2007 -- S 0260

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LC00753

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2007

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A N A C T

AUTHORIZING THE TOWN OF PORTSMOUTH TO ISSUE GENERAL OBLIGATION

BONDS AND/OR NOTES IN AN AMOUNT NOT TO EXCEED $3,000,000 TO FINANCE

THE ACQUISITION AND INSTALLATION OF A WIND TURBINE AT PORTSMOUTH

HIGH SCHOOL AND/OR A WIND TURBINE AT PORTSMOUTH MIDDLE SCHOOL

     Introduced By: Senator C Levesque

     Date Introduced: February 07, 2007

     Referred To: Senate Housing & Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. The Town of Portsmouth is hereby empowered, in addition to authority

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previously granted, to issue general obligation bonds and notes to an amount not exceeding three

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million dollars ($3,000,000), from time to time, under its corporate name and seal. The bonds of

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each issue may be issued in the form of serial bonds or term bonds or a combination thereof and

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shall be payable either by maturity of principal in the case of serial bonds or by mandatory serial

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redemption in the case of term bonds, in annual installments of principal, the first installment to

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be not later than five (5) years and the last installment not later than thirty (30) years after the date

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of the bonds. All such bonds of a particular issue may be issued in the form of zero coupon

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bonds, capital appreciation bonds, serial bonds or term bonds or a combination thereof. Annual

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installments of principal may be provided for by maturity of principal in the case of serial bonds

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or by mandatory serial redemption in the case of term bonds. The amount of principal

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appreciation each year on any bonds, after the date of original issuance, shall not be considered to

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be principal indebtedness for the purposes of any constitutional or statutory debt limit or any

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other limitation. The appreciation of principal after the date of original issue shall be considered

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interest. Only the original principal amount shall be counted in determining the principal amount

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so issued and any interest component shall be disregarded.

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     SECTION 2. The bonds shall be signed by the Finance Director and the President of the

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Town Council and shall be issued and sold in such amounts as the Town Council may authorize.

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The manner of sale, denominations, maturities, interest rates and other terms, conditions and

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details of any bonds or notes issued under this act may be fixed by the proceedings of the Town

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Council authorizing the issue or by separate resolution of the Town Council or, to the extent

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provisions for these matters are not so made, they may be fixed by the officers authorized to sign

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the bonds or notes. The proceeds derived from the sale of the bonds shall be delivered to the

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Finance Director, and such proceeds, exclusive of premiums and accrued interest, shall be

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expended as follows: (a) to finance the acquisition and installation of a wind turbine at

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Portsmouth High School and/or a wind turbine at Portsmouth Middle School, (b) in payment of

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the principal of and/or interest on temporary notes issued under section three, (c) in repayment of

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advances made pursuant to section four, (d) in payment of costs of issuance associated with the

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issuance of bonds or notes hereunder, and/or (e) to finance capitalized interest on the project. No

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purchaser of any bonds or notes under this act shall be in any way responsible for the proper

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application of the proceeds derived from the sale thereof. The project shall be carried out and all

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contracts made therefor on behalf of the Town by the Town Council. The proceeds of bonds or

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notes issued under this act, any applicable federal or state assistance and the other moneys

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referred to in section six and nine, shall be deemed appropriated for the purpose of this act

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without further action than that required by this act. The bonds authorized by this act may be

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consolidated for the purpose of issuance and sale with any other bonds of the Town heretofore or

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hereafter authorized, provided that, notwithstanding any such consolidation, the proceeds from

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the sale of the bonds authorized by this act shall be expended for the purposes set forth above.

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The Finance Director and the President of the Town Council, on behalf of the Town, are hereby

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authorized to execute such instruments, documents or other papers as either of them deem

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necessary or desirable to carry out the intent of this act and are also authorized to take all actions

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and execute all documents or agreements necessary to comply with federal tax and securities

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laws, which documents or agreements may have a term coextensive with the maturity of the

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bonds authorized hereby, including Rule 15c2-12 of the Securities and Exchange Commission

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and to execute and deliver a continuing disclosure agreement or certificate in connection with the

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bonds or notes.

