2020 -- S 2854 | |
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LC005386 | |
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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 BURRILLVILLE TO ISSUE NOT TO EXCEED $7,000,000 | |
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF | |
INDEBTEDNESS TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, | |
ALTERATION, REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS | |
AND SCHOOL FACILITIES THROUGHOUT THE TOWN, AND ALL ATTENDANT | |
EXPENSES INCLUDING, BUT NOT LIMITED TO, ENGINEERING AND | |
ARCHITECTURAL COSTS, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A | |
REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS THAN 45% AT THE | |
TIME OF ISSUANCE AND PROVIDED THAT THE AUTHORIZATION SHALL BE | |
REDUCED BY THE AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE BOND | |
PROCEEDS, FROM THE RHODE ISLAND DEPARTMENT OF EDUCATION OR FROM | |
THE RHODE ISLAND SCHOOL BUILDING AUTHORITY | |
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Introduced By: Senator Jessica de la Cruz | |
Date Introduced: June 10, 2020 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The town of Burrillville 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 seven million dollars ($7,000,000) from time to time under its |
4 | corporate name and seal or a facsimile of such seal; provided, however, that bonds shall not be |
5 | issued unless the conditions of section 2 hereof as to the level of state aid are met. The bonds of |
6 | each issue may be issued in the form of serial bonds or term bonds or a combination thereof and |
7 | shall be payable either by maturity of principal in the case of serial bonds or by sinking fund |
8 | installments in the case of term bonds, in annual installments of principal, the first installment to |
9 | be not later than five (5) years and the last installment not later than thirty (30) years after the date |
10 | of the bonds. All such bonds of a particular issue may be issued in the form of zero coupon bonds, |
11 | capital appreciation bonds, serial bonds or term bonds or a combination thereof. The amount of |
12 | principal appreciation each year on any bonds, after the date of original issuance, shall not be |
13 | considered to be principal indebtedness for the purposes of any constitutional or statutory debt limit |
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1 | or any other limitation. The appreciation of principal after the date of original issue shall be |
2 | considered interest. Only the original principal amount shall be counted in determining the principal |
3 | amount so issued and any interest component shall be disregarded. |
4 | SECTION 2. The town may be eligible for school housing aid reimbursement on debt |
5 | service pursuant to chapter 7 of title 16, or for a grant, loan or other financial assistance from |
6 | proceeds of bonds issued by the state of Rhode Island (the “state”), from the Rhode Island |
7 | department of education (“RIDE”) or from the Rhode Island school building authority. The amount |
8 | of borrowing authorized pursuant to this act shall be reduced by the amount of certain grants |
9 | actually received by the town from state bond proceeds, from RIDE or from the Rhode Island |
10 | school building authority; provided however, that the amount of borrowing authorized shall not be |
11 | reduced by the amount of any grant received by the town for any portion of the project funded by |
12 | capital reserve funds. Bonds, notes or other evidences of indebtedness shall not be issued under this |
13 | act unless the town has received a letter from RIDE confirming that the then-current school housing |
14 | aid reimbursement rate under chapter 7 of title 16, as amended from time to time, or financial |
15 | assistance from the school building authority capital fund, or pursuant to any other law hereafter |
16 | enacted providing for funds to municipalities for school housing purposes, is not less than forty- |
17 | five percent (45%) of debt service for those expenditures which are eligible for state aid. |
18 | SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town |
19 | director of finance and the president of the town council and shall be issued and sold in such |
20 | amounts as the town council may authorize by resolution. The manner of sale, denominations, |
21 | maturities, interest rates and other terms, conditions and details of any bonds or notes issued under |
22 | this act may be fixed by the resolutions of the town council authorizing the issue or by separate |
23 | resolution of the town council or, to the extent provisions for these matters are not so made, they |
24 | may be fixed by the officers authorized to sign the bonds or notes. Notwithstanding anything |
25 | contained in this act to the contrary, the town may enter into financing agreements with the Rhode |
26 | Island health and educational building corporation pursuant to chapter 7 of title 16 and chapter 38.1 |
27 | of title 45 and, with respect to notes or bonds issued in connection with such financing agreements, |
28 | if any, the town may elect to have the provisions of chapter 38.1 of title 45 apply to the issuance of |
29 | the bonds or notes issued hereunder to the extent the provisions of chapter 38.1 of title 45 are |
30 | inconsistent herewith. In addition, the town may enter into financing agreements with the Rhode |
