This bill authorizes the city of Cranston to issue up to $40 million in bonds and other forms of debt to finance the purchase, construction, renovation, and equipping of schools and school facilities. The bill also allows the city to enter into financing agreements with the Rhode Island health and educational building corporation and the Rhode Island infrastructure bank. The bonds can be issued in the form of serial bonds or term bonds, and can be payable either by maturity of principal or by mandatory sinking fund installments. The bill also allows the city council to authorize the issuance of interest-bearing or discounted notes in anticipation of the issuance of bonds or the receipt of federal or state aid.
The bill specifies that the bonds and notes issued under this act will be obligatory on the city and will not be included in the city's debt for the purpose of determining its borrowing capacity. The city will be required to annually appropriate a sufficient sum to pay the principal and interest coming due on the bonds and notes, and if such sum is not appropriated, it will be added to the annual tax levy. The bill also authorizes the city to execute necessary instruments, documents, or other papers to carry out the intent of the act and comply with federal tax and securities laws. The question of approving this act will be submitted to the electors of the city at the general election in November 2024.