2016 -- S 3009 | |
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LC006010 | |
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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 BARRINGTON TO FINANCE THE ACQUISITION, | |
CONSTRUCTION, FURNISHING AND EQUIPPING OF A NEW MIDDLE SCHOOL AND | |
ALL EXPENSES INCIDENT THERETO, INCLUDING, BUT NOT LIMITED TO, COSTS OF | |
DESIGN, DEMOLITION, ATHLETIC FIELDS, LANDSCAPING AND PARKING BY THE | |
ISSUANCE OF NOT MORE THAN $68,400,000 BONDS, NOTES AND/OR OTHER | |
EVIDENCES OF INDEBTEDNESS THEREFOR, SUBJECT TO APPROVAL OF STATE | |
HOUSING AID AT A REIMBURSEMENT RATE OF NOT LESS THAN 35% FOR | |
EXPENDITURES ELIGIBLE FOR REIMBURSEMENT | |
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Introduced By: Senator Cynthia Armour Coyne | |
Date Introduced: May 19, 2016 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The town of Barrington is hereby empowered, in addition to authority |
2 | previously granted, to issue bonds and other evidences of indebtedness (hereinafter "bonds") up |
3 | to an amount not exceeding sixty-eight million four hundred thousand dollars ($68,400,000) from |
4 | time to time under its corporate name and seal or a facsimile of such; provided, however, that |
5 | bonds shall not be issued unless the conditions of section 4 hereof as to the level of state school |
6 | housing aid are met. The bonds of each issue may be issued in the form of serial bonds or term |
7 | bonds or a combination thereof and shall be payable either by maturity of principal in the case of |
8 | serial bonds or by mandatory sinking fund installments in the case of term bonds, in annual |
9 | installments of principal, the first installment to be not later than five (5) years and the last |
10 | installment not later than thirty (30) years after the date of the bonds. All such bonds of a |
11 | particular issue may be issued in the form of zero coupon bonds, capital appreciation bonds, serial |
12 | bonds or term bonds or a combination thereof. The amount of principal appreciation each year on |
13 | any bonds, after the date of original issuance, shall not be considered to be principal indebtedness |
14 | for the purposes of any constitutional or statutory debt limit or any other limitation. The |
15 | appreciation of principal after the date of original issue shall be considered interest. Only the |
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1 | original principal amount shall be counted in determining the principal amount so issued and any |
2 | interest component shall be disregarded. |
3 | SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the town |
4 | finance director and the president of the town council and shall be issued and sold in such |
5 | amounts as the town council may authorize by resolution. The manner of sale, denominations, |
6 | maturities, interest rates and other terms, conditions and details of any bonds or notes issued |
7 | under this act may be fixed by the proceedings of the town council authorizing the issue or by |
8 | separate resolution of the town council or, to the extent provisions for these matters are not so |
9 | made, they may be fixed by the officers authorized to sign the bonds. Notwithstanding anything |
10 | contained in this act to the contrary, the town may enter into financing agreements with the |
11 | Rhode Island Health and Educational Building Corporation pursuant to title 16 chapter 7 and title |
12 | 45 chapter 38.1 of the general laws and, with respect to notes or bonds issued in connection with |
13 | such financing agreements, if any, the town may elect to have the provisions of title 45, chapter |
14 | 38.1 of the general laws apply to the issuance of the bonds or notes issued hereunder to the extent |
15 | the provisions of title 45, chapter 38.1 of the general laws are inconsistent herewith. Such election |
16 | may be fixed by the proceedings of the town council authorizing such issuance of by separate |
17 | resolution of the town council, or, to the extent provisions for these matters are not so made, they |
18 | may be fixed by the officers authorized to sign the bonds or notes. The proceeds derived from the |
19 | sale of the bonds shall be delivered to the town finance director, and such proceeds exclusive of |
20 | premiums and accrued interest shall be expended: (1) For the acquisition, construction, furnishing |
21 | and equipping of a new middle school in the town and all expenses incident thereto, including, |
22 | but not limited to, costs of design, demolition, athletic fields, landscaping and parking; (2) In |
23 | payment of the principal of or interest on temporary notes issued under section 3; (3) In |
24 | repayment of advances under section 5; (4) In payment of related costs of issuance of any bonds |
25 | or notes; and/or (5) In payment of capitalized interest during construction of the project (the |
26 | "project"). No purchaser of any bonds or notes under this act shall be in any way responsible for |
