Chapter
394
2008 -- H 8387
Enacted 07/05/08
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:
Representative Raymond C. Church
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.
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LC03149
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