Chapter 337
2008 -- H 8029
AS AMENDED
Enacted 07/05/08
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: Representatives Fellela, Petrarca, Ucci, and Smith
Date
Introduced: March 11, 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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LC02254
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