2018 -- S 2915

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LC005662

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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 NORTH KINGSTOWN TO FINANCE CONSTRUCTION,

RENOVATIONS, REMEDIATION, ALTERATIONS, ADDITIONS AND OTHER

IMPROVEMENTS AND/OR RELATED EQUIPMENT AND TO ISSUE NOT MORE THAN

$27,000,000 BONDS AND NOTES THEREFOR, OF WHICH UP TO $13,500,000 IS FOR

SCHOOL PURPOSES AND UP TO $13,500,000 IS FOR OTHER TOWN PURPOSES

     

     Introduced By: Senators Sheehan, Gee, Archambault, Cote, and Calkin

     Date Introduced: May 17, 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 North Kingstown is hereby empowered, in addition to

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authority previously granted, to issue bonds to an amount not exceeding twenty seven million

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dollars ($27,000,000) from time to time under its corporate name and seal or a facsimile of such

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

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

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

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

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

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

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

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

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

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

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town council may authorize by resolution. The manner of sale, denominations, maturities, interest

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rates and other terms, conditions and details of any bonds or notes issued under this act may be

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fixed by the resolution of the town council authorizing the issue or by separate resolution of the

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

 

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

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shall be delivered to the town treasurer, and such proceeds exclusive of premiums and accrued

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interest shall be expended for: (1) Construction, renovations, remediation, alterations, additions

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and other improvements and/or related equipment in the amount of up to thirteen million five

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hundred thousand dollars ($13,500,000) for school purposes and in the amount of up to thirteen

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million five hundred thousand dollars ($13,500,000) for other town purposes including and all

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costs incidental thereto; (2) In payment of the principal of or interest on temporary notes issued

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under section 3 of this act; or (3) In repayment of advances under section 4 of this act. No

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purchaser of any bonds or notes under this act shall be in any way responsible for the proper

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

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contracts made therefor on behalf of the town by one or more building committees appointed by

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the town council or as may be otherwise directed by the town council. The proceeds of bonds or

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notes issued under this act, any applicable federal or state assistance and the other monies referred

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to in section 6 of this act shall be deemed appropriated for the purposes of this act without further

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action than that required by this act. The bond issue authorized by this act may be consolidated

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for the purposes of issuance and sale with any other bond issue of the town heretofore or hereafter

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authorized; provided that, notwithstanding any such consolidation, the proceeds from the sale of

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the bonds authorized by this act shall be expended for the purposes set forth above.

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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 authorization or issue of bonds 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 treasurer.

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Temporary notes issued hereunder shall be signed by the treasurer and by 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.

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     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 treasurer, with the approval of the town

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

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

 

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

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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

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

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

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

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applicable law of the state of Rhode Island.

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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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sale of bonds or notes hereunder and any earnings or net profit realized from the deposit or

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investment of funds hereunder shall, in the discretion of the treasurer, 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 or to the cost of additional improvements coming within

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the description of the projects in section 2 of this act, to the payment of the principal of or interest

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

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

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met from bond or note proceeds exclusive of accrued interest or from other monies available

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

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projects and said additional improvements and the cost of preparing, issuing and marketing bonds

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or notes hereunder shall be applied to the payment of the principal of or interest on bonds or notes

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issued hereunder. In exercising any discretion under this section, the treasurer shall be governed

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by any instructions adopted by resolution of the town council. The treasurer is authorized to take

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any action deemed by them necessary: (1) To assure that interest on the bonds or notes issued

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hereunder remains excludable from gross income of the recipients thereof for federal income tax

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purposes, including, without limitation, paying to the federal government any rebate of earnings

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derived from the deposit or investment of the proceeds of such bonds or notes that may be

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required therefor; (2) To comply with the requirements of federal law, including without being

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limited to regulations and other requirements of the Securities and Exchange Commission and the

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Municipal Securities Rulemaking Board, imposed directly on the town or on the underwriters of

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such bonds and notes; and/or (3) As to bonds for school purposes, to comply with the provisions

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of §§ 16-7-35 through 16-7-47 of the Rhode Island general laws, 1956, as amended; including

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making all necessary contracts and agreements to issue said bonds and/or notes through the

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Rhode Island health and educational building corporation and/or the Rhode Island department of

 

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education.

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     SECTION 7. All bonds or 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 moneys 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 for,

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contract for and expend any 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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moneys provided in this act. To the extent of any inconsistency between any law of this 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. To the extent of any inconsistency between this act and the town

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charter, this act shall prevail.

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

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of the town at the general election on November 6, 2018. The question shall be submitted in

 

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substantially the following form: "Shall an act, passed at the 2018 session of the General

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Assembly, entitled 'AN ACT AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO

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FINANCE CONSTRUCTION, RENOVATIONS, REMEDIATION, ALTERATIONS,

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ADDITIONS AND OTHER IMPROVEMENTS AND/OR RELATED EQUIPMENT AND TO

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ISSUE NOT MORE THAN $27,000,000 BONDS AND NOTES THEREFOR, OF WHICH UP

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TO $13,500,000 IS FOR SCHOOL PURPOSES AND UP TO $13,500,000 IS FOR OTHER

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TOWN PURPOSES' be approved?" and the warning for the election shall contain the question to

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

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the election and when so combined shall be treated as a voting district. If so combined, the town

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board of canvassers shall advertise the combination of districts in a newspaper of general

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circulation in the town. From the time the election is warned and until it is held, it shall be the

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duty of the town clerk to keep a copy of the act available at the clerk's office for public

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inspection, but the validity of the election shall not be affected by this requirement.

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

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of this act shall take effect upon the approval of this act by a majority of those voting on the

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question at the election prescribed by section 11.

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LC005662

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