2020 -- S 2856 | |
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LC005389 | |
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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 JAMESTOWN TO FINANCE LIBRARY RENOVATIONS, | |
REPAIRS AND/OR EXPANSION AND/OR RELATED EQUIPMENT BY THE ISSUANCE | |
OF NOT MORE THAN $1,500,000 BONDS AND NOTES THEREFOR | |
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Introduced By: Senator Dawn M. Euer | |
Date Introduced: June 10, 2020 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The Town of Jamestown is hereby empowered, in addition to authority |
2 | previously granted, to issue bonds to an amount not exceeding one million five hundred thousand |
3 | dollars ($1,500,000) from time to time under its corporate name and seal or a facsimile of such |
4 | seal. The bonds of each issue may be issued in the form of serial bonds or term bonds or a |
5 | combination thereof and shall be payable either by maturity of principal in the case of serial bonds |
6 | or by mandatory serial redemption in the case of term bonds, in annual installments of principal, |
7 | the first installment to be not later than five (5) years and the last installment not later than thirty |
8 | (30) years after the date of the bonds. For each issue the amounts payable annually for principal |
9 | and interest combined either shall be as nearly equal from year to year as is practicable in the |
10 | opinion of the officers authorized to issue the bonds, or shall be arranged in accordance with a |
11 | schedule providing for a more rapid amortization of principal. |
12 | SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the finance |
13 | director of the town and the president of the town council and shall be issued and sold in such |
14 | amounts as the town council may authorize by resolution. The manner of sale, denominations, |
15 | maturities, interest rates and other terms, conditions and details of any bonds or notes issued under |
16 | this act may be fixed by the resolution of the town council authorizing the issue or by separate |
17 | resolution of the town council or, to the extent provisions for these matters are not so made, they |
18 | may be fixed by the officers authorized to sign the bonds or notes. The proceeds derived from the |
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1 | sale of the bonds shall be delivered to the finance director, and such proceeds exclusive of |
2 | premiums and accrued interest shall be expended for: (1) The renovation, repair and/or expansion |
3 | of the Jamestown Philomenian Library included related equipment therefor; (2) In payment of the |
4 | principal of or interest on temporary notes issued under section 3 of this act; or (3) In repayment of |
5 | advances under section 4 of this act. No purchaser of any bonds or notes under this act shall be in |
6 | any way responsible for the proper application of the proceeds derived from the sale thereof. The |
7 | project shall be carried out and all contracts made therefor on behalf of the town by the town |
8 | council, or as may be heretofore or hereafter otherwise directed by the town council. The proceeds |
9 | of bonds or notes issued under this act, any applicable federal or state assistance and the other |
10 | monies referred to in section 6 of this act shall be deemed appropriated for the purposes of this act |
11 | without further action than that required by this act. The bond issue authorized by this act may be |
12 | consolidated for the purposes of issuance and sale with any other bond issue of the town heretofore |
13 | or hereafter authorized, provided that, notwithstanding any such consolidation, the proceeds from |
14 | the sale of the bonds authorized by this act shall be expended for the purposes set forth above. |
15 | SECTION 3. The town council may by resolution authorize the issue from time to time of |
16 | interest bearing or discounted notes in anticipation of the authorization or issue of bonds or in |
17 | anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original |
18 | notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued |
19 | under this act and the amount of original notes issued in anticipation of federal or state aid may not |
20 | exceed the amount of available federal or state aid as estimated by the finance director. Temporary |
21 | notes issued hereunder shall be signed by the finance director and by the president of the town |
22 | council and shall be payable within five (5) years from their respective dates, but the principal of |
23 | and interest on notes issued for a shorter period may be renewed or paid from time to time by the |
24 | issue of other notes hereunder, provided the period from the date of an original note to the maturity |
25 | of any note issued to renew or pay the same debt or the interest thereon shall not exceed five (5) |
26 | years. |
27 | SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu |
28 | of any authorization or issue of notes hereunder, the finance director, with the approval of the town |
29 | council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the treasury |
30 | of the town to the purposes specified in section 2, such advances to be repaid without interest from |
31 | the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal or |
32 | state assistance or from other available funds. |
33 | SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
34 | or state assistance, pending their expenditure may be deposited or invested by the finance director, |
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1 | in demand deposits, time deposits or savings deposits in banks which are members of the Federal |
2 | Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of |
3 | America or by any agency or instrumentality thereof or as may be provided in any other applicable |
4 | law of the state of Rhode Island. |
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 premiums arising from the sale of |
7 | bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of |
8 | funds hereunder shall, in the discretion of the finance director, be applied to the cost of preparing, |
9 | issuing and marketing bonds or notes hereunder to the extent not otherwise provided, to the |
10 | payment of the cost of the projects or to the cost of additional improvements coming within the |
11 | description of the projects in section 2 of this act, to the payment of the principal of or interest on |
12 | bonds or notes issued hereunder or to any one or more of the foregoing. The cost of preparing, |
13 | issuing and marketing bonds or notes hereunder may also, in the discretion of the finance director, |
