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SB 3357

AN ACT AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE ACQUISITION, DEMOLITION, CONSTRUCTION, IMPROVEMENT, RENOVATION, REPAIR, ALTERATION, FURNISHING AND EQUIPPING OF PUBLIC BUILDINGS IN THE CITY BY THE ISSUANCE OF NOT MORE THAN $2,000,000 GENERAL OBLIGATION BONDS AND NOTES THEREFOR

2026 Regular Session Introduced by Hanna Gallo and 3 co-sponsors

Cranston would be allowed to issue up to $2,000,000 in general obligation bonds and notes to finance public-building projects, contingent on voter approval.

06/26/2026 Effective without Governor's signature
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WeVote Research Nonpartisan
Bill Summary · SB 3357

Purpose and intent

  • SB 3357 would authorize the City of Cranston to issue general obligation bonds and notes totaling up to $2,000,000 to finance the acquisition, demolition, construction, improvement, renovation, repair, alteration, furnishing, and equipping of public buildings within the city.
  • The measure is framed as an expansion of Cranston’s existing bonding authority, enabling flexible financing for public-building projects.

Key provisions and changes

  • Bonding authority: The city may issue up to $2,000,000 in general obligation bonds and notes, in one or more issues, over time.
  • Maturity structure: Each bond issue must mature in annual installments of principal, with the first installment no later than five years after issuance and the last no later than 30 years after issuance.
  • Bond forms: Bonds may be zero coupon, capital appreciation, serial, term, or a mix of forms. Serial bonds repay principal annually; term bonds may use sinking fund payments.
  • Treatment of principal appreciation: Appreciation in principal after original issuance is treated as interest for debt-limit purposes.
  • Issuance and sale: Bonds would be signed by the city’s director of finance and the mayor. The city council would determine sale terms, denominations, maturities, interest rates, and related details.
  • Use of proceeds: Proceeds (excluding premiums and accrued interest) may be used to finance the described public-building projects, pay debt service on temporary notes, repay advances, cover issuance costs, or finance capitalized interest.
  • Federal/state assistance: Proceeds may be combined with applicable federal/state aid. The act contemplates compliance with securities laws and continuing disclosure requirements.
  • Anticipation financing: The city council may issue notes in anticipation of bonds or anticipated aid, with limits tied to the authorized bond amount and aid availability.
  • Interim financing and transfers: The city treasurer may advance funds to the extent bonds/notes may be issued, with repayment from bond/note proceeds or available aid.
  • Investment and earnings: Interest, net earnings, and premiums from bond issues may be invested or applied toward project costs, debt service, or other authorized uses. Earnings may be treated as city property tax revenues to the extent allowed by law.
  • Debt and taxes: Bonds/notes are binding obligations of the city and are exempt from certain constitutional debt limits for purposes of counting borrowing capacity; annual tax levy may be used to ensure debt service payments if other funds are unavailable.
  • Issuance conditions: Bond issuance does not require approval from other government agencies beyond what this act requires. Projects may involve land condemnation as needed, consistent with constitutional requirements.
  • Expiration and extinguishment: Unissued authority may be extinguished by city resolution after seven years from the act’s effective date.
  • Election requirement: The act’s authorization and funding mechanism must be approved by Cranston voters. The question would appear on the November 3, 2026 general election (or a designated special election) with a specified ballot language. If the act is approved, Sections 1 and 2 take effect; the remainder takes effect upon approval by a majority of voters.

Who/what would be affected

  • Primary beneficiary: The City of Cranston, RI, for financing public-building projects.
  • Local taxpayers: Potential impact through ad valorem taxes or other assessments to ensure debt service if other funds are not available.
  • Investors/creditors: Sellers of the bonds/notes would engage in a financing arrangement under the act, subject to state and federal securities rules and continuing disclosure obligations.
  • Public buildings sector: Any Cranston public buildings meeting the described purposes (acquisition, demolition, construction, renovation, repair, furnishing, equipping).

Procedural and timeline aspects

  • Ballot requirement: The measure must be approved by Cranston voters in the 2026 election (general or a specified city-wide election).
  • Effective date: Sections 12 and 13 (the election-related provisions) take effect upon passage; the remainder of the act takes effect upon voter approval.
  • Duration of authorization: The authority to issue bonds/notes under this act would remain valid until extinguished seven years after the act’s effective date if not exercised.
  • Debt management: The city must annually appropriate funding to cover debt service, with the option to levy taxes if needed.

Overall, SB 3357 provides Cranston with a capped, flexible mechanism to finance public-building projects through general obligation bonds and related notes, contingent on voter approval and subject to standard municipal debt and securities requirements.

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

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