Chapter 432
2006 -- H 7053
Enacted 07/06/06
A N A C T
AUTHORIZING
THE CITY OF NEWPORT TO FINANCE THE DESIGN, CONSTRUCTION, REPAIR, REHABILITATION
AND IMPROVEMENT OF STREETS AND SIDEWALKS IN THE CITY, INCLUDING, BUT NOT LIMITED
TO, TRAFFIC CONTROL DEVICES, LANDSCAPING AND CONSTRUCTION MANAGEMENT SERVICES,
BY THE ISSUANCE OF NOT MORE THAN $12,000,000 BONDS AND/OR NOTES THEREFOR
Introduced
By: Representatives Rice, Jackson, and Crowley
Date
Introduced: February 02, 2006
It is enacted by the General Assembly as
follows:
SECTION 1. The
city of Newport is hereby empowered, in addition to authority
previously granted, to issue bonds to an amount
not exceeding twelve million dollars
($12,000,000) 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
finance director 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 finance director. The
proceeds derived from the sale of the bonds shall be
delivered to the city finance director, and such
proceeds, exclusive of premiums and accrued
interest, shall be expended: a) to finance the
design, construction, repair, rehabilitation and
improvement of streets and sidewalks in the
city, including, but not limited to, traffic control
devices, landscaping and construction management
services (the "Project"), or b) pay the
principal of or interest on temporary notes
issued under section three, or c) pay the costs in
connection with the issuance of the bonds or
notes, or d) finance capitalized interest on the
Project or e) repay any 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 purpose 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 finance director 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 finance director.
Temporary notes issued hereunder shall be signed
by the manual or facsimile signatures of the
city finance director 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
finance director 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 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 city finance director, 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
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 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 premium arising from the
sale of bonds or notes hereunder shall, in the
discretion of the city 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 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 finance
director, 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 finance director 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 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 resolution of the city
council, without further action by the general
assembly.
SECTION 12. The
city finance director 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. The
question of the approval of this act shall be submitted to the electors
of the city at a general or special election
(other than a primary election) to be held on any date as
shall be designated by the city council. The
question shall be submitted in substantially the
following form: "Shall an act passed at the
2006 session of the general assembly entitled 'AN
ACT AUTHORIZING THE CITY OF NEWPORT TO FINANCE
THE DESIGN,
CONSTRUCTION, REPAIR, REHABILITATION AND
IMPROVEMENT OF STREETS AND
SIDEWALKS IN THE CITY, INCLUDING, BUT NOT
LIMITED TO, TRAFFIC CONTROL
DEVICES, LANDSCAPING AND CONSTRUCTION MANAGEMENT
SERVICES, BY THE
ISSUANCE OF NOT MORE THAN $12,000,000 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 city 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. To the
extent of any inconsistency between this act and the
city charter, this act shall prevail.
SECTION 14. 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.
=======
LC01490
=======