2014 -- S 2961

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LC005564

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

AUTHORIZING THE CITY OF PAWTUCKET TO ISSUE NOT TO EXCEED $32,000,000

GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF

INDEBTEDNESS TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT,

ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL

FACILITIES THROUGHOUT THE CITY

     Introduced By: Senators Doyle, Crowley, Nesselbush, and Conley

     Date Introduced: May 01, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. The city of Pawtucket is hereby authorized, in addition to authority

previously granted, to issue bonds and other evidences of indebtedness (hereinafter "bonds") up

to an amount not exceeding thirty-two million dollars ($32,000,000) from time to time under its

corporate name and seal or a facsimile of such. The bonds of each issue may be issued in the form

of serial bonds or term bonds or a combination thereof and shall be payable either by maturity of

principal in the case of serial bonds or by mandatory sinking fund installments in the case of term

bonds, in annual installments of principal, the first installment to be not later than three (3) years

and the last installment not later than thirty (30) years after the date of the bonds.

     SECTION 2. The bonds shall be signed by the city treasurer and by the manual or

facsimile signature of the mayor and be issued and sold in such amounts as the city council may

determine by resolution. The manner of sale, denominations, maturities, interest rates and other

terms, conditions and details of any bonds or notes issued under this act may be fixed by the

proceedings of the city council authorizing the issue or by separate resolution of the city council

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

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

delivered to the city treasurer, and such proceeds exclusive of premiums and accrued interest

shall be expended: (1) for the construction, renovation, improvement, alteration, repair, furnishing

and equipping of schools and school facilities throughout the city of Pawtucket (the "project");

(2) in payment of the principal of or interest on temporary notes issued under section 3; (3) in

repayment of advances under section 4; (4) in payment of related costs of issuance of any bonds

or notes and/or (5) in payment of capitalized interest during construction of the project. No

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

application of the proceeds derived from the sale thereof. The proceeds of bonds or notes issued

under this act, any applicable federal or state assistance and the other monies referred to in

sections 6 and 9 shall be deemed appropriated for the purposes of this act without further action

than that required by this act.

     SECTION 3. The city council may by resolution authorize the issuance from time to time

of interest bearing or discounted notes in anticipation of the issuance of bonds under section 2 or

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

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

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

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

Temporary notes issued hereunder shall be signed by the manual or facsimile signatures of the

city treasurer and the mayor and shall be payable within five (5) years from their respective dates,

but the principal of and interest on notes issued for a shorter period may be renewed or paid from

time to time by the issuance of other notes hereunder, provided the period from the date of an

original note to the maturity of any note issued to renew or pay the same debt or the interest

thereon shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued under

this section may be refunded prior to the maturity of the notes by the issuance of additional

temporary notes, provided that no such refunding shall result in any amount of such temporary

notes outstanding at any one time in excess of two hundred percent (200%) of the amount of

bonds which may be issued under this act, and provided, further, that if the issuance of any such

refunding notes results in any amount of such temporary notes outstanding at any one time in

excess of the amount of bonds which may be issued under this act, the proceeds of such refunding

notes shall be deposited in a separate fund established with the bank which is paying agent for the

notes being refunded. Pending their use to pay the notes being refunded, monies in the fund shall

be invested for the benefit of the city by the paying agent at the direction of the city treasurer in

any investment permitted under section 5. The monies in the fund and any investments held as a

part of the fund shall be held in trust and shall be applied by the paying agent solely to the

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

payment of all principal of and interest on the notes, any excess monies in the fund shall be

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distributed to the city.  The city may pay the principal of and interest on notes in full from other

than the issuance of refunding notes prior to the issuance of bonds pursuant to section 1

hereof.  In such case, the city's authority to issue bonds or notes in anticipation of bonds under

this act shall continue provided that (1) the city council passes a resolution evidencing the city's

intent to pay off the notes without extinguishing the authority to issue bonds or notes; and (2) that

the period from the date of an original note to the maturity date of any other note shall not exceed

five (5) years. Section 5-106 of the city charter shall not apply to the issuance of notes in

anticipation of bonds.

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

lieu of any authorization or issuance of notes hereunder, the city treasurer, with the approval of

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

general treasury of the city to the purposes specified in section 2, such advances to be repaid

without interest from the proceeds of bonds or notes subsequently issued or from the proceeds of

applicable federal or state assistance or from other available funds.

