Council authorizes up to $20 million in wastewater revenue bonds; impact on rates unclear

The council considered an amended and restated ordinance authorizing wastewater system revenue bonds and notes not to exceed $20,000,000 for wastewater treatment improvements. The finance director and administration explained that debt service on the bonds would be paid solely from wastewater system revenues; bond counsel and the Rhode Island Infrastructure Bank were evaluating whether a State Revolving Fund (SRF) subsidized loan or a conduit financing would be more advantageous.

Councilor Carlin and others asked whether the administration had exhausted the Infrastructure Bank options and what the average ratepayer would likely see in future sewer bills. Administration said several financing options remain under review and that some work already performed might not qualify for SRF reimbursement; as a result, the net rate impact could not be reliably predicted at the meeting. “All of those are paid back by the rate payer,” the manager said when asked who pays for revenue bonds. Despite the open financing questions, the council approved the ordinance on the floor (the record shows the motion carried and the chair announced “Ayes have it”).

Councilors asked staff to continue work with bond counsel and the Infrastructure Bank to determine the most cost‑effective financing structure. Staff said they expect to know soon whether SRF or conduit financing will be used and reiterated that any debt service would be repaid through utility rates rather than the general fund.