2020 -- H 8090 | |
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LC005471 | |
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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 ACQUISITION, | |
CONSTRUCTION, IMPROVEMENT, RENOVATION, REPAIR AND ALTERATION OF | |
PLAYGROUNDS, ATHLETIC FIELDS AND RELATED EQUIPMENT IN THE CITY BY | |
THE ISSUANCE OF NOT MORE THAN $2,000,000 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 two million dollars ($2,000,000) 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 acquisition, construction, improvement, renovation, repair and alteration of playgrounds, |
8 | athletic fields and related equipment in the city; or (2) In payment of the principal of or interest on |
9 | temporary notes issued under section 3; or (3) In repayment of advances under section 4; (4) In |
10 | payment of costs of issuance associated with the issuance of bonds or notes hereunder; and/or (5) |
11 | To finance capitalized interest on the projects. No purchaser of any bonds or notes under this act |
12 | shall be in any way responsible for the proper application of the proceeds derived from the sale |
13 | thereof. The proceeds of bonds or notes issued under this act, any applicable federal or state |
14 | assistance and the other monies referred to in sections 6 and 9 shall be deemed appropriated for the |
15 | purposes of this act without further action than that required by this act. In addition to such funds, |
16 | there may be expended for the purposes of this act such other sums as may be appropriated therefor. |
17 | The bonds authorized by this act may be consolidated for the purposes of issuance and sale with |
18 | any other bonds of the city heretofore or hereafter authorized, provided that notwithstanding any |
19 | such consolidation, the proceeds from the sale of the bonds authorized by this act shall be expended |
20 | for the purposes set forth above. The director of finance and the mayor, on behalf of the city, are |
21 | hereby authorized to execute such instruments, documents or other papers as either of them deem |
22 | necessary or desirable to carry out the intent of this act and are also authorized to take all actions |
23 | and execute all documents or agreements necessary to comply with federal tax and securities laws, |
24 | which documents or agreements may have a term coextensive with the maturity of the bonds |
25 | authorized hereby, including Rule 15c2-12 of the Securities and Exchange Commission and to |
26 | execute and deliver a continuing disclosure agreement or certificate in connection with the bonds |
27 | or notes. |
28 | SECTION 3. The city council may, by order or resolution authorizing the bonds or by |
29 | separate order or resolution, authorize the issuance from time to time of interest bearing or |
30 | discounted notes in anticipation of the issue of bonds under section 2 or in anticipation of the receipt |
31 | of federal or state aid for the purposes of this act. The amount of original notes issued in |
32 | anticipation of bonds may not exceed the amount of bonds which may be issued under this act and |
33 | the amount of original notes issued in anticipation of federal or state aid may not exceed the amount |
34 | of available federal or state aid as estimated by the director of finance. Temporary notes issued |
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1 | hereunder shall be signed by the manual or facsimile signature of the director of finance and |
2 | countersigned by the manual or facsimile signature of the mayor and shall be payable within five |
3 | (5) years from their respective dates, but the principal of and interest on notes issued for a shorter |
4 | period may be renewed or paid from time to time by the issue of other notes hereunder, provided |
5 | the period from the date of an original note to the maturity of any note issued to renew or pay the |
6 | same debt or the interest thereon shall not exceed five (5) years. Any temporary notes in |
7 | anticipation of bonds issued under this section may be refunded prior to the maturity of the notes |
8 | by the issuance of additional temporary notes, provided that no such refunding shall result in any |
9 | amount of such temporary notes outstanding at any one time in excess of two hundred percent |
10 | (200%) of the amount of bonds which may be issued under this act, and provided further that if the |
11 | issuance of any such refunding notes results in any amount of such temporary notes outstanding at |
12 | any one time in excess of the amount of bonds which may be issued under this act, the proceeds of |
13 | such refunding notes shall be deposited in a separate fund established with the bank which is paying |
14 | agent for the notes being refunded. Pending their use to pay the notes being refunded, monies in |
