Chapter 438
2012 -- S 2966
Enacted 06/25/12
A N A C T
AUTHORIZING THE
CITY OF
Introduced By: Senators Lanzi, Gallo, and Miller
Date Introduced: May 17, 2012
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
two million five hundred
thousand dollars ($2,500,000) 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 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. 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 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 financing the acquisition,
construction, improvement, renovation,
repair, alteration and equipping of playgrounds and athletic
fields in the city of
“project”);
(b) In payment of the principal of or interest on 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 hereunder and/or (e) In payment of
capitalized interest during construction of
the project. 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. The bonds authorized
by this act may be consolidated for the
purposes of issuance and sale with any other bonds 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
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
director of 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
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 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 general 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
in any other applicable law of the state of
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 any
order or resolution of the city
council.
SECTION 7. All bonds and notes issued under this act and the
debt evidenced thereby
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 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
provisions 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 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 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 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 director of finance 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 ordinance
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 general election to be held on
November 6, 2012. The question shall be
submitted in substantially the following form: "Shall an
act passed at the 2012 session of the
general assembly entitled 'An act authorizing the city of
construction, improvement, renovation, repair, alteration and
equipping of playgrounds and
athletic fields in the city of
notes therefor’
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.
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LC02636
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