Chapter 288
2004 -- S 3164
Enacted 07/02/04
A N A C T
AUTHORIZING
THE TOWN OF TIVERTON TO FINANCE THE CONSTRUCTION,
RENOVATION,
ALTERATION, REPAIR, IMPROVEMENT, EQUIPPING AND
FURNISHING
OF, AND/OR ADDITIONS TO, THREE PUBLIC ELEMENTARY SCHOOLS
IN
THE TOWN INCLUDING, BUT NOT LIMITED TO, ENGINEERING AND
ARCHITECTURAL
COSTS AND TO ISSUE NOT MORE THAN $30,700,000 BONDS
AND/OR
NOTES THEREFOR INCLUDING BUT NOT LIMITED TO, ANY BONDS OR
NOTES
ISSUED PURSUANT TO FINANCING AGREEMENTS WITH THE RHODE
ISLAND
HEALTH AND EDUCATIONAL BUILDING CORPORATION
Introduced
By: Senators Felag, and Gibbs
Date
Introduced: June 03, 2004
It
is enacted by the General Assembly as follows:
SECTION 1. The town of Tiverton is hereby empowered, in addition to authority
previously
granted, to issue bonds to an amount not exceeding thirty million seven hundred
thousand
dollars ($30,700,000) 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 town
treasurer
and the president of the town council and shall be issued and sold in such
amounts as the
town
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 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. Interest coupons (if any) shall
bear the manual
or
facsimile signature of the town treasurer. Notwithstanding anything contained
in this act to the
contrary,
the town may enter into financing agreements with the Rhode Island Health and
Educational
Building Corporation pursuant to title 16 chapter 7 and title 45 chapter 38.1
of the
general
laws and, with respect to notes or bonds issued in connection with such
financing
agreements,
if any, the town may elect to have the provisions of title 45, chapter 38.1 of
the
general
laws apply to the issuance of the bonds or notes issued hereunder to the extent
the
provisions
of title 45, chapter 38.1 of the general laws are inconsistent herewith. Such
election
may
be fixed by the proceedings of the town council authorizing such issuance 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 town treasurer, and such proceeds,
exclusive of
premiums
and accrued interest, shall be expended (a) to finance the construction,
renovation,
alteration,
repair, improvement, equipping and furnishing of, and/or additions to, three
public
elementary
schools in the town and all attendant expenses including, but not limited to,
engineering
and architectural costs (all of which shall be hereinafter referred to as the
“projects”),
(b)
in payment of the principal of or interest on temporary notes issued under
section three, (c) in
repayment
of advances under section four, (d) in payment of related costs of issuance of
any
bonds
or notes, and/or (e) to finance capitalized interest on the projects. 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
therefore
on behalf of the town by the town council or as otherwise may be directed by
the town
council.
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 town 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 town treasurer and president of the town
council,
on
behalf of the town, 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 and to execute and deliver a continuing disclosure agreement or
certificate
in
connection with the bonds or notes.
SECTION
3. The town 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
town treasurer.
Temporary
notes issued hereunder shall be signed by the manual or facsimile signatures of
the
town
treasurer and the president of the town council 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 town by the paying
agent at
the
direction of the town 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 town. The town 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 towns authority to issue bonds
or notes in
anticipation
of bonds under this act shall continue provided that (1) the town council
passes a
resolution
evidencing the towns 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
4. Pending any authorization or issue of bonds hereunder or pending or in lieu
of
any authorization or issue of notes hereunder, the town treasurer, 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 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 town
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 town council or pursuant
to an
investment
policy of the town.
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 premium
arising from the
sale
of bonds or notes hereunder shall, in the discretion of the town 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 town
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 town from property taxes. In exercising any discretion under
this section, the
town
treasurer 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
and
any provision of the town charter. 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.
SECTION
8. Any bonds or notes issued under the provisions of this act, and coupons, if
any,
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 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. After completion of construction, renovation, alteration, repair,
improvement,
equipping and furnishing of, and/or additions to, three public elementary
schools in
the
town, all or any portion of the authorized but unissued authority to issue
bonds and notes
under
this act may be extinguished by ordinance of the town council, without further
action by
the
general assembly.
SECTION
12. 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 a date as shall be
designated by the town
council.
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
Tiverton
to Finance the Construction, Renovation, Alteration, Repair, Improvement,
Equipping
and
Furnishing of, and/or Additions to, Three Public Elementary Schools in the Town
and to
Issue
Not More Than $30,700,000 Bonds and/or Notes Therefor’ 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 town clerk to keep a copy of this
act available 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 town charter, this act shall
prevail.
SECTION
13. 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.
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LC03583
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EXPLANATION
OF
A
N A C T
AUTHORIZING
THE TOWN OF TIVERTON TO FINANCE THE CONSTRUCTION,
RENOVATION,
ALTERATION, REPAIR, IMPROVEMENT, EQUIPPING AND
FURNISHING
OF, AND/OR ADDITIONS TO, THREE PUBLIC ELEMENTARY SCHOOLS
IN
THE TOWN INCLUDING, BUT NOT LIMITED TO, ENGINEERING AND
ARCHITECTURAL
COSTS AND TO ISSUE NOT MORE THAN $30,700,000 BONDS
AND/OR
NOTES THEREFOR INCLUDING BUT NOT LIMITED TO, ANY BONDS OR
NOTES
ISSUED PURSUANT TO FINANCING AGREEMENTS WITH THE RHODE
ISLAND
HEALTH AND EDUCATIONAL BUILDING CORPORATION
***
This
act authorizes the town of Tiverton to issue not more than $30,700,000 bonds
and
notes
including, but not limited to, any bonds or notes issued pursuant to financing
agreements
with
the Rhode Island Health and Educational Building Corporation including, but not
limited to,
engineering
and architectural costs to finance the construction, renovation, alteration,
repair,
improvement,
equipping and furnishing of, and/or additions to, three public elementary
schools in
the
town.
Sections
12 and 13 of this act shall take effect upon passage. The remainder of the act
would
take effect upon approval by the electors of the town of the question provided
for in
Section
12.
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LC03583
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