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HB 8594

AN ACT AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE REPAVING OF STREETS IN THE CITY AND AUTHORIZING THE FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $3,000,000 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 could issue up to $3 million in bonds/notes to finance a two-year street repaving program, with voter approval required to proceed.

06/23/2026 Signed by Governor
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WeVote Research Nonpartisan
Bill Summary · HB 8594

Summary of HB 8594 (Rhode Island, 2026)

Purpose and intent

  • Authorizes the City of Pawtucket to finance a capital improvement program specifically for repaving streets in the city.
  • Allows the issuance of up to $3,000,000 in bonds and notes to fund the repaving project for the two fiscal years 2028 and 2029.
  • The act seeks voter approval on whether the measure should be adopted at the next general election (or at an earlier special election).

Key provisions and changes

  • Bond authority: The city may issue general obligation bonds or notes up to $3,000,000. Bonds may be serial, term, or a combination, with repayment terms:
    • Serial bonds: annual principal repayments.
    • Term bonds: annual principal installments via sinking fund.
    • First principal repayment: within 3 years; last repayment within 30 years after the date of issue.
  • Issuance and sale details: The City Council determines the issuance amounts, sale method, denominations, maturities, interest rates, and other terms. Bonds must be signed by the city treasurer and the mayor (manual or facsimile signatures).
  • Use of proceeds: Proceeds must be used for: 1) Repaving streets and related costs (the project), 2) Paying principal or interest on temporary notes, 3) Repaying advances, 4) Issuance costs, and/or 5) Funding interest during construction (funded or capitalized interest).
  • Anticipation notes: The city council may authorize temporary notes in anticipation of bonds or aid, with timelines and limitations:
    • Original notes in anticipation of bonds ≤ amount of bonds authorized.
    • Temporary notes in anticipation of aid ≤ estimated available aid.
    • Notes payable within five years; renewal possible within five-year aggregate limit.
    • Refunding rules limit outstanding temporary notes to 200% of bonded amount; any refunding proceeds must be held in a separate fund until used.
  • General fund advances: The city treasurer, with council approval, may advance general treasury funds for purposes stated, to be repaid from bond proceeds or other funds.
  • Investment and proceeds management: Proceeds and related funds may be deposited or invested in permitted instruments (FDIC-insured banks, US securities, or other allowed investments). Interest, premiums, and investment earnings may be applied to project costs, debt service, city revenues, or other allowed uses. Unused proceeds revert to specified uses or the city’s revenues.
  • Debt pledges and taxation: Bonds/notes are obligatory obligations of the city but not counted against the city’s debt limit for borrowing capacity. The city must annually appropriate funds to cover the debt service, and if not appropriated, the amount can be added to the annual tax levy. All property in the city is subject to ad valorem taxation to secure debt service if needed.
  • Legal and procedural clauses: Validity of bonds/notes is not affected by officer vacancies. The act permits federal/state grants to supplement funding. It clarifies election-related and charter-related supremacy where applicable.
  • Election authorization: Sections 13 and 14 require voter approval at a general election (with provision for a special election). The ballot question would ask voters to approve the act as described.
  • Effective date: Sections 13 and 14 (the election-related provisions) take effect upon passage; the remainder takes effect upon voter approval.

Who would be affected

  • Pawtucket residents and property owners: Potential impact via property tax levy adjustments if necessary to fund debt service.
  • City government: Authorized to issue up to $3 million in bonds/notes, manage funds, investments, and debt service related to the repaving program.
  • Bidders and financial markets: Could participate in sale of Pawtucket bonds/notes under the act’s terms.
  • Federal/state funding sources: May provide grants or advances that could be used in conjunction with the project.

Procedural and timeline notes

  • The act requires approval by Pawtucket voters at the next general election (with an option for a special election).
  • If approved, the bond authority would remain available (unissued) for seven years unless extinguished earlier by council resolution.
  • The project coverage is for the two fiscal years 2028 and 2029, with financing structured to support that horizon.

Bottom-line

HB 8594 would empower Pawtucket to finance a street repaving program through general obligation bonds/notes up to $3 million, with repayment over up to 30 years, and would require voter approval to proceed. The bill outlines how proceeds may be used, debt management and investment rules, and mechanisms for interim financing and grant funds, all while preserving flexibility for the city to manage timing and terms through the city council.

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

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