Pawtucket council approves first passage of ordinance to allow up to $50 million in water revenue bonds

The Pawtucket City Council on a roll-call vote gave first passage to an ordinance authorizing the issuance of water revenue bonds and notes in an amount not to exceed $50,000,000 to finance improvements to the city's water supply system.

The finance committee recommended the ordinance, and Councilor Moran moved approval with Councilor Rubio seconding. The clerk recorded a unanimous roll-call of yes votes from President Mercier and councilors Ruggio, Cordero, Gregor, Moran, Moreno, Rubio and Sikowiak (8-0) for first passage.

Joseph Keogh, counsel for the Pawtucket Water Supply Board, told council members the measure would increase the board's borrowing authority after the board had reached its current limit. Keogh said increasing authority "does not mean we're going to borrow right away" and that first passage does not automatically change customer rates. He said any borrowing that required new revenues to service debt would require approval from the state review process the transcript identifies as the Division of Public Utilities and Carriers.

Keogh also outlined routine practice for bond proceeds and property: the board does not generally use bond funds to purchase property, but if it does, the property could be held in the city's name following recommendation by the water board, review by the properties committee and full council approval.

Councilors asked whether borrowing under the new authority would automatically trigger rate increases; Keogh said the division acts as a consumer advocate and has a process that can require review even when rates are already sufficient to carry new debt.

The ordinance passed first passage; the council did not vote on any specific bond issuance or approve changes to rates at the meeting. Further council action will be required for final passage and for any specific borrowing.