Rhode IslandH86242026 Regular SessionHouse

AN ACT AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE ACQUISITION, IMPROVEMENT, RENOVATION AND REPAIR OF FIRE AND PUBLIC SAFETY EQUIPMENT BY THE ISSUANCE OF NOT MORE THAN $8,000,000 GENERAL OBLIGATION BONDS AND NOTES THEREFOR .

Sponsored By: Christopher G. Paplauskas (Republican)

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Bill Overview

Analyzed Economic Effects

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

Property tax backstop for bond payments

Each year the city must set aside enough to pay bond principal and interest. If it does not, the shortfall is added to the property tax levy. All taxable property can be taxed without a rate or amount limit to cover these payments. This means property taxes can rise to pay the bonds.

Voters decide $8M for public safety

Cranston can borrow up to $8 million to buy, improve, renovate, and repair fire and public safety equipment. Voters will decide this at the November 3, 2026 election, or at a city-wide special election. Money can also repay short-term notes, cover bond sale costs, and fund capitalized interest. Seven years after this law takes effect, the city council may cancel any unused borrowing authority. Better equipment is the goal, but borrowing adds future debt to repay.

Bond terms and debt limit rules

Bonds can have the first principal payment within 5 years and the last within 30 years. The city can issue serial, term, zero-coupon, or capital appreciation bonds. For debt limits, only the original principal counts; later appreciation is treated as interest. These bonds do not count under a specific state debt limit. These choices affect borrowing costs and capacity, which can influence future taxes.

Short-term notes and funding tools

The city can issue short-term notes before bonds or aid arrive. Notes must be paid within five years, and refunds cannot leave notes over 200% of the bond amount. With council approval, the treasurer can advance city funds now and repay them later without interest. The treasurer can invest unspent money and use earnings and any sale premiums for project costs, debt service, or issuance costs, per council direction. The city can seek federal or state grants and can sell these bonds with other city bonds, but must use proceeds only for these projects. The finance director and mayor can sign the papers needed to meet federal tax and securities rules.

Sponsors & Cosponsors

Sponsor

Christopher G. Paplauskas
Republican • House

Cosponsors

Jacquelyn M. Baginski
Democratic • House
David A. Bennett
Democratic • House
Richard R. Fascia
Republican • House
Arthur Handy
Democratic • House
Joseph M. McNamara
Democratic • House
Brandon C. Potter
Democratic • House
Robert J. Quattrocchi
Republican • House

Roll Call Votes

All Roll Calls

Yes: 72 • No: 0

House vote • 6/11/2026

CRANSTON - BONDS AND NOTES PASSAGE