31 | Island Infrastructure Bank pursuant to the provisions of chapter 12.2 of title 46 and, with respect to |
32 | bonds or notes issued in connection with such financing agreements, if any, the town may elect to |
33 | have the provisions of chapter 12.2 of title 46 apply to the issuance of the bonds or notes issued |
34 | hereunder to the extent the provisions of chapter 12.2 of title 46 are inconsistent herewith. Such |
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1 | election may be fixed by the proceedings of the town council authorizing such issuance by separate |
2 | resolution of the town council, or, to the extent provisions for these matters are not so made, they |
3 | may be fixed by the officers authorized to sign the bonds or notes. The proceeds derived from the |
4 | sale of the bonds shall be delivered to the town director of finance, and such proceeds exclusive of |
5 | premiums and accrued interest shall be expended: (1) To finance the construction, renovation, |
6 | improvement, alteration, repair, landscaping, furnishing and equipping of schools and school |
7 | facilities throughout the town, and all attendant expenses including, but not limited to, engineering |
8 | and architectural costs; (2) In payment of the principal of or interest on temporary notes issued |
9 | under section 4; (3) In repayment of advances under section 5; (4) In payment of related costs of |
10 | issuance of any bonds or notes; and/or (5) In payment of capitalized interest during construction of |
11 | the project (the “project”). No purchaser of any bonds or notes under this act shall be in any way |
12 | responsible for the proper application of the proceeds derived from the sale thereof. The town shall |
13 | form a school building committee comprised of seven (7) members, three (3) members appointed |
14 | by the school committee and four (4) members appointed by the town council. The project shall be |
15 | carried out and all contracts made therefor on behalf of the town by the town council with due |
16 | regard to any recommendation of the school building committee. The town council and the school |
17 | building committee and their agents are authorized to enter, without delay and at reasonable times, |
18 | any public school buildings and other public school property for the purpose of accomplishing the |
19 | project and to do all acts and deeds necessary or convenient in connection with the project. The |
20 | proceeds of bonds or notes issued under this act, any applicable federal or state assistance and the |
21 | other monies referred to in sections 7 and 10 shall be deemed appropriated for the purposes of this |
22 | act without further action than that required by this act. The bonds authorized by this act may be |
23 | consolidated for the purpose of issuance and sale with any other bonds of the town heretofore or |
24 | hereafter authorized; provided that, notwithstanding any such consolidation, the proceeds from the |
25 | sale of the bonds authorized by this act shall be expended for the purposes set forth above. |
26 | SECTION 4. The town council may by resolution authorize the issuance from time to time |
27 | of interest bearing or discounted notes in anticipation of the issuance of bonds or in anticipation of |
28 | the receipt of federal or state aid for the purposes of this act. The amount of original notes issued |
29 | in anticipation of bonds may not exceed the amount of bonds which may be issued under this act |
30 | and the amount of original notes issued in anticipation of federal or state aid may not exceed the |
31 | amount of available federal or state aid as estimated by the director of finance. Temporary notes |
32 | issued hereunder shall be signed by the manual or facsimile signatures of the town director of |
33 | finance and the president of the town council and shall be payable within five (5) years from their |
34 | respective dates, but the principal of and interest on notes issued for a shorter period may be |
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1 | renewed or paid from time to time by the issuance of other notes hereunder; provided the period |
2 | from the date of an original note to the maturity of any note issued to renew or pay the same debt |
3 | or interest thereon shall not exceed five (5) years. Any temporary notes in anticipation of bonds |
4 | issued under this section may be refunded prior to the maturity of the notes by the issuance of |
5 | additional temporary notes; provided that, no such refunding shall result in any amount of such |
6 | temporary notes outstanding at any one time in excess of two hundred percent (200%) of the amount |
7 | of bonds which may be issued under this act; and provided further, that if the issuance of any such |
8 | refunding notes results in any amount of such temporary notes outstanding at any one time in excess |
9 | of the amount of bonds which may be issued under this act, the proceeds of such refunding notes |
10 | shall be deposited in trust in a separate fund established for the notes being refunded. Pending their |
11 | use to pay the notes being refunded, monies in the fund shall be invested for the benefit of the town |
12 | by the paying agent at the direction of the town director of finance in any investment permitted |
13 | under section 6. The monies in the fund and any investments held as part of the fund shall be held |
