City Pension Fund to Receive a $1.3 million Boost
Finance Committee Votes to Refund Bond Portfolio
PROVIDENCE, RI (December 9, 2020)…Tonight, the City Council voted to approve the refunding of the City's bond portfolio. The refunding of bonds is much like the refinancing of homes, providing efficiency and better interest rates, which yield savings.
The 2010 bond's refunding will realize more than $1.3 million in net savings for the City of Providence and will not extend the life of the bond, nor will it cause the City to incur an increase in its financial obligations.
Vice-Chair of the Committee on Finance and City Council Majority Leader Jo-Ann Ryan (Ward 5) shared,
"With the current low interest rate environment, the City is wise to be proactive in its bond management strategy. Directing the realized savings towards our pressing long-term fiscal obligations makes good sense. The Committee on Finance has an obligation to our taxpayers to be fiscally responsible and prudent with these funds. Ensuring that savings are put towards the City's pension is an important step in that direction."