Chapter 052

2008 -- S 2930

Enacted 06/12/08

 

A N A C T

AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE RENOVATION AND RECONSTRUCTION AND EQUIPPING OF PUBLIC RECREATION FACILITIES IN THE CITY OF PAWTUCKET AND AUTHORIZING THE FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $600,000 BONDS AND NOTES THEREFOR, TO FUND THE CAPITAL IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2009 AND 2010

          

     Introduced By: Senators Doyle, McBurney, and DaPonte

     Date Introduced: April 03, 2008  

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. The city of Pawtucket is hereby authorized, in addition to authority

previously granted, to issue bonds up to an amount not exceeding six hundred thousand

($600,000) dollars from time to time under its corporate name and seal or a facsimile of such.

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 three (3) years and the last installment not later than thirty

(30) years after the date of the bonds.

     SECTION 2. The bonds shall be signed by the city treasurer and by the manual or

facsimile signature of the mayor and be issued and sold in such amounts as the city council may

determine. 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 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) for the renovation and reconstruction and equipping of public recreation facilities

in the city of Pawtucket (the "project"); (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) in payment of capitalized interest

during construction of the project. There being no local election planned for the calendar year

2009 in the city of Pawtucket, the amounts authorized by this act to finance the project are

intended to fund appropriations for two fiscal years. The city, however, is not required to issue

the bonds and notes authorized by this act during the fiscal years ending June 30, 2009 or June

30, 2010, but may issue them at any time or from time to time. 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 monies 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.

     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 issue of bonds under section 2 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 city treasurer and by 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 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 the 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 the 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 5-106 of the city charter

shall not apply to the issue of notes in anticipation of bonds.

     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 general

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.

     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, to the extent permitted by applicable federal laws, any net

earnings or profits realized from the deposit or investment of funds 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 cost of the project,

to the payment of the principal of or interest on bonds or notes issued hereunder, to the revenues

of the city and dealt with as part of the revenues of the city from property taxes to the extent

permitted by federal law, 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 city treasurer, be met

from the bond or note proceeds exclusive of premium and accrued interest or from other monies

available therefor. In exercising any discretion under this section, the city treasurer shall be

governed by any instructions adopted by resolution of the city council. Any balance of bond or

note proceeds remaining after completion of the project shall be subject to section 5-109 of the

city charter.

     SECTION 7. All bonds and notes issued under this act and the debt evidenced hereby

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.

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 monies 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 not

withstanding 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, 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 the delivery thereof and payment therefor

any or all 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 other

monies 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 a cost of the project under section 2.

     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 actions. Without limiting the generality of the foregoing, the validity of bonds

and notes issued hereunder shall in no way be affected by sections 2-308 and 4-1602 of the city

charter, and the purposes of this act shall be deemed to constitute a single project under Article V

of the city charter.

     SECTION 11. 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 the foregoing

deem necessary or desirable to carry out the intent of this act and are also authorized to take all

actions and execute all documents 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 12. 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, seven (7) years after the effective date of this act.

     SECTION 13. The question of the approval of this act shall be submitted to the electors

of the city at the next general election but if a special city-wide election or special state election,

in either case other than a primary, is called for a date earlier than the date of such general

election, the mayor may direct that the question of the approval of this act may be submitted at

such special election. The question shall be submitted in substantially the following form: "Shall

an act passed at the 2008 the session of the general assembly entitled "An act authorizing the city

of Pawtucket to provide for the renovation and reconstruction and equipping of public recreation

facilities in the city of Pawtucket and authorizing the financing thereof, including the issue of not

more than $600,000 bonds and notes therefor, to fund the Capital Improvement Program for the

two fiscal years 2009 and 2010' 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 or any law of special applicability to the city,

this act shall prevail.

     SECTION 14. This section and the foregoing 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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LC02549

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