2020 -- H 8053 | |
======== | |
LC005457 | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
____________ | |
A N A C T | |
AUTHORIZING THE TOWN OF SOUTH KINGSTOWN TO FINANCE THE TOWN’S | |
CAPITAL IMPROVEMENT PLAN FOR THE FISCAL YEARS 2020-2026, INCLUDING, | |
BUT NOT LIMITED TO, THE ACQUISITION, CONSTRUCTION, REPLACEMENT, | |
REPAIR, IMPROVEMENT, FURNISHING AND EQUIPPING OF MUNICIPAL | |
TRANSPORTATION SAFETY AND ROAD IMPROVEMENTS, PUBLIC SAFETY | |
INFRASTRUCTURE IMPROVEMENTS AND OTHER MUNICIPAL PROJECTS, BY THE | |
ISSUANCE OF NOT MORE THAN $6,500,000 BONDS, NOTES AND/OR OTHER | |
EVIDENCES OF INDEBTEDNESS THEREFOR | |
| |
Introduced By: Representatives McEntee, Fogarty, and Tanzi | |
Date Introduced: June 18, 2020 | |
Referred To: House Municipal Government | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The town of South Kingstown is hereby empowered, in addition to authority |
2 | previously granted, to issue bonds, notes and other evidences of indebtedness (hereinafter “bonds”) |
3 | up to an amount not exceeding six million five hundred thousand dollars ($6,500,000) from time |
4 | to time under its corporate name and seal or a facsimile of such. The bonds of each issue may be |
5 | issued in the form of serial bonds or term bonds or a combination thereof and shall be payable |
6 | either by maturity of principal in the case of serial bonds or by sinking fund installments in the case |
7 | of term bonds, in annual installments of principal, the first installment to be not later than five (5) |
8 | years and the last installment not later than thirty (30) years after the date of the bonds. All such |
9 | bonds of a particular issue may be issued in the form of zero coupon bonds, capital appreciation |
10 | bonds, serial bonds or term bonds or a combination thereof. The amount of principal appreciation |
11 | each year on any bonds, after the date of original issuance, shall not be considered to be principal |
12 | indebtedness for the purposes of any constitutional or statutory debt limit or any other limitation. |
13 | The appreciation of principal after the date of original issue shall be considered interest. Only the |
14 | original principal amount shall be counted in determining the principal amount so issued and any |
15 | interest component shall be disregarded. |
| |
1 | SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the town |
2 | director of finance and the president of the town council and shall be issued and sold in such |
3 | amounts as the town council may authorize by resolution. The manner of sale, denominations, |
4 | maturities, interest rates and other terms, conditions and details of any bonds or notes issued under |
5 | this act may be fixed by the resolutions of the town council authorizing the issue or by separate |
6 | resolution of the town council or, to the extent provisions for these matters are not so made, they |
7 | may be fixed by the officers authorized to sign the bonds or notes. The proceeds derived from the |
8 | sale of the bonds shall be delivered to the town director of finance, and such proceeds exclusive of |
9 | premiums and accrued interest shall be expended for: (1) The town’s capital improvement plan for |
10 | the fiscal years 2020-2026, including, but not limited to, the acquisition, construction, replacement, |
11 | repair, improvement, furnishing and equipping of municipal transportation safety and road |
12 | improvements, public safety infrastructure improvements and other municipal projects; (2) In |
13 | payment of the principal of or interest on temporary notes issued under section 3; (3) In repayment |
14 | of advances under section 4; (4) In payment of related costs of issuance of any bonds or notes; |
15 | and/or (5) In payment of capitalized interest during construction of the project (the “project”). No |
16 | purchaser of any bonds or notes under this act shall be in any way responsible for the proper |
17 | application of the proceeds derived from the sale thereof. The project shall be carried out and all |
18 | contracts made therefor on behalf of the town by the town council. The proceeds of bonds or notes |
19 | issued under this act, any applicable federal or state assistance and the other monies referred to in |
20 | sections 6 and 9 shall be deemed appropriated for the purposes of this act without further action |
21 | than that required by this act. The bonds authorized by this act may be consolidated for the purpose |
22 | of issuance and sale with any other bonds of the town heretofore or hereafter authorized, provided |
23 | that, notwithstanding any such consolidation, the proceeds from the sale of the bonds authorized |
24 | by this act shall be expended for the purposes set forth above. |
25 | SECTION 3. The town council may by resolution authorize the issuance from time to time |
26 | of interest bearing or discounted notes in anticipation of the issuance of bonds or in anticipation of |
27 | the receipt of federal or state aid for the purposes of this act. The amount of original notes issued |
28 | in anticipation of bonds may not exceed the amount of bonds which may be issued under this act |
29 | and the amount of original notes issued in anticipation of federal or state aid may not exceed the |
30 | amount of available federal or state aid as estimated by the director of finance. Temporary notes |
31 | issued hereunder shall be signed by the manual or facsimile signatures of the town director of |
