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SB 3325

AN ACT AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE IMPROVEMENT AND REPLACEMENT OF ROAD SAFETY INFRASTRUCTURE AND TRAFFIC CONTROL DEVICES IN THE CITY OF PAWTUCKET AND AUTHORIZING THE FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $2,500,000 BONDS AND NOTES THEREFOR, TO FUND THE CAPITAL IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2028 AND 2029

2026 Regular Session Introduced by Meghan Kallman

Pawtucket may issue up to 2.5 million in bonds/notes, repaid over up to 30 years, to fund road safety and traffic control upgrades, with voter approval required.

06/23/2026 Signed by Governor
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WeVote Research Nonpartisan
Bill Summary · SB 3325

Summary of SB 3325 (Rhode Island) — 2026

Purpose and intent

  • Authorizes the City of Pawtucket to finance the improvement and replacement of road safety infrastructure and traffic control devices.
  • Allows Pawtucket to issue general obligation bonds and notes totaling up to $2,500,000 to fund a capital improvement program for the fiscal years 2028 and 2029.
  • Requires voter approval for the act itself (subject to election timing provisions).

Key provisions and changes

  • Section 1: Authorizes Pawtucket to issue up to $2,500,000 in bonds/notes, in forms suitable to the city (serial, term, or combination). Bond terms may extend from up to 3 years of principal installments to as long as 30 years, with annual installments.
  • Section 2: Details the mechanics of issuing bonds, including signatures, sale terms, and permitted uses of bond proceeds. Proceeds must be used for:
    • The project (road safety infrastructure and traffic control devices) and related costs
    • Payment of principal or interest on temporary notes
    • Repayment of advances
    • Costs of issuance
    • Funded or capitalized interest during construction
    • Proceeds, federal/state aid, and other monies are deemed appropriated for these purposes.
  • Section 3: Authorizes interim notes (anticipation notes) in anticipation of bonds or aid, with limits:
    • Original anticipation notes cannot exceed the amount of bonds that may be issued
    • Notes in anticipation of aid cannot exceed available aid
    • Notes are payable within 5 years; renewals allowed under specified conditions
    • Refundings permitted, with protections on outstanding amounts
  • Section 4: Allows use of general city funds (advances) to cover project costs prior to bond issuance, to be repaid later.
  • Section 5: Permits investment of bond proceeds and interim funds in specified, prudent instruments (FDIC-insured bank deposits, U.S. obligations, etc.).
  • Section 6: Rules on application of interest, premiums, net investment earnings, and proceeds. Surplus proceeds may be used for project costs, debt service, or city revenues, subject to law.
  • Section 7: Debt treatment and annual appropriation requirements. Bonds/notes are legal city debts but not counted toward the city’s debt limit in the usual manner; the city must annually appropriate funds to cover debt service, with an option to levy ad valorem taxes if required.
  • Section 8: Validity of bonds/nonetheless remains even if officers leave office.
  • Section 9: Authority to apply for federal/state advances or grants; inconsistencies with federal law prevail.
  • Section 10: Bond issuance authority is broad, with flexibility in project actions (including potential land condemnation) while maintaining constitutional compliance.
  • Section 11: City officers may execute documents and comply with securities laws and continuing disclosure requirements.
  • Section 12: Unissued bond/note authority may be extinguished by city council after seven years.
  • Section 13: Required voter referendum. The question must be presented at the next general election (or a special election if called). The exact form of the ballot question is specified.
  • Section 14: Effective date: Sections 13–14 take effect on passage; the remainder takes effect upon the approval of the election.

Who/what would be affected

  • Affects the City of Pawtucket, giving it explicit authority to issue up to $2.5 million in bonds/notes for capital improvements related to road safety and traffic control devices.
  • Projects funded by these bonds would impact road infrastructure, traffic management devices, and related city traffic safety programs.

Procedural and timeline aspects

  • The bond authority is contingent on voter approval at an upcoming general election (or a specified special election).
  • If approved, funds would be allocated for the Pawtucket capital improvement program for fiscal years 2028 and 2029.
  • Bond issuance and financing details (rates, maturities, sale method) are to be determined by city council resolutions and proceedings.
  • The act provides a seven-year sunset for unissued authority (Section 12).
  • The act includes standard bond covenants, investment provisions, and compliance considerations with federal securities laws (including Rule 15c2-12).

Notable details

  • Maximumbond/note amount: $2,500,000
  • Use of proceeds: specifically for road safety infrastructure and traffic control devices and related costs
  • Term of financing: up to 30 years for bonds; up to 5 years for interim notes
  • Public vote required for enactment of the act
  • Investments and use of interest premiums may be directed to project costs, debt service, or city revenues per policy and law

This summary focuses on the substantive provisions, fiscal mechanisms, and potential impacts on Pawtucket’s capital budgeting and transportation safety investments.

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

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