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SB 3355

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 Hanna Gallo and 3 co-sponsors

Cranston would be allowed to issue up to $25 million in bonds to buy and upgrade school facilities, pending voter approval and state review.

06/26/2026 Effective without Governor's signature
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WeVote Research Nonpartisan
Bill Summary · SB 3355

Purpose of the bill

  • SB 3355 would authorize the City of Cranston to issue up to $25 million in general obligation bonds, notes, and other evidences of indebtedness to 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 the city.
  • It is an enabling act, contingent on local voter approval and compliance with state requirements.

Key provisions and changes

  • Authorization limit: The city may issue up to $25,000,000 in bonds/notes, from time to time, under Cranston’s name and seal (or a facsimile).
  • Bond structure: Issuances may be serial bonds, term bonds, zero coupon bonds, capital appreciation bonds, or a combination. Principal repayment can be in annual serial installments or via sinking fund installments for term bonds, with first payment no later than 5 years after issue and last payment no later than 30 years.
  • Principal appreciation treatment: Principal appreciation after original issuance is considered interest for debt-limit purposes; only the original principal amount counts toward debt limits.
  • State aid and grants: The city may seek school housing aid, or grants/loans from the state, RIDE, or the Rhode Island School Building Authority, to support debt service.
  • Use of bond proceeds: Proceeds must be used for projects listed (land/buildings and school-related construction/renovation/etc.), debt service on temporary notes, repayments of advances, issuance costs, and/or capitalized interest during construction.
  • Financing flexibility: The city may enter financing agreements with the Rhode Island Health and Educational Building Corporation or the Rhode Island Infrastructure Bank, with potential application of respective chapter provisions if inconsistent.
  • Sale and administration: Proceeds are delivered to the director of finance; remaining funds are deemed appropriated for the act’s purposes. Provisions allow consolidation with other Cranston bonds if proceeds are restricted to intended use.
  • Interim financing: The city council may authorize interim notes in anticipation of bonds or aid, with limits on original note amounts and renewal terms.
  • Pledge and taxation: The city must annually appropriate or levy taxes to pay debt service; ad valorem taxes may be used without rate/amount limits if needed.
  • Elector referendum: The act’s approval would be decided by Cranston voters in the 2026 general election (or a designated special election). The ballot form is specified.
  • State aid eligibility: Bonds/notes for school projects issued under this act would not be eligible for state aid reimbursement unless RIDE approves the projects.
  • Effective dates: Sections 14-16 (voter referendum, general enabling provisions, and related effective dates) take effect upon passage; the remaining sections take effect upon voter approval.

Who is affected

  • The City of Cranston, as issuer and obligor, and its voters who will approve the debt authorization.
  • Cranston taxpayers, who would ultimately bear debt service via property taxes if not offset by state aid or grants.
  • State and local education authorities (RIDE, Rhode Island Infrastructure Bank, RIHEBC) in terms of potential financing collaborations and eligibility for state aid/grants.

Procedural and timeline notes

  • The measure requires voter approval at a city-wide election (Nov. 3, 2026, or a designated special election).
  • If approved, the authorization remains valid for seven years for extinguishing unissued bonds/notes (Section 13).
  • The act contemplates coordination with state and federal programs and adherence to securities and tax rules (including Rule 15c2-12 disclosure).

Overall, the bill would empower Cranston to finance substantial school property and facilities projects through up to $25 million in debt, with flexible bond structures and potential state aid, contingent on voter approval and project review by RIDE.

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

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