2020 -- H 8017 | |
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LC005399 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
AUTHORIZING THE TOWN OF MIDDLETOWN TO FINANCE ACQUIRING AND | |
PRESERVING OPEN SPACE AND ACQUIRING, PRESERVING, RESTORING AND | |
IMPROVING RECREATIONAL AREAS IN THE TOWN BY THE ISSUANCE OF NOT | |
MORE THAN $5,000,000 BONDS AND/OR NOTES THEREFOR | |
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Introduced By: Representatives Ruggiero, and Cortvriend | |
Date Introduced: June 09, 2020 | |
Referred To: House Municipal Government | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The town of Middletown is hereby empowered, in addition to authority |
2 | previously granted, to issue bonds to an amount not exceeding five million dollars ($5,000,000) |
3 | from time to time under its corporate name and seal. The bonds of each issue may be issued in the |
4 | form of serial bonds or term bonds or a combination thereof and shall be payable either by maturity |
5 | of principal in the case of serial bonds or by mandatory sinking fund redemption in the case of term |
6 | bonds, in annual installments of principal, the first installment to be not later than five (5) years and |
7 | the last installment not later than thirty (30) years after the date of the bonds. |
8 | All such bonds of a particular issue may be issued in the form of zero coupon bonds, capital |
9 | appreciation bonds, serial bonds or term bonds or any combination thereof. The amount of principal |
10 | appreciation each year on any bonds, after the date of original issuance, shall not be considered to |
11 | be principal indebtedness for the purposes of any constitutional or statutory debt limit or any other |
12 | limitation. The appreciation of principal after the date of original issue shall be considered interest. |
13 | Only the original principal amount shall be counted in determining the principal amount so issued |
14 | and any interest component shall be disregarded. |
15 | SECTION 2. The bonds shall be signed by the town finance director and by the president |
16 | of the town council and shall be issued and sold in such amounts as the town council may authorize. |
17 | The manner of sale, denominations, maturities, interest rates and other terms, conditions and details |
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1 | of any bonds or notes issued under this act may be fixed by the proceedings of the town council |
2 | authorizing the issue or by separate resolution of the town council or, to the extent provisions for |
3 | these matters are not so made, they may be fixed by the officers authorized to sign the bonds or |
4 | notes. The proceeds derived from the sale of the bonds shall be delivered to the town finance |
5 | director, and such proceeds exclusive of premiums and accrued interest shall be expended (a) for |
6 | acquiring and preserving open space and acquiring, preserving, restoring and improving |
7 | recreational areas in the town, (b) for payment of the principal or interest on temporary notes issued |
8 | under section three, (c) in payment of capitalized interest on bonds or notes (d) in repayment of |
9 | advances under section four, or (e) in payment of related costs of issuance of any bonds or notes. |
10 | No purchaser of any bonds or notes under this act shall be in any way responsible for the proper |
11 | application of the proceeds derived from the sales thereof. The project shall be carried out and all |
12 | contracts made therefor on behalf of the town by the town council. The proceeds of bonds or notes |
13 | issued under this act, any applicable federal or state assistance and other moneys referred to in |
14 | sections six and nine, shall be deemed appropriated for the purposes of this act without further |
15 | action than that required by this act. The bond issue authorized by this act may be consolidated for |
16 | the purposes of issuance and sale with any other bond issue of the town heretofore or hereafter |
17 | authorized, provided that, notwithstanding any such consolidation, the proceeds from the sale of |
18 | the bonds authorized by this act shall be expended for the purposes set forth above. The town |
19 | finance director and the president of the town council, on behalf of the town, are hereby authorized |
20 | to execute such instruments, documents or other papers as either of them deem necessary or |
21 | desirable to carry out the intent of this act and are also authorized to take all actions and execute all |
22 | documents or agreements necessary to comply with federal tax and securities laws, which |
23 | documents or agreements may have a term coextensive with the maturity of the bonds authorized |
24 | hereby. |
25 | SECTION 3. The town council may by resolution authorize the issue from time to time of |
26 | interest bearing or discounted notes in anticipation of the issue of bonds or in anticipation of the |
27 | receipt of federal or state aid for the purposes of this act. The amount of original notes issued in |
28 | anticipation of bonds may not exceed the amount of bonds which may be issued under this act and |
29 | the amount of original notes issued in anticipation of federal or state aid may not exceed the amount |
30 | of available federal or state aid as estimated by the town finance director. Temporary notes issued |
31 | hereunder shall be signed by the manual or facsimile signatures of the town finance director and |
32 | by the president of the town council and shall be payable within five (5) years from their respective |
33 | dates, but the principal of and interest on notes issued for a shorter period may be renewed or paid |
