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Newport Council commits $2.92 million to finish Rogers High School after funding debate
Summary
After a lengthy debate over using bond proceeds, reserves or CIP cuts, the Newport City Council voted to commit $2,918,809 to complete Rogers High School construction, while asking for further analysis on bond-rating impacts and potential contractor contingency rebates.
The Newport City Council voted to commit $2,918,809 to complete construction work at Rogers High School after hearing five funding options from city administration. Councilors debated tapping bond proceeds, drawing from the general fund, and deferring capital projects before approving a commitment by voice vote.
The administration presented five ways to close the $2,918,809 gap: use bond proceeds in full; take $2,000,000 from general fund reserves and the balance from the bond; appropriate the full amount from the general fund; defer or freeze capital improvement projects; or rely partially on contingency rebates from the contractor. Joe DeSanti, director of project management at Downs Construction, told the council that contingency rebates could arrive in two tranches — “late spring” and “mid summer” — and that some cash needs may not materialize until early summer.
Finance staff said the city’s reserve balance is approximately $28,000,000 (roughly 30% of the operating fund), and warned that dipping more than about $2,000,000 could risk the city’s AA+ bond rating. Councilors pressed for a formal opinion from bond counsel on any rating effect and asked staff to clarify timing: they were told the council can make a commitment now while the actual cash flow may occur later.
Supporters of the commitment emphasized the need to keep bid prices locked in and avoid rebidding. Opponents raised concerns about using funds that voters approved for specific projects and about the city’s competing capital needs, including Bellevue Avenue road repairs and the cost to remediate contaminated soil at the Rogers site.
The motion to commit the $2,918,809 was made, seconded and carried by voice vote. Councilors also directed staff to seek a written letter from bond counsel about rating impacts and to return with any further clarifying fiscal information.
Next steps: administration will prepare follow-up materials (including any bond counsel guidance), track contingency rebate receipts if they occur, and return with recommendations for the specific funding source before funds are expended.