32 | finance and the president of the town council and shall be payable within five (5) years from their |
33 | respective dates, but the principal of and interest on notes issued for a shorter period may be |
34 | renewed or paid from time to time by the issuance of other notes hereunder, provided the period |
| LC005457 - Page 2 of 7 |
1 | from the date of an original note to the maturity of any note issued to renew or pay the same debt |
2 | or interest thereon shall not exceed five (5) years. Any temporary notes in anticipation of bonds |
3 | issued under this section may be refunded prior to the maturity of the notes by the issuance of |
4 | additional temporary notes, provided that no such refunding shall result in any amount of such |
5 | temporary notes outstanding at any one time in excess of two hundred percent (200%) of the amount |
6 | of bonds which may be issued under this act, and provided further that if the issuance of any such |
7 | refunding notes results in any amount of such temporary notes outstanding at any one time in excess |
8 | of the amount of bonds which may be issued under this act, the proceeds of such refunding notes |
9 | shall be deposited in trust in a separate fund established for the notes being refunded. Pending their |
10 | use to pay the notes being refunded, moneys in the fund shall be invested for the benefit of the town |
11 | by the paying agent at the direction of the town director of finance in any investment permitted |
12 | under section 5. The moneys in the fund and any investments held as part of the fund shall be held |
13 | in trust and shall be applied by the paying agent solely to the payment or prepayment of the principal |
14 | of and interest on the notes being refunded. Upon payment of all principal of and interest on the |
15 | notes, any excess moneys in the fund shall be distributed to the town. The town may pay the |
16 | principal of and interest on notes in full from other than the issuance of refunding notes prior to the |
17 | issuance of bonds pursuant to section 1 hereof. In such case, the town’s authority to issue bonds or |
18 | notes in anticipation of bonds under this act shall continue provided that: (1) The town council |
19 | passes a resolution evidencing the town’s intent to pay off the notes without extinguishing the |
20 | authority to issue bonds or notes; and (2) That the period from the date of an original note to the |
21 | 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 director of finance, with the approval of |
24 | the town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in |
25 | the treasury of the town to the purposes specified in section 2, 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 director of |
30 | finance 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. |
| LC005457 - Page 3 of 7 |
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 premium arising from the sale of |
3 | bonds or notes hereunder shall, in the discretion of the town director of finance, be applied to the |
4 | cost of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise |
5 | provided, to the payment of the project costs, to the payment of the principal of or interest on bonds |
6 | or notes issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing |
7 | and marketing bonds or notes hereunder may also, in the discretion of the town director of finance, |
8 | be met from bond or note proceeds exclusive of accrued interest or from other moneys available |
9 | therefor. Any balance of bond or note proceeds remaining after payment of the cost of the projects |
10 | and the cost of preparing, issuing and marketing bonds or notes hereunder, shall be applied to the |
11 | payment of the principal of or interest on bonds or notes issued hereunder. To the extent permitted |
12 | by applicable federal laws, any earnings or net profit realized from the deposit or investment of |
13 | funds hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town |
14 | from property taxes. In exercising any discretion under this section, the town director of finance |
15 | shall be governed by any instructions adopted by resolution of the town council. |
16 | SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby |
17 | shall be obligatory on the town in the same manner and to the same extent as other debts lawfully |
18 | contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at |
19 | any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. |
20 | The town shall annually appropriate a sum sufficient to pay the principal and interest coming due |
21 | within the year on bonds and notes issued hereunder to the extent that monies therefor are not |
22 | otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax |
23 | levy. In order to provide such sum in each year and notwithstanding any provision of law to the |
24 | contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without |
25 | limitation as to rate or amount. |
26 | SECTION 8. Any bonds or notes issued under the provisions of this act, and coupons, if |
27 | any, if properly executed by officers of the town in office on the date of execution, shall be valid |
28 | and binding according to their terms notwithstanding that before the delivery thereof and payment |
29 | therefor any or all of such officers shall for any reason have ceased to hold office. |
30 | SECTION 9. The town, acting by resolution of its town council, is authorized to apply for, |
31 | contract for and expend any federal or state advances or other grants or assistance which may be |
