The bill permits the town of Johnston to issue bonds and notes up to $40 million to finance the construction, renovation, and equipping of stormwater management and sewer facilities. The bonds may be of various types, including zero coupon, capital appreciation, serial, or term bonds, with a repayment schedule spanning from five to thirty years after issuance. The town council is tasked with determining the specifics of the bond sale, and the town may also engage in financing agreements with the Rhode Island Infrastructure Bank. The bill specifies that proceeds from the bond sales, excluding premiums and accrued interest, are to be used for the infrastructure projects detailed within the bill.

Additionally, the bill allows the town council to issue temporary notes in anticipation of the bonds or federal or state aid, with the total notes not to exceed the bond limit or estimated aid, and these notes are payable within five years. The director of finance is authorized to use town treasury funds for the bill's purposes, with repayment from subsequent bond or note proceeds or other funds. The bill also addresses the management of proceeds, accrued interest, or premiums from the sale of bonds or notes, including their investment and application towards project costs, principal, or interest payments. The obligations incurred by the town through this bill are exempt from the town's borrowing capacity, and the town must annually appropriate funds for the payment of principal and interest, with the option to levy taxes if necessary. The act requires voter approval and will take effect upon passage for Sections 13 and 14, with the remainder contingent on approval in a special election.