RI
Rhode Island House Bill H7499

Rhode Island 2022 Regular Session

Rhode Island House Bill H7499

Introduced
2/16/22  
Refer
2/16/22  
Report Pass
5/26/22  
Engrossed
6/1/22  
Refer
6/7/22  
Report Pass
6/9/22  
Engrossed
6/14/22  
Engrossed
6/17/22  

Caption

Authorizing The City Of Providence To Finance A Contribution Towards The Unfunded Pension Liability Of The Employee Retirement System Of The City Of Providence By The Issuance Of Bonds In A Principal Amount Not To Exceed $515,000,000

Impact

The enactment of HB 7499 will result in amendments to existing financial practices related to municipal debt in Providence. It allows the city to manage its unfunded pension obligations without directly disturbing the existing budget allocation for other city services. Moreover, the bill stipulates that the debt incurred through these bonds will not be factored into the city's borrowing capacity. This paves the way for the city to pursue additional funding without facing immediate borrowing limitations, thereby enabling further developmental projects essential for citizens.

Summary

House Bill 7499, introduced to the Rhode Island General Assembly, aims to authorize the City of Providence to issue bonds amounting to up to $515,000,000. The intent of these bonds is to finance contributions toward the city's unfunded pension liabilities tied to its Employee Retirement System. The bill is significant in addressing the city's long-standing issue of pension liabilities by providing a financial mechanism to manage them, thereby hoping to stabilize the city's financial situation and retirement funding obligations. The bonds can be issued as serial or term bonds, providing flexibility in how the city can manage its debt repayment over time.

Sentiment

The general sentiment surrounding HB 7499 appears to be cautiously optimistic among supporters who view the issuance of bonds as a necessary step towards fiscal responsibility and addressing critical pension issues. However, concerns surround the implications of increased debt, and potential long-term impacts on the city's financial health. Critics of the proposal express fear that while the bill offers immediate relief, it could lead to a heavier burden in the long term if not managed properly. There is a mix of support for the necessity of addressing pension deficits but also apprehension regarding the overall debt levels of the city.

Contention

Notable points of contention regarding HB 7499 stem from debates over the responsibilities associated with the bond repayment. The bill includes provisions for the city to allocate taxes towards bond payments and potentially utilize a reserve fund established within the city council's discretion. Critics contend that reliance on future tax revenues and the potential diversion of funds from other city services raises concerns about fiscal prudence and the sustainability of such a decision. Additionally, there are apprehensions regarding whether the parameters of the bill adequately protect against future shifts in financial responsibility that could adversely affect the city's budget.

Latest RI H7499 Activity

View All Events: RI 2022 Regular Session H7499

Companion Bills

No companion bills found.

Previously Filed As

RI S2321

Authorizing The City Of Providence To Finance A Contribution Towards The Unfunded Pension Liability Of The Employee Retirement System Of The City Of Providence By The Issuance Of Bonds In A Principal Amount Not To Exceed $515,000,000

RI HB07296

An Act Authorizing The Funding Of Unfunded Accrued Municipal Employees' Retirement System Liabilities By Municipalities.

RI S2959

Authorizing The City Of East Providence To Finance The Construction, Renovation, Improvement, Alteration, Repair, Furnishing And Equipping Of Schools And School Facilities In The City By The Issuance Of Not More Than $148,000,000 Bonds, Notes And/or Other Evidences Of Indebtedness Therefor, Subject To Approval Of State Housing Aid At A Reimbursement Rate Or State Share Ratio Of Not Less Than 48.5% For Expenditures Eligible For State Aid And Provided That The Authorization Shall Be Reduced By Any Grant Received From The School Building Authority Capital Fund

RI H8274

Authorizing The City Of East Providence To Finance The Construction, Renovation, Improvement, Alteration, Repair, Furnishing And Equipping Of Schools And School Facilities In The City By The Issuance Of Not More Than $148,000,000 Bonds, Notes And/or Other Evidences Of Indebtedness Therefor, Subject To Approval Of State Housing Aid At A Reimbursement Rate Or State Share Ratio Of Not Less Than 48.5% For Expenditures Eligible For State Aid And Provided That The Authorization Shall Be Reduced By Any Grant Received From The School Building Authority Capital Fund

RI H8050

AUTHORIZING THE CITY OF PROVIDENCE TO ISSUE NOT TO EXCEED $400,000,000 GENERAL OBLIGATION BONDS AND NOTES TO FINANCE THE CONSTRUCTION, RELATED DEMOLITION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES THROUGHOUT THE CITY AND ALL COSTS RELATED THERETO, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS THEN 75% AT THE TIME OF ISSUANCE AND PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE ISLAND DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL BUILDING AUTHORITY

RI S0674

AUTHORIZING THE CITY OF CENTRAL FALLS TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES IN THE CITY BY THE ISSUANCE OF NOT MORE THAN $15,000,000 BONDS, NOTES AND/OR OTHER EVIDENCES OF INDEBTEDNESS THEREFOR

RI S2858

AUTHORIZING THE CITY OF PROVIDENCE TO ISSUE NOT TO EXCEED $400,000,000 GENERAL OBLIGATION BONDS AND NOTES TO FINANCE THE CONSTRUCTION, RELATED DEMOLITION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES THROUGHOUT THE CITY AND ALL COSTS RELATED THERETO, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS THAN 75% AT THE TIME OF ISSUANCE AND PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE ISLAND DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL BUILDING AUTHORITY

RI H6077

AUTHORIZING THE CITY OF CENTRAL FALLS TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES IN THE CITY BY THE ISSUANCE OF NOT MORE THAN $15,000,000 BONDS, NOTES AND/OR OTHER EVIDENCES OF INDEBTEDNESS THEREFOR

RI H8235

Authorizing The City Of Pawtucket To Provide For The Repaving Of Streets In The City And All Costs Related Thereto And Authorizing The Financing Thereof, Including The Issue Of Not More Than $3,000,000 Bonds, Notes And Other Evidences Of Indebtedness Therefor, To Fund The Capital Improvement Program For The Two Fiscal Years 2024 And 2025

RI S2969

Authorizing The City Of Pawtucket To Provide For The Repaving Of Streets In The City And All Costs Related Thereto And Authorizing The Financing Thereof, Including The Issue Of Not More Than $3,000,000 Bonds, Notes And Other Evidences Of Indebtedness Therefor, To Fund The Capital Improvement Program For The Two Fiscal Years 2024 And 2025

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