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     SECTION 3. The Town Council may by resolution authorized the issue from time to time

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of interest bearing or discounted notes in anticipation of the issue of bonds or in anticipation of

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the receipt of federal or state aid for the purposes of this act. The amount of original notes issued

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in anticipation of bonds may not exceed the amount of bonds which may be issued under this act

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and the amount of original notes issued in anticipation of federal or state aid may not exceed the

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amount of available federal or state aid as estimated by the Finance Director. Temporary notes

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issued hereunder shall be signed by the Finance Director and the President of the Town Council

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and shall be payable within five (5) years from their respective dates, but the principal of and

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interest on notes issued for a shorter period may be renewed or paid from time to time by the

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issue of other notes hereunder, provided the period from the date of an original note to the

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maturity of any note issued to renew or pay the same debt or the interest thereon shall not exceed

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five (5) years. Any temporary notes in anticipation of bonds issued under this section may be

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refunded prior to the maturity of the notes by the issuance of additional temporary notes, provided

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that no such refunding shall result in any amount of such temporary notes outstanding at any one

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time in excess of two hundred percent (200%) of the amount of bonds which may be issued under

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this act, and provided further that if the issuance of any such refunding notes results in any

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amount of such temporary notes outstanding at any one time in excess of the amount of bonds

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which may be issued under this act, the proceeds of such refunding notes shall be deposited in a

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separate fund established with the bank which is paying agent for the notes being refunded.

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Pending their use to pay the notes being refunded, moneys in the fund shall be invested for the

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benefit of the Town by the paying agent at the direction of the Finance Director in any investment

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permitted under section five. The moneys in the fund and any investments held as a part of the

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fund shall be held in trust and shall be applied by the paying agent solely to the payment or

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prepayment of the principal of and interest on the notes being refunded. Upon payment of all

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principal of and interest on the notes, any excess moneys in the fund shall be distributed to the

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Town. The Town may pay the principal of and interest on notes in full from other than the

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issuance of refunding notes prior to the issuance of bonds pursuant to Section 1 hereof. In such

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case, the Town's authority to issue bonds or notes in anticipation of bonds under this act shall

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continue provided that 1) the Town Council passes a resolution evidencing the Town's intent to

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pay off the notes without extinguishing the authority to issue bonds or notes and 2) that the period

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from the date of an original note to the maturity date of any other note shall not exceed five (5)

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years.

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     SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu

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of any authorization or issue of notes hereunder, the Finance Director, with the approval of the

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Town Council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the

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treasury of the Town to the purposes specified in section two, such advances to be repaid without

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interest from the proceeds of bonds or notes subsequently issued or from the proceeds of

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applicable federal or state assistance or from other available funds.

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     SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable

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federal or state assistance, pending their expenditure, may be deposited or invested by the Finance

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Director in demand deposits, time deposits or savings deposits in banks which are members of the

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Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States

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of America or by any agency or instrumentality thereof or as may be provided in any other

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applicable law of the state of Rhode Island or resolution of the Town Council or pursuant to an

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investment policy of the Town.

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     SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder

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shall be applied to the payment of the first interest due thereon. Any premiums arising from the

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sale of bonds or notes hereunder shall, in the discretion of the Finance Director, be applied to the

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cost of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise

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provided, to the payment of the cost of the project, to the payment of the principal of or interest

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on bonds or notes issued hereunder or to any one or more of the foregoing. The cost of preparing,

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issuing and marketing bonds or notes issued hereunder may also, in the discretion of the Finance

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Director, be met from bond or note proceeds exclusive of accrued interest or from other moneys

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available therefor. Any balance of bond or note proceeds remaining after payment of the cost of

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the project and the cost of preparing, issuing and marketing bonds or notes hereunder shall be

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applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the

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extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or

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investment of funds hereunder may, upon receipt, be added to and dealt with as part of the

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revenues of the Town from property taxes. In exercising any discretion under this section, the

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Finance Director shall be governed by any instructions adopted by resolution of the Town

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Council.

