revenues can only be utilized for capacity increasing infrastructure.

Bond Proceeds - Tax Increment is a financing tool utilized by the Urban Renewal Agency in designated project areas to finance certain infrastructure improvements that meet defined parameters. The debt service is supported by the existing tax increments derived from the project area.

Hotel / Motel Tax revenues reflect the Transient Occupancy Tax the city collects on all hotels/motels within the City limits. Based on Section 56 of the City Charter, a portion of these funds may be utilized for historical/cultural enhancements.

Other Funding Sources reflect utilization of certain opportunity grants, contributions, restricted/unrestricted reserves, and/or other financing tools. These other funding sources may not be fully realized at the time of publication (funding sources are further detailed in the category section that follows).

Capital Project Summary

Capital project category and project classifications are further detail groupings that are defined by the operating department in project identification and assessment. The categories in this grouping consist of:

Historic Structures – all structures and properties with a historic designation maintained by the City of Salem.

Parks - all designated park land, open space, and park facilities operated and maintained by the City of Salem.

Library – all facilities utilized for the provision of library services by the City of Salem.

Pools – all pool facilities operated and/or maintained by the City of Salem.

Senior Center – all facilities operated and maintained by the City of Salem for the provision of recreation and communal services to senior citizens.

Further classifications of these project categories are identified in the subsequent category sections.

Other Relevant Factors

The proposed costs for all projects are the costs anticipated in the year of construction. Project construction cost estimates are indexed using the Engineering News Record (ENR) cost index, an average of the Seattle, San Francisco, and Los Angeles indices. This brings the original project cost estimate up to "current year" dollars. This value then has an assumed 3 percent annual inflation increase in subsequent years.

The City has completed a comprehensive master plan for the parks category. This master plan identifies the needed infrastructure improvements over a 20 year planning period. The Capital Improvement Program provides detail on planned projects that have an identifiable funding source over the immediate five year future. Those projects without an identifiable funding source are reflected in the unfunded project listing (reference supplemental “Unfunded Project Listing”).

The categories of library, pools, and senior center currently do not have any identifiable funded projects, however the following concerns/considerations have been highlighted:

Library - Staff proposes that the unfunded capital needs for expansion of library facilities (West branch expansion and construction of south and east branches) be considered as a possible general obligation bond in 2012.

Historic Structures

Funding Summary

Important Information

The City of Salem historic properties, Deepwood, Bush House, Rockenfield-Bean, Parrish and the Gilbert House require building improvements and repairs in order to provide to the public, safe and structurally sound properties. In concert with these objectives, it is also intended to provide for the aesthetically accurate integrity of the time period.

These goals represent the continuous attention to maintenance required to keep the structures in an operating condition to allow for the public to continue to enjoy the use of these buildings. Performing these projects in a timely fashion will ensure that these buildings will remain in functional order.

It should be noted that the Projects listed are not necessarily work of historical enrichment or enhancement but projects required to keep the sites, as mentioned, safe and operational.

Parks

Funding Summary

Important Information

The 1999 Comprehensive Park Master Plan identified neighborhood, community, and large urban parks as the basic classifications that form the backbone of the city park system. The Plan identified specific levels of service for each park classification; 2.5 acres of neighborhood park, 2.5 acres of community park, and 3 acres of large urban park for a total of 8 acres for every 1,000 residents of Salem. These identified levels of service quantify the level of basic recreational opportunities that should be provided to the residents and neighborhoods in the city. With the continued population growth and the defeat of the 2002 park bond, the service levels and park funding priorities relating to existing parks are being reexamined through a Master Plan update. An updated Plan is scheduled to be complete in 2006-07.

As the population inside the urban growth boundary is expected to reach 218,860 by 2020, land acquisition and development activities have been directed to targeted Urban Service Areas (USA). In order to provide the identified levels of park system services to the future residents of Salem, projects addressing growth are included in the classification of “future” parks. It is anticipated that funding from the Parks System Development Charge (SDC) will incrementally fund these needs into the future. Alternative fund sources are continually being sought from state, county, and federal grants, private donations, and other financing options.