City Council, March 27, 2024

 

 

A special session of the Pawtucket City Council was held Wednesday, March 27, 2024, at 6:32 p.m., in the City Council Chambers, City Hall, 137 Roosevelt Avenue, Pawtucket, RI. 

 

Present – President Mercer, Councilors Araujo, Coderre, Gregor, Moran, Moreno, Rubio, Stachowiak and Wildenhain.

 

Absent – 0.

 

President Mercer presided.

 

Also present were Mario Carreno, Chief Operating Officer, RI Department of Education (RIDE); Lisa Odom-Villella, Deputy Commissioner of Instructional Programs, RIDE; Patricia Royal, School Superintendent; Lisa Benedetti-Ramzi, Assistant Superintendent of Schools; His Honor, Mayor Donald R. Grebien; and Mark Stankiewicz, Finance Director.

 

 

591      Communication from Terrence E. Mercer, Council President, to the Honorable Members of the Pawtucket City Council, calling a special session of the City Council on Wednesday, March 27, 2024, at 6:00 p.m. WAS READ AND ORDERED FILED

 

Mr. Carreno stated that the city has done a good job being in the forefront of building opportunities offered by the state.

 

Superintendent Royal stated that she is not a CFO, but has learned to make financial decisions to move the department forward.  She noted that since she started in her current position, the school department has not had a finance department. There are currently three major vacancies they are hoping to be filled within the coming weeks: Chief Financial Officer, Accountant and Controller.

 

Mayor Grebien recognized RIDE and congratulated Superintendent Royal for their collaboration on trying to solve this and other issues and affirmed there was a positive meeting the prior Friday to discuss these issues.

 

Upon questioning from the council, Superintendent Royal stated that Assistant Superintendent Benedetti-Ramzi will be the contact person for all financial matters for the school department.

 

Mayor Grebien stated that Mr. Stankiewicz and Chief of Staff Ryan Holt will serve in that capacity for the city administration.

 

Mr. Stankiewicz added that the audit report for the city is due by March 31, 2024. The schools have completed their work.  He is optimistic the audit will be done on time. The FY’25 Budget must be done a timely manner so that tax bills may go out on time. Director Stankiewicz noted that revenues will be needed and is hoping that ESSER funds and Title 1 funds come in before June 30, 2024, so they may be counted toward the current fiscal year. They have worked on getting  a BAN until August.  An application went out on March 27^th to RIHBEC for $80 million, which will take three months until the full amount is received;  A BAN for $40-50 million will be received in the next 45 days.

 

The project manager (OPM), Colliers, has put out a cash projection through June 2025.

 

Assistant Superintendent Benedetti-Ramzi believes that the loss of the previous CFO could have been a part of the problems currently being faced by the school department.  The former CFO was creative with cash flow and knew the bond process.

 

Ms. Benedntti-Ramzi stated that she is comfortable with the process now.  The people there know what to do. 

 

Superintendent Royal stated that the previous CFO met with the city numerous times per week and the lack of a CFO is partially the reason for the disconnect.

 

 

Mr. Carreno stated the city and school department need to plan on when to bond in order to keep interest costs low. RIDE has been involved in the process since January.  The state will not pay any more until projects are done.

 

Mr. Carreno noted  that the Winters School was paid by PAYGO funds; Baldwin and the new high school will be paid by bonds with reimbursement up to 91%. Requests for reimbursement require signage by both the school department and the city.

 

Councilor Gregor asked why the city should wait on the bonding for Shea HS improvements. Director Stankiewicz stated that the City should wait and only bond when needed.

 

Ms. Benedetti-Ramzi stated the school department applied for reimbursement last July, and notes it could take between one and three years to get the money. She suggested working with Colliers to prepare for the next reimbursement. However, Director Stankiewicz noted that reimbursement is only for completed projects.

 

Councilor Gregor asked why the bonding should wait for Baldwin school when only 30% of the job is completed,

 

Director Stankiewicz stated that maybe a letter should have been sent earlier to the school department, but all issues can be resolved.

 

Ms. Benedetti-Ramzi stated that value engineering is part of all construction projects.  Some things come in over budget.  She stated that you seek for the stars and then cut back.

 

Director Stankiewicz stated that after last Friday’s meeting, they spoke with the city’s financial advisors, who suggested that the city BAN now and bond later; whereas the city felt that they should put both in at once.

 

Mr. Stankiewicz noted that there won’t be bond payments in FY’25.  He stated that they used $40 million in PAYGO funds for Winters.

 

Mr. Carreno stated that there are no interest payments on PAYGO funds because there are no bonds.  He noted that the city received $40 million and then another $50 million in PAYGO funds, the second most in the state behind Providence.  The city also got $50 million in bonuses for the new high school. 

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Mr. Carreno stated the city can use PAYGO funds for upgrades.  He recommended using Capital Reserve funds for Shea High School improvements instead of bonding because the state stops all reimbursements for a school if it closes.  Shea is scheduled to close in 2029. The capital funds are reimbursed within a year.  There was a question about what happens to reimbursements if Shea is repurposed as a middle school.

 

Councilor Gregor expressed concern regarding bonding for the stadium when Baldwin Elementary School has not been completed.

 

President Mercer stated that TIF bonding for the stadium has no bearing on school projects.  Mr. Carreno concurred.

 

Mr. Stankiewicz stated that the process for bonding and reimbursement goes from the OPM to the school department CFO to the city.

 

Superintendent Royal expects the ESSER and Title 1 funds by the end of June. $5 million has already been requested and more funds can be requested in parts. The school department is  expecting $9.5 million in Title money, $31 million in ESSER funds and $8 million in DSP funds.

 

Mr. Stankiewicz believes that they are fixing their issues and will be OK; however, nothing is guaranteed.

 

The school department has been saving money to ensure their teachers get paid and have $6 million in their capital account.

 

Mr. Carreno stated that RIDE has sent $6 million in reimbursements and expects another $4 million in competed projects by June, according to Colliers.

 

 

 

Upon motion made by Councilor Araujo, seconded by Councilor Moreno, the meeting was adjourned at 7:54 PM.