2018 -- S 2821

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LC005476

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

AUTHORIZING THE TOWN OF JAMESTOWN TO ISSUE GENERAL OBLIGATION

BONDS AND NOTES IN AN AMOUNT NOT TO EXCEED $9,800,000 TO FINANCE

CONSTRUCTION, REPLACEMENTS, RENOVATIONS AND/OR OTHER

IMPROVEMENTS AND RELATED EQUIPMENT AT THE JAMESTOWN PUBLIC

SCHOOLS, THE JAMESTOWN GOLF COURSE AND THE JAMESTOWN PHILOMENIAN

LIBRARY

     

     Introduced By: Senator Dawn M. Euer

     Date Introduced: April 12, 2018

     Referred To: Senate Housing & Municipal Government

     It is enacted by the General Assembly as follows:

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

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

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Nine Million Eight Hundred Thousand Dollars ($9,800,000) at one time or from time to time

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under its corporate name and seal or a facsimile of such seal to finance construction,

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replacements, renovations and/or other improvements and related equipment at the Jamestown

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public schools, the Jamestown Golf Course and the Jamestown Philomenian Library; of which

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amount not more than five million nine hundred thousand dollars ($5,900,000) shall be for said

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school purposes, not more than two million nine hundred thousand dollars ($2,900,000) for said

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golf course purposes and not more than one million dollars ($1,000,000) for said library purposes.

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The bonds of each issue may be issued in the form of serial bonds or term bonds or a combination

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thereof and shall be payable either by maturity of principal in the case of serial bonds or by

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mandatory serial redemption in the case of term bonds, in annual installments of principal, the

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first installment to be not later than five (5) years and the last installment not later than thirty (30)

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years after the date of the bonds. All such bonds of a particular issue may be issued in the form of

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zero coupon bonds, capital appreciation bonds, serial bonds or term bonds or a combination

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thereof. Annual installments of principal may be provided for by maturity of principal in the case

 

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of serial bonds or by mandatory serial redemption in the case of term bonds. The amount of

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principal appreciation each year on any bonds, after the date of original issuance, shall not be

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considered to be principal indebtedness for the purpose of a constitutional or statutory debt limit

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or any other limitation. The appreciation of principal after the date of original issue shall be

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considered interest. Only the original principal amount shall be counted in determining the

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principal amount so issued and any interest component shall be disregarded.

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

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

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amounts as the town council may authorize by majority vote of all its members. The amount of

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the bond issue, manner of sale, denominations, maturities, interest rate or rates, award and other

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

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proceedings of the town council authorizing their issue or by separate resolution to the town

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

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officers authorized to sign the bonds. The town council may provide that any bonds issued under

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this act and any other authorized issue of bonds of the town may be consolidated and issued at the

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same time as a single bond issue, provided that the last installment of the portion of any such

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consolidated issue that is allocable to the bonds issued under this act shall not be later than the

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times specified by the applicable provisions hereof. The bonds may be made callable with or

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without premium. The proceeds derived from the sale of the bonds shall be delivered to the

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finance director, and such proceeds, exclusive of premiums and accrued interest, shall be

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expended for costs of financing construction, replacements, renovations, and/or other

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improvements and related equipment at the Jamestown public schools, the Jamestown golf course

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and/or the Jamestown Philomenian Library as applicable (herein referred to as the "projects") if

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approved by the voters in accordance with Section 12 hereof, including all other costs incidental

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and related to the foregoing project and its financing pursuant to this act, including, but not

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limited to, the payment of principal of or interest on temporary notes issued under Section 3, the

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repayment of advances made under Section 4, and/or to finance capitalized interest on the

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projects. No purchaser of any bonds or notes under this act shall be in any way responsible for the

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proper application of the proceeds derived from the sale thereof. The projects shall be carried out

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and all contracts made therefor on behalf of the town by the town council, or as may be

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authorized by the town council. The proceeds of bonds or notes issued under this act, any

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applicable federal or state assistance and any other monies referred to in Sections 5, 6, or 9 shall

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be deemed appropriated for the purposes of this act without further action than that required by

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this act. The bond issue authorized by this act may be consolidated for the purposes of issuance

 

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and sale with any other bond issue of the town heretofore or hereafter authorized; provided that,

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notwithstanding any such consolidation, the proceeds from the sale of the bonds authorized by

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this act shall be expended for the purposes set above. The finance director and president of the

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town council acting singly, on behalf of the town, are hereby authorized to execute such

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instruments, documents, or other papers as either of them deem necessary or desirable to carry

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out the intent of this act and are also authorized to take all actions and execute all documents or

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agreements necessary to comply with federal tax and securities laws, which documents or

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agreements may have a term coextensive with the maturity of the bonds authorized hereby,

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including Rule 15c2-12 of the Securities and Exchange Commission, to execute and deliver a

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continuing disclosure agreement or certificate in connection with the bond or notes, and to

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comply with the provisions of §§ 16-7-35 through 16-7-47 of the Rhode Island general laws,

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1956, as amended; including making all necessary contracts and agreements to issue said bonds

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and/or notes or portion thereof through the Rhode Island Health and Educational Building

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Corporation.

