February 21, 2007 Contact: Sue Baker
For Immediate Release 738-2000
Avedisian’s FY08 budget proposal
won’t include new borrowing, he says
WARWICK – Mayor Scott Avedisian’s proposed FY08 budget will not include any provisions to take on new bonded debt, he announced today.
In November, voters approved a total $48.5 million in new bonds for projects ranging from school improvements to rehabilitation of municipal buildings and preservation of open space, to recreational improvements and a new fire station. Avedisian is notifying the directors of the departments that would be affected by the bonds that, given several factors, he will not include any new borrowing in his proposed budget for the next fiscal year.
Last month, Avedisian had informed the directors that the best case scenario would have allowed for approximately $6 million in new debt, but cautioned that he would have a clearer picture of the financial situation once Governor Carcieri unveiled his budget proposal.
Avedisian noted that his decision not to take on any new bonded debt came after considering the fact that the Governor’s proposal would level fund the city in terms of municipal aid. (There is a slight increase in motor vehicles due to newer vehicles being registered; however, this amount is not significant enough to support the issuance of new bond funds) and that the cap on spending has decreased this year, from 5.5 percent to 5.25 percent.
These circumstances, Avedisian said, “will require all departments to make difficult decisions; the bonds are just one of many items that will need to be discussed as I prepare my budget proposal.”
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