City saves taxpayer dollars with $503K refunding
East Providence, RI – The City of East Providence was one of 26 Rhode Island municipalities and utilities that generated savings through Rhode Island Infrastructure Bank.
The City, which received $503,326 ($309,493 in water and $193,833 in wastewater), uses RIIB when bonding for water and wastewater projects because the Infrastructure Bank is able to obtain lower interest rates. The bonds are backed by revenues generated by the water and sewer enterprise funds.
“Every dollar counts,” Mayor Bob DaSilva said. “These funds will go a long way in supporting future capital projects in our city.”
The RIIB announced the closing of a Clean Water State Revolving Fund and Drinking Water State Revolving Fund bond refinancing transaction in late December and began distributing the refunding amounts to municipalities in February. Refunding is when you refinance current bonds at a lower interest rate, saving money for the taxpayer.
“The Infrastructure Bank is proud to provide these savings to our clients” said Jeffrey R. Diehl, Executive Director and CEO of RIIB. “By providing cash-savings up-front, our clients are able to redeploy capital towards a number of municipal initiatives like improving resiliency and protecting water quality."