Newport council pledges $2.9 million to complete Rogers High School after debate over funding source
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Summary
After extended debate over whether to use bond proceeds, reserves or deferred capital projects, the Newport City Council voted to commit $2,918,809 to complete Rogers High School and approved a motion to commit funds while staff refines the financing plan.
The Newport City Council voted to commit $2,918,809 to complete Rogers High School, approving a motion to pledge the funds while officials refine which account or combination of accounts will ultimately supply the money.
The funding action came after administration staff presented five options for covering the shortfall: use full bond proceeds; use $2,000,000 from the general‑fund balance with the remainder from bond proceeds; appropriate the full amount from the general fund; defer or freeze other capital projects; or wait for contingency‑rebate payments expected next spring and mid‑summer (estimated up to about $1,350,000 but not guaranteed). The presentation noted that some contingency rebates, if realized, would arrive in two tranches.
"We need the obligation because contractually with Gilbane, if we provide them with more scope of work, we have to match the funding based on their contract," said Joe DeSanti, Director of Project Management at Downs Construction, describing the timing and cash‑flow implications. DeSanti told council the earliest cash flow needs would fall in late spring to mid‑summer, and that contingency rebates would likely arrive in two tranches.
City finance staff reported the city’s reserve balance and cautioned about impacts on credit ratings. "We're currently at $28,000,000 as of our last report date," the finance director said when asked about the city’s fund balance. Staff advised that using up to $2,000,000 of reserves was an option that bond counsel and the finance director believed was less likely to affect the city's AA+ rating, whereas fully drawing on the general fund could carry more risk.
Councilors pressed the administration on timing, alternatives and the effect on other priorities. One councilor asked why funds earmarked for Bellevue Avenue road repair or other capital projects were proposed as options; administration replied those were presented as possibilities and that a final recommendation would return to council once firm estimates were available. Council members requested a written opinion from bond counsel on potential rating impacts before a final decision on funding sources.
After questions and discussion, a councilor moved that the council commit the $2,918,809 for completion of Rogers High School; the motion was seconded and carried. The motion committed the council to support the funding but did not finalize which specific revenue sources would be used.
The council’s vote commits staff to finalize a financing path and report back with any legal or fiscal advisories, including a bond‑counsel letter on rating impact and a clearer cash‑flow schedule tied to construction milestones. Administration said contingency funds recovered from the project, if any, could be returned to the general fund.
Next steps: staff will prepare follow‑up materials (timing, written bond‑counsel guidance and final cost estimates) for council review before the actual appropriation or fund transfer is executed.
