2020 -- S 2910 | |
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LC005501 | |
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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 DESIGN, | |
CONSTRUCTION, REPAIR, REHABILITATION AND IMPROVEMENT OF STREETS, | |
SIDEWALKS AND BRIDGES IN THE CITY, INCLUDING BUT NOT LIMITED TO, | |
PAVING, DRAINAGE, TRAFFIC CONTROL DEVICES, ROAD MAINTENANCE | |
EQUIPMENT, SAFETY IMPROVEMENTS AND LANDSCAPING AND ALL COSTS | |
INCIDENTAL OR RELATED THERETO BY THE ISSUANCE OF NOT MORE THAN | |
$10,000,000 GENERAL OBLIGATION BONDS AND NOTES THEREFOR | |
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Introduced By: Senators Gallo, Miller, and Lombardi | |
Date Introduced: June 18, 2020 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The city of Cranston is hereby empowered, in addition to authority |
2 | previously granted, to issue bonds to an amount not exceeding ten million dollars ($10,000,000) |
3 | from time to time under its corporate name and seal or a facsimile of such seal. The bonds of each |
4 | issue shall mature in annual installments of principal, the first installment to be not later than five |
5 | (5) years and the last installment not later than thirty (30) years after the date of the bonds. All such |
6 | bonds of a particular issue may be issued in the form of zero coupon bonds, capital appreciation |
7 | bonds, serial bonds or term bonds or a combination thereof. Annual installments of principal may |
8 | be 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 |
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1 | may authorize. The manner of sale, denominations, maturities, interest rates and other terms, |
2 | conditions and details of any bonds or notes issued under this act may be fixed by the proceedings |
3 | of the city council authorizing the issue or by separate order or resolution of the city council or, to |
4 | the extent provisions for these matters are not so made, they may be fixed by the officers authorized |
5 | to sign the bonds or notes. Interest coupons (if any) shall bear the facsimile signature of the director |
6 | of finance. The proceeds derived from the sale of the bonds shall be delivered to the city treasurer, |
7 | and such proceeds, exclusive of premiums and accrued interest, shall be expended: (1) To finance |
8 | the design, construction, repair, rehabilitation and improvement of streets, sidewalks and bridges |
9 | in the city, including but not limited to, paving, drainage, traffic control devices, road maintenance |
10 | equipment, safety improvements and landscaping and all costs incidental or related thereto; or (2) |
11 | In payment of the principal of or interest on temporary notes issued under section 3; or (3) In |
12 | repayment of advances under section 4; (4), In payment of costs of issuance associated with the |
13 | issuance of bonds or notes hereunder; and/or (5) To finance capitalized interest on the projects. No |
14 | purchaser of any bonds or notes under this act shall be in any way responsible for the proper |
15 | application of the proceeds derived from the sale thereof. The proceeds of bonds or notes issued |
16 | under this act, any applicable federal or state assistance and the other monies referred to in sections |
17 | 6 and 9 shall be deemed appropriated for the purposes of this act without further action than that |
18 | required by this act. In addition to such funds, there may be expended for the purposes of this act |
19 | such other sums as may be appropriated therefor. The bonds authorized by this act may be |
20 | consolidated for the purposes of issuance and sale with any other bonds of the city heretofore or |
21 | hereafter authorized, provided that notwithstanding any such consolidation, the proceeds from the |
22 | sale of the bonds authorized by this act shall be expended for the purposes set forth above. The |
23 | director of finance and the mayor, on behalf of the city, are hereby authorized to execute such |
24 | instruments, documents or other papers as either of them deem necessary or desirable to carry out |
25 | the intent of this act and are also authorized to take all actions and execute all documents or |
26 | agreements necessary to comply with federal tax and securities laws, which documents or |
27 | agreements may have a term coextensive with the maturity of the bonds authorized hereby, |
28 | including Rule 15c2-12 of the Securities and Exchange Commission and to execute and deliver a |
29 | continuing disclosure agreement or certificate in connection with the bonds or notes. |
30 | SECTION 3. The city council may, by order or resolution authorizing the bonds or by |
31 | separate order or resolution, authorize the issuance from time to time of interest bearing or |
32 | discounted notes in anticipation of the issue of bonds under section 2 or in anticipation of the receipt |
33 | of federal or state aid for the purposes of this act. The amount of original notes issued in |
34 | anticipation of bonds may not exceed the amount of bonds which may be issued under this act and |
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1 | the amount of original notes issued in anticipation of federal or state aid may not exceed the amount |
2 | of available federal or state aid as estimated by the director of finance. Temporary notes issued |
3 | hereunder shall be signed by the manual or facsimile signature of the director of finance and |
4 | countersigned by the manual or facsimile signature of the mayor and shall be payable within five |
5 | (5) years from their respective dates, but the principal of and interest on notes issued for a shorter |
