2020 -- H 8089 | |
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LC005469 | |
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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 CITY OF CRANSTON TO FINANCE THE CONSTRUCTION, | |
IMPROVEMENT, RENOVATION, REPAIR, ALTERATION, FURNISHING AND | |
EQUIPPING OF PUBLIC BUILDINGS IN THE CITY BY THE ISSUANCE OF NOT MORE | |
THAN $1,000,000 GENERAL OBLIGATION BONDS AND NOTES THEREFOR | |
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Introduced By: Representatives Mattiello, Lima, Millea, and Handy | |
Date Introduced: July 02, 2020 | |
Referred To: House Municipal Government | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The city of Cranston is hereby empowered, in addition to authority previously |
2 | granted, to issue bonds to an amount not exceeding one million dollars ($1,000,000) from time to |
3 | time under its corporate name and seal or a facsimile of such seal. The bonds of each issue shall |
4 | mature in annual installments of principal, the first installment to be not later than five (5) years |
5 | and the last installment not later than thirty (30) years after the date of the bonds. All such bonds |
6 | of a particular issue may be issued in the form of zero coupon bonds, capital appreciation bonds, |
7 | serial bonds or term bonds or a combination thereof. Annual installments of principal may be |
8 | provided for by maturity of principal in the case of serial bonds or by mandatory sinking fund |
9 | installments in the case of term bonds. The amount of principal appreciation each year on any |
10 | bonds, after the date of original issuance, shall not be considered to be principal indebtedness for |
11 | the purposes of any constitutional, statutory, or charter debt limit or any other limitation. The |
12 | appreciation of principal after the date of original issue shall be considered interest. Only the |
13 | original principal amount shall be counted in determining the principal amount so issued and any |
14 | interest component shall be disregarded. |
15 | SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the |
16 | director of finance and the mayor and shall be issued and sold in such amounts as the city council |
17 | may authorize. The manner of sale, denominations, maturities, interest rates and other terms, |
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1 | conditions and details of any bonds or notes issued under this act may be fixed by the proceedings |
2 | of the city council authorizing the issue or by separate order or resolution of the city council or, to |
3 | the extent provisions for these matters are not so made, they may be fixed by the officers authorized |
4 | to sign the bonds or notes. Interest coupons (if any) shall bear the facsimile signature of the director |
5 | of finance. The proceeds derived from the sale of the bonds shall be delivered to the city treasurer, |
6 | and such proceeds, exclusive of premiums and accrued interest, shall be expended: (1) To finance |
7 | the construction, improvement, renovation, repair, alteration, furnishing and equipping of public |
8 | buildings in the city; or (2) In payment of the principal of or interest on temporary notes issued |
9 | under section 3; or (3) In repayment of advances under section 4, (4) In payment of costs of issuance |
10 | associated with the issuance of bonds or notes hereunder; and/or (5) To finance capitalized interest |
11 | on the projects. No purchaser of any bonds or notes under this act shall be in any way responsible |
12 | for the proper application of the proceeds derived from the sale thereof. The proceeds of bonds or |
13 | notes issued under this act, any applicable federal or state assistance and the other monies referred |
14 | to in sections 6 and 9 shall be deemed appropriated for the purposes of this act without further |
15 | action than that required by this act. In addition to such funds, there may be expended for the |
16 | purposes of this act such other sums as may be appropriated therefor. The bonds authorized by this |
17 | act may be consolidated for the purposes of issuance and sale with any other bonds of the city |
18 | heretofore or hereafter authorized, provided that notwithstanding any such consolidation, the |
19 | proceeds from the sale of the bonds authorized by this act shall be expended for the purposes set |
20 | forth above. The director of finance and the mayor, on behalf of the city, are hereby authorized to |
21 | execute such instruments, documents or other papers as either of them deem necessary or desirable |
22 | to carry out the intent of this act and are also authorized to take all actions and execute all documents |
23 | or agreements necessary to comply with federal tax and securities laws, which documents or |
24 | agreements may have a term coextensive with the maturity of the bonds authorized hereby, |
25 | including Rule 15c2-12 of the Securities and Exchange Commission and to execute and deliver a |
26 | continuing disclosure agreement or certificate in connection with the bonds or notes. |
27 | SECTION 3. The city council may, by order or resolution authorizing the bonds or by |
28 | separate order or resolution, authorize the issuance from time to time of interest bearing or |
29 | discounted notes in anticipation of the issue of bonds under section 2 or in anticipation of the receipt |
30 | of federal or state aid for the purposes of this act. The amount of original notes issued in anticipation |
31 | of bonds may not exceed the amount of bonds which may be issued under this act and the amount |
32 | of original notes issued in anticipation of federal or state aid may not exceed the amount of available |
