2020 -- H 8096 | |
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LC005507 | |
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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 PORTSMOUTH TO ISSUE NOT TO EXCEED $65,900,000 | |
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF | |
INDEBTEDNESS TO FINANCE THE CONSTRUCTION, ADDITIONS, RENOVATION, | |
IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS | |
AND SCHOOL FACILITIES THROUGHOUT THE TOWN, SUBJECT TO APPROVAL OF | |
STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF | |
NOT LESS THAN 35% FOR EXPENDITURES ELIGIBLE FOR STATE AID AND | |
PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY ANY GRANT | |
RECEIVED FROM THE SCHOOL BUILDING AUTHORITY CAPITAL FUND | |
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Introduced By: Representative John G. Edwards | |
Date Introduced: July 07, 2020 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The town of Portsmouth is hereby empowered, in addition to authority |
2 | previously granted, to issue bonds in an amount not exceeding sixty-five million nine hundred |
3 | thousand dollars ($65,900,000) from time to time under its corporate name and seal; provided |
4 | however, that bonds shall not be issued unless the conditions of section 2 hereof as to the level of |
5 | state aid are met. The bonds of each issue may be issued in the form of zero coupon bonds, capital |
6 | appreciation bonds, serial bonds or term bonds or a combination thereof and shall be payable either |
7 | by maturity of principal in the case of serial bonds or by mandatory serial redemption in the case |
8 | of term bonds, in installments of principal, the first installment to be not later than five (5) years |
9 | and the last installment not later than thirty (30) years after the date the bonds are issued. |
10 | SECTION 2. The town may be eligible for school housing aid reimbursement on debt |
11 | service pursuant to chapter 7 of title 16, or for a grant, loan or other "financial assistance" as defined |
12 | in §45-38.2-1(6), from the School Building Authority Capital Fund under chapter 38.2 of title 45. |
13 | The amount of borrowing authorized pursuant to this act shall be reduced by the amount of any |
14 | grant received by the town from the School Building Authority Capital Fund. Bonds, notes or other |
15 | evidences of indebtedness shall not be issued under this act unless the town has received a letter |
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1 | from the Rhode Island Department of Education ("RIDE") confirming that the then-current school |
2 | housing aid reimbursement rate under chapter 7 of title 16, as amended from time to time, or |
3 | financial assistance from the School Building Authority Capital Fund, or pursuant to any other law |
4 | hereafter enacted providing for funds to municipalities for school housing purposes, is not less than |
5 | thirty-five percent (35%) for those expenditures which are eligible for state aid. This act shall |
6 | constitute an enabling act of the general assembly that is required pursuant to § 16-7-44. Any bonds, |
7 | notes or other evidences of indebtedness issued under this act for school projects shall not be |
8 | eligible for state housing aid reimbursement pursuant to § 16-7-44 unless the school projects |
9 | described herein have been approved by the Rhode Island Department of Education. |
10 | SECTION 3. The bonds shall be signed by the president of the town council, the town |
11 | administrator and the director of finance and shall be issued and sold in such amounts as the town |
12 | council may authorize. The manner of sale, denominations, maturities, interest rates and other |
13 | terms, conditions and details of any bonds or notes issued under this act may be fixed by the |
14 | proceedings of the town council authorizing the issue or by separate resolution of the town council |
15 | or, to the extent provisions for these matters are not so made, they may be fixed by the officers |
16 | authorized to sign the bonds or notes. Notwithstanding anything contained in this act to the |
17 | contrary, the town may enter into financing agreements with the Rhode Island Health and |
18 | Educational Building Corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, |
19 | with respect to bonds or notes issued in connection with such financing agreements, if any, the |
20 | town may elect to have the provisions of chapter 38.1 of title 45 apply to the issuance of the bonds |
21 | or notes issued hereunder to the extent the provisions of chapter 38.1 of title 45 are inconsistent |
22 | herewith. In addition, the town may enter into financing agreements with the Rhode Island |
23 | Infrastructure Bank pursuant to the provisions of chapter 12.2 of title 46 and, with respect to notes |
24 | or bonds issued in connection with such financing agreements, if any, the town may elect to have |
25 | the provisions of chapter 12.2 of title 46 apply to the issuance of the bonds or notes issued hereunder |
26 | to the extent the provisions of chapter 12.2 of title 46 are inconsistent herewith. Such election may |
27 | be fixed by the proceedings of the town council authorizing such issuance of by separate resolution |
28 | of the town council, or, to the extent provisions for these matters are not so made, they may be |
29 | fixed by the officers authorized to sign the bonds or notes. The proceeds derived from the sale of |
