2016 -- H 8225

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LC005992

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

AUTHORIZING THE TOWN OF TIVERTON TO ISSUE GENERAL OBLIGATION BONDS

     AND NOTES IN AN AMOUNT NOT TO EXCEED $15,438,230 TO FINANCE

REPLACEMENT OF ROOFS AND HVAC SYSTEMS AT THE TIVERTON MIDDLE

SCHOOL AND THE TIVERTON HIGH SCHOOL

     Introduced By: Representatives Canario, and Edwards

     Date Introduced: May 18, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

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

fifteen million four hundred thirty-eight thousand two hundred thirty dollars ($15,438,230) at one

time or from time to time under its corporate name and seal or a facsimile of such seal to finance

replacement of roofs and HVAC systems at the Tiverton Middle School and the Tiverton High

School as more fully set forth in section 2. 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. All such bonds of a

particular issue may be issued in the form a zero coupon bonds, capital appreciation bonds, serial

bonds or term bonds or combination thereof. Annual installments of principal may be provided

for by maturity of principal in the case of serial bonds or by mandatory serial redemption in the

case of term bonds. The amount of principal appreciation each year on any bonds, after the date

of original issuance, shall not be considered to be principal indebtedness for the purposes of any

constitutional or statutory debt limit or any other limitation. The appreciation of principal after

the date of original issue shall be considered interest. Only the original principal amount shall be

counted in determining the principal amount so issued and any interest component shall be

disregarded.

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

treasurer and the president of the town council and shall be issued and sold in such amounts as the

town council may authorize by majority vote of all its members. The amount of the bond issue,

manner of sale, denominations, maturities, interest rate or rates, award and other terms, conditions

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

town council authorizing their 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. The town council may provide that any bonds issued under this act and any other

authorized issue of bonds of the town may be consolidated and issued at the same time as a single

bond issue, provided that the last installment of the portion of any such consolidated issue that is

allocable to the bonds issued under this act shall not be later than the times specified by the

applicable provisions hereof. The bonds may be made callable with or without premium. The

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

proceeds, exclusive of premiums and accrued interest, shall be expended for costs of replacing the

roofs and the HVAC systems at both the Tiverton Middle School and the Tiverton High School

(hereinafter referred to as the project) if approved by the voters in accordance with section 12

hereof, including all other costs incidental and related to the foregoing project and its financing

pursuant to this act, including, but not limited to, the payment of the principal of or interest on

temporary notes issued under section 3, the repayment of advances made under section 4, and/or

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

the town council, or as may be authorized by the town council. The proceeds of bonds or notes

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

sections 5, 6, or 9 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. The town

treasurer and president of the town council, on behalf of the town, are hereby authorized to

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

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

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all documents or agreements 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 and to execute and

deliver a continuing disclosure agreement or certificate in connection with the bonds or notes.

     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 issue of bonds under this act 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 town treasurer.

Temporary notes issued hereunder shall be signed by the town treasurer and 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. 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 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 town by the paying agent at the direction of the town 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 distributed to the

town. The period for which bonds may be issued under this act need not be reduced by the period

of any temporary loans hereunder. The proceeds derived from the sale of such temporary notes

shall be used only for the purposes for which the proceeds of bonds issued under this act may be

used. The town 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

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town's authority to issue bonds or notes in anticipation of bonds under this this act shall continue

provided that: (1) The town council passes a resolution evidencing the town'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 4. Pending any issue of bonds or notes hereunder, the town treasurer, 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 for 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 town

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

the federal deposit insurance corporation, in obligations issued or guaranteed by the United States

of America or the state of Rhode Island, or by an agency, instrumentality or political subdivision

of either of them, or as may be provided in any other applicable law of the state of Rhode Island

or resolution of the town council or pursuant to an investment policy of the town.

     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 shall, in the discretion of the town 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 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 town treasurer,

be met from bond or note proceeds exclusive of premiums and accrued interest or from other

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

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

be 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 shall upon receipt be added to and used for the same

purposes as the proceeds of bonds or notes issued hereunder or be added to and dealt with as a

part of the revenues of the town from property taxes. In exercising any discretion under this

section, the town treasurer shall be governed by any instructions adopted by resolution of the

town council. The town treasurer is authorized to take any action deemed by them necessary to

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

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of the recipients thereof for federal income tax purposes, including, without limitation, 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.

     SECTION 7. All bonds and 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 and any

provision of the town charter. 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 the 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 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 the act. To the extent of any inconsistency between any law of the 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. 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.

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     SECTION 11. After completion of the replacement of the roofs and the HVAC systems

at the Tiverton Middle School and the Tiverton High School, 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 town council, without further action by the general assembly.

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

of the Town of Tiverton at the general election to be held on November 8, 2016. The question

shall be submitted in substantially the following form: "Shall an act, passed at the 2016 session of

the General Assembly, entitled 'An Act Authorizing the Town of Tiverton to Issue General

Obligation Bonds and Notes in an Amount Not to Exceed $15,438,230 to Finance Replacement

of Roofs and HVAC Systems at the Tiverton Middle School and the Tiverton High School' be

approved?" 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 town clerk to keep a copy of

this act available at the clerk's office for public inspection, but the validity of the vote taken at the

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

act and the town charter, this act shall prevail. Without limiting the generality of the foregoing,

the provisions of section 203 of the town charter shall not be applicable to bonds or notes issued

under this act.

     SECTION 13. This section and section 12 shall take effect upon the passage of this act.

The remainder of this act shall take effect upon the approval of the question listed in section 12

hereof by a majority of those voting on the question at the election prescribed by the foregoing

section.

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LC005992

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EXPLANATION

OF

A N   A C T

AUTHORIZING THE TOWN OF TIVERTON TO ISSUE GENERAL OBLIGATION BONDS

     AND NOTES IN AN AMOUNT NOT TO EXCEED $15,438,230 TO FINANCE

REPLACEMENT OF ROOFS AND HVAC SYSTEMS AT THE TIVERTON MIDDLE

SCHOOL AND THE TIVERTON HIGH SCHOOL

***

     This act authorizes the town of Tiverton to issue not more than $15,438,230 bonds and

notes to finance replacement of roofs and HVAC systems at the Tiverton Middle School and the

Tiverton High School.

     Sections 12 and 13 would take effect upon the passage. The remainder of this act would

take effect upon the approval by the electors of the town of the question provided of in section 12.

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LC005992

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