15 | the fund shall be invested for the benefit of the city by the paying agent at the direction of the city |
16 | treasurer in any investment permitted under section 5. The monies in the fund and any investments |
17 | held as a part of the fund shall be held in trust and shall be applied by the paying agent solely to the |
18 | payment or prepayment of the principal of and interest on the notes being refunded. Upon payment |
19 | of all principal of and interest on the notes, any excess monies in the fund shall be distributed to |
20 | the city. The city may pay the principal of and interest on notes in full from sources other than the |
21 | issuance of refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such |
22 | case, the city’s authority to issue bonds or notes in anticipation of bonds under this act shall continue |
23 | provided that: (1) The city council passes a resolution evidencing the city’s intent to pay off the |
24 | notes without extinguishing the authority to issue bonds or notes; and (2) That the period from the |
25 | date of an original note to the maturity date of any other note shall not exceed five (5) years. |
26 | SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu |
27 | of any authorization or issue of notes hereunder, the city treasurer, with the approval of the city |
28 | council given by an order or resolution, may, to the extent that bonds or notes may be issued |
29 | hereunder, apply funds in the treasury of the city to the purposes specified in section 2, such |
30 | advances to be repaid without interest from the proceeds of bonds or notes subsequently issued or |
31 | from the proceeds of applicable federal or state assistance or from other available funds. |
32 | SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
33 | or state assistance, pending their expenditure, and may be deposited or invested by the city treasurer |
34 | in demand deposits, time deposits or savings deposits in banks which are members of the Federal |
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1 | Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of |
2 | America or by any agency or instrumentality thereof or as may be provided in any other applicable |
3 | laws of the state of Rhode Island and by ordinance or resolution of the city council or pursuant to |
4 | an investment policy of the city. |
5 | SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall |
6 | be applied to the payment of the first interest due thereon. Any net earnings or profits realized from |
7 | the investment of funds hereunder and any premiums arising from the sale of bonds or notes |
8 | hereunder shall, in the discretion of the city treasurer, be applied to the cost of preparing, issuing |
9 | and marketing bonds or notes hereunder to the extent not otherwise provided, to the payment of the |
10 | cost of the projects or the cost of additional improvements coming within the description of the |
11 | projects in section 2 of this act, to the payment of the principal of or interest on bonds or notes |
12 | issued hereunder, or to any one or more of the foregoing. The cost of preparing, issuing and |
13 | marketing bonds or notes hereunder may also, in the discretion of the city treasurer, be met from |
14 | bond or note proceeds exclusive of premium and accrued interest or from other monies available |
15 | therefor. Any balance of bond or note proceeds remaining after payment of the cost of the projects |
16 | and the cost of additional improvements coming within the description of the projects in section 2 |
17 | of this act, and the cost of preparing, issuing and marketing bonds or notes hereunder shall be |
18 | applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the |
19 | extent permitted by applicable federal law, any earnings or net profit realized from the deposit or |
20 | investment of funds hereunder may upon receipt be added to and dealt with as part of the revenues |
21 | of the city from property taxes. In exercising any discretion under this section, the city treasurer |
22 | shall be governed by any instructions adopted by any order or resolution of the city council. |
23 | SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby |
24 | shall be obligatory on the city in the same manner and to the same extent as other debts lawfully |
25 | contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at |
26 | any time be included in the debt of the city for the purpose of ascertaining its borrowing capacity. |
27 | The city shall annually appropriate a sum sufficient to pay the principal and interest coming due |
28 | within the year on bonds and notes issued hereunder to the extent that monies therefor are not |
29 | otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual |
30 | tax levy. In order to provide such sum in each year and notwithstanding any provision of law to |
