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SB 3087

AN ACT AUTHORIZING THE CITY OF CENTRAL FALLS TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES IN THE CITY BY THE ISSUANCE OF NOT MORE THAN $25,000,000 BONDS, NOTES AND/OR OTHER EVIDENCES OF INDEBTEDNESS THEREFOR

2026 Regular Session Introduced by Jonathon Acosta

Central Falls can borrow up to 25 million for school facility projects, with flexible bonds and oversight to ensure proper use and repayment.

06/12/2026 Effective without Governor's signature
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WeVote Research Nonpartisan
Bill Summary · SB 3087

Bill Summary: SB 3087 (Rhode Island, 2026)

Purpose and intent

  • Authorizes the City of Central Falls to finance construction, renovation, improvement, alteration, repair, furnishing, and equipping of schools and school facilities in the city.
  • Allows the city to issue up to $25,000,000 in bonds, notes, and/or other evidences of indebtedness for these purposes.
  • The authorization follows a prior voter approval in 2024 and supersedes related, previously enacted acts for this specific city.

Key provisions and changes

  • Debt authority: The city may issue up to $25 million in debt for school projects. This is in addition to any previously granted authority (the bill notes a prior authorization of up to $26,049,000 that remains overall contextual guidance).
  • Bond structure: Issuance may be in serial bonds, term bonds, or a combination. Terms include:
    • Principal repayment via serial maturity or sinking fund installments for term bonds.
    • First principal installment no later than 5 years after issuance; last installment no later than 30 years after issuance.
    • Bond forms may include zero coupon bonds, capital appreciation bonds, serial bonds, and/or term bonds, or combinations.
    • Principal appreciation after issuance is treated as interest for debt-limit purposes; only original principal is counted toward the debt amount.
  • Financing flexibility: The city may elect to apply provisions from:
    • Rhode Island Health and Educational Building Corporation (for certain financing agreements).
    • Rhode Island Infrastructure Bank (for certain financing agreements). Elections regarding these overlays are made by city council proceedings or the officers who sign bonds.
  • Use of proceeds: Proceeds (excluding accrued interest) must be used for: 1) Construction, renovation, improvement, alteration, repair, furnishing, and equipping of schools and related costs. 2) Payment of principal or interest on temporary notes. 3) Repayment of advances. 4) Issuance costs and related fees. 5) Capitalized interest during construction.
  • Project management: The city’s School Building Committee would oversee projects and contracts.
  • Pledges and security: Bonds are general obligations of the city, with annual appropriation requirements and ad valorem tax authority as needed.
  • Tax and securities compliance: City officials may execute necessary documents to comply with federal tax and securities laws, including Rule 15c2-12 continuing disclosure.
  • Funding and investments: Proceeds may be deposited or invested in authorized instruments, and interest/dividends may be used for project costs or debt service.
  • Repayment and taxation: The bill reiterates the city’s obligation to pay debt annually and allows ad valorem taxation by the city without rate limits to fund annual debt service if needed.
  • State process and effective date:
    • Effective upon passage since the election approval occurred in 2024.
    • The act supersedes certain Public Acts (2025) as applied to Central Falls.
  • State housing aid: Bonds/notes issued under this act for school projects are not eligible for state housing aid reimbursement unless the Rhode Island Department of Education approves the specific school projects.

Who is affected

  • Primary: City of Central Falls and its school system, including the school building committee, the city director of finance, the mayor, and city council.
  • Beneficiaries: Students and staff through improved school facilities; taxpayers who may be subject to ad valorem taxes to service the debt.
  • Stakeholders: Potential bonding parties, lenders, and any state/federal programs participating in project financing.

Procedural and timeline considerations

  • Authorization: Bond issuance authority up to $25 million is in effect upon passage, following the 2024 voter approval.
  • Term: Debt may extend up to 30 years from issuance.
  • Oversight: Financing and project execution handled by the City of Central Falls’ School Building Committee with council oversight.
  • Sunset/Extinguishment: Unissued authority can be extinguished after seven years from act approval if not utilized, by city council resolution.

Overall, SB 3087 provides Central Falls a structured, multi-option framework to secure up to $25 million for essential school facility projects, with flexible debt instruments, state-federal financing options, and mandatory protections to ensure proper use and repayment.

Compiled from official sources — confirm details with the bill’s official record.

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