Naragansett council hears FY2027 budget, staff seeks consensus on $8.5M bond and $3M fire station package

The Naragansett Town Council reviewed the proposed FY2027 budget at a work session dominated by discussions over capital priorities and how to pay for them, including an $8.5 million bond package and a separate $3 million plan to renovate two fire stations.

Town staff told the council the operating budget is heavily weighted toward personnel costs — roughly 93 percent of operating and transfer spending — leaving limited discretionary spending for supplies and services. The finance director said the proposed levy increase is the 4 percent maximum allowed under state law; if adopted, that levy would raise the residential rate from $6.79 to $6.96 per $1,000 of assessed value and generate about $2.4 million in revenue.

Why it matters: the 8.5 million bond, if approved, would fund a multi‑year slate of capital work the town says it needs to keep roads and town facilities safe and operational. The proposal divides the borrowing into two series: a non‑taxable $8 million series for roads and town infrastructure (including town hall continuation, DPW improvements, parks and maintenance shop repairs and storm drains) and a taxable $500,000 series to reimburse the town for a recently approved affordable‑housing property purchase. The finance director said the town plans S&P interviews and expects to open bidding in mid‑June; principal payments on the $8 million piece are proposed to be postponed until 2029 to smooth near‑term budget impacts.

Council reaction: several members signaled general support for advancing the package to bond counsel and the formal agenda. "If there's consensus to proceed, we can move forward with issuing the $8.5 million bond," the finance director told the board. Councilors asked for clearer timing and the procedural steps needed for a ballot measure should a general‑obligation question be required for any portion of the borrowing.

Fire stations: Separately, staff outlined a $3 million estimate to renovate fire stations 1 and 3 to bring those facilities up to current standards and correct urgent structural and operational problems. Fire Chief Pardington said station 2 — already renovated with ARPA and state support — cost about $2.1 million, and that the $3 million figure for stations 1 and 3 reflects construction inflation and scope to meet NFPA standards. Councilors indicated a willingness to pursue a referendum route and asked staff to consult bond counsel on timetable and ballot language.

Positions and other capital: department heads described a handful of requested operating additions — finance, DPW mechanics, parks heavy‑equipment operator and limited building‑inspection enforcement — and multiple capital items identified as urgent (street sweepers, storm‑drain segments, pavement management projects). Staff highlighted the library’s increased property insurance costs tied to the new 18,000‑square‑foot building, and reported health‑care cost increases that add approximately $215,000 in employer costs to the FY2027 baseline.

Next steps: staff will work with bond counsel, the town’s financial advisor and the Rhode Island Infrastructure Bank on financing options and timing. Councilors asked for an updated debt schedule and more detailed cost and contingency estimates before any formal votes. The council left the work session with a general consensus to direct staff to pursue the next steps for the $8.5 million package and the $3 million fire‑station plan, and to return with refined documents at upcoming meetings.

Speakers quoted or referenced in this article are members of the town council and town staff and include: the finance director (presenter of the budget), Fire Chief Pardington and multiple councilors. Direct quotes in the meeting were used where speakers were identified.