AUTHORIZING THE CITY OF WARWICK TO ISSUE BONDS AND NOTES IN AN AMOUNT NOT TO EXCEED $7,500,000 FOR PUBLIC SAFETY PROJECTS
Introduced By: Representatives Sherlock, Aiken, Ginaitt, McNamara, and Trillo
Date Introduced: May 09, 2002
It is enacted by the General Assembly as follows:
SECTION 1. The City of Warwick is hereby empowered, in addition to authority previously granted, to issue bonds to an amount not exceeding Seven Million Five Hundred Thousand Dollars ($7,500,000) 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 redemption in the case of term bonds, in annual installments of principal, the first installment to be not later than three years and the last installment not later than twenty years after the date of the bonds. For each issue the amounts payable in several years for principal and interest combined shall be as nearly equal as it is practicable to make them in the opinion of the officers authorized to issue the bonds, or in the alternative, in accordance with a schedule providing a more rapid amortization of principal.
SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the city treasurer and the mayor and shall be issued and sold at not less than par and accrued interest in such amounts as the city council may authorize by resolution. Article VII and sections 2-19 and 6-14 of the city charter shall not apply to the authorization or issue of bonds and notes hereunder or to the execution of the projects for which the bonds or notes are issued. 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. Interest coupons (if any) shall bear the facsimile signature of the city treasurer. 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 (a) for public safety projects, including construction and renovation of the existing police station, construction of a new fire station and the acquisition of fire engines and other public safety equipment: (b) in payment of the principal of or interest on temporary notes issued under section three; or (c) in repayment of advances under section four.
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 moneys referred to in section six 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 issue from time to time of interest bearing or discounted notes in anticipation of the issue of bonds under section two 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 city treasurer and by 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 of the amount of bonds which may be issued under this act, and provided further that if 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, moneys 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 five. The moneys 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 moneys in the fund shall be distributed to the city.
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 the bonds or notes may be issued hereunder, apply funds in the treasury of the city to the purposes specified in section two, 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 saving 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 and by ordinance or resolution 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 shall, in the discretion of the city director of finance, 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 costs of the projects, to the payment of the principal of or interest on bonds or notes issued hereunder or to any one (1) or more of the foregoing. The cost of preparing, issuing, and marketing bonds or notes hereunder may also, in the discretion of the city director of finance, be met from bond or note proceeds exclusive of issuing and marketing bonds or notes hereunder shall upon receipt be applied to the payment of the principal of or interest on bonds or noted issued hereunder. Any earnings or net profit realized from the deposit or investment of funds hereunder, shall 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 director of finance shall be governed by any instructions adopted by resolution of the city council.
SECTION 7. All Bonds and notes issued under this act and the debts evidenced thereby 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 section 45-12-2 of the general laws. No such obligation shall at any time be include 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 moneys 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 provision 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, and coupons, if any, on any bonds, if properly executed by 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 or assistance which may be available for the purposes of this act, and any such expenditures may be in addition to other moneys 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 project cost under section two.
SECTION 10. Bonds and notes issued under this act and the use of proceeds of such bonds and notes shall, unless otherwise specifically excepted under this act, be in accordance with title 45, chapter 12 and title 35, chapter 11 of the general laws. Bonds and notes may be issued under this act without obtaining the approval of any governmental agency or the taking of any proceeding or the happening of any conditions except as specifically required by this act for such issue. In carrying out any projects financed in whole or in part under this act, including where applicable the condemnation of any land or interest in land and in levying of assessments or other charges permitted by law on account of any such projects, 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.
SECTION 11. The question of the approval of this act shall be submitted to the electors of the city at the general election to be held on November 5, 2002. The questions shall be submitted in substantially the following form: "Shall an Act, passed at the 2002 session of the General Assembly entitled 'An Act Authorizing the City of Warwick to Issue Bonds and Notes in an Amount Not to Exceed $7,500,000 for Public Safety Projects 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 city clerk's office for public inspection, but the validity of the election shall not be affected by this or any other public posting requirement.
SECTION 12. This section and the foregoing section shall take effect upon the passage of this act. The remainder of this act shall take effect upon the approval of this act by a majority of those voting on the question at the election prescribed by the foregoing section.