The bill authorizes the city of Central Falls to issue additional bonds, raising the total limit from $26,049,000 to $15,000,000. This increase allows for various forms of bonds, including serial and term bonds, with specific repayment provisions. A key aspect of the bill is that the appreciation of principal on these bonds will be classified as interest and excluded from the city's debt limit calculations, ensuring that only the original principal is considered. The bill also details the procedures for bond issuance and sale, involving the city council and the city director of finance, and allows for the consolidation of new bonds with previously authorized ones. Proceeds from these bonds are designated for school-related construction and improvements, and the city is permitted to enter financing agreements with state entities.

Furthermore, the bill serves as an enabling act under § 16-7-44, stipulating that bonds or notes issued for school projects will not qualify for state housing aid reimbursement unless approved by the Rhode Island Department of Education. The issuance of these bonds was previously approved by the city's electors during the November 5, 2024 election. The bill includes provisions for managing funds related to the bonds, allowing the city council to utilize treasury funds for specified purposes, with the expectation of repayment from bond proceeds or state assistance. The city director of finance is given discretion in managing accrued interest and premiums from bond sales, and the act clarifies that obligations incurred through these bonds will not affect the city's borrowing capacity, while ensuring annual appropriations for principal and interest payments.