Chapter 04-020

2004 -- H 8495

Enacted 05/26/04

A N A C T

AUTHORIZING THE CITY OF WOONSOCKET TO FINANCE THE CLOSURE OF THE DAVISON AVENUE LANDFILL AND THE DEVELOPMENT OF PUBLIC

RECREATIONAL FACILITIES THEREON BY THE ISSUANCE OF NOT MORE THAN $5,000,000 BONDS AND/OR NOTES THEREFOR

Introduced By: Representatives T Brien, Laroche, and Picard

Date Introduced: May 05, 2004

It is enacted by the General Assembly as follows:

     SECTION 1. In order to fund the city of Woonsocket's obligations under a Consent

Agreement between the city and the Rhode Island Department of Environmental Management

entered into as of July 23, 2002, the city is hereby empowered, in addition to authority previously

granted, to issue general obligation bonds and notes to an amount not exceeding five million

dollars ($5,000,000) from time to time under its corporate name and 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 serial

redemption in the case of term bonds, in annual installments of principal, the first installment to

be not later than five (5) years and the last installment not later than thirty (30) years after the date

of the bonds. All such bonds of a particular issue may be issued in the form of zero coupon

bonds, capital appreciation bonds, serial bonds or term bonds or a combination thereof. Annual

installments of principal may be provided for by maturity of principal in the case of serial bonds

or by mandatory serial redemption in the case of term bonds. The amount of principal

appreciation each year on any bonds, after the date of original issuance, shall not be considered to

be principal indebtedness for the purposes of any constitutional or statutory debt limit or any

other limitation. The appreciation of principal after the date of original issue shall be considered

interest. Only the original principal amount shall be counted in determining the principal amount

so issued and any interest component shall be disregarded.

     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 in such amounts as the city council may

authorize 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

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 manual or 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) to finance the closure of the Davison Avenue Landfill and the development of

public recreational facilities thereon (the "Project"), b) for payment of the principal of or interest

on temporary notes issued under section three, or c) for payment of costs in connection with the

issuance of the bonds or notes, or d) to finance capitalized interest on the Project or e) for

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 sections six and nine, shall be deemed appropriated

for the purposes of this act without further action than that required by this act. The bond issue

authorized by this act may be consolidated for the purposes of issuance and sale with any other

bond issue of the city heretofore or hereafter authorized, provided that, notwithstanding any such

consolidation, the proceeds from the sale of the bonds authorized by this act shall be expended for

the purposes set forth above. 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 them deem

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

and execute all documents or agreements 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.

     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 issuance of bonds 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 issuance 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, 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. The city may pay the principal of and interest on 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 and 2) that the period from the date of an original note to the maturity date any other note

shall not exceed five (5) years.

     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

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 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 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 project costs, 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 treasurer,

be met from bond or note proceeds exclusive of premium and accrued interest or from other

moneys available therefor. Any balance of bond or note proceeds remaining after payment of the

cost of the project 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, 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.

     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

and the provisions 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 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 the 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, 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 of assistance which may be

available for the purposes of this act, and any such expenditures may be in addition to the 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 costs under section two.

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

     SECTION 11. All or any portion of the authority to issue bonds and notes under this act

may be extinguished by ordinance of the city council, without further action by the general

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

     SECTION 12. 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 them deem

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

and execute all documents or agreements 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 13. In order to fund the city's obligations under the Consent Agreement

between the city and the Rhode Island Department of Environmental Management entered into as

of July 23, 2002, this act shall take effect upon passage without voter approval notwithstanding

Article 8, Section 1 of the Woonsocket City Charter in conformity with the reserved powers of

the General Assembly pursuant to Article XIII, Section 5 of the Constitution of the State of

Rhode Island and Providence Plantations.

     SECTION 14. To the extent of any inconsistency between this act and the Woonsocket

City Charter, this act shall prevail. The provisions of this act are severable, and if any of its

provisions are held unconstitutional or invalid for any reason by any court of competent

jurisdiction, the decision of the court shall not affect or impair any of the remaining provisions.

     SECTION 15. This act shall take effect upon passage.

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LC03346

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