Chapter
112
2008 -- S 2695 SUBSTITUTE A
Enacted 06/30/08
A N A C T
AUTHORIZING THE TOWN
OF JOHNSTON TO FINANCE THE DESIGN AND
CONSTRUCTION OF A NEW
LIBRARY ON THE NORTHWEST QUADRANT OF THE LAND PARCEL IDENTIFIED AS ASSESSOR'S PLAT
53/3 LOT 34 LOCATED ON MEMORIAL AVENUE AND TO ISSUE NOT MORE THAN $3,000,000
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 three million dollars
($3,000,000)
from
time to time under its 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 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 town director of finance, and such
proceeds, exclusive
of
premium and accrued interest, shall be expended (a) to finance the design and
construction of a
new
library on the Northwest quadrant of the land parcel identified as Assessor’s
plat 53/3 lot 34
located
on Memorial Avenue, (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
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 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 provide 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 of prepayment
of the
principal
of and interest on notes being refunded. Upon payment of all principal 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 A NEW LIBRARY ON THE NORTHWEST QUADRANT OF THE
LAND
PARCEL IDENTIFIED AS ASSESSOR'S PLAT 53/3 LOT 34 LOCATED ON
MEMORIAL
AVENUE AND TO ISSUE NOT MORE THAN $3,000,000 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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LC02329/SUB A
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