2012 -- H 8118

=======

LC02544

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

AUTHORIZING THE TOWN OF NARRAGANSETT TO FINANCE THE IMPROVEMENT,

REPLACEMENT, CONSTRUCTION, RENOVATION, REPAIR, RECONSTRUCTION

AND/OR RESTORATION OF ROADWAYS, SIDEWALKS AND STORM DRAINS IN THE

TOWN OF NARRAGANSETT AND TO ISSUE NOT MORE THAN $17,000,000 BONDS

AND NOTES THEREFOR

     

     

     Introduced By: Representatives Tanzi, and Lally

     Date Introduced: May 03, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

1-1

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

1-2

previously granted, to issue bonds to an amount not exceeding seventeen million dollars

1-3

($17,000,000) from time to time under its corporate name and seal or a facsimile of such seal.

1-4

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

1-5

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

1-6

mandatory serial redemption in the case of term bonds, in annual installments of principal, the

1-7

first installment to be not later than five years and the last installment not later than thirty years

1-8

after the date of the bonds. For each issue the amounts payable annually for principal and interest

1-9

combined either shall be as nearly equal from year to year as is practicable in the opinion of the

1-10

officers authorized to issue the bonds, or shall be arranged in accordance with a schedule

1-11

providing for a more rapid amortization of principal.

1-12

     SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the town

1-13

treasurer and the president of the Town Council and shall be issued and sold in such amounts as

1-14

the Town Council may authorize by resolution. The manner of sale, denominations, maturities,

1-15

interest rates and other terms, conditions and details of any bonds or notes issued under this act

1-16

may be fixed by the resolution of the Town Council authorizing the issue or by separate

1-17

resolution of the Town Council or, to the extent provisions for these matters are not so made, they

1-18

may be fixed by the officers authorized to sign the bonds or notes. The proceeds derived from the

2-1

sale of the bonds shall be delivered to the town treasurer, and such proceeds exclusive of

2-2

premiums and accrued interest shall be expended for: (a) the improvement, replacement,

2-3

construction, renovation, repair, reconstruction and/or restoration of roadways, sidewalks and

2-4

storm drains in the Town of Narragansett and all costs incidental thereto; (b) in payment of the

2-5

principal of or interest on temporary notes issued under Section 3 of this act; or (c) in repayment

2-6

of advances under Section 4 of this act. No purchaser of any bonds or notes under this act shall be

2-7

in any way responsible for the proper application of the proceeds derived from the sale thereof.

2-8

The projects shall be carried out and all contracts made therefor on behalf of the Town by the

2-9

Town Council or as may be otherwise directed by the Town Council. The proceeds of bonds or

2-10

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

2-11

to in Section 6 of this act shall be deemed appropriated for the purposes of this act without further

2-12

action than that required by this act. The bond issue authorized by this act may be consolidated

2-13

for the purposes of issuance and sale with any other bond issue of the town heretofore or hereafter

2-14

authorized, provided that, notwithstanding any such consolidation, the proceeds from the sale of

2-15

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

2-16

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

2-17

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

2-18

anticipation of the receipt of federal or state aid for the purposes of this act. The amount of

2-19

original notes issued in anticipation of bonds may not exceed the amount of bonds which may be

2-20

issued under this act and the amount of original notes issued in anticipation of federal or state aid

2-21

may not exceed the amount of available federal or state aid as estimated by the treasurer.

2-22

Temporary notes issued hereunder shall be signed by the treasurer and by the president of the

2-23

Town Council and shall be payable within five years from their respective dates, but the principal

2-24

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

2-25

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

2-26

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

2-27

five years.

2-28

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

2-29

of any authorization or issue of notes hereunder, the treasurer, with the approval of the Town

2-30

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

2-31

treasury of the Town to the purposes specified in section 2, such advances to be repaid without

2-32

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

2-33

applicable federal or state assistance or from other available funds.

3-34

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

3-35

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

3-36

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

3-37

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

3-38

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

3-39

applicable law of the State of Rhode Island.

