Chapter 04-071

2004 -- H 8483

Enacted 06/11/04

 

 

 

A N A C T

AUTHORIZING THE TOWN OF LINCOLN TO ISSUE GENERAL OBLIGATION BONDS AND NOTES IN AN AMOUNT NOT TO EXCEED $5,000,000 FOR THE IMPROVEMENT, REPAIR, AND RENOVATIONS TO PUBLIC MUNICIPAL BUILDINGS (OTHER THAN SCHOOLS) AND FOR REPAIRS AND IMPROVEMENTS TO SEWER INFRASTRUCTURE IN THE TOWN

     

     

     Introduced By: Representatives Menard, Petrarca, and McManus

     Date Introduced: May 04, 2004

 

 

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. The Town of Lincoln 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. For each issue, the amounts payable annually for principal and interest combined

either shall be as nearly equal from year to year as is practicable in the opinion of the officers

authorized to issue the bonds, or shall be arranged in accordance with a schedule providing for a

more rapid amortization of principal.

     SECTION 2. The bonds shall be signed by the director of finance, the president of the

town council and the town administrator and shall be issued and sold in such amounts as the town

council may authorize. 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 town council authorizing the issue or by separate resolution of the town

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 director of finance, and such proceeds, exclusive of premiums and

accrued interest, shall be expended (a) for the improvement, repair, and renovations to public

municipal buildings (other than schools) and for repairs and improvements to sewer infrastructure

in the town or (b) in payment of principal or interest on temporary notes issued under Section

three or (c) in repayment of advances under Section four or (d) in payment of costs of issuance

for bonds or notes issued hereunder including capitalized interest. 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 projects shall be carried out and all contracts made therefor on

behalf of the town by town administrator subject to the approval of the town council.

Notwithstanding any other law, regulation or policy to the contrary, the provisions of Section 7-5

of the town charter shall apply to such contracts. 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 purpose of this act without further action than that required by

this act.

     SECTION 3. The town council may by resolution authorize the issue from time to time of

interest bearing or discounted notes in anticipation of the issue 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 director of finance. Temporary notes

issued hereunder shall be signed by the director of finance, the president of the town council and

the town administrator 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.

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

of any authorization or issue of notes hereunder, the director of finance, with the approval of the

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

treasury of the town, to the purpose 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 director

of finance 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.

     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 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 cost of the project, 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 issued hereunder may also, in the discretion of the director

of finance, be met from bond or note proceeds exclusive of accrued interest or from other moneys

available therefor. Any balance of bond or note proceeds for ancillary costs remaining after

payment of such costs may be applied to the cost of a project authorized in Section 2 hereof. Any

balance of bond or note proceeds remaining after payment of the cost of a project and the cost of

preparing, issuing and marketing bonds or notes hereunder may be applied to any other project

authorized in Section 2 hereof or may be applied to the payment of the principal of or interest on

bonds or notes issued hereunder, as provided in a resolution of the town council. 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 town from property taxes. In exercising any

discretion under this section, the director of finance shall be governed by any instructions adopted

by resolution of the town council.

     SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby

shall be obligatory on the town 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 included in the debt of the town, for the purpose of

ascertaining its borrowing capacity. The town 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 town shall be

subject to ad valorem taxation by the town without limitation as to rate or amount, except as

otherwise provided in tax concessions authorized pursuant to Chapter 3798 of the Public Laws of

1956.

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

executed by officers of the town 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 town, acting by resolution of its town 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 costs under section two.

     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.

     SECTION 11. The question of the approval of this act shall be submitted to the electors

of the town at a general or special election to be held on November 2, 2004 or such other date as

shall be designated by the town council prior to November 2, 2004. The question shall be

submitted in substantially the following form: “Shall an act, passed at the 2004 session of the

general assembly, entitled ‘AN ACT AUTHORIZING THE TOWN OF LINCOLN TO ISSUE

GENERAL OBLIGATION BONDS AND NOTES IN AN AMOUNT NOT TO EXCEED FIVE

MILLION DOLLARS ($5,000,000) FOR THE IMPROVEMENT, REPAIR, AND

RENOVATIONS TO PUBLIC MUNICIPAL BUILDINGS (OTHER THAN SCHOOLS) AND

FOR REPAIRS AND IMPROVEMENTS TO SEWER INFRASTRUCTURE IN THE TOWN’

be approved?”

     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 town clerk to keep a copy of the

act available at his or her office for public inspection, but the validity of the election shall not be

affected by this requirement.

     SECTION 12. Sections 11 and 12 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.

     

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LC03282

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