30 | the bonds shall be delivered to the director of finance, and such proceeds exclusive of premiums |
31 | and accrued interest shall be expended: (1) For the construction, additions, renovation, |
32 | improvement, alteration, repair furnishing and equipping of schools and school facilities in the |
33 | Town and all costs related thereto; (2) For payment of the principal or interest on temporary notes |
34 | issued under section 4; (3) In payment of capitalized interest on bonds or notes; (4) In repayment |
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1 | of advances under section 5; or (5) In payment of related costs of issuance of any bonds or notes. |
2 | No purchaser of any bonds or notes under this act shall be in any way responsible for the proper |
3 | application of the proceeds derived from the sales thereof. The project shall be carried out and all |
4 | contracts made therefor on behalf of the town by the town administrator, subject to approval of the |
5 | town council. The proceeds of bonds or notes issued under this act, any applicable federal or state |
6 | assistance and other monies referred to in section 7 and 10, shall be deemed appropriated for the |
7 | purposes of this act without further action than that required by this act. The bond issue authorized |
8 | by this act may be consolidated for the purposes of issuance and sale with any other bond issue of |
9 | the town heretofore or hereafter authorized; provided that, notwithstanding any such consolidation, |
10 | the proceeds from the sale of the bonds authorized by this act shall be expended for the purposes |
11 | set forth above. |
12 | SECTION 4. The town council may by resolution authorize the issue from time to time of |
13 | interest bearing or discounted notes in anticipation of the issue of bonds or in anticipation of the |
14 | receipt of federal or state aid for the purposes of this act. The amount of original notes issued in |
15 | anticipation of bonds may not exceed the amount of bonds which may be issued under this act |
16 | (without any reduction for any grant to be received from the School Building Authority Capital |
17 | Fund), and the amount of original notes issued in anticipation of federal or state aid may not exceed |
18 | the amount of available federal or state aid as estimated by the director of finance. Temporary |
19 | notes issued hereunder shall be signed by the manual or facsimile signatures of the director of |
20 | finance, the town administrator and the president of the town council shall be payable within five |
21 | (5) years from their respective dates, but the principal of and interest on notes issued for a shorter |
22 | period may be renewed or paid from time to time by the issue of other notes thereunder; provided |
23 | the period from the date of an original note to the maturity or any note issued to renew or pay the |
24 | same debt or the interest thereon shall not exceed five (5) years. Any temporary notes in anticipation |
25 | of bonds issued under this section may be refunded prior to the maturity of the notes by the issuance |
26 | of additional temporary notes; provided that, no such refunding shall result in any amount of such |
27 | temporary notes outstanding at any one time in excess of two hundred percent (200%) of the amount |
28 | of bonds which may be issued under this act; and provided, further that, if the issuance of any such |
29 | refunding notes results in any amount of such temporary notes outstanding at any one time in excess |
30 | of the amount of bonds which may be issued under this act, the proceeds of such refunding notes |
31 | shall be deposited in a separate fund established with the bank which is paying agent for the notes |
32 | being refunded. Pending their use to pay the notes being refunded, monies in the fund shall be |
33 | invested for the benefit of the town by the paying agent at the direction of the director of finance in |
34 | any investment permitted under section 5. The monies in the fund and any investments held as a |
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1 | part of the fund shall be held in trust and shall be applied by the paying agent solely to the payment |
2 | or prepayment of the principal of and interest on the notes being refunded. Upon payment of all |
3 | principal of and interest on the notes, any excess monies in the fund shall be distributed to the town. |
4 | The town may pay the principal of and interest on notes in full from other than the issuance of |
5 | refunding notes prior to the issuance of bonds pursuant to Section 1 hereof. In such case, the town’s |
6 | authority to issue bonds or notes in anticipation of bonds under this act shall continue provided |
7 | that: (1) The town council passes a resolution evidencing the town’s intent to pay off the notes |
8 | without extinguishing the authority to issue bonds or notes; and (2) That the period from the date |
9 | of an original note to the maturity date of any other note shall not exceed five (5) years. |
10 | SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu |
11 | of any authorization or issue of notes hereunder, the director of finance, with the approval of the |
12 | town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the |
13 | treasury of the town to the purposes specified in section 2, such advances to be repaid without |
