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SB 3359

AN ACT AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE DESIGN, CONSTRUCTION, REPAIR, REHABILITATION AND IMPROVEMENT OF STREETS, SIDEWALKS AND BRIDGES IN THE CITY INCLUDING, BUT NOT LIMITED TO, PAVING, DRAINAGE, TRAFFIC CONTROL DEVICES, ROAD MAINTENANCE EQUIPMENT, SAFETY IMPROVEMENTS AND LANDSCAPING AND ALL COSTS INCIDENTAL OR RELATED THERETO BY THE ISSUANCE OF NOT MORE THAN $8,000,000 GENERAL OBLIGATION BONDS AND NOTES THEREFOR

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

Authorizes Cranston to issue up to $8 million in bonds to fund streets, sidewalks, bridges, and related improvements with voter approval required.

06/26/2026 Effective without Governor's signature
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WeVote Research Nonpartisan
Bill Summary · SB 3359

Overview

SB 3359 is a Rhode Island Senate bill introduced for the 2026 session. It would authorize the City of Cranston to issue up to $8,000,000 in general obligation bonds and notes to finance the design, construction, repair, rehabilitation, and improvement of streets, sidewalks, and bridges in the city, including associated components such as paving, drainage, traffic control devices, road maintenance equipment, safety improvements, landscaping, and related costs. The measure sets the framework for bond types, repayment timing, use of proceeds, and voter approval.

Purpose and Intent

  • Provide Cranston with a dedicated financing mechanism to fund transportation infrastructure projects and related improvements.
  • Ensure projects related to streets, sidewalks, bridges, and supporting infrastructure can be designed and constructed using bond proceeds.
  • Establish a clear process for issuing bonds, repaying debt, and integrating with federal/state assistance when available.

Key Provisions

  • Bond Authority and Scope:
    • Not to exceed $8,000,000 in general obligation bonds and notes.
    • Proceeds may be used for the listed transportation and related improvements and incidental costs.
  • Bond Structure and Redemption:
    • Bond issues may mature in annual installments, with the first installment no later than five years after issuance and the last no later than 30 years.
    • Proceeds may be in the form of serial bonds, term bonds, zero coupon bonds, capital appreciation bonds, or combinations.
    • Principal appreciation after issuance is treated as interest for debt limit purposes; only the original principal is counted toward debt limits.
  • Issuance and Administration:
    • Bonds signable by the director of finance and the mayor; sale terms to be set by the Cranston City Council.
    • Proceeds to be allocated to project costs, debt service on temporary notes, advances repayment, issuance costs, and potentially financing project capitalized interest.
    • Authority to consolidate with other Cranston bonds if desired, while ensuring proceeds are used for the stated purposes.
  • Interim Financing:
    • The city council may authorize temporary notes in anticipation of bonds and/or anticipated federal/state aid, with specified limits and terms (up to five-year maturities; renewal under certain conditions).
  • Financing Management:
    • City Treasurer may temporarily apply city funds for project purposes, with repayment from future bond proceeds or eligible assistance.
    • Investment of bond proceeds allowed under state and city investment rules; earnings may be used to pay project costs, bond costs, or debt service.
  • Debt, Tax, and Budget Provisions:
    • Bonds/notes are binding obligations of the city and excluded from certain debt calculations; annual appropriation for debt service is required, with the possibility of ad valorem levy if not properly appropriated.
    • Proceeds and related funds may be invested in insured banks or U.S. government securities, and earnings may support city revenues per applicable laws.
  • Voter Approval:
    • Sections 12-13 lay out the requirement for voter approval at the November 3, 2026 general election (or a designated special election) on a specific ballot question.
    • If approved, the act (in its entirety) takes effect; otherwise, relevant sections 12-13 outline the approval process and effective dates.
  • Effective Dates:
    • Sections 12-13 (the voter-approval framework) take effect upon passage.
    • The remainder of the act becomes effective upon voter approval.

Affected Parties and Impacts

  • Affected Entity: City of Cranston, Rhode Island.
  • Impacts:
    • Enables Cranston to fund transportation-related infrastructure projects through debt financing.
    • Potential property tax implications if annual debt service is not otherwise provided.
    • Provides a mechanism to leverage future federal/state aid for project costs.
    • Establishes a voter-elected approval step to authorize the debt issuance.

Timeline and Procedural Notes

  • Introduction date: June 5, 2026; referred to Senate Housing & Municipal Government.
  • Section 12: Ballot question and election timing tied to the November 3, 2026 general election (or a later determined special election).
  • Section 13: Certain sections take effect upon passage; remainder upon voter approval.

This summary presents the substantive provisions and potential fiscal implications, without expressing a political stance.

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

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