14 | in trust and shall be applied by the paying agent solely to the payment or prepayment of the principal |
15 | of and interest on the notes being refunded. Upon payment of all principal of and interest on the |
16 | notes, any excess monies in the fund shall be distributed to the town. The town may pay the |
17 | principal of and interest on notes in full from other than the issuance of refunding notes prior to the |
18 | issuance of bonds pursuant to section 1 hereof. In such case, the town’s authority to issue bonds or |
19 | notes in anticipation of bonds under this act shall continue; provided that: (1) The town council |
20 | passes a resolution evidencing the town’s intent to pay off the notes without extinguishing the |
21 | authority to issue bonds or notes; and (2) That the period from the date of an original note to the |
22 | maturity date of any other note shall not exceed five (5) years. |
23 | SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu |
24 | of any authorization or issue of notes hereunder, the town director of finance, with the approval of |
25 | the town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in |
26 | the treasury of the town to the purposes specified in section 3, such advances to be repaid without |
27 | interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable |
28 | federal or state assistance or from other available funds. |
29 | SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
30 | or state assistance, pending their expenditure may be deposited or invested by the town director of |
31 | finance in demand deposits, time deposits or savings deposits in banks which are members of the |
32 | Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States |
33 | of America or by any agency or instrumentality thereof or as may be provided in any other |
34 | applicable law of the state of Rhode Island or resolution of the town council or pursuant to an |
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1 | investment policy of the town. |
2 | SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall |
3 | be applied to the payment of the first interest due thereon. Any premium arising from the sale of |
4 | bonds or notes hereunder shall, in the discretion of the town director of finance, be applied to the |
5 | cost of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise |
6 | provided, to the payment of the project costs, to the payment of the principal of or interest on bonds |
7 | or notes issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing |
8 | and marketing bonds or notes hereunder may also, in the discretion of the town director of finance, |
9 | be met from bond or note proceeds exclusive of accrued interest or from other monies available |
10 | therefor. Any balance of bond or note proceeds remaining after payment of the cost of the projects |
11 | and the cost of preparing, issuing and marketing bonds or notes hereunder, shall be applied to the |
12 | payment of the principal of or interest on bonds or notes issued hereunder. To the extent permitted |
13 | by applicable federal laws, any earnings or net profit realized from the deposit or investment of |
14 | funds hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town |
15 | from property taxes. In exercising any discretion under this section, the town director of finance |
16 | shall be governed by any instructions adopted by resolution of the town council. |
17 | SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby |
18 | shall be obligatory on the town in the same manner and to the same extent as other debts lawfully |
19 | contracted by it and shall be excepted from the operation of §45-12-2. No such obligation shall at |
20 | any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. |
21 | The town shall annually appropriate a sum sufficient to pay the principal and interest coming due |
22 | within the year on bonds and notes issued hereunder to the extent that monies therefor are not |
23 | otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax |
24 | levy. In order to provide such sum in each year and notwithstanding any provision of law to the |
25 | contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without |
26 | limitation as to rate or amount. |
27 | SECTION 9. Any bonds or notes issued under the provisions of this act, and coupons, if |
28 | any, if properly executed by officers of the town in office on the date of execution, shall be valid |
29 | and binding according to their terms notwithstanding that before the delivery thereof and payment |
30 | therefor any or all of such officers shall for any reason have ceased to hold office. |
31 | SECTION 10. The town, acting by resolution of its town council, is authorized to apply |
32 | for, contract for and expend any federal or state advances or other grants or assistance which may |
33 | be available for the purposes of this act, and any such expenditures may be in addition to the monies |
34 | provided in this act. To the extent of any inconsistency between any law of this state and any |
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1 | applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest |
2 | where applicable, whether contracted for prior to or after the effective date of this act, may be |
3 | repaid as project costs under section 3. |
4 | SECTION 11. Bonds and notes may be issued under this act without obtaining the approval |
5 | of any governmental agency or the taking of any proceedings or the happening of any conditions |
