July 7, 2022
PRESS RELEASE
Contact:
Parker Gavigan, Director of Communications
City Council Authorizes Pension Obligation Bond to Move Forward
and Welcomes Governor Dan McKee to the Chamber
Providence, RI – Tonight, Councilors approved a resolution on a vote of 11 to 1 authorizing the city to finance a contribution toward Providence’s unfunded pension liability. After receiving voter approval during a special election in June, General Assembly approval, and Governor McKee’s signature, the mayor’s administration can now move forward and engage in the process of issuing pension obligation bonds of up to $515 million to fix the city’s troubled pension system (Employee Retirement System). Certain financial guardrails exist on the potential borrowing, including not exceeding an interest rate of 4.9%.
“The lengthy effort to get to this point was exhaustive but thorough and open,” said Council President John Igliozzi. “We all know the economy has changed in the last few months. Taxpayers should know if the climate is not right for the city to borrow these funds, then we wait for the appropriate time. The enabling legislation allows current and future city leaders to act on issuing pension obligation bonds for up to five years.”
Councilors welcomed Governor Dan McKee as a special guest to the City Council chamber. Vocal performances by Butch Tavares (a member of the local R&B, funk, and soul group “Tavares”) and local musician Tim Brooks honored our country’s July 4th Independence Day holiday.
Follow the Providence City Council social pages for pictures:
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