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

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interest bearing or discounted notes in anticipation of the issue of bonds under this act or in

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

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

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

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may not exceed the amount of available federal or state aid as estimated by the finance director.

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

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town council and shall be payable within five (5) years from their respective dates, but the

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

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

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to the maturity of any note issued to renew or pay the same debt or the interest thereon shall not

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exceed five (5) years. Any temporary notes in anticipation of bonds issued under this section may

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be refunded prior to the maturity of the notes by the issuance of additional temporary notes,

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

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any one time in excess of two hundred percent (200%) of the amount of bonds which may be

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issued under this act; and provided further, that if issuance of any such refunding notes results in

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

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

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

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invested for the benefit of the town by the paying agent at the direction of the finance director in

 

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

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

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

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

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reduced by the period of any temporary loans hereunder. The proceeds derived from the sale of

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such temporary notes shall be used only for the purposes for which the proceeds bonds issued

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under this act may be used. The town may pay the principal of and interest on notes in full from

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other than the issuance of refunding notes prior to the issuance of bonds pursuant to Section 1

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

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this act shall continue provided that: (1) The town council passes a resolution evidencing the

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town's intent to pay off the notes without extinguishing the authority to issue bonds or notes; and

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(2) That the period from the date of an original note to the maturity date of any note shall not

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exceed five (5) years.

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     SECTION 4. Pending any issue of bonds or notes hereunder, the finance director, with

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the approval of the town council, may, to the extent that bonds or notes may be issued hereunder,

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apply funds in the treasury of the town for the purposes specified in Section 2, such advances to

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

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proceeds of applicable federal or state assistance or from other available funds.

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

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

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director in demand deposits, time deposits or savings deposits in which are members of the

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

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

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

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

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

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

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bonds or notes hereunder shall, in the discretion of the finance director, be applied to the cost of

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preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise provided,

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to the payment of the cost of the projects, to the payment of the principal of or interest on bonds

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or notes issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing

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and marketing bonds or notes hereunder may also, in the direction of the finance director, be met

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

 

LC005476 - Page 4 of 7

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

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

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

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

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investment of funds hereunder shall upon receipt be added to and used for the same purposes as

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

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

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

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The finance director is authorized to take any action deemed by them to be necessary to assure

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

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recipients thereof for federal income tax purposes, including, without limitation, paying to the

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

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of such bonds or notes that may be required therefor.

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

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

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

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

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ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay

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the principal and interest coming due within the year on bonds and notes issued hereunder to the

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extent that monies therefor are not otherwise provided. If such sum is not appropriated, it shall

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nevertheless be added to the annual tax levy. In order to provide such sum in each year and

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notwithstanding any provision of law to the contrary, all taxable property in the town shall be

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

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

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

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

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

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

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for, contract for and expand federal or state advances or other grants or assistance which may be

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

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

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

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

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may be repaid as project costs under Section 2.

 

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

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

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

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

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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

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

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

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occurrence of such action.

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     SECTION 11. After completion of the projects, all or any portion of the authorized but

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unissued authority to issue bonds and notes under this act may be extinguished by resolution of

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the town council, without further action by the general assembly.

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

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of the town of Jamestown at the general election to be held on November 6, 2018. The question

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shall be submitted in substantially the following form: "Shall an act, passed at the 2018 session of

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

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Obligation Bonds and Notes in an Amount not to Exceed $9,800,000 to Finance Construction,

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Replacements, Renovations and/or Other Improvements and Related Equipment at the Jamestown

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Public Schools, the Jamestown Golf Course and the Jamestown Philomenian Library' be

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approved?" The warning for election shall contain the question to be submitted. The town board

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of canvassers may combine any (2) two or more voting districts for the election and when so

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combined shall be treated as a voting district. If so combined, the town board of canvassers shall

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advertise the combination of districts in a newspaper of general circulation in the town. From the

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time the election is warned and until it is held, it shall be the duty of the town clerk to keep a copy

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

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the election shall not be affected by this requirement.

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

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

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

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section.

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LC005476

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

AUTHORIZING THE TOWN OF JAMESTOWN TO ISSUE GENERAL OBLIGATION

BONDS AND NOTES IN AN AMOUNT NOT TO EXCEED $9,800,000 TO FINANCE

CONSTRUCTION, REPLACEMENTS, RENOVATIONS AND/OR OTHER

IMPROVEMENTS AND RELATED EQUIPMENT AT THE JAMESTOWN PUBLIC

SCHOOLS, THE JAMESTOWN GOLF COURSE AND THE JAMESTOWN PHILOMENIAN

LIBRARY

***

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     This act authorizes the town of Jamestown to issue not more than $9,800,000 bonds and

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notes to finance various improvements and related equipment at the town of Jamestown's schools,

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golf course and library.

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

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

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LC005476

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