Chapter 334
2008 -- S 3119
Enacted 07/08/08
A N A C T
AUTHORIZING
THE TOWN OF NORTH SMITHFIELD TO FINANCE THE ACQUISITION OF LAND AND/OR
INTERESTS IN LAND FOR A SENIOR CITIZENS AND COMMUNITY CENTER, TOGETHER WITH
RELATED FACILITIES AND/OR IMPROVEMENTS, AND FOR OTHER MUNICIPAL FACILITIES AND
PURPOSES AS MAY BE NEEDED FROM TIME TO TIME BY THE TOWN, AND THE RECONSTRUCTION
AND REHABILITATION OF EXISTING BUILDINGS ON SUCH LAND AND/OR CONSTRUCTION OF
NEW BUILDINGS OR NEW ADDITIONS TO EXISTING BUILDINGS ON SUCH LAND FOR, AND THE
EQUIPPING OF, A SENIOR CITIZENS AND COMMUNITY CENTER, TOGETHER WITH RELATED
FACILITIES AND/OR IMPROVEMENTS, BY THE ISSUANCE OF NOT MORE THAN $2,500,000 OF
BONDS AND/OR NOTES THEREFOR
Introduced
By: Senators Tassoni, Cote, and P Fogarty
Date
Introduced: June 17, 2008
It is enacted by the General Assembly as
follows:
SECTION 1. The
town of North Smithfield is hereby empowered, in addition to authority
previously granted, to issue general obligation
bonds and notes to an amount not exceeding two
million five hundred thousand dollars
($2,500,000) 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, in such installments as are fixed by
the proceedings of the town council authorizing the
issue or by separate resolution of the town
council. 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, and may bear interest at
a fixed rate or rates or at a variable or auction rate
or rates, as determined by the proceedings of
the town council authorizing the issue or by separate
resolution of the town council. The bonds may be
sold by a negotiated sale or by competitive bid
and issued pursuant to a resolution or an
indenture of trust, as is determined by the proceedings of
the town council authorizing the issue or by
separate resolution of the town council, provided that
the final maturity of such bonds shall not
exceed thirty (30) years from and after the date the
bonds are issued. 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 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.
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 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
director of finance, and such proceeds,
exclusive of premiums and accrued interest, shall be
expended (a) for the purpose of financing the
acquisition of land and/or interests in land for a
senior citizens and community center, together
with related facilities and/or improvements, and
for other municipal facilities and purposes as
may be needed from time to time by the town, and
the reconstruction and rehabilitation of
existing buildings on such land and/or construction of new
buildings or new additions to existing buildings
on such land for, and the equipping of, a senior
citizens and community center, together with related
facilities and/or improvements, (b) in
payment of the principal of and/or interest on
temporary notes issued under Section 3, (c) in
repayment of advances made pursuant to Section
4, and/or (d) in payment of costs of issuance
associated with the issuance of bonds or notes
hereunder. 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 purpose of this act without
further action than that required by this act. This
bond issue authorized by this act may be consolidated
for the purpose 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 director of finance and the
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 documents or
agreements 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 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 issue from time to time of
interest bearing or discounted notes in
anticipation of the issue 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 director of finance. Temporary notes
issued hereunder shall be signed by the 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
issue of other notes hereunder, provided the
period from the date of an original note to the
maturity of any notes 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 town by the paying agent at the
direction of the director of finance in any
investment permitted under Section 5. 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
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 and 2) that the period from the
date of an original note to the maturity date of any
other notes 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 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 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 premiums arising from the
sale of bonds or notes hereunder shall, in the
discretion of the 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 cost of the
project, 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 issued
hereunder may also, in the discretion of the director
of finance, be met from bond or note proceeds
exclusive of 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
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 accepted 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 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, 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 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 project costs 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 action.
SECTION 11. 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 or at a general or special
election (other than a primary election) to be
held on a date as shall be designated 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 AUTHORIZING THE
TOWN OF NORTH SMITHFIELD TO FINANCE THE
ACQUISITION OF LAND AND/OR
INTERESTS IN LAND FOR A SENIOR CITIZENS AND
COMMUNITY CENTER,
TOGETHER WITH RELATED FACILITIES AND/OR IMPROVEMENTS,
AND FOR OTHER
MUNICIPAL FACILITIES AND PURPOSES AS MAY BE
NEEDED FROM TIME TO TIME
BY THE TOWN, AND THE RECONSTRUCTION AND
REHABILITATION OF EXISTING
BUILDINGS ON SUCH LAND AND/OR CONSTRUCTION OF
NEW BUILDINGS OR NEW
ADDITIONS TO EXISTING BUILDINGS ON SUCH LAND
FOR, AND THE EQUIPPING
OF, A SENIOR CITIZENS AND COMMUNITY CENTER,
TOGETHER WITH RELATED
FACILITIES AND/OR IMPROVEMENTS, BY THE ISSUANCE
OF NOT MORE THAN
$2,500,000 OF BONDS AND/OR NOTES THEREFOR’ be
approved?” 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 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 town charter, this act
shall prevail.
SECTION 12.
Sections 11 and 12 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.
=======
LC03148
=======