Chapter 363

2009 -- S 0818

Enacted 11/13/09

 

A N A C T

AUTHORIZING THE TOWN OF SMITHFIELD TO ISSUE NOT EXCEEDING $1,000,000 GENERAL OBLIGATION BONDS OR NOTES FOR LAND ACQUISITION

          

     Introduced By: Senator John J. Tassoni

     Date Introduced: March 24, 2009

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. The Town of Smithfield is hereby empowered, in addition to authority

previously granted, to issue its general obligation bonds and notes to an amount not exceeding

one million dollars ($1,000,000) at one time or from time to time under its corporate name and

seal or a facsimile of such seal to finance land acquisition and related costs as more fully set forth

in section two. The bonds of each issue shall mature in annual installments of principal, the first

installment to be not later than three (3) years and the last installment not later than twenty-five

(25) years after the date of the bonds. For each issue, the amounts payable annually for principal

and interest combined shall be as nearly equal from year to year as is practicable in the opinion of

the officers authorized to issue the bonds or shall be arranged in accordance with a schedule

providing for a more rapid amortization of principal.

     SECTION 2. The bonds shall be signed by the finance director and countersigned by the

town manager and the town clerk and shall be issued and sold in such amounts as the town

council may authorize by majority vote of all its members. The manner of sale denominations,

maturities, interest rate or rates, award 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 their

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. The town council

may provide that any bonds issued under this act and any other authorized issue of bonds of the

town may be consolidated and issued at the same time as a single bond issue, provided that the

last installment of the portion of any such consolidated issue that is allocable to the bonds issued

under this act shall not be later than the times specified by the applicable provisions hereof. The

bonds may be made callable with or without premium. The proceeds derived from the sale of the

bonds shall be delivered to the finance director, and such proceeds, exclusive of premiums and

accrued interest, shall be expended to purchase the Salt Barn property, so-called, (described

generally as Smithfield Assessor's Plat 46, Lot 290) from the State of Rhode Island (hereinafter

referred to as the project) if approved by the voters at the Financial Town Meeting in accordance

with Section 11 hereof, including all other costs incidental and related to the foregoing project

and its financing pursuant to this act including, but not limited to, the payment of the principal of

or interest on temporary notes issued under section three and the repayment of advances made

under section four. 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 project

shall be carried out and all contracts made therefore on behalf of the town by the town council or

as may be authorized by the town council. The proceeds of bonds or notes issued under this act,

any applicable federal or state assistance and any other monies referred to in sections five or six

shall be deemed appropriated for the purposes of this act without further action than that required

by this act.

     SECTION 3. The town council may be resolution authorize the issue from time to time of

interest-bearing, non-interest-bearing, or discounted notes in anticipation of the issue of bonds

under this act 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

finance director. Temporary notes issued hereunder shall be signed by the finance director and

countersigned by the town manager and the town clerk 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. The period for which bonds may

be issued under this act need not be reduced by the period of any temporary loans hereunder. The

proceeds derived from the sale of such temporary notes shall be used only for the purposes for

which the proceeds of bonds issued under this act may be used.

     SECTION 4. Pending any issue of bonds or notes hereunder, the finance director, 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 for the purposes specified in section two, 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 finance

director in demand deposits, time deposits or savings deposits in banks which are members of the

federal deposit insurance corporation, in obligations issued or guaranteed by the United States of

America or the State of Rhode Island, or by an agency, instrumentality or political subdivision of

either of them, or as may be provided in any other applicable law of the State of Rhode Island.

     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 finance director, 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 hereunder may also, in the discretion of the finance

director, be met from bond or note proceeds exclusive of premiums and accrued interest or from

other monies available therefore. 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 may be applied to the payment of the principal of or interest on bonds or notes issued

hereunder. Any earnings or net profit realized from the deposit or investment of funds hereunder

shall upon receipt be added to and used for the same purposes as the proceeds of bonds or notes

issued hereunder. In exercising any discretion under this section, the finance director shall be

governed by any instructions adopted by resolution of the town council. The finance director 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 recipients 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 therefore.

     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.

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 monies therefore 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 the 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 therof and payment therefore

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 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

monies provided in the act. To the extent of any inconsistency between any law of the 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 two.

     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

finance in whole or in part under this act, all action shall be taken which is necessary to meet

constitutional requirements whether or not such section 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 the project set forth in section 2 hereof

shall be submitted to the voters at the Smithfield Financial Town Meeting to be held on June 11,

2009. The question shall be submitted in substantially the following form:

     "Shall an act, passed at the 2009 session of the general assembly, authorizing the Town of

Smithfield to issue not exceeding $1,000,000 General Obligation Bonds or Notes for the purpose

of acquiring the Salt Barn property, so-called, from the State of Rhode Island be approved?"

     The warning for said Financial Town Meeting shall contain the question to be submitted.

Form the time the said Financial Town Meeting is warned and until it is held, it shall be the duty

of the town clerk to keep a copy of this act available at his or her office for public inspection, but

the validity of the vote taken at said Financial Town Meeting shall not be affected by this

requirement.

     SECTION 12. This section and section eleven shall take effect upon the passage of this

act. The remainder of this act shall take effect upon the approval of the question listed in section

11 hereof by majority of those voting on the question at the Financial Town Meeting prescribed

by the foregoing section.

     

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LC02195

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