6 | except as specifically required by this act for such issue. In carrying out any project financed in |
7 | whole or in part under this act, including where applicable the condemnation of any land or interest |
8 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
9 | of any such project, all action shall be taken which is necessary to meet constitutional requirements |
10 | whether or not such action is otherwise required by statute, but the validity of bonds and notes |
11 | issued hereunder shall in no way depend upon the validity or occurrence of such action. |
12 | SECTION 12. The town director of finance and the president of the town council, on behalf |
13 | of the town, are hereby authorized to execute such instruments, documents or other papers as either |
14 | of them deem necessary or desirable to carry out the intent of this act and are also authorized to |
15 | take all actions and execute all instruments, documents or agreements necessary to comply with |
16 | federal tax and securities laws, which instruments, documents or agreements may have a term |
17 | coextensive with the maturity of the bonds authorized hereby, including Rule 15c2-12 of the |
18 | Securities and Exchange Commission (the “Rule”) and to execute and deliver a continuing |
19 | disclosure agreement or certificate in connection with the bonds or notes in the form as shall be |
20 | deemed advisable by such officers in order to comply with the Rule. |
21 | SECTION 13. All or any portion of the authorized but unissued authority to issue bonds |
22 | and notes under this act may be extinguished by ordinance of the town council after seven (7) years |
23 | shall have passed from the approval of this act provided for in section 14, without further action by |
24 | the general assembly. |
25 | SECTION 14. At the general election to be held on November [4], 2020, there shall be |
26 | submitted to electors of the town a question in substantially the following form: “Shall an act passed |
27 | at the 2020 session of the general assembly entitled ‘AN ACT AUTHORIZING THE TOWN OF |
28 | BURRILLVILLE TO ISSUE NOT TO EXCEED $7,000,000 GENERAL OBLIGATION BONDS, |
29 | NOTES AND OTHER EVIDENCES OF INDEBTEDNESS TO FINANCE THE |
30 | CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, |
31 | LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL |
32 | FACILITIES THROUGHOUT THE TOWN, AND ALL ATTENDANT EXPENSES |
33 | INCLUDING, BUT NOT LIMITED TO, ENGINEERING AND ARCHITECTURAL COSTS, |
34 | SUBJECT TO APPROVAL OF STATE HOUSING AID AT A REIMBURSEMENT RATE OR |
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1 | STATE SHARE RATIO OF NOT LESS THAN 45% AT THE TIME OF ISSUANCE AND |
2 | PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF |
3 | CERTAIN GRANTS RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE |
4 | ISLAND DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL |
5 | BUILDING AUTHORITY’ be approved?” and the warning for the election shall contain the |
6 | question to be submitted. From the time the election is warned and until it is held, it shall be the |
7 | duty of the town clerk to keep a copy of this act available at the clerk’s office for public inspection, |
8 | but the validity of the election shall not be affected by this requirement. To the extent of any |
9 | inconsistency between this act and the town charter, this act shall prevail. |
10 | SECTION 15. This section and section 14 shall take effect upon the passage of this act. |
11 | The remainder of this act shall take effect upon the approval of this act by a majority of those voting |
12 | on the question at the election prescribed by section 14. |
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LC005386 | |
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EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE TOWN OF BURRILLVILLE TO ISSUE NOT TO EXCEED $7,000,000 | |
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF | |
INDEBTEDNESS TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, | |
ALTERATION, REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS | |
AND SCHOOL FACILITIES THROUGHOUT THE TOWN, AND ALL ATTENDANT | |
EXPENSES INCLUDING, BUT NOT LIMITED TO, ENGINEERING AND | |
ARCHITECTURAL COSTS, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A | |
REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS THAN 45% AT THE | |
TIME OF ISSUANCE AND PROVIDED THAT THE AUTHORIZATION SHALL BE | |
REDUCED BY THE AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE BOND | |
PROCEEDS, FROM THE RHODE ISLAND DEPARTMENT OF EDUCATION OR FROM | |
THE RHODE ISLAND SCHOOL BUILDING AUTHORITY | |
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1 | This act authorizes the town of Burrillville to issue not more than $7,000,000 bonds and |
2 | notes to finance the construction, renovation, improvement, alteration, repair, landscaping, |
3 | furnishing and equipping of schools and school facilities throughout the Town, and all attendant |
4 | expenses including, but not limited to, engineering and architectural costs. |
5 | Sections 14 and 15 of this act shall take effect upon passage. The remainder of the act |
6 | would take effect upon approval by the electors of the town of the question provided for in section |
7 | 14. |
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LC005386 | |
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