33 | federal or state aid as estimated by the director of finance. Temporary notes issued hereunder shall |
34 | be signed by the manual or facsimile signature of the director of finance and countersigned by the |
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1 | manual or facsimile signature of the mayor and shall be payable within five (5) years from their |
2 | respective dates, but the principal of and interest on notes issued for a shorter period may be |
3 | renewed or paid from time to time by the issue of other notes hereunder, provided the period from |
4 | the date of an original note to the maturity of any note issued to renew or pay the same debt or the |
5 | interest thereon shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued |
6 | under this section may be refunded prior to the maturity of the notes by the issuance of additional |
7 | temporary notes, provided that no such refunding shall result in any amount of such temporary |
8 | notes outstanding at any one time in excess of two hundred percent (200%) of the amount of bonds |
9 | which may be issued under this act, and provided further that if the issuance of any such refunding |
10 | notes results in any amount of such temporary notes outstanding at any one time in excess of the |
11 | amount of bonds which may be issued under this act, the proceeds of such refunding notes shall be |
12 | deposited in a separate fund established with the bank which is paying agent for the notes being |
13 | refunded. Pending their use to pay the notes being refunded, monies in the fund shall be invested |
14 | for the benefit of the city by the paying agent at the direction of the city treasurer in any investment |
15 | permitted under section 5. The monies in the fund and any investments held as a part of the fund |
16 | shall be held in trust and shall be applied by the paying agent solely to the payment or prepayment |
17 | of the principal of and interest on the notes being refunded. Upon payment of all principal of and |
18 | interest on the notes, any excess monies in the fund shall be distributed to the city. The city may |
19 | pay the principal of and interest on notes in full from sources other than the issuance of refunding |
20 | notes prior to the issuance of bonds pursuant to section 1 hereof. In such case, the city’s authority |
21 | to issue bonds or notes in anticipation of bonds under this act shall continue provided that: (1) The |
22 | city council passes a resolution evidencing the city’s intent to pay off the notes without |
23 | extinguishing the authority to issue bonds or notes; and (2) That the period from the date of an |
24 | original note to the maturity date of any other note shall not exceed five (5) years. |
25 | SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu |
26 | of any authorization or issue of notes hereunder, the city treasurer, with the approval of the city |
27 | council given by an order or resolution, may, to the extent that bonds or notes may be issued |
28 | hereunder, apply funds in the treasury of the city to the purposes specified in section 2, such |
29 | advances to be repaid without interest from the proceeds of bonds or notes subsequently issued or |
30 | from the proceeds of applicable federal or state assistance or from other available funds. |
31 | SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
32 | or state assistance, pending their expenditure, and may be deposited or invested by the city treasurer |
33 | in demand deposits, time deposits or savings deposits in banks which are members of the Federal |
34 | Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of |
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1 | America or by any agency or instrumentality thereof or as may be provided in any other applicable |
2 | laws of the state of Rhode Island and by ordinance or resolution of the city council or pursuant to |
3 | an investment policy of the city. |
4 | SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall |
5 | be applied to the payment of the first interest due thereon. Any net earnings or profits realized from |
6 | the investment of funds hereunder and any premiums arising from the sale of bonds or notes |
7 | hereunder shall, in the discretion of the city treasurer, be applied to the cost of preparing, issuing |
8 | and marketing bonds or notes hereunder to the extent not otherwise provided, to the payment of the |
9 | cost of the projects or the cost of additional improvements coming within the description of the |
10 | projects in section 2 of this act, to the payment of the principal of or interest on bonds or notes |
11 | issued hereunder, or to any one or more of the foregoing. The cost of preparing, issuing and |
12 | marketing bonds or notes hereunder may also, in the discretion of the city treasurer, be met from |
13 | bond or note proceeds exclusive of premium and accrued interest or from other monies available |
14 | therefor. Any balance of bond or note proceeds remaining after payment of the cost of the projects |
15 | and the cost of additional improvements coming within the description of the projects in section 2 |
16 | of this act, and the cost of preparing, issuing and marketing bonds or notes hereunder shall be |
17 | applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the |
18 | extent permitted by applicable federal law, any earnings or net profit realized from the deposit or |
19 | investment of funds hereunder may upon receipt be added to and dealt with as part of the revenues |
20 | of the city from property taxes. In exercising any discretion under this section, the city treasurer |
21 | shall be governed by any instructions adopted by any order or resolution of the city council. |
