Chapter 291

2010 -- H 8228

Enacted 06/25/10

 

A N A C T

AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE BONDS AND NOTES TO AN AMOUNT NOT EXCEEDING $9,200,000 TO FINANCE THE CONSTRUCTION OF SEWERS AND SEWERAGE SYSTEMS IN THE TOWN INCLUDING THE ACQUISITION OF LAND THEREFOR AND AUTHORIZING THE IMPOSITION OF SEWER ASSESSMENTS AND SERVICE FEES

          

     Introduced By: Representatives Carter, Ehrhardt, and Lally

     Date Introduced: June 03, 2010

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Additional issuance of bonds.

     The Town of North Kingstown is hereby empowered and authorized, in addition to

authority previously granted pursuant to Chapters 25 and 37 of the Public Laws of 2009, to issue

bonds to an amount not exceeding Nine Million Two Hundred Thousand dollars ($9,200,000)

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, 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. The bonds

shall be signed by the town director of finance and by 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, principal amounts, interest rates and other terms, conditions and

details of any bonds or notes issued under this act may be fixed by 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.

     SECTION 2. Proceeds of the bonds. -- 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 construction of sewers and sewerage systems including but not limited to lift

stations and pumping stations and the acquisitions, by purchase or condemnation, of land and

interests therein necessary in connection with the construction thereof in the town of North

Kingstown;

     (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.

     The particular facilities to be provided in any area of the town shall be determined in

accordance with priorities determined by the town council. 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 section 6 shall be deemed appropriated for

the purposes of this act without further action than that required by this act.

     SECTION 3. Temporary notes.

     The town council may by resolution authorize the issuance 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 as estimated by the director of

finance. Temporary notes issued hereunder shall be signed by the director of finance and by 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 note issued to renew or pay the same debt or the interest

thereon shall not exceed five (5) years.

     SECTION 4. Advances from general fund. -- 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 general fund of the town to the purposes specified in section

2, such advances to be repaid with 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. Investment of money.

     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.

     SECTION 6. Expenditures.

     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 principal of or interest on bonds or notes issued hereunder or to any one (1)

or more of the foregoing. The cost of preparing, issuing and marketing bonds or notes hereunder

may also, in the discretion of the director of finance, be met from bond or note proceeds exclusive

of premium and accrued interest or from other moneys available therefore. Any balance of bond

or note proceeds remaining after payment of 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. Security for bonds and notes.

     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 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. Validity of bonds or notes.

     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 of

such officers shall for any reason have ceased to hold office.

     SECTION 9. Federal or state advances or grant.

     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 of assistance which may be available for

the purposes of this act, and any such expenditure 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 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. Conditions precedent to issuance.

     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 project financed in whole or

in part under this act, including where applicable the condemnation of any land or interest in land,

which shall be authorized hereby and carried out in the manner described by chapter 1 of title 24

of the general laws as it may be amended from time to time, 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. Assessments.

     (A) The town council shall cause the cost of constructing, operating and maintaining the

sewer system to be paid by assessments and annual charges as set forth herein. The town council

shall assess the costs (including financing costs and debt service on bonds or notes issued

hereunder) of any project or projects financed under this act which it has determined will be paid

from assessments, upon the owners of the estates which abut that portion of any street or highway

in or along which any sewer constituting any portion of such project or projects may be located or

which otherwise specially benefit from such project or projects. Any such property owned by the

state of Rhode Island shall be subject to assessments and charges under this act in the same

manner and to the same extent as any other such property. Such assessment may be made

separately for each project separately identified by the town council or for several projects taken

together, including those financed pursuant to Chapters 25 and 37 of the Public Laws of 2009, as

the town council may deem equitable.

     (B) Such assessments shall be just and equitable and shall be based upon frontage or area

within a specified reasonable distance from the street or highway or other equitable method or

combination of methods as may be determined by the town council. The town council shall not

make any particular assessment in excess of the benefit conferred and may make reasonable

adjustments or deferments of such assessments against estates having a frontage upon more than

one street or against estates which for any reason are unable to derive the normal benefits from

the system. The town council may adopt ordinances governing the making of such assessments

and the collection thereof. A copy of such assessments shall be recorded with the collector of

taxes as a public record. From the date of delivery to the collector of taxes the assessments and

interest accruing thereon shall constitute a lien upon the respective estates on a parity with the

lien for town taxes until paid in full. The collector of taxes of the town shall have the same rights

to enforce such liens against the estates and to collect such assessments and interest from the

owners as he has in the case of town taxes.

     SECTION 12. Sewer service charges.

     (A) The town council may fix and revise from time to time a schedule of sewer service

charges for the use of sewer facilities and services furnished under this act for the purpose of

paying the cost of maintaining, repairing and operating such facilities, and any other expenses not

otherwise provided for which may arise under this act, to the extent that monies for the foregoing

purposes are not otherwise provided. Such charges shall be just and equitable and may be based

upon the quantity of water used or units assessed or the number and size of sewer connections

made or the number and kind of plumbing fixtures installed on the estate or upon the number or

average number of persons residing or working in or otherwise connected therewith or upon any

other factor affecting the use of or the value of the facilities and services furnished or upon any

combination of such factors. The town may provide by ordinance for the making and collection of

such sewer service charges.

     (B) Delinquent service charges together with any interest and charges accruing thereon

shall constitute a lien upon real estate on a parity with the lien for town taxes. The collector of

taxes shall have the same rights to enforce such liens and to collect the service charges and

interest thereon as he has in the case of town taxes.

     SECTION 13. Appropriation of charges and assessments.

     The receipts from sewer service charges and assessments, including any net earning and

profits realized from the deposit or investment thereof, shall be deemed appropriated for the

purposes set forth in this act, without the necessity of any further action. Except as provided in

this act and in Chapters 25 and 37 of the Public Laws of 2009, the assessment and collection of

sewer service charges and assessments shall be governed by ordinances adopted by the town

council and applicable to all such charges and assessments in the town.

     SECTION 14. Other bonds for similar purposes, instruments, documents and agreements.

     The bond issue authorized by this act may be consolidated for the purposes of issuance

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 assessments and charges for the issuance and debt service costs of the bonds

authorized by this act may be consolidated with those assessed and charged for other bond issued

for the town’s of sewers and sewerage systems heretofore or hereafter authorized.

     The town director of finance and the president of the town council, on behalf of the town,

are hereby authorized to execute such agreements, instruments, documents or other papers as

either of them deem necessary or desirable to carry out the intent of this act including but not

limited to those pursuant to chapter 24.5 of Title 45 and Chapter 12.2 of Title 46 as amended of

the General Laws, 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.

     SECTION 15. The question of the approval of this act shall be submitted to the electors

of the town at a general or special election which is not a primary on such date as the town

council shall designate. 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 Town of North Kingstown to issue bonds and notes to an amount not exceeding

$9,200,000 to finance the construction of sewers and sewerage systems in the town including the

acquisition of land therefor and authorizing the imposition of sewer assessments and user fees' 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 at his or her office for public inspection, but the validity of the election shall not be

affected by this requirement.

     SECTION 16. 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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LC02825

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