14 | interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable |
15 | federal or state assistance or from other available funds. |
16 | SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
17 | or state assistance, pending their expenditure, may be deposited or invested by the director of |
18 | finance in demand deposits, time deposits or savings deposits in banks which are members of the |
19 | Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States |
20 | of America or by any agency or instrumentality thereof or as may be provided in any other |
21 | applicable law of the state of Rhode Island or resolution of the town council or pursuant to an |
22 | investment policy of the town. |
23 | SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall |
24 | be applied to the payment of the first interest due thereon. Any premiums arising from the sale of |
25 | bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of |
26 | funds hereunder shall, in the discretion of the director of finance, be applied to the cost of preparing, |
27 | issuing, and marketing bonds or notes hereunder to the extent not otherwise provided, to the |
28 | payment of the cost of the project, to the payment of the principal of or interest on bonds or notes |
29 | issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and |
30 | marketing bonds or notes hereunder may also, in the discretion of the director of finance, be met |
31 | from bond or note proceeds exclusive of accrued interest or from other monies available therefor. |
32 | Any balance of bond or note proceeds remaining after payment of the cost of the projects and the |
33 | cost of preparing, issuing and marketing bonds or notes hereunder shall be applied to the payment |
34 | of the principal of or interest on bonds or notes issued hereunder. To the extent permitted by |
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1 | applicable federal laws, any earnings or net profit realized from the deposit or investment of funds |
2 | hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town from |
3 | property taxes. In exercising any discretion under this section, the director of finance shall be |
4 | governed by any instructions adopted by resolution of the town council. |
5 | SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby |
6 | shall be obligatory on the town in the same manner and to the same extent as other debts lawfully |
7 | contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at |
8 | any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. |
9 | The town shall annually appropriate a sum sufficient to pay the principal and interest coming due |
10 | within the year on bonds and notes issued hereunder to the extent that monies therefor are not |
11 | otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax |
12 | levy. In order to provide such sum in each year and notwithstanding any provision of law to the |
13 | contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without |
14 | limitation as to rate or amount. |
15 | SECTION 9. Any bonds or notes issued under the provisions of this act, if properly |
16 | executed by officers of the town in office on the date of execution, shall be valid and binding |
17 | according to their terms notwithstanding that before the delivery thereof and payment therefor any |
18 | or all of such officers shall for any reason have ceased to hold office. |
19 | SECTION 10. The town, acting by resolution of its town council is authorized to apply for, |
20 | contract for and expend any federal or state advances or other grants or assistance which may be |
21 | available for the purposes of this act, and any such expenditures may be in addition to other monies |
22 | provided in this act. To the extent of any inconsistency between any law of this state and any |
23 | applicable federal law or regulation, the latter shall prevail. Federal and state advances, with |
24 | interest where applicable, whether contracted for prior to or after the effective date of this act, may |
25 | be repaid as project costs under section 2. |
26 | SECTION 11. Bonds and notes may be issued under this act without obtaining the approval |
27 | of any governmental agency or the taking of any proceedings or the happening of any conditions |
28 | except as specifically required by this act for such issue. In carrying out any project financed in |
29 | whole or in part under this act, including where applicable the condemnation of any land or interest |
30 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
31 | of any such project, all action shall be taken which is necessary to meet constitutional requirements |
32 | whether or not such action is otherwise required by statute; but the validity of bonds and notes |
33 | issued hereunder shall in no way depend upon the validity or occurrence of such action. |
34 | SECTION 12. All or any portion of the authority to issue bonds and notes under this act |
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1 | may be extinguished by resolution of the town council, without further action by the general |
2 | assembly seven (7) years after the effective date of this act. |
3 | SECTION 13. The director of finance, the town administrator and the president of the town |
4 | council, on behalf of the town, are hereby authorized to execute such documents or other papers as |
5 | either of them deem necessary or desirable to carry out the intent of this act and are also authorized |