6 | period may be renewed or paid from time to time by the issue of other notes hereunder, provided |
7 | the period from the date of an original note to the maturity of any note issued to renew or pay the |
8 | same debt or the interest thereon shall not exceed five (5) years. Any temporary notes in anticipation |
9 | of bonds issued under this section may be refunded prior to the maturity of the notes by the issuance |
10 | of additional temporary notes, provided that no such refunding shall result in any amount of such |
11 | temporary notes outstanding at any one time in excess of two hundred percent (200%) of the amount |
12 | of bonds which may be issued under this act, and provided further that if the issuance of any such |
13 | refunding notes results in any amount of such temporary notes outstanding at any one time in excess |
14 | of the amount of bonds which may be issued under this act, the proceeds of such refunding notes |
15 | shall be deposited in a separate fund established with the bank which is paying agent for the notes |
16 | being refunded. Pending their use to pay the notes being refunded, monies in the fund shall be |
17 | invested for the benefit of the city by the paying agent at the direction of the city treasurer in any |
18 | investment permitted under section 5. The monies in the fund and any investments held as a part |
19 | of the fund shall be held in trust and shall be applied by the paying agent solely to the payment or |
20 | prepayment of the principal of and interest on the notes being refunded. Upon payment of all |
21 | principal of and interest on the notes, any excess monies in the fund shall be distributed to the city. |
22 | The city may pay the principal of and interest on notes in full from sources other than the issuance |
23 | of refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such case, the |
24 | city’s authority to issue bonds or notes in anticipation of bonds under this act shall continue |
25 | provided that: (1) The city council passes a resolution evidencing the city’s intent to pay off the |
26 | notes without extinguishing the authority to issue bonds or notes; and (2) That the period from the |
27 | date of an original note to the maturity date of any other note shall not exceed five (5) years. |
28 | SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu |
29 | of any authorization or issue of notes hereunder, the city treasurer, with the approval of the city |
30 | council given by an order or resolution, may, to the extent that bonds or notes may be issued |
31 | hereunder, apply funds in the treasury of the city to the purposes specified in section 2, such |
32 | advances to be repaid without interest from the proceeds of bonds or notes subsequently issued or |
33 | from the proceeds of applicable federal or state assistance or from other available funds. |
34 | SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
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1 | or state assistance, pending their expenditure, and may be deposited or invested by the city treasurer |
2 | in demand deposits, time deposits or savings deposits in banks which are members of the Federal |
3 | Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of |
4 | America or by any agency or instrumentality thereof or as may be provided in any other applicable |
5 | laws of the state of Rhode Island and by ordinance or resolution of the city council or pursuant to |
6 | an investment policy of the city. |
7 | SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall |
8 | be applied to the payment of the first interest due thereon. Any net earnings or profits realized from |
9 | the investment of funds hereunder and any premiums arising from the sale of bonds or notes |
10 | hereunder shall, in the discretion of the city treasurer, be applied to the cost of preparing, issuing |
11 | and marketing bonds or notes hereunder to the extent not otherwise provided, to the payment of the |
12 | cost of the projects or the cost of additional improvements coming within the description of the |
13 | projects in section 2 of this act, to the payment of the principal of or interest on bonds or notes |
14 | issued hereunder, or to any one or more of the foregoing. The cost of preparing, issuing and |
15 | marketing bonds or notes hereunder may also, in the discretion of the city treasurer, be met from |
16 | bond or note proceeds exclusive of premium and accrued interest or from other monies available |
17 | therefor. Any balance of bond or note proceeds remaining after payment of the cost of the projects |
18 | and the cost of additional improvements coming within the description of the projects in section 2 |
19 | of this act, and the cost of preparing, issuing and marketing bonds or notes hereunder shall be |
20 | applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the |
21 | extent permitted by applicable federal law, any earnings or net profit realized from the deposit or |
22 | investment of funds hereunder may upon receipt be added to and dealt with as part of the revenues |
23 | of the city from property taxes. In exercising any discretion under this section, the city treasurer |
24 | shall be governed by any instructions adopted by any order or resolution of the city council. |
25 | SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby |
26 | shall be obligatory on the city in the same manner and to the same extent as other debts lawfully |
27 | contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at |
28 | any time be included in the debt of the city for the purpose of ascertaining its borrowing capacity. |
