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Council commits $2.92 million to finish Rogers High School after deadline warning
Summary
The Newport City Council voted to commit up to $2,918,809 to complete Rogers High School after staff warned contractor bid holds expire Dec. 1; council framed the vote as a commitment of funds, not a final choice of funding source.
The Newport City Council voted to commit up to $2,918,809 to complete work at Rogers High School after staff told the council contractor bid holds will expire on Dec. 1 unless the city commits funding.
City Manager (speaker identified in the record as the manager) presented five options to cover the shortfall, including using full bond proceeds, taking $2 million from the general fund and the remainder from bond proceeds, drawing the whole amount from reserves, deferring capital projects, or waiting for potential contingency rebates estimated at up to $1,350,000 but not available until spring and mid‑summer. Joe DeSanti, director of project management for Downs Construction, said the rebates would likely arrive in two tranches: "one would be in late spring, the other in mid summer," and cautioned that rebate timing and amounts are uncertain.
Director of Finance Jim Nolan told council the city’s reserve balance was about $28,000,000 and that dipping into reserves by up to $2,000,000 is the option bond counsel and finance staff believe would be least likely to affect the city's AA+ bond rating. Several councilors pressed whether using bond proceeds or capital funds the voters approved would be appropriate; one lawmaker asked, "What say we to the voters who approve the bonds… about taking money potentially from those projects?" City Manager replied the presentation was of options for the council to consider, not a directive to reallocate specific voter-approved bond funds.
Councilor (role label) moved to commit the $2,918,809; a second was recorded and the motion carried. The vote was recorded as "Aye" with no opposition in the meeting sequence. The council’s action was a commitment of funds to ensure contractors can proceed and was described by staff as a commitment to be followed by later recommendations on the specific funding source.
Next steps: staff will prepare follow-up analysis and, as several councilors requested, a letter or formal opinion from bond counsel about how various funding choices could affect the city's bond rating and fiscal position.