6 | to take all actions and execute all documents or agreements necessary to comply with federal tax |
7 | and securities laws, which documents or agreements may have a term coextensive with the maturity |
8 | of the bonds authorized hereby, including Rule 15c2-12 of the Securities and Exchange |
9 | Commission (the Rule) and to execute and deliver a continuing disclosure agreement or certificate |
10 | in connection with the bonds or notes in the form as shall be deemed advisable by such officers in |
11 | order to comply with the Rule. |
12 | SECTION 14. The question of the approval of this act shall be submitted to the electors of |
13 | the town at the next general election on November 3, 2020 or at a special election (other than a |
14 | primary), on a date as shall be designated by the town council. The question shall be submitted in |
15 | substantially the following form: “Shall an Act, passed at the 2020 session of the General |
16 | Assembly, entitled, ‘AN ACT AUTHORIZING THE TOWN OF PORTSMOUTH TO ISSUE |
17 | NOT TO EXCEED $65,900,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER |
18 | EVIDENCES OF INDEBTEDNESS TO FINANCE THE CONSTRUCTION, ADDITIONS, |
19 | RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND |
20 | EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES THROUGHOUT THE TOWN, |
21 | SUBJECT TO APPROVAL OF STATE HOUSING AID AT A REIMBURSEMENT RATE OR |
22 | STATE SHARE RATIO OF NOT LESS THAN 35% FOR EXPENDITURES ELIGIBLE FOR |
23 | STATE AID AND PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY |
24 | ANY GRANT RECEIVED FROM THE SCHOOL BUILDING AUTHORITY CAPITAL FUND' |
25 | be approved?" and the warning for the election shall contain the question to be submitted. From |
26 | the time the election is warned and until it is held, it shall be the duty of the town clerk to keep a |
27 | copy of the act available at his office for public inspection, but the validity of the election shall not |
28 | be affected by this requirement. |
29 | SECTION 15. This section and the foregoing section shall take effect upon the passage of |
30 | this act. The remainder of this act shall take effect upon the approval of this act by a majority of |
31 | those voting on the question at the election prescribed by the foregoing section. |
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LC005507 | |
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EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE TOWN OF PORTSMOUTH TO ISSUE NOT TO EXCEED $65,900,000 | |
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF | |
INDEBTEDNESS TO FINANCE THE CONSTRUCTION, ADDITIONS, RENOVATION, | |
IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS | |
AND SCHOOL FACILITIES THROUGHOUT THE TOWN, SUBJECT TO APPROVAL OF | |
STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF | |
NOT LESS THAN 35% FOR EXPENDITURES ELIGIBLE FOR STATE AID AND | |
PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY ANY GRANT | |
RECEIVED FROM THE SCHOOL BUILDING AUTHORITY CAPITAL FUND | |
*** | |
1 | This act would authorize the Town of Portsmouth to issue bonds and notes in an amount |
2 | not exceeding $65,900,000 to finance the construction, additions, renovation, improvement, |
3 | alteration, repair, furnishing and equipping of schools and school facilities throughout the town, |
4 | subject to approval of state housing aid at a reimbursement rate or state share ratio of not less than |
5 | 35% for expenditures eligible for state aid and; provided, that the authorization shall be reduced by |
6 | any grant received from the School Building Authority Capital Fund. The town may be eligible |
7 | for school housing aid reimbursement on debt service pursuant to chapter 7 of title 16, or for |
8 | a grant, loan or other "financial assistance" as defined in § 45-38.2-1(6), from the School Building |
9 | Authority Capital Fund under chapter 38.2 of chapter 45. The amount of borrowing authorized |
10 | pursuant to this act would be reduced by the amount of any grant received by the town from |
11 | the School Building Authority Capital Fund. Bonds, notes or other evidences of indebtedness |
12 | would not be issued under this act unless the town has received a letter from the Rhode Island |
13 | Department of Education ("RIDE") confirming that the then-current school housing aid |
14 | reimbursement rate under chapter 7 of title 16, as amended from time to time, or financial assistance |
15 | from the School Building Authority Capital Fund, or pursuant to any other law hereafter enacted |
16 | providing for funds to municipalities for school housing purposes, is not less than thirty-five percent |
17 | (35%) of those expenditures which are eligible for state aid. |
18 | This act would constitute an enabling act of the general assembly that is required pursuant |
19 | to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under this act for school |
20 | projects would not be eligible for state housing aid reimbursement pursuant to § 16-7-44 unless the |
21 | school projects described herein have been approved by the Rhode Island Department of Education. |
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1 | Sections 14 and 15 would take effect upon passage. The remainder of the act takes effect |
2 | upon approval of the question provided for in section 14. |
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