Chapter
071
2008 -- S 2700 AS AMENDED
Enacted 06/25/08
A N A C T
AUTHORIZING THE TOWN
OF JOHNSTON TO FINANCE THE DESIGN AND
CONSTRUCTION OF
SANITARY SEWERS FOR THE MEMORIAL PLAT SEWER PROJECT WHICH INCLUDES ALL OR A PORTION
OF MILLS DRIVE, POCOTTE DRIVE, ARNOLD DRIVE, MONGONE DRIVE, RICHARDSON DRIVE,
HARRINGTON DRIVE, CORRINE DRIVE, PINEWOOD AVENUE AND CENTRAL AVENUE; AND FOR
THE CHERRY HILL SEWER PROJECT WHICH INCLUDES ALL OR A PORTION OF CHERRY HILL
ROAD, OLD CHERRY HILL ROAD, CHRYSANTHY COURT, SETIAN CIRCLE, KERN ACRE DRIVE,
CAVALCADE BOULEVARD, BALSAM COURT, HEMLOCK COURT, WOODCREST DRIVE, CYNTHIA
DRIVE, WORCESTER AVENUE, PRESCOTT AVENUE, HOLLAND AVENUE, ROWENA DRIVE,
BIRCHWOOD DRIVE AND TO ISSUE NOT MORE THAN $7,100,000 BONDS AND NOTES THEREFOR
Introduced By: Senator Christopher B. Maselli
Date Introduced: February 26, 2008
It is
enacted by the General Assembly as follows:
SECTION
1. The town of Johnston is hereby empowered, in addition to authority
previously
granted, to issue bonds to an amount not exceeding seven million one hundred
thousand
dollars ($7,100,000) from time to time under this corporate name and seal or a
facsimile
of such
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. 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 signature of the town
director
of finance and the mayor and shall be issued and sold at not less than par and
accrued
interest
in such amounts as the town council may authorize by a bond ordinance or
ordinances.
The
manner of sale, denominations, maturities, interest rates and other terms,
conditions and
details
including issuance in Book Entry Only format 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 extend provisons 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 town director of finance, and such
proceeds, exclusive
of
premium and accrued interest, shall be expended (a) to finance the design and
construction of
sanitary
sewers for the Memorial Plat Sewer Project which includes all or a portion
Mills Drive,
Pocotte
Drive, Arnold Drive, Mongone Drive, Richardson Drive, Harrington Drive, Corrine
Drive,
Pinewood Avenue and Central Avenue; and for the Cherry Hill Sewer Project which
includes
all or a portion of Cherry Hill Road, Old Cherry Hill Road, Chrysanthy Court,
Setian
Circle,
Kern Acre Drive, Cavalcade Boulevard, Balsam Court, Hemlock Court, Woodcrest
Drive,
Cynthia
Drive, Worcester Avenue, Prescott Avenue, Holland Avenue, Rowena Drive,
Birchwood
Drive,
(b) in payment of the principal of or interest on temporary notes issued under
section 3, (c)
in
repayment of advances under section 4, (d) in payment of related costs of
issuance of any
bonds
or notes, and/or (e) to finance capitalized interest on the project. 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 6 and
9 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 in
issuance and
sale
with any other bond issue of the town 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 town director of
finance and
mayor,
on behalf of the town, 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 instruments, documents or
agreements
necessary
to comply with federal tax and securities laws, which instruments, 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 agreements of certificate in connection with the bonds or notes.
SECTION
3. The town council may by resolution authorize the issuance from time to time
of
interests
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 town director of finance.
Temporary
notes
issued hereunder shall be signed by the town director of finance 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 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 of 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 town
by the
paying agent at the direction of the town director of finance in any investment
permitted
under
section 5. The moneys in the fund and any investments held as 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 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 town. The town
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 town's
authority to issue
bonds
or notes in anticipation of bonds under this act shall continue provided that
(1) the town
council
passes a resolution evidencing the town'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 town director of finance, 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 2, such advances to
be repaid without
interest
from the proceeds of the bonds or notes subsequently issued or from the
proceeds of
applicable
federal or state assistance or from other available funds.
SECTION
5. Any proceeds or notes issued hereunder or of any applicable federal or state
assistance,
pending their expenditure, may be deposited or invested by the town director of
finance
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 town council or pursuant
to an
investment
policy of the town.
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 town director of
finance, 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 project costs, 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 town
director
of finance, 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 town from property taxes. In exercising any discretion
under this
section,
the town director of finance shall be governed by any instructions adopted by
resolution
of the
town council. The town director of finance is authorized to take any action
deemed by him
or her
necessary to assure that interest on the bonds or notes issued hereunder remains
excludable
from
gross income of the holders thereof for federal income tax purposes including,
without
limitation,
paying to the federal government any rebate of earnings derived from the
deposit or
investment
of the proceeds of such bonds or notes that may be required therefor.
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 excepted from the operation of section 45-12-2 of the
general laws
and any
provision of the town charter. 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, and coupons, if
any, 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 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 laws
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 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 ordinance of the town 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
town at the general election to be held on November 4, 2008 in substantially
the following
form:
"Shall an Act, passed at the 2008 session of the general assembly,
entitled 'AN ACT
AUTHORIZING
THE TOWN OF JOHNSTON TO FINANCE THE DESIGN AND
CONSTRUCTION
OF SANITARY SEWERS FOR THE MEMORIAL PLAT SEWER
PROJECT
WHICH INCLUDES ALL OR A PORTION OF MILLS DRIVE, POCOTTE DRIVE,
ARNOLD
DRIVE, MONGONE DRIVE, RICHARDSON DRIVE, HARRINGTON DRIVE,
CORRINE
DRIVE, PINEWOOD AVENUE AND CENTRAL AVENUE; AND FOR THE
CHERRY
HILL SEWER PROJECT WHICH INCLUDES ALL OR A PORTION OF CHERRY
HILL
ROAD, OLD CHERRY HILL ROAD, CHRYSANTHY COURT, SETIAN CIRCLE,
KERN
ACRE DRIVE, CAVALCADE BOULEVARD, BALSAM COURT, HEMLOCK
COURT,
WOODCREST DRIVE, CYNTHIA DRIVE, WORCESTER AVENUE, PRESCOTT
AVENUE,
HOLLAND AVENUE, ROWENA DRIVE, BIRCHWOOD DRIVE AND TO ISSUE
NOT
MORE THAN $7,100,000 BONDS AND 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 town clerk to keep a copy of
the 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 town charter, this act
shall prevail.
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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LC02330
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