WeVote
Log In

Bill

Bill

HB 8624

AN ACT AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE ACQUISITION, IMPROVEMENT, RENOVATION AND REPAIR OF FIRE AND PUBLIC SAFETY EQUIPMENT BY THE ISSUANCE OF NOT MORE THAN $8,000,000 GENERAL OBLIGATION BONDS AND NOTES THEREFOR

2026 Regular Session Introduced by Jackie Baginski and 7 co-sponsors

Cranston can issue up to $8 million in general obligation bonds/notes to fund fire and public safety equipment, with flexible bond types and voter approval required to activate.

06/26/2026 Effective without Governor's signature
0
WeVote Research Nonpartisan
Bill Summary · HB 8624

Summary of HB 8624 (Rhode Island, 2026) – Cranston Fire and Public Safety Equipment Financing

Purpose and intent

  • Authorizes the City of Cranston to finance the acquisition, improvement, renovation, and repair of fire and public safety equipment.
  • Provides for the issuance of general obligation bonds and notes not exceeding $8,000,000.
  • Requires voter approval of the act at the 2026 general election (or a designated special election).

Key provisions and how the financing works

  • Bond authority limit: Not more than $8,000,000 in general obligation bonds and notes issued from time to time.
  • Maturity and structure:
    • Bonds may mature in annual installments (first due within 5 years, last no later than 30 years after issuance).
    • Bond types permitted: zero coupon bonds, capital appreciation bonds, serial bonds, term bonds, or a combination.
    • For serial bonds, annual principal installments may be scheduled by maturity; for term bonds, sinking fund installments may be used.
    • Principal appreciation after original issuance is treated as interest for indebtedness purposes, not principal.
  • Signatories and administration:
    • Bonds signed by the Cranston director of finance and the mayor.
    • Proceeds directed to (1) finance fire/public safety equipment projects, (2) repay principal or interest on temporary notes, (3) repay advances, (4) pay issuance costs, and/or (5) finance capitalized interest.
  • Use of proceeds and flexibility:
    • Proceeds may be consolidated with other Cranston bonds if desired, but must be used for the stated purposes.
    • Proceeds, federal/state assistance, and other monies are deemed appropriated for the stated purposes.
  • Issuance timing and anticipation notes:
    • The city council may issue notes in anticipation of bonds or anticipated federal/state aid.
    • Original notes cannot exceed the amount of bonds that may be issued; renewal notes limited to a 5-year total period from original date.
    • Refunding of temporary notes allowed under specified limits, including a cap on outstanding refunding notes (200% of the authorized bond amount) and investment of funds in between.
  • Interim financing and use of city treasurer:
    • The city treasurer, with city council approval, may apply city funds to the purposes of the act prior to bond issuance, repaid without interest from future bond proceeds or eligible assistance.
  • Investment and use of proceeds:
    • Proceeds and interest earnings from investments may be deposited in permitted bank/US government-guaranteed instruments or as otherwise allowed by law.
    • Earnings can be applied to project costs, debt service, or other authorized uses; unapplied balances may be used for debt service and/or as part of city revenues, subject to council guidance.
  • Debt treatment and tax/levy requirements:
    • Bonds/notes are general obligations of the city; they are not counted toward certain statutory debt limits for borrowing capacity but require annual appropriation for principal and interest, or fallback to ad valorem tax levies if not appropriated.
    • All taxable property in Cranston may be subject to ad valorem taxation to ensure debt service is funded if needed.
  • Legal protections and validity:
    • Bonds/notes remain valid even if officeholders change; obligations are binding consistent with terms.
  • Federal/state assistance:
    • The city can apply for and expend federal/state advances or grants for the purposes of the act.
    • If conflicts arise between state and federal law, federal law prevails for purposes of the financing.
  • Election and effective dates:
    • Sections 12–13 (referendum and effectiveness) take effect upon passage.
    • The remainder of the act takes effect upon the election approval by Cranston voters.
  • Termination of unused authority:
    • Any unissued portion of the authorized bonds/notes may be extinguished by city council resolution after seven years from the act’s effective date.

Affected parties and impacts

  • Primary beneficiary: City of Cranston, specifically its fire and public safety departments and equipment needs.
  • Taxpayers: City obligations would be funded through annual debt service that may require ad valorem taxes if statutory appropriations fall short.
  • Credit/ratings and investors: Creation of a standard general obligation debt issuance, potentially using flexible bond structures (zero coupon, capital appreciation, serial, or term) which could influence investor demand and the city’s debt profile.
  • Federal/state finance interactions: Potential receipt of federal/state aid to offset project costs; compliance with securities and tax laws (including continuing disclosure).

Procedural and timeline notes

  • Introduction and referral: Introduced June 5, 2026; referred to House Municipal Government & Housing.
  • Local referendum: Requires Cranston voter approval at the November 3, 2026 general election (or a designated special election) for the act to take effect.
  • Effective dates:
    • Sections related to the referendum and immediate applicability take effect upon passage.
    • The remainder of the act becomes effective only upon voter approval.

Bottom line

HB 8624 would grant Cranston the authority to issue up to $8 million in general obligation bonds/notes to fund fire and public safety equipment projects, with flexible bond structures, a defined repayment horizon, and voter authorization required to activate the financing. The bill outlines broad financing, investment, and repayment mechanics, including provisions for interim financing, use of aid, and debt management, while preserving the city’s ability to fund debt service through property taxes if necessary.

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

Sign in to ask a question.