3-40

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

3-41

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

3-42

sale of bonds or notes hereunder and any earnings or net profit realized from the deposit or

3-43

investment of funds hereunder shall, in the discretion of the treasurer, be applied to the cost of

3-44

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

3-45

to the payment of the cost of the projects or to the cost of additional improvements coming within

3-46

the description of the projects in Section 2 of this act, to the payment of the principal of or interest

3-47

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

3-48

issuing and marketing bonds or notes hereunder may also, in the discretion of the treasurer, be

3-49

met from bond or note proceeds exclusive of accrued interest or from other monies available

3-50

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

3-51

projects and said additional improvements and the cost of preparing, issuing and marketing bonds

3-52

or notes hereunder shall be applied to the payment of the principal of or interest on bonds or notes

3-53

issued hereunder. In exercising any discretion under this section, the treasurer shall be governed

3-54

by any instructions adopted by resolution of the Town Council. The treasurer is authorized to take

3-55

any action deemed by him or her necessary: (1) to assure that interest on the bonds or notes issued

3-56

hereunder remains excludable from gross income of the recipients thereof for federal income tax

3-57

purposes, including, without limitation, paying to the federal government any rebate of earnings

3-58

derived from the deposit or investment of the proceeds of such bonds or notes that may be

3-59

required therefor; (2) to qualify the bonds under Sections 54AA, 1400U-1, 1400U-2, or 6431 of

3-60

the Internal Revenue Code of 1986, as amended, as Build America Bonds and/or Recovery Zone

3-61

Economic Development Bonds or other similar federal programs; and (3) to comply with the

3-62

requirements of federal law, including without being limited to regulations and other

3-63

requirements of the Securities and Exchange Commission and the Municipal Securities

3-64

Rulemaking Board, imposed directly on the Town or on the underwriters of such bonds and

3-65

notes.

3-66

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

3-67

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

3-68

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

4-1

No such obligation shall at any time be included in the debt of the town for the purpose of

4-2

ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay

4-3

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

4-4

extent that moneys therefor are not otherwise provided. If such sum is not appropriated, it shall

4-5

nevertheless be added to the annual tax levy. In order to provide such sum in each year and

4-6

notwithstanding any provision of law to the contrary, all taxable property in the town shall be

4-7

subject to ad valorem taxation by the town without limitation as to rate or amount.

4-8

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

4-9

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

4-10

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

4-11

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

4-12

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

4-13

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

4-14

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

4-15

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

4-16

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

4-17

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

4-18

may be repaid as project costs under section 2.

4-19

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

4-20

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

4-21

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

4-22

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

4-23

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

4-24

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

4-25

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

4-26

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

4-27

occurrence of such action. To the extent of any inconsistency between this act and the Town

4-28

Charter, this act shall prevail.

4-29

     SECTION 11. The question of the approval of this act shall be submitted to the electors

4-30

of the town at an election on a date to be determined by the Town Council which occurs at least

4-31

sixty days after the passage of this act. The question shall be submitted in substantially the

4-32

following form: "Shall an act, passed at the 2012 session of the General Assembly, entitled “ AN

4-33

ACT AUTHORIZING THE TOWN OF NARRAGANSETT TO FINANCE THE

4-34

IMPROVEMENT, REPLACEMENT, CONSTRUCTION, RENOVATION, REPAIR,

5-1

RECONSTRUCTION AND/OR RESTORATION OF ROADWAYS, SIDEWALKS AND

5-2

STORM DRAINS IN THE TOWN OF NARRAGANSETT AND TO ISSUE NOT MORE

5-3

THAN $17,000,000 BONDS AND NOTES THEREFOR” be approved?" and the warning for the

5-4

election shall contain the question to be submitted. The Town Board of Canvassers may combine

5-5

any two or more voting districts for the election and when so combined shall be treated as a

5-6

voting district. If so combined, the Town Board of Canvassers shall advertise the combination of

5-7

districts in a newspaper of general circulation in the Town. From the time the election is warned

5-8

and until it is held, it shall be the duty of the Town Clerk to keep a copy of the act available at his

5-9

or her office for public inspection, but the validity of the election shall not be affected by this

5-10

requirement.

5-11

     SECTION 12. This section and Section 11 shall take effect upon passage. The remainder

5-12

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

5-13

question at the election prescribed by Section 11.

     

=======

LC02544

=======

EXPLANATION

OF

A N A C T

AUTHORIZING THE TOWN OF NARRAGANSETT TO FINANCE THE IMPROVEMENT,

REPLACEMENT, CONSTRUCTION, RENOVATION, REPAIR, RECONSTRUCTION

AND/OR RESTORATION OF ROADWAYS, SIDEWALKS AND STORM DRAINS IN THE

TOWN OF NARRAGANSETT AND TO ISSUE NOT MORE THAN $17,000,000 BONDS

AND NOTES THEREFOR

***

6-1

     This act would authorize the town of Narragansett to issue bonds in an amount not to

6-2

exceed $17,000,000 for roadways, sidewalks and storm drains, subject to the approval of the

6-3

town’s voters.

6-4

     This act would take effect upon approval by the town’s voters.

     

=======

LC02544

=======

H8118