Rhode Island 2022 Regular Session

Rhode Island Senate Bill S2321

Introduced
2/15/22  
Refer
2/15/22  
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 approval of this bill will impact the financial management of Providence's pension system significantly. By generating funds to reduce the unfunded liability, the city aims to stabilize its pension system, which in turn can affect the employees' retirement benefits. The assurance of payment through future tax levies hints at a long-term approach to managing pension obligations, potentially leading to improved financial stability for the city overall. However, it raises questions about the city's debt capacity and the implications of adopting a more leveraged financial strategy.

Summary

Bill S2321 is an act that authorizes the city of Providence to issue bonds in a principal amount not to exceed $515,000,000 for the purpose of financing a contribution towards the unfunded pension liability of the city's Employee Retirement System. This legislative measure supports the financial obligations of the city by facilitating a structured way to address pension liabilities through bond issuance. It includes provisions for how the bonds are to be issued, managed, and the necessary public oversight through the city council and treasurer.

Contention

Key points of contention surrounding S2321 may include concerns about the long-term financial implications of issuing such a significant amount of bonds. Opponents may argue that increasing debt could jeopardize city finances, placing undue pressure on future budgets. Furthermore, the necessity of a vote by the city's electorate for the passage of this act may provoke discussions about accountability and financial risks associated with large-scale borrowing. The act's stipulations regarding annual appropriations will also likely be scrutinized to ensure that the city adheres to fiscal responsibility.

Companion Bills

No companion bills found.

Previously Filed As

RI H7499

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 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 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 S1116

Adopts a new tax classification system for the city of Providence.

RI H6394

Adopts a new tax classification system for the city of Providence.

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 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

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