WeVote
Log In

Bill

Bill

SB 3354

AN ACT AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE REPAIR, CONSTRUCTION AND REHABILITATION OF STORM DRAINS AND DRAINAGE IMPROVEMENTS, AND THE REMEDIATION AND MITIGATION OF DRAINAGE AND FLOODING PROBLEMS, BY THE ISSUANCE OF NOT MORE THAN $4,000,000 GENERAL OBLIGATION BONDS AND NOTES THEREFOR

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

Cranston may issue up to $4 million in bonds/notes to finance storm drainage improvements and flood mitigation, with flexible bond structures and repayment options.

06/26/2026 Effective without Governor's signature
0
WeVote Research Nonpartisan
Bill Summary · SB 3354

Overview

  • Bill: SB 3354
  • Jurisdiction: Rhode Island (City of Cranston)
  • Session: 2026
  • Purpose: Authorize Cranston to finance storm drainage repair, construction, rehabilitation, and flood-related remediation and mitigation through the issuance of not more than $4,000,000 in general obligation bonds and notes.

Main purpose and intent

  • To empower the City of Cranston to issue up to $4 million in general obligation bonds and temporary notes to address drainage and flooding problems.
  • The financing would cover:
    • Repair, construction, and rehabilitation of storm drains and drainage improvements.
    • Remediation and mitigation of drainage and flooding problems.
  • The act contemplates various bond structures (zero coupon, capital appreciation, serial, term, or a mix) and allows for financing strategies such as interim notes in anticipation of bonds.

Key provisions and changes

  • Bond authorization and terms
    • Not to exceed $4,000,000 in bonds and notes.
    • Bonds may mature in annual installments between 5 and 30 years from issuance.
    • Permits multiple forms: zero coupon, capital appreciation, serial bonds, term bonds, or combinations.
    • Principal appreciation after issuance is treated as interest for debt limit purposes.
  • Issuance and use of proceeds (Section 2)
    • Proceeds to be used to finance storm drainage repairs/improvements and flood remediation/mitigation.
    • Also may cover:
    • Principal or interest on temporary notes.
    • Advances repaid or federal/state assistance costs.
    • Costs of issuance.
    • Financing capitalized interest.
  • Anticipation notes and temporary financing (Section 3)
    • City may issue notes in anticipation of bonds or anticipated aid.
    • Temporary notes payable within five years; renewals allowed with a five-year total maturity cap.
    • Limit on outstanding refunding notes: not to exceed 200% of the bond issuance amount.
  • Interim financing and spending (Section 4)
    • City treasurer can use available funds prior to bond issuance to pay for eligible purposes, with repayment from future bond proceeds or eligible aid.
  • Investment of proceeds (Section 5)
    • Proceeds and investments may be deposited in insured banks, US government securities, and other authorized investments.
    • Earnings may be used for project costs, debt service, or additional improvements.
  • Application of interest, premiums, and net earnings (Section 6)
    • Accrued interest from bond sales goes to first interest payment.
    • Net earnings or premium from bond issuance may be used for costs of issuance, project costs, debt service, or related improvements.
    • Surplus bond proceeds after costs may be used to pay debt service.
  • Debt obligations and taxation (Section 7)
    • Bonds/notes are obligations of the city, exempt from certain debt limitations.
    • Annual appropriation (or tax levy) required to pay principal and interest; if not appropriated, tax levy must cover them.
    • All taxable property in Cranston subject to ad valorem taxes to support debt service if needed.
  • Validity and transferability (Section 8)
    • Bonds/notes and coupons remain valid even if officers resign.
  • Government aid and conflicts with federal law (Section 9)
    • City may apply for and expend federal/state advances; federal law prevails in conflicts.
  • Issuance process and approvals (Section 10)
    • Bonds/notes may be issued without external approvals beyond the act’s requirements.
  • Unissued authority (Section 11)
    • Unissued authority can be extinguished by city action after seven years.
  • Election requirement (Sections 12-13)
    • The authorization must be approved by Cranston electors at the November 3, 2026 general election (or a specified special election).
    • A form of the ballot question is provided.
    • Sections 12-13 take effect upon voter approval; the rest of the act takes effect upon passage.

Who/what would be affected

  • City of Cranston: Authorized to issue up to $4 million in bonds/notes and undertake related borrowing activities.
  • Taxpayers and property owners in Cranston: Potential ad valorem tax obligations to secure debt service if necessary.
  • Municipal finance and treasury operations: Greater flexibility to use interim financing, investment of proceeds, and adherence to federal securities requirements (including continuing disclosure).

Procedural and timeline notes

  • Introduction and referral: June 5, 2026; referred to Senate Housing & Municipal Government.
  • Elections: Requires voter approval at the 2026 general election (Nov. 3) or a designated special election.
  • Effective dates: Sections 12-13 (voter provisions) take effect upon passage; the remaining sections take effect upon voter approval.

Practical implications

  • If enacted, Cranston could finance drainage-focused infrastructure projects without exceeding $4 million in debt, potentially improving flood mitigation and stormwater infrastructure.
  • The plan provides flexibility in bond structure and funding sources, including potential use of federal/state aid and capitalized interest.
  • The measure includes safeguards typical of municipal bonding, such as annual debt service budgeting, investment guidelines, and independence of bond purchasers from project management.

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

Sign in to ask a question.