2022 -- H 8240

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LC005946

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE IMPROVEMENT

AND REPLACEMENT OF ROAD SAFETY IMPROVEMENTS AND TRAFFIC CONTROL

DEVICES IN THE CITY OF PAWTUCKET AND AUTHORIZING THE FINANCING

THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $1,000,000 BONDS, NOTES

AND OTHER EVIDENCES OF INDEBTEDNESS THEREFOR, TO FUND THE CAPITAL

IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2024 AND 2025

     Introduced By: Representatives Messier, Alzate, Felix, Shallcross Smith, and Barros

     Date Introduced: May 11, 2022

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

     SECTION 1. The city of Pawtucket is hereby authorized, in addition to authority previously

granted, to issue bonds and other evidences of indebtedness (hereinafter "bonds") up to an amount

not exceeding one million dollars ($1,000,000) from time to time under its corporate name and seal

or a facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds or

term bonds or a combination thereof and shall be payable either by maturity of principal in the case

of serial bonds or by mandatory sinking fund installments in the case of term bonds, in annual

installments of principal, the first installment to be not later than three (3) years and the last

installment not later than thirty (30) years after the date of the bonds.

     SECTION 2. The bonds shall be signed by the city treasurer and by the manual or facsimile

signature of the mayor and be issued and sold in such amounts as the city council may determine

by resolution. The manner of sale, denominations, maturities, interest rates and other terms,

conditions and details of any bonds or notes issued under this act may be fixed by the proceedings

of the city council authorizing the issue or by separate resolution of the city council or, to the extent

provisions for these matters are not so made, they may be fixed by the officers authorized to sign

the bonds or notes. The proceeds derived from the sale of the bonds shall be delivered to the city

treasurer, and such proceeds, exclusive of premiums and accrued interest, shall be expended: (1)

For the improvement and replacement of road safety improvements and traffic control devices and

all costs related thereto (the "project"); (2) In payment of the principal of or interest on temporary

notes issued under section 3; (3) In repayment of advances under section 4; (4) In payment of

related costs of issuance of any bonds or notes; and/or (5) In payment of capitalized interest during

construction of the project. No purchaser of any bonds or notes under this act shall be in any way

responsible for the proper application of the proceeds derived from the sale thereof. The proceeds

of bonds or notes issued under this act, any applicable federal or state assistance and the other

monies referred to in sections 6 and 9 shall be deemed appropriated for the purposes of this act

without further action than that required by this act.

     SECTION 3. The city council may by resolution authorize the issuance from time to time

of interest bearing or discounted notes in anticipation of the issue of bonds under section 2 or in

anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original

notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued

under this act and the amount of original notes issued in anticipation of federal or state aid may not

exceed the amount of available federal or state aid as estimated by the city treasurer. Temporary

notes issued hereunder shall be signed by the manual or facsimile signatures of the city treasurer

and the mayor and shall be payable within five (5) years from their respective dates, but the

principal of and interest on notes issued for a shorter period may be renewed or paid from time to

time by the issue of other notes hereunder; provided the period from the date of an original note to

the maturity of any note issued to renew or pay the same debt or the interest thereon shall not exceed

five (5) years. Any temporary notes in anticipation of bonds issued under this section may be

refunded prior to the maturity of the notes by the issuance of additional temporary notes; provided

that, no such refunding shall result in any amount of such temporary notes outstanding at any one

time in excess of two hundred percent (200%) of the amount of bonds which may be issued under

this act; and provided, further, that if the issuance of any such refunding notes results in any amount

of such temporary notes outstanding at any one time in excess of the amount of bonds which may

be issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund

established with the bank which is paying agent for the notes being refunded. Pending their use to

pay the notes being refunded, monies in the fund shall be invested for the benefit of the city by the

paying agent at the direction of the city treasurer in any investment permitted under section 5. The

monies in the fund and any investments held as a part of the fund shall be held in trust and shall be

applied by the paying agent solely to the payment or prepayment of the principal of and interest on

the notes being refunded. Upon payment of all principal of and interest on the notes, any excess

monies in the fund shall be distributed to the city. The city may pay the principal of and interest on

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notes in full from other than the issuance of refunding notes prior to the issuance of bonds pursuant

to section 1 hereof. In such case, the city's authority to issue bonds or notes in anticipation of bonds

under this act shall continue provided that: (1) The city council passes a resolution evidencing the

city's intent to pay off the notes without extinguishing the authority to issue bonds or notes; and (2)

That the period from the date of an original note to the maturity date of any other note shall not

exceed five (5) years. Section 5-106 of the city charter shall not apply to the issue of notes in

anticipation of bonds.

     SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu

of any authorization or issue of notes hereunder, the city treasurer, with the approval of the city

council may, to the extent that bonds or notes may be issued hereunder, apply funds in the general

treasury of the city to the purposes specified in section 2, such advances to be repaid without interest

from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal

or state assistance or from other available funds.

     SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal

or state assistance, pending their expenditure may be deposited or invested by the city treasurer, in

demand deposits, time deposits or savings deposits in banks which are members of the Federal

Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of

America or by any agency or instrumentality thereof or as may be provided in any other applicable

law of the State of Rhode Island or resolution of the city council or pursuant to an investment policy

of the city.

     SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall

be applied to the payment of the first interest due thereon. Any premiums arising from the sale of

bonds or notes hereunder and, to the extent permitted by applicable federal laws, any net earnings

or profits realized from the deposit or investment of funds hereunder shall, in the discretion of the

city treasurer, be applied to the cost of preparing, issuing, and marketing bonds or notes hereunder

to the extent not otherwise provided, to the payment of the cost of the project, to the payment of

the principal of or interest on bonds or notes issued hereunder, to the revenues of the city and dealt

with as part of the revenues of the city from property taxes to the extent permitted by federal law,

or to any one or more of the foregoing. The cost of preparing, issuing, and marketing bonds or notes

hereunder may also, in the discretion of the city treasurer, be met from bond or note proceeds

exclusive of premium and accrued interest or from other monies available therefor. Any balance of

bond or note proceeds remaining after payment of the cost of the projects and the cost of preparing,

issuing and marketing bonds or notes hereunder shall be applied to the payment of the principal of

or interest on bonds or notes issued hereunder. To the extent permitted by applicable federal laws,

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any earnings or net profit realized from the deposit or investment of funds hereunder may, upon

receipt, be added to and dealt with as part of the revenues of the city from property taxes. In

exercising any discretion under this section, the city treasurer shall be governed by any instructions

adopted by resolution of the city council. Any balance of bond or note proceeds remaining after

completion of the project shall be subject to section 5-109 of the city charter.

     SECTION 7. All bonds and notes issued under this act and the debt evidenced hereby shall

be obligatory on the city in the same manner and to the same extent as other debts lawfully

contracted by it and shall be excepted from the operation of § 45-12-2 and any provision of the city

charter. No such obligation shall at any time be included in the debt of the city for the purpose of

ascertaining its borrowing capacity. The city shall annually appropriate a sum sufficient to pay the

principal and interest coming due within the year on bonds and notes issued hereunder to the extent

that monies therefor are not otherwise provided. If such sum is not appropriated, it shall

nevertheless be added to the annual tax levy. In order to provide such sum in each year and

notwithstanding any provisions of law to the contrary, all taxable property in the city shall be

subject to ad valorem taxation by the city without limitation as to rate or amount.

     SECTION 8. Any bonds or notes issued under the provisions of this act, if properly

executed by the officers of the city in office on the date of execution, shall be valid and binding

according to their terms notwithstanding that before the delivery thereof and payment therefor any

or all of such officers shall for any reason have ceased to hold office.

     SECTION 9. The city, acting by resolution of its city council is authorized to apply for,

contract for and expend any federal or state advances or other grants of assistance which may be

available for the purposes of this act, and any such expenditures may be in addition to other monies

provided in this act. To the extent of any inconsistency between any law of this state and any

applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest

where applicable, whether contracted for prior to or after the effective date of this act, may be

repaid as a cost of the project under section 2.

