Rhode IslandH85892026 Regular SessionHouse

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 .

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 0 benefits, 1 costs, 5 mixed.

Unlimited property tax backs these bonds

All taxable property in Pawtucket can be taxed without a rate cap to pay these bonds and notes. Each year the city must budget enough to cover principal and interest. If other funds are short, the needed amount is added to the annual tax levy. This can raise tax bills for property owners and may affect renters through higher housing costs.

Up to $2 million for recreation

The city can sell up to $2 million in bonds to fix and build public recreation facilities and buy land, after voter approval. Money can also cover issuance costs, interest during construction, temporary notes, and repayment of city advances. The first principal payment is due within 3 years, and the last no later than 30 years after issuance. The city may apply for and use state or federal grants with this project. The treasurer, with council approval, can advance city cash now and repay it from later bond proceeds or grants. Bond and grant funds can be invested, and interest or premiums can pay project or debt costs if federal rules allow.

Bonds exempt from city debt limits

These bonds do not count toward Pawtucket’s normal debt cap or some city charter limits. They remain full obligations of the city. This gives the city more room to borrow for recreation projects but also increases the city’s financial exposure that taxes may need to cover.

Voters must approve recreation borrowing

Pawtucket voters decide this borrowing at the next general election, unless the mayor moves it to an earlier special election. The ballot wording is set by law. The city clerk must keep the act available for public inspection before the vote.

Faster bond and note rules

The city can issue short‑term notes while waiting for bonds or state or federal aid. Original notes must be paid within 5 years, and renewals cannot extend beyond 5 years from the first note. Outstanding refunding notes at one time cannot be more than 200% of the authorized bond amount. The city may issue these bonds without other agency approvals required by law, and still must meet constitutional rules. The treasurer and mayor can sign all needed documents and make ongoing disclosures to investors to meet federal tax and securities laws.

Unused bond authority can be canceled

Seven years after this law takes effect, the city council can vote to cancel any unused bond authority. This can reduce future borrowing and tax exposure or reflect that a project stopped.

Sponsors & Cosponsors

Sponsor

Mary Messier
Democratic • House

Cosponsors

Karen Alzate
Democratic • House
Cherie L. Cruz
Democratic • House
Jennifer A. Stewart
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 66 • No: 0

House vote • 6/8/2026

PAWTUCKET BONDS & NOTES PASSAGE