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Council authorizes up to $2.8 million borrowing for road resurfacing and drainage improvements
Summary
Council approved a borrowing resolution to allow the town to issue up to $2.8 million in bonds or bond anticipation notes to fund reclamation, resurfacing and drainage work on ten roads, using the RI Infrastructure Bank program with an interest subsidy.
The Town Council on May 28 approved a borrowing resolution authorizing the town to borrow up to $2.8 million to fund design, engineering and construction of road resurfacing and drainage improvements on a set of town streets.
Town bond counsel and staff presented the financing as part of a Rhode Island Infrastructure Bank program that provides an interest subsidy equal to one‑third of the market rate; the loan would be repaid over 20 years. The council voted to authorize the borrowing resolution, which allows the town to draw on the approved amount as needed; interest will be assessed only on amounts actually borrowed. The resolution covers reclamation and resurfacing work and drainage upgrades across ten roads identified by the Public Works Department.
Councilor Sandy (Bond Counsel) and staff noted the program’s advantage of borrowing only what is required and of a reduced effective interest rate. Council approved the resolution by voice vote and directed town staff to proceed with the Infrastructure Bank process.