34 | from time to time by the issue of other notes hereunder, provided the period from the date of an |
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1 | original note to the maturity of any note issued to renew or pay the same debt or the interest thereon |
2 | shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued under this |
3 | section may be refunded prior to the maturity of the notes by the issuance of additional temporary |
4 | notes, provided that no such refunding shall result in any amount of such temporary notes |
5 | outstanding at any one time in excess of two hundred percent (200%) of the amount of bonds which |
6 | may be issued under this act, and provided further that if the issuance of any such refunding notes |
7 | results in any amount of such temporary notes outstanding at any one time in excess of the amount |
8 | of bonds which may be issued under this act, the proceeds of such refunding notes shall be deposited |
9 | in a separate fund established with the bank which is paying agent for the notes being refunded. |
10 | Pending their use to pay the notes being refunded, moneys in the fund shall be invested for the |
11 | benefit of the town by the paying agent at the direction of the town finance director in any |
12 | investment permitted under section five. The moneys in the fund and any investments held as a part |
13 | of the fund shall be held in trust and shall be applied by the paying agent solely to the payment or |
14 | prepayment of the principal of and interest on the notes being refunded. Upon payment of all |
15 | principal of and interest on the notes, any excess moneys in the fund shall be distributed to the |
16 | town. The town may pay the principal of and interest on notes in full from other than the |
17 | issuance of refunding notes prior to the issuance of bonds pursuant to section one hereof. In such |
18 | case, the town's authority to issue bonds or notes in anticipation of bonds under this act shall |
19 | continue provided that 1) the town council passes a resolution evidencing the town's intent to pay |
20 | off the notes without extinguishing the authority to issue bonds or notes and 2) that the period from |
21 | the date of an original note to the maturity date of any other note shall not exceed five (5) years. |
22 | SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu |
23 | of any authorization or issue of notes hereunder, the town finance director, with the approval of the |
24 | town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the |
25 | treasury of the town to the purposes specified in section two, such advances to be repaid without |
26 | interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable |
27 | federal or state assistance or from other available funds. |
28 | SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
29 | or state assistance, pending their expenditure, may be deposited or invested by the town finance |
30 | director in demand deposits, time deposits or savings deposits in banks which are members of the |
31 | Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States |
32 | of America or by any agency or instrumentality thereof or as may be provided in any other |
33 | applicable law of the state of Rhode Island or resolution of the town council or pursuant to an |
34 | investment policy of the town. |
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1 | SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall |
2 | be applied to the payment of the first interest due thereon. Any premiums arising from the sale of |
3 | bonds or notes hereunder and, to the extent permitted by applicable federal laws, any net earnings |
4 | or net profit realized from the deposit or investment of funds hereunder shall, in the discretion of |
5 | the finance director, be applied to the cost of preparing, issuing, and marketing bonds or notes |
6 | hereunder to the extent not otherwise provided, to the payment of the cost of the project, to the |
7 | payment of the principal of or interest on bonds or notes issued hereunder or to any one or more of |
8 | the foregoing. The cost of preparing, issuing and marketing bonds or notes hereunder may also, in |
9 | the discretion of the town finance director, be met from bond or note proceeds exclusive of accrued |
10 | interest or from other moneys available therefor. Any balance of bond or note proceeds remaining |
11 | after payment of the cost of the projects and the cost of preparing, issuing and marketing bonds or |
12 | notes hereunder shall be applied to the payment of the principal of or interest on bonds or notes |
13 | issued hereunder. To the extent permitted by applicable federal laws, any earnings or net profit |
14 | realized from the deposit or investment of funds hereunder may, upon receipt, be added to and dealt |
15 | with as part of the revenues of the town from property taxes. In exercising any discretion under |
16 | this section, the town finance director shall be governed by any instructions adopted by resolution |
17 | of the town council. |
18 | SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby |
19 | shall be obligatory on the town in the same manner and to the same extent as other debts lawfully |
20 | contracted by it and shall be excepted from the operation of ยง 45-12-2 of the general laws and |
21 | provisions of the town charter. No such obligation shall at any time be included in the debt of the |
22 | town for the purpose of ascertaining its borrowing capacity. The town shall annually appropriate a |
23 | sum sufficient to pay the principal and interest coming due within the year on bonds and notes |
24 | issued hereunder to the extent that moneys therefor are not otherwise provided. |
