$25M in bonding to be sought for city infrastructure

3 questions eyed for fall ballot

By Daniel Kittredge
Posted 3/30/16

As Mayor Allan Fung prepares to present his fiscal year 2017 budget plan, the City Council on Monday gave initial approval to put three bond issues totaling $25 million before voters on November’s …

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$25M in bonding to be sought for city infrastructure

3 questions eyed for fall ballot

Posted

As Mayor Allan Fung prepares to present his fiscal year 2017 budget plan, the City Council on Monday gave initial approval to put three bond issues totaling $25 million before voters on November’s ballot.

The measures – which the mayor’s office announced last week as part of planned “significant investment to improve municipal infrastructure” – seek $20 million for street paving across the city, $4 million for fire and public safety equipment and facilities, and $1 million for repair of public buildings.

Monday’s action represents the first step in the process, with the city seeking authority from the General Assembly to put the three questions before voters. If the bonding proposals pass at the polls, approval from the council would be needed to borrow for specific projects.

Through the announcement, Fung said his administration’s “prudent fiscal management” has positioned the city to take advantage of favorable borrowing rates and make needed investments to “gain maximum benefit for taxpayers and further improve quality of life” for residents.

“Now is the time to look ahead and make a real investment in the future of Cranston,” the mayor said.

Ward 2 Councilman Don Botts said the condition of streets is the top concern he hears from constituents, and he spoke favorably of all three bonding proposals.

“I think these are worthwhile initiatives, and I think the voters would agree with that,” he said.

Citywide Councilman Michael Farina called the infrastructure initiatives “great projects,” and noted voters will ultimately decide whether to proceed. Ward 4 Councilman Mario Aceto said it was important to forward the measures to the State House to ensure deadlines are meant.

“I think it’s really important that we move these along and get them up there,” he said.

Ward 1 Councilman Steven Stycos raised concerns over the timing of the administration’s announcement, saying it felt rushed. Describing the presentation as “shoddy,” he questioned what specific projects are being targeted with the funding and asked why the three resolutions had not first been presented to the council’s Finance Committee.

“We don’t know how these were picked as a priority, and we don’t know where the numbers came from … it sounds like these numbers were just kind of pulled out of the air,” he said.

Finance Director Robert Strom said the three areas of focus – and the total bonding authority being sought for each – were determined based on funding availability and consultations with bond counsel and appropriate department heads. The overall objective, he said, is to have bonding authority available for roads, public safety, and public buildings in the next several years.

In terms of roads, Strom said the $20 million figure was based on discussions with Public Works Director Ken Mason, and the plan is to use the bond money to use between $3 million and $4 million annually over four or five years in addition to what is normally budgeted.

“We’re trying to get our roads in the best position possible,” he said.

Strom on Monday did not have specifics in terms of the fire and public safety investments being sought. In terms of public buildings upgrades, he pointed to new restrooms at City Hall, a roof at the Budlong Pool, and an HVAC system for the Cranston Senior Enrichment Center as among the potential projects.

The resolutions regarding the road and public safety bonds passed on 8-1 votes, with Stycos the sole opposition. The public buildings resolution passed 7-2, with Ward 3 Councilman Paul Archetto joining Stycos in voting no.

In related business, introduced as new business at Monday’s council meeting was a resolution authorizing the city to enter into a lease-purchase agreement for the conversion of streetlights to LED technology. Fung’s announcement of the infrastructure initiative made mention of the planned LED switch, and said it will “substantially [reduce] energy and other costs for taxpayers.” The resolution was forwarded to the committee level for review.

Fung is set to deliver his budget address and unveil his fiscal plan for the coming year during a special meeting of the council set for 6 p.m. on Friday, April 1, in City Hall’s Council Chambers. When asked Monday whether the plan will include a proposed tax increase, Strom declined to comment.

In other business on Monday, the council approved a $12 minimum wage for part-time employees and a new tax exemption for disabled military veterans.

Stycos, who introduced the wage hike proposal, had originally targeted a $15 hourly figure, but revised it down based on discussions with administration officials regarding the fiscal impact.

“We need to take care of those people because they get forgotten,” he said.

The overall impact will be approximately $70,000, and the majority of those covered by the increase are Cranston Public Library employees. The police and parks departments employ other part-timers. High school students and temporary summer employees are excluded from the increase.

The measure was approved on a 5-4 vote at Monday’s meeting, with Farina joining the three Republican councilmen in opposition. Concerns had been raised over codifying the increase rather than providing it through the city’s budget process, although council members spoke highly of the work of librarians and other part-time employees.

The tax break, which was introduced by Archetto and passed unanimously, allows qualifying, 100-percent disabled veterans to have a total of $250,000 in property value – received in $50,000 increments over five years – exempted from property taxes. For the current disabled veterans in the city, it effectively provides a full exemption.

“We’re policing the world, and we need to make sure our active service members and our veterans get what they need,” Archetto said.

The tax exemption will require enabling legislation on the part of the General Assembly, and a resolution to that effect was also approved unanimously on Monday.

A number of veterans were on hand for Monday’s meeting, and those present in chambers applauded following the vote on the resolution.

“I just can’t think of a proud moment in serving on this council than tonight,” Botts said.

The council on Monday also spent time in executive session discussing the city’s negotiations regarding the future of the Cranston Veterans Memorial Ice Rink. The condition of the facility, and the status of talks with a non-profit entity seeking to lease and manage the Phenix Avenue property, had led to a contentious discussion during a March 17 committee meeting.

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