2015 -- S 0022

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LC000293

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

AUTHORIZING THE TOWN OF JAMESTOWN TO PURCHASE 138 NARRAGANSETT

AVENUE IN SAID TOWN AND TO FINANCE THE PURCHASE AND RENOVATION

THEREOF BY THE ISSUANCE OF NOT MORE THAN $1,500,000 BONDS AND NOTES

THEREFOR

     Introduced By: Senator M. Teresa Paiva Weed

     Date Introduced: January 13, 2015

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. The town of Jamestown is hereby empowered, in addition to authority

previously granted, to issue bonds to an amount not exceeding one million five hundred thousand

dollars ($1,500,000.00) from time to time under its corporate name and seal or a facsimile of such

seal. 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 serial redemption in the case of term bonds, in annual installments of

principal, the first installment to be not later than five (5) years and the last installment not later

than thirty (30) years after the date of the bonds. For each issue the amounts payable annually for

principal and interest combined either shall be as nearly equal from year to year as is practicable

in the opinion of the officers authorized to issue the bonds, or shall be arranged in accordance

with a schedule providing for a more rapid amortization of principal.

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

finance director of the town and the president of the town council and shall be issued and sold in

such amounts as the town council may authorize 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 resolution of the town council authorizing the

issue or by separate resolution of the town 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 finance director, and such

proceeds exclusive of premiums and accrued interest shall be expended for: (1) The purchase of

the land and improvements at 138 Narragansett Avenue in said Town, sometimes also designated

as tax assessor’s map 8 lot 79 and all costs incidental thereto; (2) The renovation, repair and/or

expansion of the improvements thereon and equipment therefor; (3) In payment of the principal

of or interest on temporary notes issued under section 3 of this act; or (4) In repayment of

advances under section 4 of this act. 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

project shall be carried out and all contracts made therefor on behalf of the town by the town

council, or as may be heretofore or hereafter otherwise directed by the town council. Without

limiting the generality of the foregoing, the town administrator’s actions in entering into a

purchase and sale agreement for such real estate and the consummation of such transaction are

hereby ratified and approved by the passage of this act by the voters as provided for in section 11

hereof. The proceeds of bonds or notes issued under this act, any applicable federal or state

assistance and the other monies referred to in section 6 of this act shall be deemed appropriated

for the purposes of this act without further action than that required by this act. The bond issue

authorized by this act may be consolidated for the purposes of issuance and sale with any other

bond issue of the town heretofore or hereafter authorized, provided that, notwithstanding any

such consolidation, the proceeds from the sale of the bonds authorized by this act shall be

expended for the purposes set forth above.

     SECTION 3. The town council may by resolution authorize the issue from time to time

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

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

the town council 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 issue 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.

     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

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

treasury of the town 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 finance

director, 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.

     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 any earnings or net profit realized from the deposit or

investment of funds hereunder shall, in the discretion of the finance director, 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 projects or to the cost of additional improvements

coming within the description of the projects in section 2 of this act, to the payment of the

principal of or interest on bonds or notes issued hereunder 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 finance director, be met from bond or note proceeds exclusive of 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 said additional improvements and the cost of preparing,

issuing and marketing bonds or notes hereunder shall be applied to the payment of the principal

of or interest on bonds or notes issued hereunder. In exercising any discretion under this section,

the finance director shall be governed by any instructions adopted by resolution of the town

council. The finance director is authorized to take any action deemed by him or her necessary to

assure that interest on the bonds or notes issued hereunder remains excludable from gross income

of the recipients thereof for federal income tax purposes, including, without limitation: (1) Paying

to the federal government any rebate of earnings derived from the deposit or investment of the

proceeds of such bonds or notes that may be required therefor; and (2) To comply with the

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

requirements of the Securities and Exchange Commission and the Municipal Securities

Rulemaking Board, imposed directly on the town or on the underwriters of such bonds and notes.

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

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

contracted by it and shall be excepted from the operation of § 45-12-2 of the general laws. No

such obligation shall at any time be included in the debt of the town for the purpose of

ascertaining its borrowing capacity. The town 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 provision of law to the contrary, all taxable property in the town shall be

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

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

executed by officers of the town 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 town, acting by resolution of its town council is authorized to apply

for, contract for and expend any federal or state advances or other grants or 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 project costs 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. Without limiting the

generality of the foregoing, bonds and notes may be issued under this act without any action at

the financial town meeting. 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 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. To the extent of any

inconsistency between this act and the town charter, this act shall prevail.

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

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

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thirty (30) days after the passage of this act. The question shall be submitted in substantially the

following form: "Shall an act, passed at the 2015 session of the general assembly, entitled ‘AN

ACT AUTHORIZING THE TOWN OF JAMESTOWN TO PURCHASE 138

NARRAGANSETT AVENUE IN SAID TOWN, AND TO FINANCE THE PURCHASE AND

RENOVATION THEREOF BY THE ISSUANCE OF NOT MORE THAN $1,500,000 BONDS

AND NOTES THEREFOR' be approved?" and the warning for the election shall contain the

question to be submitted. The town board of canvassers may combine any two (2) or more voting

districts for the election and when so combined shall be treated as a single voting district. If so

combined, the town board of canvassers shall advertise the combination of districts in a

newspaper of general circulation in the town. From the time the election is warned and until it is

held, it shall be the duty of the town 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.

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

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LC000293

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