WeVote
Log In

Bill

Bill

HB 8625

AN ACT AUTHORIZING THE CITY OF CRANSTON TO ISSUE NOT TO EXCEED $25,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS TO FINANCE THE PURCHASE AND/OR ACQUISITION OF LAND AND BUILDINGS, CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES THROUGHOUT THE CITY

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

Authorizes Cranston to issue up to $25 million in bonds to fund construction, renovation, and equipment for school facilities, pending voter approval.

06/26/2026 Effective without Governor's signature
0
WeVote Research Nonpartisan
Bill Summary · HB 8625

Bill Summary: HB 8625 (Rhode Island, 2026)

Purpose and Intent

  • Authorizes the City of Cranston to issue up to $25,000,000 in general obligation bonds, notes, and other evidences of indebtedness.
  • The debt would finance the purchase/acquisition of land and buildings, and the construction, renovation, improvement, alteration, repair, landscaping, furnishing, and equipping of schools and school facilities throughout Cranston.
  • This act provides an enabling mechanism, with a public referendum required to approve the enabling authorization.

Key Provisions and Changes

  • Authorized Debt Amount: Not to exceed $25,000,000 in total general obligation bonds, notes, and other evidences of indebtedness.
  • Debt Form and Repayment: Bonds may be serial, term, zero coupon, capital appreciation, or a combination. Serial bonds pay principal in annual installments; term bonds repay principal via sinking fund installments. First principal installment due within 5 years; last no later than 30 years after issue.
  • Debt Structure Flexibility: The debt can be issued in various forms (including zero coupon or capital appreciation bonds). Appreciation in principal after issuance is treated as interest for debt-limit purposes, not as principal indebtedness.
  • State Aid Eligibility: The city may be eligible for school housing aid reimbursement or other state/federal financial assistance (RIDE, State), under applicable rules.
  • Issuance and Administration: Bonds/notes signed by the director of finance and the mayor, with details (sale method, denominations, maturities, interest rates) defined by City Council proceedings or separate resolutions.
  • Financing Arrangements with Other Entities: The city may enter financing agreements with the Rhode Island Health and Educational Building Corporation or the Rhode Island Infrastructure Bank, with possible application of relevant chapters of law if inconsistent.
  • Use of Proceeds (Section 3): Proceeds (excluding premiums and accrued interest) must be used for the listed purposes related to school facilities and related costs, including issuance costs and/or capitalized interest during construction.
  • Temporary Notes and Anticipation Debt (Section 4): The City Council may authorize short-term notes in anticipation of bond issuance or federal/state aid. Rules govern duration, renewal, and refunding limits (no more than 200% of the bond-issuable amount outstanding at any time).
  • Use of City Funds (Section 5): The director of finance, with City Council approval, may apply general treasury funds to purposes stated in Section 3; repayment can come from bond proceeds, aid, or other funds.
  • Investment and Handling of Proceeds (Section 6-7): Proceeds and available funds may be deposited/invested per state/federal law; accrued interest and premiums may be used for various costs or project financing.
  • Debt Obligation and Tax/Revenue Implications (Section 8): Bonds/notes are obligations of the city; they are exempt from certain debt limits in charter/ statute. Annual appropriation of funds to cover annual debt service; if not appropriated, taxes may be levied.
  • Validity Even if Officials Change (Section 9): Bonds/notes remain valid despite changes in office.
  • Federal/State Advances (Section 10): City may seek federal/state advances or grants; inconsistencies with state law give precedence to federal law.
  • Issuance Procedures (Section 11-12): Bond issuance can occur without external approvals beyond what is stated; city officers may execute necessary instruments and disclosures to comply with securities laws (Rule 15c2-12) and ongoing disclosure.
  • Extinguishment of Authorized but Unissued Authority (Section 13): Unissued authority can be extinguished after 7 years without needing further legislative action.
  • Electoral Approval (Section 14): Before issuance, Cranston voters will decide via general election (Nov 3, 2026) or a designated special election whether to approve the act. The question would be placed on the ballot in substantially the form provided.
  • State Aid Disclosure and RIDE Approval (Section 15): For school projects, state aid reimbursement is not automatic; projects must be approved by RIDE to be eligible.
  • Effective Dates (Section 16): Sections 14-15-16 take effect upon passage; the remainder takes effect upon voter approval of Section 14.

Who/What Is Affected

  • City of Cranston: Authorized to issue up to $25M in debt for school-related land, buildings, and facilities.
  • Cranston School Facilities: Projects such as construction, renovation, improvements, landscaping, furnishings, and equipment would be financed.
  • Taxpayers and Property Owners: Potential impact through annual debt service payments funded by the city’s budget and tax levy if needed.
  • RIDE and State/Federal Partners: Eligibility for state aid or grants for eligible school projects; RIDE must approve school projects for state reimbursements.
  • City Officials: Mayor and Director of Finance (and City Council) responsible for signing, issuing, and managing debt and related disclosures.

Procedural and Timeline Aspects

  • Referendum Required: The authorization must be approved by Cranston voters at the 2026 general election (or a special election) before the debt authorizations may be issued.
  • Effective Date: Sections related to the referendum and RIDE approval take effect upon passage; the remainder depends on voter approval.
  • Deadline for Unissued Authority: Any unused borrowing authority can be extinguished after 7 years from effective date without further legislative action.
  • Bond Issuance Flexibility: Allows for various bond structures and intergovernmental financing, subject to state and federal laws and rules.

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

Sign in to ask a question.