25 | If such sum is not appropriated, it shall nevertheless be added to the annual tax levy. In |
26 | order to provide such sum in each year and notwithstanding any provision of law to the |
27 | contrary, all taxable property in the town shall be subject to ad valorem taxation by the |
28 | town without limitation as to rate or amount. |
29 | SECTION 8. Any bonds or notes issued under the provisions of this act, if properly |
30 | executed by officers of the town in office on the date of execution, shall be valid and binding |
31 | according to their terms notwithstanding that before the delivery thereof and payment therefor |
32 | any or all of such officers shall for any reason have ceased to hold office. |
33 | SECTION 9. The town, acting by resolution of its town council is authorized to apply for, |
34 | contract for and expend any federal or state advances or other grants or assistance which may be |
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1 | available for the purposes of this act, and any such expenditures may be in addition to other moneys |
2 | provided in this act. To the extent of any inconsistency between any law of this state and any |
3 | applicable federal law or regulation , the latter shall prevail. Federal and state advances, with |
4 | interest where applicable, whether contracted for prior to or after the effective date of this act, may |
5 | be repaid as project costs under section two. |
6 | SECTION 10. Bonds and notes may be issued under this act without obtaining the |
7 | approval of any governmental agency or the taking of any proceedings or the happening of any |
8 | conditions except as specifically required by this act for such issue. In carrying out any project |
9 | financed in whole or in part under this act, including where applicable the condemnation of any |
10 | land or interest in land, and in the levy and collection of assessments or other charges permitted by |
11 | law on account of any such project, all action shall be taken which is necessary to meet |
12 | constitutional requirements whether or not such action is otherwise required by statute; but the |
13 | validity of bonds and notes issued hereunder shall in no way depend upon the validity or |
14 | occurrence of such action. |
15 | SECTION 11. All or any portion of the authority to issue bonds and notes under this act |
16 | may be extinguished by resolution of the town council, without further action by the general |
17 | assembly, seven (7) years after the effective date of this act. |
18 | SECTION 12. The town finance director and the president of the town council, on behalf |
19 | of the town, are hereby authorized to execute such documents or other papers as either of them |
20 | deem necessary or desirable to carry out the intent of this act and are also authorized to take all |
21 | actions and execute all documents or agreements necessary to comply with federal tax and |
22 | securities laws, which documents or agreements may have a term coextensive with the maturity of |
23 | the bonds authorized hereby, including Rule 15 of the Securities and Exchange Commission (the |
24 | Rule) and to execute and deliver a continuing disclosure agreement or certificate in connection with |
25 | the bonds or notes in the form as shall be deemed advisable by such officers in order to comply |
26 | with the Rule. |
27 | SECTION 13. The question of the approval of this act shall be submitted to the electors of |
28 | the town at the election to be held on November 3, 2020 or such other general or special election |
29 | (other than a primary) to be held on a date, as shall be designated by the town council. |
30 | The question shall be submitted in substantially the following form: "Shall an act, passed |
31 | at the 2020 session of the general assembly, entitled "AN ACT AUTHORIZING THE TOWN OF |
32 | MIDDLETOWN TO FINANCE ACQUIRING AND PRESERVING OPEN SPACE AND |
33 | ACQUIRING, PRESERVING, RESTORING AND IMPROVING RECREATIONAL AREAS IN |
34 | THE TOWN BY THE ISSUANCE OF NOT MORE THAN $5,000,000 BONDS AND/OR |
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1 | NOTES THEREFOR" be approved?" and the warning for the election shall contain the question to |
2 | be submitted. From the time the election is warned and until it is held, it shall be the duty of the |
3 | town clerk to keep a copy of the act available at the clerk's office for public inspection, but the |
4 | validity of the election shall not be affected by this requirement. |
5 | SECTION 14. Sections 13 and 14 shall take effect upon the passage of this act. The |
6 | remainder of this act shall take effect upon the approval of this act by a majority of those voting on |
7 | the question at the election prescribed by section 13. |
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LC005399 | |
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EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE TOWN OF MIDDLETOWN TO FINANCE ACQUIRING AND | |
PRESERVING OPEN SPACE AND ACQUIRING, PRESERVING, RESTORING AND | |
IMPROVING RECREATIONAL AREAS IN THE TOWN BY THE ISSUANCE OF NOT | |
MORE THAN $5,000,000 BONDS AND/OR NOTES THEREFOR | |
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1 | This act authorizes the town of Middletown to issue not more than $5,000,000 bonds and |
2 | notes to finance acquiring and preserving open space and acquiring, preserving, restoring, and |
3 | improving of recreational areas in the town. Sections 13 and 14 shall take effect upon passage. The |
4 | remainder of the act would take effect upon approval of the question provided for in Section 13. |
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LC005399 | |
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