Chapter 285
2016 -- H 8182
Enacted 07/01/2016

A N   A C T
AUTHORIZING THE TOWN OF NARRAGANSETT TO FINANCE THE ACQUISITION AND RENOVATION OF REAL ESTATE AND/OR INTERESTS OR RIGHTS THEREIN AND RELATED EQUIPMENT FOR A LIBRARY AND TO ISSUE NOT MORE THAN $5,800,000 BONDS AND NOTES THEREFOR

Introduced By: Representatives Tanzi, and McEntee
Date Introduced: May 06, 2016

It is enacted by the General Assembly as follows:
     SECTION 1. The town of Narragansett is hereby empowered, in addition to authority
previously granted, to issue bonds to an amount not exceeding five million eight hundred
thousand dollars ($5,800,000) from time to time under its corporate name and seal or a facsimile
of such 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 five (5) years and the last installment not later
than thirty (30) years after the date of the bonds. For each issue the amounts payable annually for
principal and interest combined either 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 manual or facsimile signatures of the
town treasurer and the president of the town council and shall be issued and sold in such amounts
as the town council may authorize 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 resolution 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 town treasurer, and such proceeds exclusive of premiums and
accrued interest shall be expended for: (1) The acquisition of real estate and/or interests or rights
therein and the renovation thereof for library purposes including related equipment and all costs
incidental thereto; (2) In payment of the principal of or interest on temporary notes issued under
section 3 of this act; or (3) In repayment of advances under section 4 of this act. 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 projects shall be carried out and all contracts made
therefor on behalf of the town by the town council or as may be otherwise directed by the town
council. The proceeds of bonds or notes issued under this act, any applicable federal or state
assistance and the other monies referred to in section 6 of this act shall be deemed appropriated
for the purposes of this act without further action than that required by this act. The bond issue
authorized by this act may be consolidated for the purposes 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. For the purpose of this act, the term "real estate and/or
interests or rights therein" includes, but is not limited to fee simple interests, condominium units,
leasehold estates, easements and/or rights-of-way.
     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 authorization or 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 treasurer.
Temporary notes issued hereunder shall be signed by the treasurer 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. Pending any authorization or issue of bonds hereunder or pending or in lieu
of any authorization or issue of notes hereunder, the treasurer, 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
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 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. 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 any earnings or net profit realized from the deposit or
investment of funds hereunder shall, in the discretion of the 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 projects or to the cost of additional improvements coming within
the description of the projects in section 2 of this act, 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
treasurer, be met from bond or note proceeds exclusive of 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 said additional improvements 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. In exercising any discretion under this section, the treasurer shall be
governed by any instructions adopted by resolution of the town council. The treasurer is
authorized to take any action deemed by him or her necessary: (1) 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 therefor; and (2) To comply with the requirements of federal law,
including, without being limited to, regulations and other requirements of the Securities and
Exchange Commission and the Municipal Securities Rulemaking Board, imposed directly on the
town or on the underwriters of such bonds and notes.
     SECTION 7. All bonds or 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 45122 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 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 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 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
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 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. To the extent of any inconsistency between this act and the town
charter, this act shall prevail.
     SECTION 11. The question of the approval of this act shall be submitted to the electors of
the town at the general election on November 8, 2016. The question shall be submitted in
substantially the following form: "Shall an act, passed at the 2016 session of the general
assembly, entitled 'AN ACT AUTHORIZING THE TOWN OF NARRAGANSETT TO
FINANCE THE ACQUISITION AND RENOVATION OF REAL ESTATE AND/OR
INTERESTS THEREIN AND RELATED EQUIPMENT FOR A LIBRARY AND TO ISSUE
NOT MORE THAN $5,800,000 BONDS AND NOTES THEREFOR' be approved?" and the
warning for the election shall contain the question to be submitted. The town board of canvassers
may combine any two (2) or more voting districts for the election and when so combined shall be
treated as a voting district. If so combined, the town board of canvassers shall advertise the
combination of districts in a newspaper of general circulation in the town. 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 12. This section and section 11 shall take effect upon passage. 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 section 11.
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LC005704
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