29 | The city shall annually appropriate a sum sufficient to pay the principal and interest coming due |
30 | within the year on bonds and notes issued hereunder to the extent that monies therefor are not |
31 | otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual |
32 | tax levy. In order to provide such sum in each year and notwithstanding any provision of law to |
33 | the contrary, all taxable property in the city shall be subject to ad valorem taxation by the city |
34 | without limitation as to rate or amount. |
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1 | SECTION 8. Any bonds or notes issued under the provisions of this act, and coupons, if |
2 | any, if properly executed by the officers of the city in office on the date of execution, shall be valid |
3 | and binding according to their terms notwithstanding that before the delivery thereof and payment |
4 | therefor any or all of the officers shall for any reason have ceased to hold office. |
5 | SECTION 9. The city, acting by order or resolution of its city council is authorized to |
6 | apply for, contract for and expend any federal or state advances or other grants of assistance which |
7 | may be available for the purposes of this act, and any such expenditures may be in addition to other |
8 | monies provided in this act. To the extent of any inconsistency between any law of this state and |
9 | any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with |
10 | interest where applicable, whether contracted for prior to or after the effective date of this act, may |
11 | be repaid as projects costs under section 2 of this act. |
12 | SECTION 10. Bonds and notes may be issued under this act without obtaining approval |
13 | of any governmental agency or the taking of any proceedings or the happening of any conditions |
14 | except as specifically required by this act for such issue. In carrying out any projects financed in |
15 | whole or in part under this act, including where applicable the condemnation of any land or interest |
16 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
17 | of any such projects, all action shall be taken which is necessary to meet constitutional requirements |
18 | whether or not such action is otherwise required by statute, but the validity of bonds or notes issued |
19 | hereunder shall in no way depend upon the validity or occurrence of such action. |
20 | SECTION 11. All or any portion of the authorized but unissued authority to issue bonds |
21 | and notes under this act may be extinguished by resolution or order of the city council, without |
22 | further action by the general assembly, seven (7) years after the effective date of this act. |
23 | SECTION 12. The question of the approval of this act shall be submitted to the electors |
24 | of the city at the general election to be held on November 3, 2020 or, if so determined by the city |
25 | council, at a special city-wide election, other than a primary, held on a date to be determined by |
26 | resolution or order of the city council. The question shall be submitted in substantially the following |
27 | form: "Shall an act, passed at the 2020 session of the general assembly, entitled 'AN ACT |
28 | AUTHORIZING THE CITY OF CRANSTON TO FINANCE THE DESIGN, CONSTRUCTION, |
29 | REPAIR, REHABILITATION AND IMPROVEMENT OF STREETS, SIDEWALKS AND |
30 | BRIDGES IN THE CITY, INCLUDING, BUT NOT LIMITED TO, PAVING, DRAINAGE, |
31 | TRAFFIC CONTROL DEVICES, ROAD MAINTENANCE EQUIPMENT, SAFETY |
32 | IMPROVEMENTS AND LANDSCAPING AND ALL COSTS INCIDENTAL OR RELATED |
33 | THERETO BY THE ISSUANCE OF NOT MORE THAN $10,000,000 GENERAL |
34 | OBLIGATION BONDS AND NOTES THEREFOR' be approved?" and the warning for the |
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1 | election shall contain the question to be submitted. From the time the election is warned and until |
2 | it is held, it shall be the duty of the city clerk to keep a copy of the act available at the city clerk's |
3 | office for public inspection, but the validity of the election shall not be affected by this requirement. |
4 | To the extent of any inconsistency between this act and the city charter, this act shall prevail. |
5 | SECTION 13. This section 13 and section 12 shall take effect upon passage. The remainder |
6 | of this act shall take effect upon the approval of this act by a majority of those voting on the question |
7 | 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 DESIGN, | |
CONSTRUCTION, REPAIR, REHABILITATION AND IMPROVEMENT OF STREETS, | |
SIDEWALKS AND BRIDGES IN THE CITY, INCLUDING BUT NOT LIMITED TO, | |
PAVING, DRAINAGE, TRAFFIC CONTROL DEVICES, ROAD MAINTENANCE | |
EQUIPMENT, SAFETY IMPROVEMENTS AND LANDSCAPING AND ALL COSTS | |
INCIDENTAL OR RELATED THERETO BY THE ISSUANCE OF NOT MORE THAN | |
$10,000,000 GENERAL OBLIGATION BONDS AND NOTES THEREFOR | |
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1 | This act would authorize the city of Cranston to issue not more than Ten Million Dollars |
2 | ($10,000,000) general obligation bonds and temporary notes for the design, construction, repair, |
3 | rehabilitation and improvement of streets, sidewalks and bridges in the city, including but not |
4 | limited to, paving, drainage, traffic control devices, road maintenance equipment, safety |
5 | improvements and landscaping and all costs incidental or related thereto. |
6 | Sections 12 and 13 of the act would take effect upon passage. The remainder of the act |
7 | would take effect upon approval by the electors of the city of the question provided for in section |
8 | 12. |
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