Committee authorizes up to $20 million in water revenue bonds for main replacements

The Providence City Committee on Finance on Jan. 23 approved a resolution authorizing the issuance of water revenue bonds and notes not to exceed $20,000,000 to finance replacement of aging water mains and related infrastructure.

A staff presenter described two planned projects: one larger replacement estimated at about $16,200,000 and a second project estimated at about $4,200,000. “The $21,000,000 that we're saving is for two major water main replacement,” a staff member said during the presentation, and the packet language authorized an amount not to exceed $20 million.

Committee members asked whether the total financing requests would affect the city’s or borrowers’ borrowing limits and whether the financing would be obtained from the state infrastructure bank; the presenter confirmed the group was pursuing infrastructure-bank financing. A committee motion to approve the resolution was made by Councilor Taylor and seconded by Councilor Sanchez; the committee approved the measure by voice vote.

The approval allows the city’s water enterprise or its financing authority to complete the financing steps required to issue bonds or notes and start the planned replacements, subject to standard closing conditions. The projects were described as replacement of long sections of pipeline in Providence, including segments of cast-iron main that the presenter said will be replaced with modern materials and coatings.

Ending The resolution clears the way for the water utility or its financing authority to move forward with the two projects; staff said they will return with final financing documents and closing details as required by city procedures.