32 | available for the purposes of this act, and any such expenditures may be in addition to the moneys |
33 | provided in this act. To the extent of any inconsistency between any law of this state and any |
34 | applicable federal law or regulation, the latter shall prevail. Federal and state advances, with |
| LC005457 - Page 4 of 7 |
1 | interest where applicable, whether contracted for prior to or after the effective date of this act, may |
2 | be repaid as project costs under section 2. |
3 | SECTION 10. Bonds and notes may be issued under this act without obtaining the approval |
4 | of any governmental agency or the taking of any proceedings or the happening of any conditions |
5 | except as specifically required by this act for such issue. In carrying out any project financed in |
6 | whole or in part under this act, including where applicable the condemnation of any land or interest |
7 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
8 | of any such project, all action shall be taken which is necessary to meet constitutional requirements |
9 | whether or not such action is otherwise required by statute, but the validity of bonds and notes |
10 | issued hereunder shall in no way depend upon the validity or occurrence of such action. |
11 | SECTION 11. The town director of finance and the president of the town council, on behalf |
12 | of the town, are hereby authorized to execute such instruments, documents or other papers as either |
13 | of them deem necessary or desirable to carry out the intent of this act and are also authorized to |
14 | take all actions and execute all instruments, documents or agreements necessary to comply with |
15 | federal tax and securities laws, which instruments, documents or agreements may have a term |
16 | coextensive with the maturity of the bonds authorized hereby, including Rule 15c2-12 of the |
17 | Securities and Exchange Commission (the “Rule”) and to execute and deliver a continuing |
18 | disclosure agreement or certificate in connection with the bonds or notes in the form as shall be |
19 | deemed advisable by such officers in order to comply with the Rule. |
20 | SECTION 12. All or any portion of the authorized but unissued authority to issue bonds |
21 | and notes under this act may be extinguished by ordinance of the town council after seven (7) years |
22 | shall have passed from the approval of this act provided for in section 13, without further action by |
23 | the general assembly. |
24 | SECTION 13. At the general election to be held on November 3, 2020, or such other local |
25 | election as may be designated by the town council, other than a primary, no later than April 20, |
26 | 2021, there shall be submitted to electors of the town a question in substantially the following form: |
27 | “Shall an act passed at the 2020 session of the general assembly entitled ‘AN ACT |
28 | AUTHORIZING THE TOWN OF SOUTH KINGSTOWN TO FINANCE THE TOWN’S |
29 | CAPITAL IMPROVEMENT PLAN FOR THE FISCAL YEARS 2020-2026, INCLUDING, BUT |
30 | NOT LIMITED TO, THE ACQUISITION, CONSTRUCTION, REPLACEMENT, REPAIR, |
31 | IMPROVEMENT, FURNISHING AND EQUIPPING OF MUNICIPAL TRANSPORTATION |
32 | SAFETY AND ROAD IMPROVEMENTS, PUBLIC SAFETY INFRASTRUCTURE |
33 | IMPROVEMENTS AND OTHER MUNICIPAL PROJECTS IN THE TOWN BY THE |
34 | ISSUANCE OF NOT MORE THAN $6,500,000 BONDS, NOTES AND/OR OTHER |
| LC005457 - Page 5 of 7 |
1 | EVIDENCES OF INDEBTEDNESS THEREFOR’ be approved?” and the warning for the election |
2 | shall contain the question to be submitted. From the time the election is warned and until it is held, |
3 | it shall be the duty of the town clerk to keep a copy of this act available at the clerk’s office for |
4 | public inspection, but the validity of the election shall not be affected by this requirement. To the |
5 | extent of any inconsistency between this act and the town charter, this act shall prevail. |
6 | SECTION 14. This section and section 13 shall take effect upon the passage of this act. |
7 | The remainder of this act shall take effect upon the approval of this act by a majority of those voting |
8 | on the question at the election prescribed by section 13. |
======== | |
LC005457 | |
======== | |
| LC005457 - Page 6 of 7 |
EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE TOWN OF SOUTH KINGSTOWN TO FINANCE THE TOWN’S | |
CAPITAL IMPROVEMENT PLAN FOR THE FISCAL YEARS 2020-2026, INCLUDING, | |
BUT NOT LIMITED TO, THE ACQUISITION, CONSTRUCTION, REPLACEMENT, | |
REPAIR, IMPROVEMENT, FURNISHING AND EQUIPPING OF MUNICIPAL | |
TRANSPORTATION SAFETY AND ROAD IMPROVEMENTS, PUBLIC SAFETY | |
INFRASTRUCTURE IMPROVEMENTS AND OTHER MUNICIPAL PROJECTS, BY THE | |
ISSUANCE OF NOT MORE THAN $6,500,000 BONDS, NOTES AND/OR OTHER | |
EVIDENCES OF INDEBTEDNESS THEREFOR | |
*** | |
1 | This act would authorize the town of South Kingstown to issue not more than $6,500,000 |
2 | bonds and notes to finance the town’s capital improvement plan for the fiscal years 2020-2026, |
3 | including, but not limited to, the acquisition, construction, replacement, repair, improvement, |
4 | furnishing and equipping of municipal transportation safety and road improvements, public safety |
5 | infrastructure improvements and other municipal projects. |
6 | Sections 13 and 14 of this act would take effect upon passage. The remainder of the act |
7 | would take effect upon approval by the electors of the town of the question provided for in section |
8 | 13. |
======== | |
LC005457 | |
======== | |
| LC005457 - Page 7 of 7 |