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School-Repair Bonds Save Millions

East Providence City Manager Peter Graczykowski told the City Council that bonds sold by the state will save taxpayers about $150,000 a year in interest.

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. 

pferd October 05, 2012 at 12:05 PM
why was there no money set aside from the beginning as a reserve for maintenance???? save money???? it should never have to come to borrowing in the first place. stop squandering the money every year and set up reserves for maintance
Govstench October 06, 2012 at 12:09 PM
These larger municipalities seem to get into these binds with their spending. Large labor contracts loaded with big wages and benefits have been the reason there are no reserves. Preventative Maintenance is always the first budget item to be cut which in turn leads to the infrastructure coming apart. The majority of the blame also is school committees and councils not working together to control spending. The city manager was smart to have the state sell these bonds to the markets as the state has a much better credit rating. People in EP have become resentful to the budget commission coming in to manage their affairs. It would not have happened if the elected officials did their jobs! This commission will still be around after they turn control back to the council but will remain in the background for the next five years to make sure they are doing their jobs!
pferd October 06, 2012 at 01:11 PM
So they can rob from Peter to pay paul without consequences??? Why bother.?????
zwilson1958 October 06, 2012 at 05:33 PM
Sure, the elected officials have proven to be ineffective, but don't forget that there have been people paid to manage the maintenance of the buildings in the city. From the superintendents and principals who have let these building fall into disrepair to the maintenance supervisors, there is some culpability. It wasn't the job of the politicians to manage and make the repairs (unless of course, you are Tommy Rose and moving lawns, but that is a different story all together.) No one seems to look at the less-than-brilliant administrators who make a pretty decent salary and wind up passing the buck or blaming the politicians or budget commission.
pferd October 06, 2012 at 06:27 PM
who hires the people that get paid and are ineffective???? where is the ultimate responsibility???? so now we are going to blame the janitor for the fiscal and accounting problems?? who directs these people??? even if you have administrators, they still need to be told by someone how much and what they can do and spend. an administrator does not decide to steal from one budget item to pay for another??? if they have those powers, you might as well not elect anyone to run the school or town. let's stop the blame game. next you will blame former president bush. that blame game is reserved for our one and (i hope) only one term obama. so, this is not rocket science. this is living within ones means and yes people before have done it and it can be done again. and if the kiddies have to do without certain things, so be it.

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