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Rhode IslandS30872026 Regular SessionSenate

AN ACT AUTHORIZING THE CITY OF CENTRAL FALLS TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES IN THE CITY BY THE ISSUANCE OF NOT MORE THAN $25,000,000 BONDS, NOTES AND/OR OTHER EVIDENCES OF INDEBTEDNESS THEREFOR .

Sponsored By: Jonathon Acosta (Democratic)

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Bill Overview

Analyzed Economic Effects

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

Property tax pledge and state aid rules

The bonds are a full debt of the city. If yearly payments are not budgeted, they are added to the property tax levy without a rate cap. To get state school housing aid, each project must be approved by the state education department. The city can seek federal or state grants to lower local costs. Accrued interest from the bond sale pays the first interest bill, and any sale premium or investment earnings can help pay project costs or debt, or be added to property tax revenue if federal law allows.

Central Falls borrows $25M for schools

The city can issue up to $25 million to build, fix, furnish, and equip school buildings. Money can also cover related costs like paying short-term notes, issuance costs, and interest during construction. Funds go to the city’s finance director and must be used for these school purposes only. Voters approved the bond question on November 5, 2024, and the law takes effect upon passage.

Bond types and 5–30 year payback

The city may issue serial, term, zero-coupon, or capital appreciation bonds. Any principal that grows after issue counts as interest for debt-limit rules. The first principal payment must come within five years, and the last within thirty years.

Faster bond issuance and oversight steps

The city may issue these bonds without other agency approvals unless this law requires them. The finance director and the mayor can sign needed documents and meet federal tax and securities rules, including disclosures. The city may use state financing agencies and choose to apply their rules to these bonds. After seven years from approval, the city council can cancel any unused borrowing authority.

Short‑term notes and fund safeguards

The city can issue short‑term notes while waiting for bonds or state/federal aid. Notes must be paid within five years and cannot exceed the bond amount or expected aid. Refunding notes is allowed, but total notes cannot exceed 200% of the authorized bonds, and excess refunding money must be held in a separate fund to pay off notes. The city may advance its own funds with council approval and repay itself without interest. The finance director can keep project money in safe bank deposits or U.S. government obligations until spent.

Sponsors & Cosponsors

Sponsor

  • Jonathon Acosta

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 101 • No: 0

House vote • 6/4/2026

CENTRAL FALLS - BONDS & NOTES PASSAGE IN CONCURRENCE

Yes: 63 • No: 0

Senate vote • 5/26/2026

THE CITY OF CENTRAL FALLS -- BONDS Passage

Yes: 38 • No: 0

Actions Timeline

  1. Effective without Governor's signature

    6/12/2026Governor

  2. Transmitted to Governor

    6/4/2026Governor

  3. House passed in concurrence

    6/4/2026House

  4. Placed on the House Consent Calendar (06/04/2026)

    6/2/2026House

  5. Senate read and passed

    5/26/2026Senate

  6. Placed on Senate Calendar (05/26/2026)

    5/20/2026Senate

  7. Committee recommends passage

    5/19/2026

  8. Scheduled for consideration (05/19/2026)

    5/15/2026

  9. Committee heard

    5/12/2026

  10. Scheduled for hearing and/or consideration (05/12/2026)

    5/8/2026

  11. Introduced, referred to Senate Finance

    3/13/2026Senate

Bill Text

  • S3087 - As Introduced

    3/13/2026

    HTMLPDF

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