Rhode IslandH85902026 Regular SessionHouse

AN ACT AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE CONSTRUCTION, RENOVATION, IMPROVEMENT, REPAIR, ALTERATION, FURNISHING AND EQUIPPING OF PUBLIC BUILDINGS IN THE CITY AND AUTHORIZING THE FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $5,000,000 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

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

Property tax pledge for bond payments

These bonds and notes are debts of Pawtucket. Each year, the city must budget enough to pay principal and interest. If it does not, the unpaid amount is added to the annual property tax levy. All taxable property in the city is subject to this tax without a rate or amount limit to pay the debt.

Rules for Pawtucket bond borrowing

Bonds can be serial or term, with the first principal due within 3 years and the last within 30 years. The city can issue short-term notes before bonds or aid, but all notes must be paid within 5 years, and total notes outstanding cannot exceed 200% of the authorized bonds. With council approval, the treasurer can advance city funds to start work and repay these advances later without interest. Unused money can be invested in banks or U.S. government obligations. Premiums, accrued interest, and allowed investment earnings can pay project costs, issuance costs, or debt service. The city can issue these bonds without extra approvals, and the treasurer and mayor must sign needed documents and follow federal tax and securities rules, including ongoing disclosure.

Voter-approved $5 million for city buildings

The law lets Pawtucket borrow up to $5,000,000 to fix and equip public buildings for the 2028–2029 plan. Voters must approve this borrowing at the next general election, or a special election called by the mayor. Money can pay for construction, renovations, related costs, note interest, advances, and issuance costs, and it can cover interest during construction. The city can also seek state or federal grants to reduce local borrowing. Seven years after this law takes effect, the city council can cancel any unused borrowing authority.

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: 67 • No: 0

House vote • 6/8/2026

PAWTUCKET BONDS & NOTES PASSAGE