Coming up in Committee on February 11: Bypassing the Voters, to Saddle them With Municipal Bond Debt

2. H7345: Allows cities and towns to issue bonds for an amounts up to 5% of their budgets, in order to obtain loans from the “municipal road and bridge revolving fund administered by the Rhode Island clean water finance agency”, with a further provision that the bonds “may be issued under this section by any political subdivision without obtaining the approval of its electors…notwithstanding any provision of its charter to the contrary”. (H Finance; Tues, Feb 11)

S2268: Authorizes the City of Pawtucket to issue $3.5 million worth of bonds “for the construction and reconstruction of streets, sidewalks and bridges” as part of obtaining funding from the “revolving fund administered by the Rhode Island Clean Water Finance Agency”. The Pawtucket bill doesn’t have a specific “ignore the voters” clause, but does state that “bonds and notes may be issued under this act without obtaining the approval of any governmental agency or the taking of any proceedings or the happening of any conditions except as specifically required by this act for such issue” — within an act that doesn’t mention the voters or a referendum anywhere.  (S Finance; Tues, Feb 11)

There’s more. Once the City Council (without voter consent, apparently) approves the bonds, their payment takes priority over every other use of Pawtucket taxpayer funds, and automatic tax-increases become possible…

The city shall annually appropriate a sum sufficient to pay the principal and interest coming due within the year on bonds and notes issued hereunder..i.f such sum is not appropriated, shall nevertheless be added to the annual tax levy. In order to provide such sum in each year and notwithstanding any provision of law to the contrary, all taxable property in the city shall be subject to ad valorem taxation by the city without limitation as to rate or amount.

For the record, section 5-101 of the Pawtucket City Charter states that…

The city shall authorize the issuance of bonds by ordinance; provided, however, that no such ordinance shall become effective unless approved by a majority of the electors of the city voting thereon at a regular or special election.

…which S2268 (and H7345) would override.

Now someone explain to me how not getting direct approval from the people who actually will be paying the bill makes a loan more secure.

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