22 | SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby |
23 | shall be obligatory on the city in the same manner and to the same extent as other debts lawfully |
24 | contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at |
25 | any time be included in the debt of the city for the purpose of ascertaining its borrowing capacity. |
26 | The city shall annually appropriate a sum sufficient to pay the principal and interest coming due |
27 | within the year on bonds and notes issued hereunder to the extent that monies therefor are not |
28 | otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax |
29 | levy. In order to provide such sum in each year and notwithstanding any provision of law to the |
30 | contrary, all taxable property in the city shall be subject to ad valorem taxation by the city without |
31 | limitation as to rate or amount. |
32 | SECTION 8. Any bonds or notes issued under the provisions of this act, and coupons, if |
33 | any, if properly executed by the officers of the city in office on the date of execution, shall be valid |
34 | and binding according to their terms notwithstanding that before the delivery thereof and payment |
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1 | therefor any or all of the officers shall for any reason have ceased to hold office. |
2 | SECTION 9. The city, acting by order or resolution of its city council is authorized to apply |
3 | for, contract for and expend any federal or state advances or other grants of assistance which may |
4 | be available for the purposes of this act, and any such expenditures may be in addition to other |
5 | monies provided in this act. To the extent of any inconsistency between any law of this state and |
6 | any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with |
7 | interest where applicable, whether contracted for prior to or after the effective date of this act, may |
8 | be repaid as projects costs under section 2 of this act. |
9 | SECTION 10. Bonds and notes may be issued under this act without obtaining approval of |
10 | any governmental agency or the taking of any proceedings or the happening of any conditions |
11 | except as specifically required by this act for such issue. In carrying out any projects financed in |
12 | whole or in part under this act, including where applicable the condemnation of any land or interest |
13 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
14 | of any such projects, all action shall be taken which is necessary to meet constitutional requirements |
15 | whether or not such action is otherwise required by statute, but the validity of bonds or notes issued |
16 | hereunder shall in no way depend upon the validity or occurrence of such action. |
17 | SECTION 11. All or any portion of the authorized but unissued authority to issue bonds |
18 | and notes under this act may be extinguished by resolution or order of the city council, without |
19 | further action by the general assembly, seven (7) years after the effective date of this act. |
20 | SECTION 12. The question of the approval of this act shall be submitted to the electors of |
21 | the city at the general election to be held on November 3, 2020 or, if so determined by the city |
22 | council, at a special city-wide election, other than a primary, held on a date to be determined by |
23 | resolution or order of the city council: The question shall be submitted in substantially the following |
24 | form: "Shall an act, passed at the 2020 session of the general assembly, entitled 'AN ACT |
25 | AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE CONSTRUCTION, |
26 | IMPROVEMENT, RENOVATION, REPAIR, ALTERATION, FURNISHING AND |
27 | EQUIPPING OF PUBLIC BUILDINGS IN THE CITY BY THE ISSUANCE OF NOT MORE |
28 | THAN $1,000,000 GENERAL OBLIGATION BONDS AND NOTES THEREFOR' be |
29 | approved?" and the warning for the election shall contain the question to be submitted. From the |
30 | time the election is warned and until it is held, it shall be the duty of the city clerk to keep a copy |
31 | of the act available at the city clerk's office for public inspection, but the validity of the election |
32 | shall not be affected by this requirement. To the extent of any inconsistency between this act and |
33 | the city charter, this act shall prevail. |
34 | SECTION 13. This section 13 and section 12 shall take effect upon passage. The remainder |
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1 | of this act shall take effect upon the approval of this act by a majority of those voting on the question |
2 | at the election prescribed by section 12. |
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LC005469 | |
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EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE CONSTRUCTION, | |
IMPROVEMENT, RENOVATION, REPAIR, ALTERATION, FURNISHING AND | |
EQUIPPING OF PUBLIC BUILDINGS IN THE CITY BY THE ISSUANCE OF NOT MORE | |
THAN $1,000,000 GENERAL OBLIGATION BONDS AND NOTES THEREFOR | |
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1 | This act would authorize the city of Cranston to issue not more than one million dollars |
2 | ($1,000,000) general obligation bonds and temporary notes for the construction, improvement, |
3 | renovation, repair, alteration, furnishing and equipping of public buildings in the city. |
4 | Sections 12 and 13 of the act would take effect upon passage. The remainder of the act |
5 | would take effect upon approval by the electors of the city of the question provided for in section |
6 | 12. |
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LC005469 | |
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