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East Greenwich Council approves authorization to borrow up to $150 million for school construction
Summary
The Town Council voted 5-0 to authorize issuance of general obligation bonds up to $150 million to fund replacement and renovation work across four East Greenwich schools; the vote clears an initial issuance expected this summer and formalizes earlier voter approval of the borrowing.
The East Greenwich Town Council voted 5-0 on May 12 to approve a resolution authorizing the town to issue general obligation bonds and notes in an amount not to exceed $150,000,000 to finance replacement, renovation and related work at the town’s public schools.
The measure, approved after questions from council members about timing and disclosure obligations, implements a borrowing authorization that voters approved by referendum in November 2023. Town Finance Director Trish Bridal told the council the town will seek an initial bond issuance within weeks to reimburse roughly $5 million the town has already advanced for consultants and other preconstruction costs; additional borrowing tranches will follow as construction contracts and guaranteed maximum prices are finalized.
Council President Mark Schwager opened the discussion by reading the resolution language and asking Finance Director Trish Bridal and town staff to explain next steps. Bridal said bond counsel and the town’s financing team are preparing the official statement for a market sale planned for late June or July, and that a second tranche likely will follow later this year or next depending on construction schedules. Councilor Michael Donegan queried the draft resolution’s continuing-disclosure language; council members asked staff to follow up with bond counsel about how those obligations are carried through the sale documents.
The resolution authorizes borrowing to cover work "including but not limited to" new build replacements for Frenchtown Elementary and Hannaford Elementary, renovations to Meadowbrook Elementary and additions and renovations at East Greenwich High School. During the meeting the finance director provided the project cost estimates being used for planning (not a change to the referendum): Frenchtown Elementary, $67,600,000; Hannaford Elementary, $63,400,000; East Greenwich High School, $27,000,000; Meadowbrook Elementary, $2,000,000. The council emphasized those figures are planning estimates and that final contract awards and guaranteed maximum prices will determine exact borrowing and project scope.
Town Manager Andrew Nada told the council that the referendum authorized the borrowing, but the council retains control of the timing and size of actual issuances as the team moves through bidding and contract negotiations. "There is a point in time when you commit to the project," Nada said; staff noted the town is seeking to accelerate some early procurements with long lead times to avoid cost escalation.
The resolution delegates authority to the town’s finance director and council president to execute sale documents and related agreements; bond counsel drafted the text and staff said it mirrors standard municipal financing practice, including continuing-disclosure commitments to MSRB/EMMA. Council members asked staff to confirm with bond counsel that the resolution and sale documents align on disclosure and default remedies; staff agreed to report back.
The vote was 5 in favor, 0 opposed. The council also directed staff to add the planning estimates to the meeting record for clarity. Town officials said the initial tranche will reimburse preconstruction expenses and fund early procurements; later issuances will depend on the timing of construction and guaranteed maximum price negotiations.
If construction and financing proceed as planned, the work would be carried out in phases over multiple years; the council and staff said they will return with updates and any required budget or scope adjustments. No amendments to the resolution were adopted at the meeting.
Questions and concerns raised by some council members during debate focused on controlling costs, the timing of the bond sale, and what budget items the borrowing will cover. One councilor said he would support the authorization but expected strict oversight if project estimates rise. Staff noted the council will review award recommendations and any scope or budget changes before final contract approvals.
The council’s action puts the town on a path to borrow the authorized amounts subject to market conditions, the results of competitive procurements and final guaranteed maximum prices for the school contracts. The town’s financing team, led by the finance director with bond counsel support, will bring formal issuance documents and sale timing to the council in coming weeks.
