Chapter 275
2008 -- S 2667
Enacted 07/08/08
A N A C T
AUTHORIZING
THE TOWN OF EAST GREENWICH TO FINANCE THE ACQUISITION,CONSTRUCTION, EQUIPPING
AND FURNISHING OF A MIDDLE SCHOOL AND THE RENOVATION, ALTERATION, DEMOLITION, REPAIR,
IMPROVEMENT, EQUIPPING,FURNISHING AND LANDSCAPING OF, AND/OR ADDITIONS TO,
PUBLIC SCHOOLS AND SCHOOL FACILITIES IN THE TOWN AND ALL ATTENDANT EXPENSES INCLUDING,
BUT NOT LIMITED TO, ENGINEERING AND ARCHITECTURAL COSTS AND TO ISSUE NOT MORE
THAN $52,000,000 BONDS AND/OR NOTES THERFOR
Introduced
By: Senators Lenihan, and Raptakis
Date
Introduced: February 26, 2008
It is enacted by the General Assembly as
follows:
SECTION 1. The
town of East Greenwich is hereby empowered, in addition to authority
previously granted, to issue bonds to an amount
not exceeding fifty-two million dollars
($52,000,000), or such lesser amount as is
determined by resolution of the town council pursuant
to section 12 hereof, 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 town
director of finance and the president of the
town council and shall be issued and sold in such
amounts as the town 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 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. Interest coupons
(if any) shall bear the manual or facsimile
signature of the town director of finance. 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
acquisition, construction, equipping and
furnishing of a middle school and the renovation,
alteration, demolition, repair, improvement,
equipping, furnishing and landscaping of, and/or
additions to, public schools and school
facilities in the town and all attendant expenses including,
but not limited to, engineering and
architectural costs (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 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 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 town council, in its discretion, may
appoint a five (5) member school building
committee comprised of town residents. The projects
shall be carried out and all contracts made
therefor on behalf of the town by the town council, or
the town council may delegate such authority to
the school building committee, if appointed, or to
the town school committee. The town council, the
school building committee, if appointed, and
their agents are authorized to enter, without
delay and at reasonable times, any public school
buildings and other public school property for
the purpose of accomplishing the project and to do
all acts and deeds necessary or convenient in
connection with the projects. 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 of 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
president of the town council, 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
agreement or 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 manual or facsimile signatures
of the town director of finance and the
president of the town council 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 interests
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 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 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 funds 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 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 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 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 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 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 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 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.
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 provisions 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
provisions 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 and 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. 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 2.
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
ordinance of the town council, without further
action by the general assembly.
SECTION 12. It
shall be a condition precedent to holding of the referendum described in
section 13 hereof and the issuance of bonds and
notes hereunder that the town council adopt a
resolution which provides for an exact amount of
bonds and notes to be issued.
SECTION 13. At a
general or local election to be held on a date that shall be designated
by the town council, there shall be submitted to
electors of the town a question in substantially the
following form:
“Shall the Town of
East Greenwich issue General Obligation Bonds and/or Notes in an
Amount Not To Exceed $52,000,000 for the Purpose
of Financing the Acquisition, Construction,
Equipping and Furnishing of a Middle School and
the Renovation, Alteration, Demolition,
Repair, Improvement, Equipping, Furnishing and
Landscaping of, and/or Additions To, Public
Schools and School Facilities in the Town and
all Attendant Expenses Including, But Not Limited
To, Engineering and Architectural Costs?” 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 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 town charter, this act shall
prevail.
SECTION 14.
Sections 12, 13 and 14 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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LC02313
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