14 | be met from bond or note proceeds exclusive of 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 said additional improvements and the cost of preparing, issuing and marketing bonds or notes |
17 | hereunder shall be applied to the payment of the principal of or interest on bonds or notes issued |
18 | hereunder. In exercising any discretion under this section, the finance director shall be governed by |
19 | any instructions adopted by resolution of the town council. The finance director is authorized to |
20 | take any action deemed by him or her necessary to ensure that interest on the bonds or notes issued |
21 | hereunder remains excludable from gross income of the recipients thereof for federal income tax |
22 | purposes, including, without limitation, (1) Paying to the federal government any rebate of earnings |
23 | derived from the deposit or investment of the proceeds of such bonds or notes that may be required |
24 | therefor; and (2) To comply with the requirements of federal law, including without being limited |
25 | to regulations and other requirements of the Securities and Exchange Commission and the |
26 | Municipal Securities Rulemaking Board, imposed directly on the town or on the underwriters of |
27 | such bonds and notes. |
28 | SECTION 7. All bonds or notes issued under this act and the debts evidenced thereby shall |
29 | be obligatory on the town in the same manner and to the same extent as other debts lawfully |
30 | contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at |
31 | any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. |
32 | The town shall annually appropriate a sum sufficient to pay the principal and interest coming due |
33 | within the year on bonds and notes issued hereunder to the extent that monies therefor are not |
34 | otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax |
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1 | levy. In order to provide such sum in each year and notwithstanding any provision of law to the |
2 | contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without |
3 | limitation as to rate or amount. |
4 | SECTION 8. Any bonds or notes issued under the provisions of this act, if properly |
5 | executed by officers of the town in office on the date of execution, shall be valid and binding |
6 | according to their terms notwithstanding that before the delivery thereof and payment therefor any |
7 | or all of such officers shall for any reason have ceased to hold office. |
8 | SECTION 9. The town, acting by resolution of its town council is authorized to apply for, |
9 | contract for and expend any federal or state advances or other grants or assistance which may be |
10 | available for the purposes of this act, and any such expenditures may be in addition to other monies |
11 | provided in this act. To the extent of any inconsistency between any law of this state and any |
12 | applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest |
13 | where applicable, whether contracted for prior to or after the effective date of this act, may be |
14 | repaid as project costs under section 2. |
15 | SECTION 10. Bonds and notes may be issued under this act without obtaining the approval |
16 | of any governmental agency or the taking of any proceedings or the happening of any conditions |
17 | except as specifically required by this act for such issue. Without limiting the generality of the |
18 | foregoing, bonds and notes may be issued under this act without any action at the financial town |
19 | meeting. In carrying out any project financed in whole or in part under this act, including where |
20 | applicable the condemnation of any land or interest in land, and in the levy and collection of |
21 | assessments or other charges permitted by law on account of any such project, all action shall be |
22 | taken which is necessary to meet constitutional requirements whether or not such action is |
23 | otherwise required by statute; but the validity of bonds and notes issued hereunder shall in no way |
24 | depend upon the validity or occurrence of such action. To the extent of any inconsistency between |
25 | this act and the town charter, this act shall prevail. |
26 | SECTION 11. The question of the approval of this act shall be submitted to the electors of |
27 | the town at an election on a date to be determined by the town council which occurs at least sixty |
28 | (60) days after the passage of this act. The question shall be submitted in substantially the following |
29 | form: "Shall an act, passed at the 2020 session of the general assembly, entitled ‘AN ACT |
30 | AUTHORIZING THE TOWN OF JAMESTOWN TO FINANCE LIBRARY RENOVATIONS, |
31 | REPAIRS AND/OR EXPANSION AND/OR RELATED EQUIPMENT BY THE ISSUANCE OF |
32 | NOT MORE THAN $1,500,000 BONDS AND NOTES THEREFOR' be approved?" and the |
33 | warning for the election shall contain the question to be submitted. The town board of canvassers |
34 | may combine any two (2) or more voting districts for the election and when so combined shall be |
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1 | treated as a voting district. If so combined, the town board of canvassers shall advertise the |
2 | combination of districts in a newspaper of general circulation in the town. From the time the |
3 | election is warned and until it is held, it shall be the duty of the town clerk to keep a copy of the act |
4 | available at his or her office for public inspection, but the validity of the election shall not be |
5 | affected by this requirement. |
6 | SECTION 12. This section and section 11 shall take effect upon passage. The remainder |
7 | of this act shall take effect upon the approval of this act by a majority of those voting on the question |
8 | at the election prescribed by section 11. |
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LC005389 | |
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EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE TOWN OF JAMESTOWN TO FINANCE LIBRARY RENOVATIONS, | |
REPAIRS AND/OR EXPANSION AND/OR RELATED EQUIPMENT BY THE ISSUANCE | |
OF NOT MORE THAN $1,500,000 BONDS AND NOTES THEREFOR | |
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1 | This act authorizes the town of Jamestown to issue not more than $1,500,000 bonds and |
2 | notes to finance various improvements at the town of Jamestown’s library and related equipment. |
3 | Sections 11 and 12 would take effect upon the passage. The remainder of this act would |
4 | take effect upon the approval by the electors of the town of the question provided in section 11. |
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LC005389 | |
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