Chapter
525
2006 -- H 8185
Enacted 07/06/06
A N A C T
AUTHORIZING THE CITY
OF CRANSTON TO ISSUE NOT MORE THAN $4,335,000 BONDS AND NOTES TO FINANCE THE
ACQUISITION, CONSTRUCTION AND REHABILITATION OF FIRE STATIONS AND FACILITIES AND
THE PURCHASE OF EQUIPMENT FOR THE FIRE DEPARTMENT
Introduced By: Representatives Ucci, Handy, Mumford, Palumbo, and Lima
Date Introduced: June 06,
2006
It is
enacted by the General Assembly as follows:
SECTION
1. The City of Cranston is hereby empowered, in addition to authority
previously
granted, to issue bonds to an amount not exceeding four million three hundred
thirty
five
thousand dollars ($4,335,000) from time to time under its corporate name and
seal or a
facsimile
of such seal. The bonds of each issue shall mature in annual installments of
principal,
the
first installment to be not later than three (3) 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,
statutory,
or charter 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
director
of finance and the mayor and shall be issued and sold in such amounts as the
city 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
city council authorizing the issue or by separate order or 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 facsimile
signature
of the
director finance. 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 acquisition, construction and rehabilitation of fire stations and facilities
and the
purchase
of equipment for the Fire Department, but for no other uses or purposes (such
as
temporary
borrowings for the benefit of any other city department); (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. 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. In addition to such
funds, there may
be
expended for the purposes of this act such other sums as may be appropriated
therefor. 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.
SECTION
3. The city council may, by order or resolution authorizing the bonds or by
separate
order or resolution, authorize the issuance from time to time of interest
bearing or
discounted
notes in anticipation of the issue of the bonds under Section Two or in
anticipation of
the receipt
of federal or state aid for the purposes of this act. The amount of the
original notes
issued
in anticipation of the 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 manual or facsimile signature of
the
director
of finance and countersigned by the manual or facsimile signature of 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
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. Any
temporary
notes in anticipation of the 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 (1)
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 (1) 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 that 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.
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
given by an order or resolution passed and approved in the manner provided in
Chapter
12 of
the city charter, but not subject to the provisions of Section 12.03 of said
Chapter, may, to
the
extent that the 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, and subject to the approval of
the
investment
committee mentioned in Section 7.05 of the city charter, may be deposited or
invested
by the
city treasurer in demand deposits, time deposits or saving 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 and by ordinance or
resolution of the city
council.
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 net earnings
or profits
realized
from the investment of funds hereunder and 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 the costs of the projects or the cost of additional improvements coming
within the
description
of the projects in Section Two of this act, 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 notes 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 projects and the cost of additional improvements coming within the
description
of the
projects in Section Two of this act, 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 law, 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 any order or
resolution
of the city council.
SECTION
7. All bonds and notes issued under this act and the debts evidenced thereby
shall be
obligatory to 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.
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 thereof 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 the officers of the city in office on the date of
execution, shall be
valid
and binding according to their terms notwithstanding that before delivery
thereof and
payment
therefor any or all of the officers shall for any reason have ceased to hold
office.
SECTION
9. The city, acting by order or resolution of its city council, passed and
approved
in the manner provided in chapter 12 of the city charter, but not subject to
the provision
of
Section 12.03 of said chapter, 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 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
cost under
section
two of this act.
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
projects financed in
whole
or in part under this act, including where applicable the condemnation of any
land or
interest
in land, and in levying and collection of assessments or other charges
permitted by law on
account
of any such projects, 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
city at the general election to be held on November 7, 2006. 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 Cranston to Issue Not More
than
$4,335,000
Bonds and Notes to Finance the Acquisition, Construction and Rehabilitation of
Fire
Stations
and Facilities and the Purchase of Equipment for the Fire Department ' 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 the city clerk's 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
12. 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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LC03292
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