AN ACT AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE RENOVATION, CONSTRUCTION, RECONSTRUCTION AND EQUIPPING OF PUBLIC RECREATION FACILITIES IN THE CITY INCLUDING LAND ACQUISITION AND AUTHORIZING THE FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $2,000,000 BONDS AND NOTES THEREFOR, TO FUND THE CAPITAL IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2028 AND 2029

2026 Regular Session Introduced by Karen Alzate and 3 co-sponsors

Pawtucket may issue up to $2,000,000 in bonds to fund public recreation facility renovations and related land purchases, contingent on voter approval.

06/23/2026 Signed by Governor

Bill Summary: HB 8589 (Rhode Island, 2026)

Purpose and Intent

Authorizes the City of Pawtucket to finance renovation, construction, reconstruction, and equipping of public recreation facilities in the city, including related land acquisition.

Specifically authorizes the issuance of not more than $2,000,000 in general obligation bonds and/or notes to fund the city’s capital improvement program for the fiscal years 2028 and 2029.

The act requires voter approval at the next general election (with potential for a special election if called earlier) to authorize the bond issuance.

Key Provisions and Changes

Section 1: Grants Pawtucket authority to issue up to $2,000,000 in bonds/notes for the stated recreation-related projects. Bond forms may be serial, term, or a combination, with debt service terms ranging from up to 3 years (initial principal payment) to no later than 30 years.

Section 2: Details administrative mechanics for bond issuance, including signatures, sale methods, use of proceeds, and authorized expenditures:

Proceeds to be used for project costs (renovation, construction, reconstruction, and equipping of recreation facilities) and land acquisition, plus related costs (issuance, interest, and related financing costs).
Proceeds may also cover debt service on temporary notes and any funded or capitalized interest during construction.

Section 3: Allows the city to issue temporary notes in anticipation of bonds or aid, with caps and terms designed to limit outstanding balance and provide refunding protections.

Section 4: Provides authority for the treasurer to advance city funds to be repaid from future bond proceeds or applicable aid.

Section 5–6: Governs investment of proceeds and application of accrued interest, premiums, and investment earnings to project costs or debt service; clarifies expenditure priorities and disposition of remaining funds.

Section 7: Establishes the debt as the city’s obligation, but not as part of the city’s general debt limit. Requires annual appropriation for debt service; if not appropriated, the amount must be added to the annual property tax levy.

Section 8–11: Covers bond/note validity, authorization to apply for federal/state aid, compliance with securities laws (e.g., Rule 15c2-12), and execution of necessary documents.

Section 12: Unissued bond/note authority may be extinguished by council resolution after seven years.

Section 13–14: Puts the question to Pawtucket electors at the next general election (or a qualifying special election) with a precise ballot form. Sections 13–14 take effect on passage; remaining sections take effect upon election approval.

Who Is Affected

Primary: City of Pawtucket, its taxpayers, and voters in Pawtucket.

Indirect: Recipients and users of public recreation facilities; contractors and developers involved in recreation facility projects; and financiers (bondholders) and financial markets engaged in municipal bond financing.

Procedural and Timeline Considerations

The authorization is contingent on voter approval at the next general election, with potential early-scheduled vote if a special election is called.

If approved, the bonds/notes would fund a capital improvement program for fiscal years 2028 and 2029.

Unissued authority can be extinguished after seven years if not used.

Notable Details

Bond principal repayment schedule: first payment not later than 3 years after issuance; last payment within 30 years.

The act provides flexibility in sale, denominations, interest rates, and other terms as determined by the Pawtucket City Council.