Transportation

The transportation group represents infrastructure and services that supports the transportation needs of the City. The only infrastructure category currently covered by this group is streets which encompasses classifications from sidewalks to arterial streets and streetlights to traffic signals.

Funding Summary

Funding sources consist of:

General Obligation Bonds are proceeds commonly derived from voter-approved debt issued. The applicable annual debt service is paid back through a specific property tax levy on properties. The bond proceeds can only be expended on capital projects meeting the specific purpose stated on the ballot measure.

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.

Growth revenues reflect the utilization of System Development Charges (SDC) or developer-required infrastructure. SDCs 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. Developer funded projects are improvements constructed by the developer and subsequently turn over in title to the City upon completion.

Economic Development Loan is revenue from the Oregon Economic and Community Development Department that are utilized for specific economic development projects. These revenues are paid back through tax increment and development district fees.

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 category in this grouping consists of:

Streets – Transportation infrastructure including streets, bridges, sidewalks, bikeways, railroad crossings, traffic signals, and street lights and streetscapes.

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

Other Relevant Factors

The projected 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. 

Staff is proposing to expand the Urban Service Area to include the Fairview Industrial Park and its southern portion of the McGlichrist industrial area. These areas are currently served by all required infrastructure. As such no capital projects are proposed for this addition.

The City has completed a comprehensive master plan for the street 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 time horizon. Those projects without an identifiable funding source are reflected in the unfunded project listing (reference supplemental “Unfunded Project Listing”)

Streets

Funding Summary

Important Information

The category of “Developer Funded Improvement” shown above is part of the previously authorized Urban Service Area (USA) expansion in West Salem. These projects are shown for reference only, as the projects will be built by private development and are not constructed by the City of Salem. Actual construction will only take place at such time that the private development occurs.

The City of Salem maintains an inventory of over 600 centerline miles of streets, 234 traffic signals, 189 school speed zone flashers, 8,100 street lights, and more than 20,000 signs. The “Streets” section contains a variety of projects to improve the City’s multi-modal transportation system.

The community has not approved a transportation general obligation bond since 1995. The last of the projects funded through that bond were completed during the summer and fall of 2004. Given the lack of bond funding, the majority of street improvement projects proposed for funding in this issue of the CIP are to be constructed using alternative funding sources such as Transportation System Development Charges (TSDCs). The projects funded through TSDCs are limited to addressing those deficiencies caused by growth and cannot address many of the longstanding transportation needs of the community. Staff and City Council are considering the possibility of a transportation general obligation bond for the November 2008 ballot. This CIP includes the potential $60 million G.O. bond measure in FY 2008-09.

CIP Bond Program