Mayor Elorza's Proposed $40 Million Bond Program Goes Down in Finance Committee

GoLocalProv News Team and Kate Nagle

Mayor Elorza's Proposed $40 Million Bond Program Goes Down in Finance Committee

The proposed $40 million bond program by Mayor Jorge Elorza went down Thursday night before the Finance Committee. Members of the Providence City Council citing concerns about the "timing and potential risks included in the administration’s proposed $40 million bond referendum," unanimously decided to continue the ordinance for further analysis and deliberation -- which could be the death nail for the last minute Elorza plan.

The proposal was introduced just two weeks ago and faces a deadline to be placed on the November ballot. Included in the $40 million ask is a $20 million bond anticipation note (BAN), which Council members charge "lacks a clear and complete spending plan."

“While we all agree that it’s important to invest in the city’s infrastructure, it’s crucial to ensure that the financing decision is made with a deliberate and methodical approach,” said Finance Committee Chairman John Igliozzi. “We’re uncomfortable with the idea of rushing a decision on the request for a bond without properly vetting all the implications it could have on the city’s long-term financial health.”

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The request to seek a bond anticipation note is precedent-setting for the city, and has the potential to expose the city to higher risks. Interest rates for both the $40 million bond and $20 million BAN are still unknown; according to Igliozzi, those factors and the city’s borrowing capacity also need to be considered before a fiscally responsible decision can be made.

“We are the gatekeepers of taxpayer dollars, and we take that charge very seriously,” said Igliozzi. “No discussions about the bond were held during budget deliberations, which is concerning. It is important that we don’t push this through without answering the important questions.”

“It’s crucial to understand how this impacts the city treasury relative to costs and how spending decisions are made,” said Finance Committee Vice Chairman Terrence M. Hassett. “City Council members are specifically seeking a fair and localized improvement plan that will have a more direct, positive result.”

The citywide referendum deadline is August 10th.


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