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     SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby

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shall be obligatory on the Town in the same manner and to the same extent as other debts

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lawfully contracted by it and shall be excepted from the operation of section 45-12-2 of the

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general laws. No such obligation shall at any time be included in the debt of the Town for the

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purpose of ascertaining its borrowing capacity. The Town shall annually appropriate a sum

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sufficient to pay the principal and interest coming due within the year on bonds and notes issued

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hereunder to the extent that moneys therefor are not otherwise provided. If such sum is not

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appropriated, it shall nevertheless be added to the annual tax levy. In order to provide such sum in

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each year and notwithstanding any provision of law to the contrary, all taxable property in the

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Town shall be subject to ad valorem taxation by the Town without limitation as to rate or amount.

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     SECTION 8. Any bonds or notes issued under the provisions of this act, if properly

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executed by officers of the Town in office on the date of execution, shall be valid and binding

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according to their terms notwithstanding that before the delivery thereof and payment therefor

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any or all of such officers shall for any reason have ceased to hold office.

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     SECTION 9. The Town, acting by resolution of its Town Council, is authorized to apply

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for, contract for and expend any federal or state advances or other grants or assistance which may

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be available for the purposes of this act, and any such expenditures may be in addition to other

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moneys provided in this act. To the extent of any inconsistency between any law of this state and

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any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with

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interest where applicable, whether contracted for prior to or after the effective date of this act,

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may be repaid as project costs under section two.

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     SECTION 10. Bonds and notes may be issued under this act without obtaining the

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approval of any governmental agency or the taking of any proceedings or the happening of any

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conditions except as specifically required by this act for such issue. In carryout out any project

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financed in whole or in part under this act, including where applicable the condemnation of any

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land or interest in land, and in the levy and collection of assessments or other charges permitted

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by law on account of any such project, all action shall be taken which is necessary to meet

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constitutional requirements whether or not such action is otherwise required by statute; but the

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validity of bonds and notes issued hereunder shall in no way depend upon the validity or

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occurrence of such action.

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     SECTION 11. All or any portion of the authorized but unissued authority to issue bonds

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and notes under this act may be extinguished by ordinance of the Town Council, without further

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action by the general assembly, seven (7) years after the effective date of this act.

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     SECTION 12. The question of the approval of this act shall be submitted to the electors

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of the Town at a special or general election to be held on a date as shall be set by the Town

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Council. The question shall be submitted in substantially the following form: "Shall an act,

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passed at the 2007 session of the general assembly, entitled 'AN ACT AUTHORIZING THE

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TOWN OF PORTSMOUTH TO ISSUE GENERAL OBLIGATION BONDS AND/OR NOTES

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IN AN AMOUNT NOT TO EXCEED $3,000,000 TO FINANCE THE ACQUISITION AND

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INSTALLATION OF A WIND TURBINE AT PORTSMOUTH HIGH SCHOOL AND/OR A

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WIND TURBINE AT PORTSMOUTH MIDDLE SCHOOL' be approved?" The warning for the

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election shall contain the question to be submitted. Notwithstanding anything contained in

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R.I.G.L. Section 17-19-7 to the contrary, the Portsmouth Board of Canvassers may certify the

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question to the Secretary of State not later than thirty (30) days prior to the date set for any

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special town election. From the time the election is warned and until it is held, it shall be the duty

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of the Town Clerk to keep a copy of the act available at his or her office for public inspection, but

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the validity of the election shall not be affected by this requirement. To the extent of any

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inconsistency between this act and the Town Charter, this act shall prevail.

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     SECTION 13. Sections 12 and 13 shall take effect upon the passage of this act. The

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remainder of this act shall take effect upon the approval of this act by a majority of those voting

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on the question at the election prescribed by the foregoing section.

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LC00753

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