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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