2019 -- S 0675

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LC002210

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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J O I N T   R E S O L U T I O N

RELATING TO DEBT MANAGEMENT ACT

     Introduced By: Senators DiPalma, Felag, Seveney, and Euer

     Date Introduced: March 21, 2019

     Referred To: Senate Finance

     (RI Turnpike & Bridge Authority)

     SECTION 1. This act consists of a joint resolution submitted pursuant to chapter 18 of

title 35.

     SECTION 2. Rhode Island Turnpike and Bridge Authority Project.

     WHEREAS, The Rhode Island Turnpike and Bridge Authority (the "authority") is a

public corporation of the state of Rhode Island (the "state"), constituting a public instrumentality

and agency exercising public and essential governmental functions of the state, created by the

general assembly pursuant to chapter 12 of title 24 (as enacted, reenacted and amended, the

"act"); and

     WHEREAS, The state recognizes that the Pell Bridge, the Jamestown Verrazzano Bridge,

the Mount Hope Bridge, the Sakonnet River Bridge and other facilities of or within the control of

the authority are an essential part of the state's transportation system and facilitates the tourism

industry; and it is the policy of the state that the public welfare and the further economic

development and the prosperity of the state requires the maintenance of such facilities and the

financing thereof; and

     WHEREAS, The act provides that the authority shall have the power to charge and

collect tolls for the use of its facilities; and

     WHEREAS, Pursuant to § 31-36-20, three and one-half cents ($0.035) per gallon of the

motor fuel tax is transferred to the authority to be used for maintenance, operations, capital

expenditures and debt service on any of its projects as defined in chapter 12 of title 24; and

     WHEREAS, The act also provides that the authority shall have the power to acquire, hold

and dispose of real and personal property in the exercise of its powers and performance of its

duties; and

     WHEREAS, The act authorizes the authority to make and enter into all contracts and

agreements necessary or incidental to the performance of its duties and the execution of its

powers under the act, to issue revenue bonds of the authority for any of its purposes and to refund

its bonds, borrow money in anticipation of the issuance of its bonds, and secure its bonds and

notes by the pledge of its tolls and other revenues; and

     WHEREAS, In furtherance of its corporate purposes, the authority is authorized to issue

from time to time its negotiable revenue bonds and notes in one or more series in such principal

amounts for the purpose of paying all or a part of the costs of any one or more projects authorized

by the act, making provision for working capital and a reserve for interest; and

     WHEREAS, Pursuant to §§ 35-18-3 and 35-18-4 of the Rhode Island Public Corporation

Debt Management Act (as enacted, reenacted and amended, the "Debt Management Act"), the

authority hereby requests the approval of the general assembly of the authority's issuance of not

more than fifty million dollars ($50,000,000) Rhode Island Turnpike and Bridge Authority

Revenue Bonds with a term not to exceed thirty (30) years and six (6) months (together with any

notes issued in anticipation of the issuance of bonds, the "bonds") to be secured by toll, transfers

of motor fuel taxes and/or other revenues, in any combination, for the purpose of providing funds

to finance the renovation, renewal, repair, rehabilitation, retrofitting, upgrading and improvement

of the Pell Bridge, the Jamestown Verrazzano Bridge, the Sakonnet River Bridge, Mount Hope

Bridge, and other projects authorized under the act, replacement of the components thereof,

working capital, capitalized interest, a debt service reserve and the costs of issuing and insuring

the bonds (the "project"); and

     WHEREAS, The project constitutes essential public facilities directly benefiting the

state; and

     WHEREAS, The authority is authorized pursuant to § 24-12-28 of the act to secure its

bonds by a pledge of the tolls and other revenues received by the authority; and

     WHEREAS, The state shall directly benefit economically from the project by the repair,

maintenance and improvement of the state transportation infrastructure; and

     WHEREAS, In the event that not all of the bond proceeds are used to carry out the

specified project, the authority will use any remaining funds to pay debt service on the bonds;

now, therefore, be it

     RESOLVED AND ENACTED, That this general assembly finds that the project is an

essential public facility and is of a type and nature consistent with the purposes and within the

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powers of the authority to undertake, and hereby approves the authority's issuance of not more

than fifty million dollars ($50,000,000) in bonds, which amount is in addition to all prior

authorizations; and be further

     RESOLVED, That the bonds will be special obligations of the authority payable from

funds received by the authority from tolls, transfers of motor fuel taxes and other revenues

received by the authority, in any combination or priority as may be designated in the proceedings

of the authority authorizing the issuance of such debt. The total debt service on the bonds is

estimated to average approximately three million five hundred ninety-four thousand dollars

($3,594,000) per year or approximately one hundred nine million three hundred sixteen thousand

dollars ($109,316,000) in the aggregate, prior to the receipt of any federal subsidy and/or

assistance, at an average interest rate of approximately six percent (6%) and approximately a

thirty (30) year maturity; and be it further

     RESOLVED, That the authority may issue interest bearing or discounted notes from time

to time in anticipation of the authorization or issue of bonds or in anticipation of the receipt of

federal aid for the purposes of this joint resolution, the amount of original notes issued in

anticipation of bonds may not exceed the amount of bonds which may be issued under this joint

resolution and the amount of original notes issued in anticipation of federal aid may not exceed

the amount of available federal aid as estimated by the authority, any such notes issued hereunder

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,

and any such refunding of notes with notes or bonds may be effected without complying with §

35-18-3(5); and be it further

     RESOLVED, That the bonds will not constitute indebtedness of the state or any of its

subdivisions or a debt for which the full faith and credit of the state or any of its subdivisions is

pledged.

     SECTION 3. This joint resolution shall take effect upon passage.

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