City presents fiscal note for proposed $98.5 million bond to shore up infrastructure

City management and the finance director outlined fiscal notes and alternatives for a proposed $98.5 million infrastructure bond intended to address pressing capital needs across Newport, including bulkhead repair, harbor facilities and coastal hardening.

The city manager framed the bond as an effort to spread the cost of about $500 million in infrastructure needs over time. He warned of imminent failure on projects like the Paraty Park bulkhead and said staff estimates place the bulkhead repair and related work at about $20 million. Finance Director Jim Nolan said issuing a general obligation bond would allow the city to take advantage of its AA+ rating, while alternative structures such as a public building authority would limit borrowing capacity and likely raise interest costs.

Under the assumptions presented (4.5% interest, staged issuance), staff estimated the debt service would add roughly $346 annually to the average owner-occupied Newport tax bill once issuance ramps up over one to two years. Nolan and the city manager also described options if voters reject the bond: repackaging projects into smaller voter approvals, pursuing alternative borrowing structures that require collateral, or accepting a slower, project-by-project approach.

Councilors expressed concern about packaging many projects together, the precision of cost estimates and fairness to taxpayers. Supporters argued the bond maximizes access to federal matching funds and minimizes repeated bond issuance costs. The manager said federal grant opportunities and revenue-producing assets included in the plan make the overall approach fiscally prudent.

Ending: The briefing was received as a communication; no bond vote occurred. Staff said it would continue outreach and further refine project costs and financing details ahead of any ballot measure.