Chapter 280

2008 -- S 3155

Enacted 07/08/08

 

A N A C T

PROVIDING FOR THE CONSTRUCTION OF CAPITAL IMPROVEMENTS TO THE SCITUATE MIDDLE/HIGH SCHOOL COMPLEX AND AUTHORIZING FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $4,000,000 IN BONDS THEREFOR

          

     Introduced By: Senator Leo R. Blais

     Date Introduced: June 20, 2008

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. The Town of Scituate is hereby empowered and authorized, in addition to

authority previously granted, to issue bonds in an amount not exceeding $4,000,000 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

three (3) years and the last installment not later than twenty-three (23) years after the date of the

bonds. For each issue the amounts payable annually for principal and interest combined either

shall be as nearly equal from year to year as is practicable in the opinion of the officers authorized

to issue the bonds, or shall be arranged in accordance with a schedule providing for a more rapid

amortization of principal.

     SECTION 2. The bonds shall be signed by the Town Treasurer and by the President of

the Town Council. The manner of the 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

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 Treasurer and such proceeds, exclusive of premiums and

accrued interest, and costs of issuance, shall be expended (a) for the designing, constructing,

equipping and furnishing of capital improvements, additions and renovations to the Scituate

Middle/High School complex or (b) payment of the principal of or interest on temporary notes

issued under this act, or (c) and repayment of advances under this act. 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 district by the school building committee or as may be otherwise directed by the

school committee. The proceeds of bonds or notes issued under this act, any applicable state

assistance, or other monies referred to in this act shall be deemed appropriated for the purposes of

this act without further action than that required by this act.

     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 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 under this act 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

treasurer. Temporary notes issued hereunder shall be signed by the Town Treasurer and by the

President of the Town Council and shall be payable within three years of 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 three years.

     SECTION 4. Pending any authorization or issuance of bonds hereunder or pending or in

lieu of any authorization or issuance of notes hereunder, the Town Treasurer with the approval of

the President 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

treasurer in demand deposits, time deposits, or saving deposits, in banks which are members of

the Federal Deposit Insurance Corporation, or in other 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 laws 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 shall in the discretion of the treasurer be applied to the cost of

preparing, issuing, and marketing bonds or notes hereunder to the extent not otherwise provided

or to the payment of the cost of the projects or to the payment of the principal or of 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 treasurer be met

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

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. Any

earnings or net profit realized from the deposit or investment of funds hereunder shall upon

receipt be added to and dealt with as part of the revenues of the Town.

     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. No such obligation shall at any time be included in the debt of the

Town for the purpose of ascertaining its borrowing capacity and shall be excepted from the

operation of Section 45-12-2 of the General Laws. The Town shall annually appropriate an

amount 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 by the Town, it shall nevertheless be added to the Town’s annual tax levy. In order

to provide such sum 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, if properly

executed by the 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 and all of such officers for any reason have ceased to hold office.

     SECTION 9. The Town acting by its school committee 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 purpose 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 project costs under Section 2.

     SECTION 10. Bonds and notes may be issued under this act without obtaining the

approval of any government agency or the taking of any proceedings or the happening of any

conditions except as specifically required by this act or such issue. In carrying out any project

financed in whole or in part in this act, including where applicable to 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 actions shall be taken which are 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. The question of the approval of this act shall be submitted to the voters of

the Town of Scituate at a special financial town meeting to be held on such date and at such time

as shall be fixed by the Town Council. The question shall be submitted in substantially the

following form: “Shall an act passed at the 2008 session of the General Assembly entitled, ‘An

act providing for the construction of capital improvements to the Scituate Middle/High School

Complex and authorizing the financing thereof, including the issue of not more than $4,000,000

in bonds therefor’, be approved?” and the warning for the special financial town meeting shall

contain the question to be submitted. From the time the special financial town meeting is warned

and until it is held, it shall be the duty of the town clerk to keep a copy of the act available at the

town office for public inspection but the validity of the special financial town meeting shall not

be affected by this requirement.

     SECTION 12. This Section and Section 11 shall take effect upon passage. The remainder

of this act shall take effect upon the approval of this act by a majority of the voters voting on the

question as prescribed by Section 11.

     

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LC03261

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