Newport residents will have the opportunity to vote on a $98.5 million General Obligation bond referendum in the 2024 general election today.
The proposed bond, Question #6, aims to fund investments in infrastructure, resiliency, and community-related projects throughout the city.
The ballot question, titled “Design, Construction, Repair, Rehabilitation, Replacement and Improvement of Infrastructure and Municipal Facilities in City Neighborhoods,” asks voters to approve the issuance of up to $98.5 million in general obligation bonds and notes.
If passed, the bond will finance a wide range of projects, including improvements to Perrotti Park, Elm Street Pier, and the Cliff Walk. It also allocates funds for seawall repairs, beach nourishment, stormwater management, and the acquisition of land for a North End Public Safety Facility.
The largest single allocation in the proposed bond is $20 million for the Perrotti Park Bulkhead and renovation of the Harbor Master Building. Other significant projects include $13 million for the North End Public Safety Facility land acquisition and design, and $12 million for the Van Zandt Bridge removal and road improvements.
City officials emphasize that all bonded projects will require additional approvals and public input, including City Council approval for final expenditures. Projects must also adhere to public bidding processes.
The financial impact on taxpayers has been estimated by the city. If the entire $98.5 million is issued, the average residential taxpayer can expect to pay approximately $346 more in property taxes per year, or about 95 cents per day. Non-resident homeowners may see an increase of $531 per year above current rates.
Newport boasts one of the lowest tax rates in Rhode Island and maintains a high bond rating of AA+. The city notes that the actual amount of bonds sold may be less than the authorized $98.5 million, depending on final project costs.
Several projects included in the bond are expected to be partially funded by other sources. The Perrotti Park improvements and Elm Street Pier will rely on cruise ship passenger fees to repay the project costs. The Cliff Walk rebuild has secured approximately $13 million in federal grant funding, with the city’s share totaling $3.75 million.
The decision to combine multiple projects into a single bond stems from a desire to reduce borrowing costs and allow for needed investments to be paid for over decades through predictable debt service rather than immediate property tax increases.
City officials stress that regardless of the bond’s passage, all projects will undergo further public discussion and open bidding processes. The City Council must approve any final expenditures.
Newport residents will have the opportunity to vote on this bond referendum as part of the 2024 General Election. The outcome will determine the city’s ability to undertake these significant infrastructure and community improvement projects in the coming years.
City officials encourage residents to review the proposed projects and consider the potential impact on both the community’s infrastructure and their personal finances before casting their votes.
For more information, visit https://www.cityofnewport.com/en-us/city-hall/cityinitiatives/2024-general-obligation-bond.