     SECTION 10. Bonds and notes may be issued under this act without obtaining the approval

of any governmental agency or the taking of any proceedings or the happening of any conditions

except as specifically required by this act for such issue. In carrying out any project financed in

whole or in part under this act, including where applicable the condemnation of any land or interest

in land, and in the levy and collection of assessments or other charges permitted by law on account

of any such project, all action shall be taken which is necessary to meet constitutional requirements

whether or not such action is otherwise required by statute, but the validity of bonds and notes

issued hereunder shall in no way depend upon the validity or occurrence of such action. Without

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limiting the generality of the foregoing, the validity of bonds and notes issued hereunder shall in

no way be affected by section 2-308 of the city charter and section 4-1602 of the city code of

ordinances, and the purposes of this act shall be deemed to constitute a single project under article

V of the city charter.

     SECTION 11. The city treasurer and the mayor, on behalf of the city are hereby authorized

to execute such instruments, documents or other papers as either of the foregoing deem necessary

or desirable to carry out the intent of this act and are also authorized to take all actions and execute

all documents necessary to comply with federal tax and securities laws, which documents or

agreements may have a term coextensive with the maturity of the bonds authorized hereby,

including Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and to execute

and deliver a continuing disclosure agreement or certificate in connection with the bonds or notes

in the form as shall be deemed advisable by such officers in order to comply with the Rule.

     SECTION 12. All or any portion of the authorized but unissued authority to issue bonds

and notes under this act may be extinguished by resolution of the city council, without further action

by the general assembly, seven (7) years after the effective date of this act.

     SECTION 13. The question of the approval of this act shall be submitted to the electors of

the city at the next general election but if a special city-wide election or special state election, in

either case other than a primary, is called for a date earlier than the date of such general election,

the mayor may direct that the question of the approval of this act be submitted at such special

election. The question shall be submitted in substantially the following form: "Shall an act passed

at the January 2022 session of the general assembly entitled 'AN ACT AUTHORIZING THE CITY

OF PAWTUCKET TO PROVIDE FOR THE IMPROVEMENT AND REPLACEMENT OF

ROAD SAFETY IMPROVEMENTS AND TRAFFIC CONTROL DEVICES IN THE CITY OF

PAWTUCKET AND AUTHORIZING THE FINANCING THEREOF, INCLUDING THE ISSUE

OF NOT MORE THAN $1,000,000 BONDS, NOTES AND OTHER EVIDENCES OF

INDEBTEDNESS THEREFOR, TO FUND THE CAPITAL IMPROVEMENT PROGRAM FOR

THE TWO FISCAL YEARS 2024 AND 2025' be approved?" and the warning for the election shall

contain the question to be submitted. From the time the election is warned and until it is held, it

shall be the duty of the city clerk to keep a copy of the act available at the clerk's office for public

inspection, but the validity of the election shall not be affected by this requirement. To the extent

of any inconsistency between this act and the city charter or any law of special applicability to the

city, this act shall prevail.

     SECTION 14. This section and the foregoing shall take effect upon passage. The remainder

of this act shall take effect upon the approval of this act by a majority of those voting on the question

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at the election prescribed by the foregoing section.

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EXPLANATION

OF

A N   A C T

AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE IMPROVEMENT

AND REPLACEMENT OF ROAD SAFETY IMPROVEMENTS AND TRAFFIC CONTROL

DEVICES IN THE CITY OF PAWTUCKET AND AUTHORIZING THE FINANCING

THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $1,000,000 BONDS, NOTES

AND OTHER EVIDENCES OF INDEBTEDNESS THEREFOR, TO FUND THE CAPITAL

IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2024 AND 2025

***

     This act would authorize the city of Pawtucket to issue not more than $1,000,000 general

obligation bonds, notes and other evidences of indebtedness to finance the improvement and

replacement of road safety improvements and traffic control devices in the city and all costs related

thereto.

     Sections 13 and 14 would take effect upon passage. The remainder of the act would take

effect upon approval of the question provided for in section 13.

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