Council Gives First Approval to $40 Million Bond Deal
Friday, July 27, 2012
Several days after a special meeting was canceled, the Providence City Council on Thursday voted unanimously to give first approval to an ordinance that will place a $40 million bond item on the November ballot.
In question Thursday was how to distribute the funds throughout the city. Mayor Angel Taveras originally proposed that his administration oversee the entire $40 million, but last week a Council committee amended the plan to divide approximately half the money among the city’s wards.
After Taveras threatened to veto the amended proposal, each Council member met with the administration to discuss the list of roads slated to be repaired in each neighborhood. Council members then voted to revert back to the Mayor’s original proposal.
Ward 6 Councilman Michael Correia, who said he expects close to $2.5 million to go to his wad, called the proposal a win-win.
“It’s a win for the Mayor, it’s a win for us and most importantly, it’s a win for the taxpayers,” Correia said.
Prior to the meeting, Republican City Committee chairman Tara Pinsky chastised the all Democratic City Council for focusing on politics more than the finances of the city.
“In recent weeks I have been truly disappointed with the lack of leadership demonstrated by the City Council,” she said. “When you have been elected to public office, you need to show up and represent your constituents. At a crucial time in the city’s recovery, City Council members should never miss a meeting.”
Pinsky said she still has questions about whether the city can afford the bond.
“What is the bond interest rate going to be,” she asked. “After our former Mayor [and] now Congressman [David] Cicilline caused the Providence’s bond ratings to drop from investment grade to just above a junk bond rating, what is the resultant coupon going to cost Providence for $40 Million of additional municipal obligations?”
The Council is expected to give final approval to the proposal next week.
Enjoy this post? Share it with others.
Commenting is not available in this channel entry.