No “Magic Bullet” Says Council President Matos About Elorza’s Plan to Monetize Water System
Tuesday, February 19, 2019
Providence Mayor Jorge Elorza is pushing again to monetize the Providence Water Supply in an effort to generate revenue for the City of Providence -- an effort which could ultimately increase rates for all customers of Providence water and dedicate the increased revenue to address the Providence pension fund liability -- approximately $1 billion.
But, this year Providence City Council President Sabina Matos is raising concerns about the Mayor’s effort.
In a statement from City Council President Sabina Matos to GoLocal, Matos said, "We stand committed to solving the financial and pension hurdles that await us, but if it is the same proposal, I do not support it.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“We need a comprehensive approach to solving the pension issues, and this is not the 'magic bullet.' We also owe it to our constituents and stakeholders to hear their thoughts, and concerns regarding this potential transaction,” Matos added.
“For more than 100 years, Rhode Islanders have relied on Providence to be the stewards of most of the state’s water supply,” said Mayor Elorza. “It’s time for us to protect our asset and continue to modernize our system. We can no longer kick the can down the road. This legislation is critically important to maintain a vibrant and optimistic future for our state, preserve the quality and affordability of the water source and to address our long term finances. We’ve explored many options and if we do not take action now we may not be able to later on.”
Previous efforts by Elorza to “sell” or “lease” the water system has received a cool reception at the Rhode Island State House.
According to the announcement, this year’s version of the legislation “authorizes the City to enter into a partnership with other water authorities, operators, or regional water quality management district commissions while stabilizing rates and preserving public oversight of the utility.”
Pension Solution?
Elorza has long seen the sale or monetization of the Providence Water Supply Board as a way to generate revenue to address Providence'snear $1 billion unfunded pension liability.
One of the challenges for the Elorza plan has been strong opposition from State House leaders who don't believe Providence's pension fund problem should be shifted to the responsibilities of ratepayers who live in other communities in Rhode Island. More than 60 percent of Rhode Islanders are dependent on Providence's water supply.
Public Input Begin in March
The City is holding community meetings -- they are set to take place on the following dates, times and locations:
March 4, 2019, 6:00PM – 7:30PM
Nathan Bishop Middle School, Auditorium
101 Sessions St, Providence, RI 02906
March 11, 2019, 6:00PM – 7:30PM
Dr. Jorge Alvarez High School, Cafeteria
375 Adelaide Ave, Providence, RI 02907
March 21, 2019, 6:00PM – 7:30PM
Nathanael Greene Middle School, Auditorium
721 Chalkstone Ave, Providence, RI 02908
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