Chapter 254

2007 -- H 6149 SUBSTITUTE A AS AMENDED

Enacted 07/03/07

 

A N  A C T

AUTHORIZING THE CITY OF WOONSOCKET TO FINANCE THE ACQUISITION OF LAND FOR SCHOOL FACILITIES, INCLUDING THE DEMOLITION OF EXISTING BUILDINGS AND SITE PREPARATION, AND THE CONSTRUCTION, FURNISHING AND EQUIPPING OF TWO NEW MIDDLE SCHOOLS AND RELATED SCHOOL FACILITIES AND THE REHABILITATION OF APPURTENANT HISTORIC BUILDINGS, IF ANY, IN THE CITY AND TO ISSUE NOT MORE THAN $74,000,000 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: Representatives Brien, Baldelli-Hunt, and Picard

     Date Introduced: March 13, 2007

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. The city of Woonsocket is hereby empowered, in addition to authority

previously granted, to issue bonds and notes to an amount not exceeding seventy-four million

dollars ($74,000,000) 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

treasurer 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 treasurer. Notwithstanding anything contained in this act to the contrary, the

city 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 city

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 city

council authorizing such issuance 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. 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 of land for school facilities, including the demolition of existing buildings

and site preparation, and the construction, furnishing and equipping of two new middle schools

and related school facilities and the rehabilitation of appurtenant historic buildings, if any, in the

city (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 city by

the city council or as otherwise may be directed by the city 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 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 treasurer 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 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 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 treasurer.

Temporary notes issued hereunder shall be signed by the manual or facsimile signatures of the

city treasurer 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 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. 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 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 city treasurer, 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

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 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 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 city 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 city from property taxes. In exercising any discretion under this section, the

city treasurer 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 any provision 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. Provided, however, the amount eligible for reimbursement for school

construction cost shall be limited to seventy million dollars ($70,000,000) for the purpose of

chapter 7 of title 16. 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 authorized but unissued 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 question of the approval of this act shall be submitted to the electors

of the city at a general or special election to be held on a 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 2007 session of the General Assembly, entitled 'An Act authorizing the City of

Woonsocket to finance the Acquisition of Land for School Facilities, Including the Demolition of

Existing Buildings and Site Preparation, and the Construction, Furnishing and Equipping of Two

New Middle Schools and Related School Facilities and the Rehabilitation of Appurtenant Historic

Buildings, if any, in the City and to Issue Not More Than $74,000,000 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’ 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 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 city charter, this act shall prevail. Any contest questioning

the time, place, manner, notice and timeliness of notice of the election held must be commenced

in superior court against the city not later than twenty (20) calendar days from the date such

election is held; otherwise, the validity of the election shall be conclusively presumed and such

election shall be deemed legally compliant notwithstanding any irregularities, omissions or

defects with respect to such matters.

     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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LC02600/SUB A

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