LA 120
2018 -- S 2917
Enacted 07/05/2018

A N   A C T
AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE REPAVING OF STREETS IN THE CITY AND ALL COSTS RELATED THERETO AND AUTHORIZING THE FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $5,000,000 BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS THEREFOR, TO FUND THE CAPITAL IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2020 AND 2021

Introduced By: Senators Nesselbush, Crowley, Conley, and Cano
Date Introduced: May 17, 2018

It is enacted by the General Assembly as follows:
     SECTION 1. The city of Pawtucket is hereby authorized, in addition to authority
previously granted, to issue bonds and other evidences of indebtedness (hereinafter "bonds") up
to an amount not exceeding five million dollars ($5,000,000) 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: (1) For repaving of streets in the city and all costs related thereto (the
"project"); (2) In payment of the principal of or interest on temporary notes issued under section
3; (3) In repayment of advances under section 4; (4) In payment of related costs of issuance of
any bonds or notes; and/or (5) 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.
     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, monies 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 monies 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 monies 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 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 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 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 or resolution of the city council or 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 ยง 45-12-2 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 provisions 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 section 2-308 of the city charter and
section 4-1602 of the city code of ordinances, 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 on November 6, 2018, 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 2018 session of the general assembly entitled 'AN ACT
AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE REPAVING OF
STREETS IN THE CITY AND ALL COSTS RELATED THERETO AND AUTHORIZING
THE FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $5,000,000
BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS THEREFOR, TO FUND
THE CAPITAL IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2020 AND
2021' 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 the clerk's 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 the foregoing shall take effect upon the 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 the foregoing section.
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LC005737
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