31 | the contrary, all taxable property in the city shall be subject to ad valorem taxation by the city |
32 | without limitation as to rate or amount. |
33 | SECTION 8. Any bonds or notes issued under the provisions of this act, and coupons, if |
34 | any, if properly executed by the officers of the city in office on the date of execution, shall be valid |
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1 | and binding according to their terms notwithstanding that before the delivery thereof and payment |
2 | therefor any or all of the officers shall for any reason have ceased to hold office. |
3 | SECTION 9. The city, acting by order or resolution of its city council is authorized to apply |
4 | for, contract for and expend any federal or state advances or other grants of assistance which may |
5 | be available for the purposes of this act, and any such expenditures may be in addition to other |
6 | monies provided in this act. To the extent of any inconsistency between any law of this state and |
7 | any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with |
8 | interest where applicable, whether contracted for prior to or after the effective date of this act, may |
9 | be repaid as projects costs under section 2 of this act. |
10 | SECTION 10. Bonds and notes may be issued under this act without obtaining approval of |
11 | any governmental agency or the taking of any proceedings or the happening of any conditions |
12 | except as specifically required by this act for such issue. In carrying out any projects financed in |
13 | whole or in part under this act, including where applicable the condemnation of any land or interest |
14 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
15 | of any such projects, all action shall be taken which is necessary to meet constitutional requirements |
16 | whether or not such action is otherwise required by statute, but the validity of bonds or notes issued |
17 | hereunder shall in no way depend upon the validity or occurrence of such action. |
18 | SECTION 11. All or any portion of the authorized but unissued authority to issue bonds |
19 | and notes under this act may be extinguished by resolution or order of the city council, without |
20 | further action by the general assembly, seven (7) years after the effective date of this act. |
21 | SECTION 12. The question of the approval of this act shall be submitted to the electors of |
22 | the city at the general election to be held on November 3, 2020 or, if so determined by the city |
23 | council, at a special city-wide election, other than a primary, held on a date to be determined by |
24 | resolution or order of the city council. The question shall be submitted in substantially the following |
25 | form: "Shall an act, passed at the 2020 session of the general assembly, entitled 'AN ACT |
26 | AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE ACQUISITION, |
27 | CONSTRUCTION, IMPROVEMENT, RENOVATION, REPAIR AND ALTERATION OF |
28 | PLAYGROUNDS, ATHLETIC FIELDS AND RELATED EQUIPMENT IN THE CITY BY THE |
29 | ISSUANCE OF NOT MORE THAN $2,000,000 GENERAL OBLIGATION BONDS AND |
30 | NOTES THEREFOR' be approved?" and the warning for the election shall contain the question to |
31 | be submitted. From the time the election is warned and until it is held, it shall be the duty of the |
32 | city clerk to keep a copy of the act available at the city clerk's office for public inspection, but the |
33 | validity of the election shall not be affected by this requirement. To the extent of any inconsistency |
34 | between this act and the city charter, this act shall prevail. |
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1 | SECTION 13. This section 13 and section 12 shall take effect upon passage. The remainder |
2 | of this act shall take effect upon the approval of this act by a majority of those voting on the question |
3 | at the election prescribed by section 12. |
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EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE ACQUISITION, | |
CONSTRUCTION, IMPROVEMENT, RENOVATION, REPAIR AND ALTERATION OF | |
PLAYGROUNDS, ATHLETIC FIELDS AND RELATED EQUIPMENT IN THE CITY BY | |
THE ISSUANCE OF NOT MORE THAN $2,000,000 GENERAL OBLIGATION BONDS | |
AND NOTES THEREFOR | |
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1 | This act would authorize the city of Cranston to issue not more than two million dollars |
2 | ($2,000,000) general obligation bonds and temporary notes for the acquisition, construction, |
3 | improvement, renovation, repair and alteration of playgrounds, athletic fields and related |
4 | equipment in the city. |
5 | Sections 12 and 13 of the act would take effect upon passage. The remainder of the act |
6 | would take effect upon approval by the electors of the city of the question provided for in section |
7 | 12. |
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