27 | the proper application of the proceeds derived from the sale thereof. The project shall be carried |
28 | out and all contracts made therefor on behalf of the town by the town council, or the town council |
29 | may delegate such authority to the town school committee. The proceeds of bonds or notes issued |
30 | under this act, any applicable federal or state assistance and the other monies referred to in |
31 | sections 7 and 10 shall be deemed appropriated for the purposes of this act without further action |
32 | than that required by this act. The bonds authorized by this act may be consolidated for the |
33 | purpose of issuance and sale with any other bonds of the town heretofore or hereafter authorized, |
34 | provided that, notwithstanding any such consolidation, the proceeds from the sale of the bonds |
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1 | authorized by this act shall be expended for the purposes set forth above. |
2 | SECTION 3. The town council may by resolution authorize the issuance from time to |
3 | time of interest bearing or discounted notes in anticipation of the issuance of bonds or in |
4 | anticipation of the receipt of federal or state aid for the purposes of this act. The amount of |
5 | original notes issued in anticipation of bonds may not exceed the amount of bonds which may be |
6 | issued under this act and the amount of original notes issued in anticipation of federal or state aid |
7 | may not exceed the amount of available federal or state aid as estimated by the finance director. |
8 | Temporary notes issued hereunder shall be signed by the manual or facsimile signatures of the |
9 | town finance director and the president of the town council and shall be payable within five (5) |
10 | years from their respective dates, but the principal of and interest on notes issued for a shorter |
11 | period may be renewed or paid from time to time by the issuance of other notes hereunder, |
12 | provided the period from the date of an original note to the maturity of any note issued to renew |
13 | or pay the same debt or interest thereon shall not exceed five (5) years. Any temporary notes in |
14 | anticipation of bonds issued under this section may be refunded prior to the maturity of the notes |
15 | by the issuance of additional temporary notes, provided that no such refunding shall result in any |
16 | amount of such temporary notes outstanding at any one time in excess of two hundred percent |
17 | (200%) of the amount of bonds which may be issued under this act, and provided further that if |
18 | the issuance of any such refunding notes results in any amount of such temporary notes |
19 | outstanding at any one time in excess of the amount of bonds which may be issued under this act, |
20 | the proceeds of such refunding notes shall be deposited in a separate fund established with the |
21 | bank which is paying agent for the notes being refunded. Pending their use to pay the notes being |
22 | refunded, moneys in the fund shall be invested for the benefit of the town by the paying agent at |
23 | the direction of the town finance director in any investment permitted under section 6. The |
24 | moneys in the fund and any investments held as part of the fund shall be held in trust and shall be |
25 | applied by the paying agent solely to the payment or prepayment of the principal of and interest |
26 | on the notes being refunded. Upon payment of all principal of and interest on the notes, any |
27 | excess moneys in the fund shall be distributed to the town. The town may pay the principal of and |
28 | interest on notes in full from other than the issuance of refunding notes prior to the issuance of |
29 | bonds pursuant to section 1 hereof. In such case, the town’s authority to issue bonds or notes in |
30 | anticipation of bonds under this act shall continue provided that: (1) The town council passes a |
31 | resolution evidencing the town's intent to pay off the notes without extinguishing the authority to |
32 | issue bonds or notes; and (2) That the period from the date of an original note to the maturity date |
33 | of any other note shall not exceed five (5) years. |
34 | SECTION 4. Bonds and notes shall not be issued unless the town has received a letter |
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1 | from the Rhode Island Department of Elementary and Secondary Education confirming that the |
2 | then-current reimbursement rate pursuant to §§16-7-35 through 16-7-47 of the general laws, as |
3 | amended from time to time, or pursuant to any other law hereafter enacted providing for funds to |
4 | municipalities for school housing aid purposes, is not less than thirty-five percent (35%) of debt |
5 | service for those costs which are eligible for state school housing aid. |
6 | SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu |
7 | of any authorization or issue of notes hereunder, the town finance director, with the approval of |
8 | the town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in |
