Chapter 043
2010 -- H 8133
Enacted 06/12/10
A N A C T
AUTHORIZING THE
CITY OF PAWTUCKET TO PROVIDE FOR CONSTRUCTION AND RECONSTRUCTION OF THE SEWER
AND SANITATION SYSTEM IN THE CITY OF PAWTUCKET AND AUTHORIZING THE FINANCING THEREOF,
INCLUDING THE ISSUE OF NOT MORE THAN $300,000 BONDS AND NOTES THEREFOR, TO FUND
THE CAPITAL IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2011 AND 2012
Introduced
By: Representatives
JP O`Neill
Date Introduced: May 13, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. The city of
previously granted, to issue bonds up to an amount not exceeding
three hundred thousand dollars
($300,000)
from time to time under its corporate name and seal or a facsimile of such. 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
sinking fund installments in the case of term bonds, in
annual installments of principal, the first
installment to be not later than three (3) years and the last installment
not later than thirty (30)
years after the date of the bonds.
SECTION 2. The bonds shall be signed by the city
treasurer and by the
manual or facsimile signature of the mayor and be issued and
sold in such amounts as the city
council may determine by resolution. 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 or by separate 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. 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 construction and
reconstruction of the sewer and sanitation
system in the city of
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) in payment of capitalized
interest during construction of the project. There being no
local election planned for the calendar
year 2011 in the city of
intended to fund appropriations for two fiscal years.
The city, however, is not required to issue
the bonds and notes authorized by this act during the
fiscal years ending June 30, 2011 or June
30, 2012, but may issue
them at any time, or from time to time. 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 monies 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.
SECTION 3. The city council may by resolution
authorize the issuance from
time to time of interest bearing or discounted notes in
anticipation of the issue of bonds under
section 2 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
city treasurer. Temporary notes issued hereunder shall be
signed by the manual or facsimile
signatures of the city treasurer 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 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 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. The city 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 city's authority to issue
bonds or notes in anticipation of bonds under
this act shall continue provided that 1) the city council
passes a resolution evidencing the city'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 5-106 of the city charter
shall not apply to the issue of notes in
anticipation of bonds.
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 may, to the extent that bonds or
notes may be issued hereunder, apply
funds in the general treasury of the city to 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 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
in any other applicable law of the state of
pursuant to an investment policy of the city.
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 and, to the
extent permitted by applicable federal laws,
any net earnings or profits realized from the deposit or
investment of funds hereunder shall, in the
discretion of the city treasurer, 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, to the revenues
of the city and dealt with as part of the revenues of
the city from property taxes to the extent
permitted by federal law, 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 monies
available therefor. Any balance of
bond or note proceeds remaining after payment of the cost of
the projects 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 city from property taxes. In exercising any
discretion under this section, the city
treasurer shall be governed by any instructions adopted by
resolution of the city council. Any
balance of bond or note proceeds remaining after completion
of the project shall be subject to
section 5-109 of the city charter.
SECTION 7. All bonds and notes issued under this act
and the debt evidenced
hereby shall be
obligatory on the city 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 city charter. 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 monies 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
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, 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
the delivery thereof and payment
therefor any or all of such officers shall for any reason have ceased to hold
office.
SECTION 9. The city, acting by resolution of its city
council 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 may be in addition
to other monies 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
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. Without limiting
the generality of the foregoing, the validity of bonds and
notes issued hereunder shall in no way
be affected by sections 2-308 and 4-1602 of the city
charter, and the purposes of this act shall
be deemed to constitute a single project under article V
of the city charter.
SECTION 11. The city treasurer and the mayor, on behalf of
the city are hereby
authorized to execute such instruments, documents or other
papers as either of the foregoing
deem necessary or desirable to carry out the intent of
this act and are also authorized to take all
actions and execute all documents 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 (the Rule) and to execute and deliver a
continuing disclosure agreement or certificate in connection
with the bonds or notes in the form
as shall be deemed advisable by such officers in order
to comply with the Rule.
SECTION 12. All or any portion of the authorized but
unissued authority to
issue bonds and notes under this act may be extinguished by
resolution of the city council,
without further action by the general assembly, seven (7)
years after the effective date of this act.
SECTION 13. The question of the approval of this act
shall be submitted to the
electors of the city at the next general election but if a
special city-wide election or special state
election, in either case other than a primary, is called for a
date earlier than the date of such
general election, the mayor may direct that the question of
the approval of this act be submitted at
such special election. The question shall be submitted in
substantially the following form: "Shall
an act passed at the 2010 session of the general
assembly entitled 'An act authorizing the city of
city of
$300,000 bonds and notes therefor, to fund the Capital Improvement Program for the
two fiscal
years 2011 and 2012' 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 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 city charter or any law
of special applicability to the city,
this act shall prevail.
SECTION 14. This section, and section 13, 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.
=======
LC02542
=======