Chapter 338
2008 -- S 3137
Enacted
07/08/08
A N A C T
AUTHORIZING
THE CITY OF CRANSTON TO ISSUE NOT MORE THAN $6,000,000 BONDS AND/OR NOTES TO
FINANCE THE ACQUISITION, DEVELOPMENT, IMPROVEMENT, REHABILITATION, RESTORATION,
ENHANCEMENT, PRESERVATION AND/OR PROTECTION OF OPEN SPACE, PARK AND RECREATIONAL
AREAS AND/OR FACILITIES, FISH AND WILDLIFE HABITATS, AND/OR LAKE, RIPARIAN,
RESERVOIR, RIVER, COASTAL AND OTHER NATURAL RESOURCES, THROUGHOUT THE CITY OF
CRANSTON FOR A TERM NOT TO EXCEED TWENTY (20) YEARS
Introduced By:
Senators Miller, Gallo, and Lanzi
Date
Introduced: June 19, 2008
It is enacted by the General Assembly as
follows:
SECTION 1. The
City of Cranston is hereby empowered, in addition to authority
previously granted, to issue bonds to an amount
not exceeding six million dollars ($6,000,000)
from time to time under its corporate name and
seal or a facsimile of such seal. The bonds of each
issue shall mature in annual installments of
principal, the first installment to be not later than one
year and the last installment not later than
twenty (20) 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, statutory,
or charter 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
director of finance and the mayor and shall be
issued and sold in such amounts as the city 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 city council authorizing the issue by
separate order or resolution of the city 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 facsimile signature
of the director of finance. The proceeds derived
from the sale of the bonds shall be delivered to
the city treasurer, and such proceeds, exclusive
of premiums and accrued interest, shall be
expended (a) for the purpose of financing the
acquisition, development, improvement,
rehabilitation, restoration, enhancement,
preservation and/or protection of open space, park and
recreational areas and/or facilities, fish and
wildlife habitats, and/or lake, riparian, reservoir, river,
coastal and other natural resources, throughout
the City of Cranston for a term not to exceed
twenty (20) years, but for no other uses or
purposes (such as temporary borrowings for the benefit
of any other city department), or (b) in payment
of the principal or of interest on temporary notes
issued under Section 3, or (c) in repayment of
advances under Section 4. 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. In addition to such funds, there may be
expended for the purposes of this act such other sums
as may be appropriated therefor. The bond issue
authorized by this act may be consolidated for
the purposes of issuance and sale with any other
bond issue of the city 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.
SECTION 3. The
city council may, by order or resolution authorizing the bonds or by
separate order or resolution, authorize the
issuance from time to time of interest bearing or
discounted notes in anticipation of the issue of
the bonds under Section 2 or in anticipation of the
receipt of federal or state aid for the purposes
of this act. The amount of the original notes issued
in anticipation of the 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 if finance. Temporary
notes issued hereunder shall be signed by the
manual or facsimile signature of the director of
finance and countersigned by the manual or
facsimile signature of 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 or the interest
thereon shall not exceed five (5) years. Any
temporary notes in anticipation of the 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 the 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 that 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 city by
the paying agent at the direction of the city
treasurer 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 city.
SECTION 4. Pending
any authorization or issue of bonds hereunder or pending or in lieu
of any authorization or issue of notes
hereunder, the city treasurer, with the approval of the city
council given by an order or resolution passed
and approved in the manner provided in Chapter
12 of the city charter, but not subject to the
provisions of Section 12.03 of said Chapter, may, to
the extent that bonds or notes may be issued
hereunder apply funds in the treasury of the city 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, and subject to the approval of the
investment committee mentioned in Section 7.05
of the city charter, may be deposited or invested
by the city treasurer 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 laws of the state of
Rhode Island and by ordinance or resolution of the city
council.
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 net earnings or profits
realized from the investment of funds hereunder
and any premiums arising from the sale of bonds
or notes hereunder shall, in the discretion of
the city treasurer, be applied to cost of preparing,
issuing and marketing bonds or notes hereunder
to the extent not otherwise provided, to the
payment of the cost of the projects or the cost
of additional improvements coming within the
description of the projects in Section 2 of this
act, 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 city treasurer,
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 projects and the cost of additional
improvements coming within the description of the
projects in Section 2 of this act, and the cost
of preparing, issuing and marketing bonds or notes
hereunder shall be applied to the payment of the
principal or interest on bonds or notes issued
hereunder. To the extent permitted by applicable
federal law, 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 city from property
taxes. In exercising any discretion under this
section, the city treasurer shall be governed by
any instructions adopted by any order or resolution
of the city council.
SECTION 7. All
bonds and notes issued under this act and the debts evidenced thereby
shall be obligatory to the city 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 city for the purpose of
ascertaining its borrowing capacity. The city
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 thereof 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 city shall be
subject to ad valorem taxation by the city
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 the officers of the
city in office on the date of execution, shall be
valid and binding according to their terms
notwithstanding that before delivery thereof and
payment therefore any or all of the officers
shall for any reason have ceased to hold office.
SECTION 9. The
city, acting by order or resolution of its city council, passed and
approved in the manner provided in chapter 12 of
the city charter, but not subject to the provision
of Section 12.03 of said chapter, is authorized
to apply for, contract for and expend any federal or
state advances or other grants of assistance
which may be available for the purposes of this act,
and any such expenditures maybe 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 of this act.
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 projects 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 projects, 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
or 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 city at the general election to be held
on November 4, 2008. 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 City of Cranston to issue not more than
$6,000,000 of bonds and/or notes to finance the
acquisition, development, improvement,
rehabilitation, restoration, enhancement,
preservation and/or protection of open space, park and
recreational areas and/or facilities, fish and
wildlife habitats, and/or lake, riparian, reservoir, river,
coastal and other natural resources, throughout
the City of Cranston for a term not to exceed
twenty (20) years' 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 city
clerk to keep a copy of the act available at the
city clerk's 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 city
charter, this act shall prevail.
SECTION 12. This
section and the foregoing section shall take effect upon passage of the
act. The remainder of this act shall take effect
upon the approval of the act by a majority of those
voting on the question at the election
prescribed by the foregoing section.
=======
LC03193
=======