9 | the treasury of the town to the purposes specified in section 2, such advances to be repaid without |
10 | interest from the proceeds of bonds or notes subsequently issued or from the proceeds of |
11 | applicable federal or state assistance or from other available funds. |
12 | SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable |
13 | federal or state assistance, pending their expenditure may be deposited or invested by the town |
14 | finance director in demand deposits, time deposits or savings deposits in banks which are |
15 | members of the Federal Deposit Insurance Corporation or in obligations issued or guaranteed by |
16 | the United States of America or by any agency or instrumentality thereof or as may be provided |
17 | in any other applicable law of the state of Rhode Island or resolution of the town council or |
18 | pursuant to an investment policy of the town. |
19 | SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder |
20 | shall be applied to the payment of the first interest due thereon. Any premium arising from the |
21 | sale of bonds or notes hereunder shall, in the discretion of the town finance director, be applied to |
22 | the cost of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise |
23 | provided, to the payment of the project costs, to the payment of the principal of or interest on |
24 | bonds or notes issued hereunder or to any one or more of the foregoing. The cost of preparing, |
25 | issuing and marketing bonds or notes hereunder may also, in the discretion of the town finance |
26 | director, be met from bond or note proceeds exclusive of accrued interest or from other moneys |
27 | available therefor. Any balance of bond or note proceeds remaining after payment of the cost of |
28 | the projects and the cost of preparing, issuing and marketing bonds or notes hereunder, shall be |
29 | applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the |
30 | extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or |
31 | investment of funds hereunder may, upon receipt, be added to and dealt with as part of the |
32 | revenues of the town from property taxes. In exercising any discretion under this section, the |
33 | town finance director shall be governed by any instructions adopted by resolution of the town |
34 | council. |
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1 | SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby |
2 | shall be obligatory on the town in the same manner and to the same extent as other debts lawfully |
3 | contracted by it and shall be excepted from the operation of §45-12-2 of the general laws. No |
4 | such obligation shall at any time be included in the debt of the town for the purpose of |
5 | ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay |
6 | the principal and interest coming due within the year on bonds and notes issued hereunder to the |
7 | extent that moneys therefor are not otherwise provided. If such sum is not appropriated, it shall |
8 | nevertheless be added to the annual tax levy. In order to provide such sum in each year and |
9 | notwithstanding any provision of law to the contrary, all taxable property in the town shall be |
10 | subject to ad valorem taxation by the town without limitation as to rate or amount. |
11 | SECTION 9. Any bonds or notes issued under the provisions of this act, and coupons, if |
12 | any, if properly executed by officers of the town in office on the date of execution, shall be valid |
13 | and binding according to their terms notwithstanding that before the delivery thereof and payment |
14 | therefor any or all of such officers shall for any reason have ceased to hold office. |
15 | SECTION 10. The town, acting by resolution of its town council, is authorized to apply |
16 | for, contract for and expend any federal or state advances or other grants or assistance which may |
17 | be available for the purposes of this act, and any such expenditures may be in addition to the |
18 | moneys provided in this act. To the extent of any inconsistency between any law of this state and |
19 | any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with |
20 | interest where applicable, whether contracted for prior to or after the effective date of this act, |
21 | may be repaid as project costs under section 2. |
22 | SECTION 11. Bonds and notes may be issued under this act without obtaining the |
23 | approval of any governmental agency or the taking of any proceedings or the happening of any |
24 | conditions except as specifically required by this act for such issue. In carrying out any project |
25 | financed in whole or in part under this act, including where applicable the condemnation of any |
26 | land or interest in land, and in the levy and collection of assessments or other charges permitted |
27 | by law on account of any such project, all action shall be taken which is necessary to meet |
28 | constitutional requirements whether or not such action is otherwise required by statute, but the |
