LA 147
2018 -- S 2911
Enacted 07/10/2018

A N   A C T
AUTHORIZING THE TOWN OF JAMESTOWN TO ISSUE GENERAL OBLIGATION BONDS AND NOTES IN AN AMOUNT NOT TO EXCEED $2,900,000 TO FINANCE NEW CONSTRUCTION, DEMOLITION, RENOVATIONS AND/OR IMPROVEMENTS TO JAMESTOWN GOLF COURSE AND FACILITIES AT 245 CONANICUS AVENUE AND RELATED EQUIPMENT

Introduced By: Senator Dawn M. Euer
Date Introduced: May 17, 2018

It is enacted by the General Assembly as follows:
     SECTION 1. The town of Jamestown is hereby empowered, in addition to authority
previously granted, to issue its general obligation bonds and notes to an amount not exceeding
two million nine hundred thousand dollars ($2,900,000) at one time or from time to time under its
corporate name and seal or a facsimile of such seal to finance new construction, demolition,
renovations and/or improvements to Jamestown golf course and facilities at 245 Conanicus
Avenue and related equipment. 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. 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. Annual installments of principal may be provided
for by maturity of principal in the case of serial bonds or by mandatory serial redemption in the
case of term bonds. 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 purpose of a
constitutional or statutory 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
finance director and the president of the town council and shall be issued and sold in such
amounts as the town council may authorize by majority vote of all its members. The amount of
the bond issue, manner of sale, denominations, maturities, interest rate or rates, award and other
terms, conditions and details of any bonds or notes issued under this act may be fixed by the
proceedings of the town council authorizing their issue or by separate resolution to 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. The town council may provide that any bonds issued under
this act and any other authorized issue of bonds of the town may be consolidated and issued at the
same time as a single bond issue, provided that the last installment of the portion of any such
consolidated issue that is allocable to the bonds issued under this act shall not be later than the
times specified by the applicable provisions hereof. The bonds may be made callable with or
without premium. The proceeds derived from the sale of the bonds shall be delivered to the
finance director, and such proceeds, exclusive of premiums and accrued interest, shall be
expended for costs of financing new construction, demolition, renovations and/or improvements
to Jamestown golf course and facilities at 245 Conanicus Avenue and related equipment (herein
referred to as the "project") if approved by the voters in accordance with section 12 hereof,
including all other costs incidental and related to the foregoing project and its financing pursuant
to this act, including, but not limited to, the payment of principal of or interest on temporary notes
issued under section 3, the repayment of advances made under section, and/or to finance
capitalized interest on 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
project shall be carried out and all contracts made therefor on behalf of the town by the town
council, or as may be authorized by the town council. The proceeds of bonds or notes issued
under this act, any applicable federal or state assistance and any other monies referred to in
sections 5, 6, or 9 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
authorize; 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 above. The finance
director and president of the town council and each of them acting singly, on behalf of the town,
are hereby authorized to execute such instruments, documents, or other papers as either of them
deem necessary or desirable to carry out the intent of this act 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, including Rule 15c2-12 of the Securities and Exchange
Commission, to execute and deliver a continuing disclosure agreement or certificate in
connection with the bond or notes, and to comply with the provisions of §§ 16-7-35 to 16-7-47 of
the Rhode Island general laws, 1956, as amended.
     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 issue of bonds under this act 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 finance director.
Temporary notes issued hereunder shall be signed by the finance director and 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. 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 issuance of any such refunding notes results in
any 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 town by the paying agent at the direction of the finance director in
any investment permitted under section 5. The monies in the fund and any investments held as
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 town. The period for which bonds may be issued under this act need not be
reduced by the period of any temporary loans hereunder. The proceeds derived from the sale of
such temporary notes shall be used only for the purposes for which the proceeds bonds issued
under this act may be used. The town 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 town's authority to issue bonds or notes in anticipation of bonds under
this act shall continue provided that: (1) The town council passes a resolution evidencing the
town'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 note shall not
exceed five (5) years.
     SECTION 4. Pending any issue of bonds or notes hereunder, the finance director, 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 for 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 finance
director in demand deposits, time deposits or savings deposits in which are members of the
federal deposit insurance corporation, in obligations issued or guaranteed by the United States of
America or state of Rhode Island, or by an agency, instrumentality or political subdivision of
either of them, or as may be provided in any other applicable law of the state of Rhode Island or
resolution of the town council or pursuant to an investment policy of the town.
     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
bonds or notes hereunder shall, in the discretion of the finance director, 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 or to any one or more of the foregoing. The cost preparing, issuing and
marketing bonds or notes hereunder may also, in the direction of the finance director, be met from
bond or note proceeds exclusive of premiums and accrued interest or from other monies available
therefor. Any balance of bond or note proceeds remaining after payment of the cost of the project
and the cost of preparing, issuing and marketing bonds or notes hereunder may 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 shall upon receipt be added to and used for the same purposes as
the proceeds of bonds or notes issued hereunder or be added to and dealt with as a part of
revenues of the town from property taxes. In exercising any discretion under this section, the
finance director shall be governed by any instructions adopted by resolution of the town council.
The finance director is authorized to take any action deemed by him or her to be necessary 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.
     SECTION 7. 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 § 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 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 expand 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 the act. To the extent of any inconsistency between any law of the 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.
     SECTION 11. After completion of the project, 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 town council, without further action by the general assembly.
     SECTION 12. The question of the approval of this act shall be submitted to the electors
of the town of Jamestown at the general election to be held on November 6, 2018. 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 TOWN OF JAMESTOWN TO
ISSUE GENERAL OBLIGATION BONDS AND NOTES IN AN AMOUNT NOT TO
EXCEED $2,900,000 TO FINANCE NEW CONSTRUCTION, DEMOLITION,
RENOVATIONS AND/OR IMPROVEMENTS TO JAMESTOWN GOLF COURSE AND
FACILITIES AT 245 CONANICUS AVENUE AND RELATED EQUIPMENT' be approved?"
The warning for 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 this
act available at the clerk's office for public inspection, but the validity of the vote taken at the
election shall not be affected by this requirement.
     SECTION 13. This section and section 12 shall take effect upon the passage of this act.
The remainder of this act shall take effect upon the approval of the question listed in section 12
hereof by a majority of those voting on the question at the election prescribed by the foregoing
section.
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LC005648
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