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

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

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

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

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

applicable law of the state of Rhode Island or resolution of the city council or pursuant to an

investment policy of the city.

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

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

sale of bonds or notes hereunder and, to the extent permitted by applicable federal laws, any net

earnings or profits realized from the deposit or investment of funds hereunder shall, in the

discretion of the city treasurer, be applied to the cost of preparing, issuing, and marketing bonds

or notes hereunder to the extent not otherwise provided, to the payment of the cost of the project,

to the payment of the principal of or interest on bonds or notes issued hereunder, to the revenues

of the city and dealt with as part of the revenues of the city from property taxes to the extent

permitted by federal law, or to any one or more of the foregoing. The cost of preparing, issuing,

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

from bond or note proceeds exclusive of premium and accrued interest or from other monies

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

the projects 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

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

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

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

treasurer shall be governed by any instructions adopted by resolution of the city council. Any

balance of bond or note proceeds remaining after completion of the project shall be subject to

section 5-109 of the city charter.

     SECTION 7. All bonds and notes issued under this act and the debt evidenced hereby

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

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

and any provision of the city charter. No such obligation shall at any time be included in the debt

of the city for the purpose of ascertaining its borrowing capacity. The city shall annually

appropriate a sum sufficient to pay the principal and interest coming due within the year on bonds

and notes issued hereunder to the extent that monies therefor are not otherwise provided. If such

sum is not appropriated, it shall nevertheless be added to the annual tax levy. In order to provide

such sum in each year and notwithstanding any provisions of law to the contrary, all taxable

property in the city shall be subject to ad valorem taxation by the city without limitation as to rate

or amount.

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

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

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

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

     SECTION 9. The city, acting by resolution of its city council is authorized to apply for,

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

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

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

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

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

may be repaid as a cost of the project under section 2.

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

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

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

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

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

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

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

occurrence of such action. Without limiting the generality of the foregoing, the validity of bonds

and notes issued hereunder shall in no way be affected by section 2-308 of the city charter and

section 4-1602 of the city code of ordinances, and the purposes of this act shall be deemed to

constitute a single project under article V of the city charter.

     SECTION 11. The city treasurer and the mayor, on behalf of the city are hereby

authorized to execute such instruments, documents or other papers as either of the foregoing

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

actions and execute all documents necessary to comply with federal tax and securities laws,

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

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

Rule) and to execute and deliver a continuing disclosure agreement or certificate in connection

with the bonds or notes in the form as shall be deemed advisable by such officers in order to

comply with the Rule.

     SECTION 12. All or any portion of the authorized but unissued authority to issue bonds

and notes under this act may be extinguished by resolution of the city council, without further

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

     SECTION 13. The question of the approval of this act shall be submitted to the electors

of the city at the next general election but if a special city-wide election or special state election,

in either case other than a primary, is called for a date earlier than the date of such general

election, the mayor may direct that the question of the approval of this act be submitted at such

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

passed at the 2014 session of the general assembly entitled 'AN ACT AUTHORIZING THE

CITY OF PAWTUCKET TO ISSUE NOT TO EXCEED $32,000,000 GENERAL

OBLIGATION BONDS, NOTES AND/OR OTHER EVIDENCES OF INDEBTEDNESS TO

FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION,

REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES

THROUGHOUT THE CITY' be approved?" and the warning for the election shall contain the

question to be submitted. From the time the election is warned and until it is held, it shall be the

duty of the city clerk to keep a copy of the act available at his or her office for public inspection,

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

inconsistency between this act and the city charter or any law of special applicability to the city,

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this act shall prevail.

     SECTION 14. This section and section 13 shall take effect upon the passage of this act.

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

voting on the question at the election prescribed by section 13.

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EXPLANATION

OF

A N   A C T

AUTHORIZING THE CITY OF PAWTUCKET TO ISSUE NOT TO EXCEED $32,000,000

GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF

INDEBTEDNESS TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT,

ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL

FACILITIES THROUGHOUT THE CITY

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     This act would authorize the city of Pawtucket to issue not more than $32,000,000

general obligation bonds, notes and other evidences of indebtedness to finance the construction,

renovation, improvement, alteration, repair, furnishing and equipping of schools and school

facilities throughout the city of Pawtucket.

     Sections 13 and 14 would take effect upon passage. The remainder of the act would take

effect upon approval of the question provided for in section 13.

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