Chapter
506
2004 -- H 8550
Enacted 07/07/04
A N A C T
AUTHORIZING THE TOWN OF
BURRILLVILLE TO FINANCE THE CONSTRUCTION,
EQUIPPING AND FURNISHING OF AN
ADDITION TO AND REMODELING,
RECONSTRUCTING AND MAKING
EXTRAORDINARY REPAIRS TO THE W.L.
CALLAHAN ELEMENTARY SCHOOL AND
TO ISSUE NOT MORE THAN $7,500,000
BONDS THEREFOR
Introduced By:
Representatives Aubin, and Lowe
Date
Introduced: May 19, 2004
It is enacted by the General
Assembly as follows:
SECTION
1. The town of Burrillville 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. 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 years and
the last installment not later than thirty 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 finance director and by the president of
the town council 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
finance director, and such
proceeds exclusive of premiums and accrued interest shall be expended
(a) for constructing, originally
equipping and furnishing an addition to and remodeling,
reconstructing, and making
extraordinary repairs to the W.L. Callahan Elementary School or (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 or (d) for the cost of preparing, issuing and marketing
bonds or notes issued hereunder.
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
project shall be carried out and
all contracts made therefor on behalf of the town by the school
building committee appointed by
the town council, the authority of which shall be set by the town
council, or as may be otherwise
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
section six shall be deemed
appropriated for the purposes 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 finance director. Temporary notes
issued hereunder shall be signed
by the finance director and by the president of the town council
and shall be payable within five
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 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 finance director, 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 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 finance
director 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
and any earnings or net profit realized from the deposit or
investment of funds hereunder shall,
in the discretion of the finance director, 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 or more of the foregoing. The cost of preparing,
issuing and marketing bonds or
notes hereunder may also, in the discretion of the finance
director, be met from bond or note
proceeds exclusive of 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. In
exercising any discretion under
this section, the finance director 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
expected 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.
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 an election to be
held on a date to be determined by the town council, such date to
be not later than November 30,
2006. 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
BURRILLVILLE TO FINANCE THE
CONSTRUCTION, EQUIPPING AND
FURNISHING OF AN ADDITION TO AND
REMODELING, RECONSTRUCTING AND
MAKING EXTRAORDINARY REPAIRS TO
THE W.L. CALLAHAN ELEMENTARY
SCHOOL AND TO ISSUE NOT MORE THAN
$7,500,000 BONDS 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 the act available at his office for public inspection,
but the validity of the election
shall not be affected by this requirement.
=======
LC03430
=======