Rhode Island House Bill H7754

Rhode Island 2024 Regular Session

• Introduced: 2/28/24
• Refer: 2/28/24
• Report Pass: 5/28/24
• Engrossed: 5/30/24
• Refer: 5/30/24
• Report Pass: 6/4/24
• Enrolled: 6/11/24
• Passed: 6/17/24

Caption

AUTHORIZING THE TOWN OF JOHNSTON TO ISSUE NOT TO EXCEED $40,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS TO FINANCE CONSTRUCTION, ADDITIONS, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF STORMWATER MANAGEMENT AND SEWER FACILITIES THROUGHOUT THE TOWN

Impact

Should the bill pass and subsequently be approved by the local electorate, it would empower the Town Council significantly by allowing large-scale infrastructure improvements financed through public bonds. This would facilitate necessary upgrades and expansions of essential services in Johnston, leading to improved public health standards and increased capacity to manage stormwater effectively. Moreover, the act stipulates that an annual amount sufficient to cover both principal and interest must be appropriated, thereby committing future town budgets to these bond obligations.

Summary

House Bill 7754 authorizes the Town of Johnston to issue general obligation bonds and other forms of indebtedness not exceeding $40 million. The primary purpose of these funds is to finance various projects related to the construction, additions, renovations, improvements, and repairs of stormwater management and sewer facilities throughout Johnston. This measure is designed to enhance the town’s infrastructure, specifically aimed at addressing environmental management and ensuring proper sanitation systems are in place.

Contention

There may be points of contention regarding the financial implications of issuing such a significant amount of bonds. Critics may express concerns about the long-term financial obligations that the town will incur and how this could impact property taxes. The town must ensure transparency and public support for such measures, especially since the approval of the bond issuance ultimately relies on a referendum where town electors will vote whether to permit this level of borrowing.

Implementation

The act requires that any bonds or notes will only be valid if executed by the town's current mayor and director of finance, ensuring accountability in its financial dealings. The funding can also leverage federal and state grants, expanding available resources for these projects. Furthermore, the bond or note proceeds will be closely regulated, ensuring that the funds are solely used for the stated purposes related to stormwater management and sewer facility upgrades.