Rhode IslandH85912026 Regular SessionHouse

AN ACT AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE CONSTRUCTION, RECONSTRUCTION, REPAIR AND EQUIPPING OF BRIDGES AND ALL COSTS INCIDENTAL OR RELATED THERETO 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

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Unlimited property tax pledge for bonds

Bonds and notes are binding city debts. Each year, the city must budget enough to pay principal and interest. Any shortfall is added to the annual property tax levy. All taxable property can be taxed without a rate or amount cap to make the payments.

Voters must approve $2 million for bridges

Pawtucket puts a bond question to voters at the 2026 general election, or an earlier special election. If a majority approves, the city may borrow up to $2 million to build and fix bridges in FY2028 and FY2029. Repayments start within three years and end within thirty years of each bond. The city may also seek state or federal aid to help pay for this work.

Bond rules: signatures and canceling authority

The mayor and city treasurer can sign documents needed to issue the bonds and meet federal tax and securities rules, including continuing disclosure. Bonds stay valid even if the signing officers leave office before delivery or payment. Seven years after the law takes effect, the council may cancel any unused borrowing authority by resolution.

Invest proceeds and use premiums

The city can invest bond proceeds and any aid in FDIC banks, U.S. government obligations, or other lawful options. Accrued interest pays the first interest due. Premiums from the sale, and allowed investment earnings, can pay issuance costs, project costs, or debt service, or support city revenues as federal law and council directions allow. Remaining balances follow city charter rules after the project ends.

Short-term notes and cash advances

The city can sell short-term notes to start work before selling bonds or getting aid. Original notes must be paid within five years from the first note and cannot exceed the bond limit or the treasurer’s estimate of aid. The treasurer may also advance city cash, with council approval, and repay it later without interest from bonds or aid. Refunding cannot push outstanding notes above 200% of the bond authorization.

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: 68 • No: 0

House vote • 6/8/2026

PAWTUCKET BONDS AND Notes PASSAGE