29 | validity of bonds and notes issued hereunder shall in no way depend upon the validity or |
30 | occurrence of such action. |
31 | SECTION 12. The town finance director and the president of the town council, on behalf |
32 | of the town, are hereby authorized to execute such instruments, documents or other papers as |
33 | either of them deem necessary or desirable to carry out the intent of this act and are also |
34 | authorized to take all actions and execute all instruments, documents or agreements necessary to |
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1 | comply with federal tax and securities laws, which instruments, documents or agreements may |
2 | have a term coextensive with the maturity of the bonds authorized hereby, including Rule 15c2- |
3 | 12 of the Securities and Exchange Commission (the "Rule") and to execute and deliver a |
4 | continuing disclosure agreement or certificate in connection with the bonds or notes in the form |
5 | as shall be deemed advisable by such officers in order to comply with the Rule. |
6 | SECTION 13. All or any portion of the authorized but unissued authority to issue bonds |
7 | and notes under this act may be extinguished by resolution of the town council after seven (7) |
8 | years shall have passed from the approval of this act provided for in section 14, without further |
9 | action by the general assembly. |
10 | SECTION 14. At the general election to be held on November 8, 2016, there shall be |
11 | submitted to electors of the town a question in substantially the following form: "Shall An Act |
12 | Passed at the 2016 Session of the General Assembly Entitled 'AN ACT AUTHORIZING THE |
13 | TOWN OF BARRINGTON TO FINANCE THE ACQUISITION, CONSTRUCTION, |
14 | FURNISHING AND EQUIPPING OF A NEW MIDDLE SCHOOL AND ALL EXPENSES |
15 | INCIDENT THERETO, INCLUDING, BUT NOT LIMITED TO, COSTS OF DESIGN, |
16 | DEMOLITION, ATHLETIC FIELDS, LANDSCAPING AND PARKING BY THE ISSUANCE |
17 | OF NOT MORE THAN $68,400,000 BONDS, NOTES AND/OR OTHER EVIDENCES OF |
18 | INDEBTEDNESS THEREFOR, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A |
19 | REIMBURSEMENT RATE OF NOT LESS THAN 35% FOR EXPENDITURES ELIGIBLE |
20 | FOR REIMBURSEMENT' be approved?" and the warning for the election shall contain the |
21 | question to be submitted. From the time the election is warned and until it is held, it shall be the |
22 | duty of the town clerk to keep a copy of this act available at the clerk's office for public |
23 | inspection, but the validity of the election shall not be affected by this requirement. To the extent |
24 | of any inconsistency between this act and the town charter, this act shall prevail. |
25 | SECTION 15. This act shall constitute an enabling act of the general assembly that is |
26 | required pursuant to §16-7-44. Bonds or other evidences of indebtedness issued under this act for |
27 | school projects shall not be eligible for state aid reimbursement pursuant to §16-7-44 unless the |
28 | school projects have been approved by the Rhode Island Department of Education. |
29 | SECTION 16. Sections 14 and 16 shall take effect upon the passage of this act. The |
30 | remainder of this act shall take effect upon the approval of this act by a majority of those voting |
31 | on the question at the election prescribed by section 14. |
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EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE TOWN OF BARRINGTON TO FINANCE THE ACQUISITION, | |
CONSTRUCTION, FURNISHING AND EQUIPPING OF A NEW MIDDLE SCHOOL AND | |
ALL EXPENSES INCIDENT THERETO, INCLUDING, BUT NOT LIMITED TO, COSTS OF | |
DESIGN, DEMOLITION, ATHLETIC FIELDS, LANDSCAPING AND PARKING BY THE | |
ISSUANCE OF NOT MORE THAN $68,400,000 BONDS, NOTES AND/OR OTHER | |
EVIDENCES OF INDEBTEDNESS THEREFOR, SUBJECT TO APPROVAL OF STATE | |
HOUSING AID AT A REIMBURSEMENT RATE OF NOT LESS THAN 35% FOR | |
EXPENDITURES ELIGIBLE FOR REIMBURSEMENT | |
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1 | This act authorizes the town of Barrington to issue not more than $68,400,000 bonds, |
2 | notes and other evidences of indebtedness to finance the acquisition, construction, furnishing and |
3 | equipping of a new middle school and all expenses incident thereto, including, but not limited to, |
4 | costs of design, demolition, athletic fields, landscaping and parking, subject to approval of State |
5 | Housing Aid at a reimbursement rate of not less than 35% for expenditures eligible for |
6 | reimbursement. Bonds or other evidences of indebtedness issued under this act shall not be |
7 | eligible for state aid reimbursement pursuant to §16-7-44 unless the school projects have been |
8 | approved by the Rhode Island Department of Education. |
9 | Sections 14 and 16 of this act shall take effect upon passage. The remainder of the act |
10 | would take effect upon approval by the electors of the town of the question provided for in |
11 | section 14. |
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