A successful sale of $15 million in bonds for school repairs will save East Providence taxpayers about $5 million in interest payments.
East Providence City Manager Peter Graczykowski reported that piece of good news to the City Council on Tuesday night.
The bonds will cover the cost of critical health and safety repairs to schools, Graczykowski said.
The Rhode Island Health and Educational Building Corporation (RIHEBC) sold the bonds with an interest rate of 3.51 percent – which will save taxpayers about $150,000 a year, Graczykowski said.
They will pay off a bond-anticipation note of $6 million and an advance principal payment from RIHEBC of $1 million. The remaining $8 million will be set aside for other projects at the schools.
The city manager said health and safety repairs will be prioritized. No school in the "right-sizing" program will be involved.
Delivery date of the bonds was Thursday, Oct. 4.