2016 -- S 2988

========

LC005834

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

____________

A N   A C T

AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE REHABILITATION,

CONSTRUCTION, RENOVATION AND IMPROVEMENT OF THE CITY HALL TOWER

AND ALL COSTS RELATED THERETO AND AUTHORIZING THE FINANCING

THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $5,000,000 BONDS, NOTES

AND OTHER EVIDENCES OF INDEBTEDNESS THEREFOR, TO FUND THE CAPITAL

IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2018 AND 2019

     

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

     Date Introduced: May 10, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

1

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

2

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

3

to an amount not exceeding five million dollars ($5,000,000) from time to time under its

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

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

15

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

16

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

 

1

shall be expended: (1) For the rehabilitation, construction, renovation and improvement of the

2

City Hall Tower and all costs related thereto (the "project"); (2) In payment of the principal of or

3

interest on temporary notes issued under section 3; (3) In repayment of advances under section 4;

4

(4) In payment of related costs of issuance of any bonds or notes; and/or (5) In payment of

5

capitalized interest during construction of the project. No purchaser of any bonds or notes under

6

this act shall be in any way responsible for the proper application of the proceeds derived from

7

the sale thereof. The proceeds of bonds or notes issued under this act, any applicable federal or

8

state assistance and the other monies referred to in sections 6 and 9 shall be deemed appropriated

9

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

10

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

11

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

12

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

13

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

14

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

15

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

16

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

17

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

18

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

19

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

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

LC005834 - Page 2 of 7

1

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

2

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

3

such case, the city's authority to issue bonds or notes in anticipation of bonds under this act shall

4

continue provided that: (1) The city council passes a resolution evidencing the city's intent to pay

5

off the notes without extinguishing the authority to issue bonds or notes; and (2) That the period

6

from the date of an original note to the maturity date of any other note shall not exceed five (5)

7

years. Section 5-106 of the city charter shall not apply to the issue of notes in anticipation of

8

bonds.

9

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

10

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

11

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

12

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

13

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

14

applicable federal or state assistance or from other available funds.

15

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

16

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

17

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

18

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

19

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

20

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

21

investment policy of the city.

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

the projects and the cost of preparing, issuing and marketing bonds or notes hereunder shall be

 

LC005834 - Page 3 of 7

1

applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the

2

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

3

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

4

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

5

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

6

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

7

section 5-109 of the city charter.

8

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

9

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

10

contracted by it and shall be excepted from the operation of ยง45-12-2 of the general laws and any

11

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

12

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

13

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

14

issued hereunder to the extent that monies therefor are not otherwise provided. If such sum is not

15

appropriated, it shall nevertheless be added to the annual tax levy. In order to provide such sum in

16

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

17

city shall be subject to ad valorem taxation by the city without limitation as to rate or amount.

18

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

19

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

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

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

30

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

31

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

32

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

33

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

34

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

 

LC005834 - Page 4 of 7

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

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

15

comply with the Rule.

16

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

17

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

18

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

19

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

20

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

21

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

22

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

23

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

24

passed at the 2016 session of the general assembly entitled 'AN ACT AUTHORIZING THE

25

CITY OF PAWTUCKET TO PROVIDE FOR THE REHABILITATION, CONSTRUCTION,

26

RENOVATION AND IMPROVEMENT OF THE CITY HALL TOWER AND ALL COSTS

27

RELATED THERETO AND AUTHORIZING THE FINANCING THEREOF, INCLUDING

28

THE ISSUE OF NOT MORE THAN $5,000,000 BONDS, NOTES AND OTHER EVIDENCES

29

OF INDEBTEDNESS THEREFOR, TO FUND THE CAPITAL IMPROVEMENT PROGRAM

30

FOR THE TWO FISCAL YEARS 2018 AND 2019' be approved?" and the warning for the

31

election shall contain the question to be submitted. From the time the election is warned and until

32

it is held, it shall be the duty of the city clerk to keep a copy of the act available at the clerk's

33

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

34

requirement. To the extent of any inconsistency between this act and the city charter or any law of

 

LC005834 - Page 5 of 7

1

special applicability to the city, this act shall prevail.

2

     SECTION 14. This section and the foregoing section shall take effect upon the passage

3

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

4

of those voting on the question at the election prescribed by the foregoing section.

========

LC005834

========

 

LC005834 - Page 6 of 7

EXPLANATION

OF

A N   A C T

AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE REHABILITATION,

CONSTRUCTION, RENOVATION AND IMPROVEMENT OF THE CITY HALL TOWER

AND ALL COSTS RELATED THERETO AND AUTHORIZING THE FINANCING

THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $5,000,000 BONDS, NOTES

AND OTHER EVIDENCES OF INDEBTEDNESS THEREFOR, TO FUND THE CAPITAL

IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2018 AND 2019

***

1

     This act would authorize the city of Pawtucket to issue not more than $5,000,000 general

2

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

3

construction, renovation and improvement of the City Hall Tower and all costs related thereto.

4

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

5

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

========

LC005834

========

 

LC005834 - Page 7 of 7