City Seeks Better Financing for School Projects

WOONSOCKET, RI–The city will try to refinance outstanding bonds connected to the middle schools' construction, according to Blake Collins, Woonsocket's public relations coordinator.

Mayor Lisa Baldelli-Hunt announced that the City of Woonsocket "has successfully applied to the Rhode Island Health and Educational Building Corporation (RIHEBC) to explore its options," he said.

The application was the first step. A committee review will happen next. The Middle School bonds targeted for refunding would only be reissued if a lower interest rate is available, equaling savings for the City of Woonsocket, he said. The RIHEBC refunding process represents a months-long action that would conclude in early 2017.

“The City is constantly searching for opportunities to save money and maximize the way tax dollars are spent,” the mayor added. “Refunding current debt is a prudent step in following responsible budgetary practices. Our Finance Department has done great work in identifying and pursuing money-saving opportunities like this.”

"RIHEBC is a quasi-public, state organization that commonly issues bonds on behalf of Rhode Island based organizations and municipalities to fund school and hospital buildings," Collins said. RIHEBC provides tax exempt bond financing for large scale projects, which results in lower interest rates for communities like Woonsocket."

“The Woonsocket Finance Department maintains a goal of following budgetary and finance best practices,” said Christine Chamberland, Woonsocket's finance director. “We will oversee the refunding process and work to ensure savings on behalf of the taxpayers of this community.”

The Middle School bonds were originally issued in 2009 to finance the $74 million cost of building the Woonsocket Middle School buildings on Hamlet Avenue.