Rhode Island Town Seeks to Monetize City Water for Pension Solution

PROVIDENCE, R.I. (AP) — The mayor of Providence says he will again ask state legislators to allow the city to monetize its water supply to fund the pension system.

Democratic Mayor Jorge Elorza says he believes the sale or lease of the city water system could generate over $300 million for the city. Elorza tells WPRI-TV that all of the funds raised could be deposited into the city’s pension fund.

According to a projection by the city actuary, Providence has just 25 percent of the money needed to cover future pension payments to retirees.

Earlier this year, Elorza asked the state General Assembly to create a regional water authority that could lease water systems. Lawmakers took no action on the proposal after Democratic House Speaker Nicholas Mattiello announced his opposition to the proposal.

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