LA 011
2021 -- S 0374
Enacted 03/24/2021

A N   A C T
AUTHORIZING THE TOWN OF SOUTH KINGSTOWN TO ISSUE NOT TO EXCEED $85,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS TO FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES THROUGHOUT THE TOWN, AND ALL ATTENDANT EXPENSES INCLUDING, BUT NOT LIMITED TO, ENGINEERING AND ARCHITECTURAL COSTS, PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE ISLAND DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL BUILDING AUTHORITY

Introduced By: Senators Sosnowski, Algiere, and Valverde
Date Introduced: February 25, 2021

It is enacted by the General Assembly as follows:
     SECTION 1. The town of South Kingstown is hereby empowered, in addition to authority
previously granted, to issue bonds, notes and other evidences of indebtedness (hereinafter “bonds”)
up to an amount not exceeding eighty-five million dollars ($85,000,000) 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 sinking fund installments 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. 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 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 town may be eligible for school housing aid reimbursement on debt
service pursuant to chapter ‎‎7 of title 16, or for a grant, loan or other financial assistance from
proceeds of bonds issued by the state of Rhode Island (the “state”), ‎from the Rhode Island
department of education (“RIDE”) or from the Rhode Island school building authority. The amount
of borrowing authorized ‎pursuant to this act shall be reduced by the amount of certain grants
actually received by the town from state bond proceeds, from RIDE or from the Rhode Island
school building authority.
     SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town
director of finance 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 resolutions 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. Notwithstanding anything
contained in this act to the contrary, the town may enter into financing ‎agreements with the Rhode
Island health and educational building corporation pursuant to ‎chapter 7 of title 16 and chapter 38.1
of title 45 and, with respect to bonds or notes issued in ‎connection with such financing agreements,
if any, the town may elect to have the provisions of ‎chapter 38.1 of title 45 apply to the issuance of
the bonds or notes issued hereunder to the extent ‎the provisions of chapter 38.1 of title 45 are
inconsistent herewith. In addition, the town may enter ‎into financing agreements with the Rhode
Island Infrastructure Bank pursuant to the provisions ‎of chapter 12.2 of title 46 and, with respect to
bonds or notes issued in connection with such ‎financing agreements, if any, the town may elect to
have the provisions of chapter 12.2 of title 46 ‎apply to the issuance of the bonds or notes issued
hereunder to the extent the provisions of ‎chapter 12.2 of title 46 are inconsistent herewith. Such
election may be fixed by the proceedings ‎of the town council authorizing such issuance of 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 director of finance, and such proceeds
exclusive of premiums and accrued interest shall be expended: (1) To finance the construction,
renovation, improvement, alteration, repair, landscaping, furnishing and equipping of schools and
school facilities throughout the town, and all attendant expenses including, but not limited to,
engineering and architectural costs; (2) In payment of the principal of or interest on temporary notes
issued under section 4; (3) In repayment of advances under section 5; (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 (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 with due regard to any recommendation of the school building committee. The town
council and the school building committee and their agents are authorized to enter, without delay
and at reasonable times, any public school buildings and other public school property for the
purpose of accomplishing the project and to do all acts and deeds necessary or convenient in
connection with the project. The proceeds of bonds or notes issued under this act, any applicable
federal or state assistance and the other monies referred to in sections 7 and 10 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 purpose of issuance and sale with any
other bonds 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.
     SECTION 4. The town council may by resolution authorize the issuance from time to time
of interest bearing or discounted notes in anticipation of the issuance 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 director of finance. Temporary notes
issued hereunder shall be signed by the manual or facsimile signatures of the town director of
finance 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 issuance 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 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 trust in a separate fund established 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 town director of finance in any investment permitted
under section 6. 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 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 other note shall not exceed five (5) years.
     SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu
of any authorization or issue of notes hereunder, the town 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 treasury of the town to the purposes specified in section 3, 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 6. 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 town 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 or resolution of the town council or pursuant to an
investment policy of the town.
     SECTION 7. 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 premium arising from the sale of
bonds or notes hereunder shall, in the discretion of the town 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 project costs, 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 town director of finance,
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 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 town director of finance
shall be governed by any instructions adopted by resolution of the town council.
     SECTION 8. 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. 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 9. Any bonds or notes issued under the provisions of this act, and coupons, if
any, 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 10. 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 the 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 3.
     SECTION 11. 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 12. The town director of finance and the president of the town council, 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 instruments, documents or agreements necessary to comply with
federal tax and securities laws, which instruments, 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 13. 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 town council after seven (7) years
shall have passed from the approval of this act provided for in section 14, without further action by
the general assembly.
     SECTION 14. The question of the approval of this act shall be submitted to the electors of
the town, at a local election, other than a primary, held on a date to be determined by resolution of
the town council. The question shall be submitted in substantially the following form: “Shall an
act passed at the 2021 session of the general assembly entitled ‘AN ACT AUTHORIZING THE
TOWN OF SOUTH KINGSTOWN TO ISSUE NOT TO EXCEED $85,000,000 GENERAL
OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS TO
FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION,
REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL
FACILITIES THROUGHOUT THE TOWN, AND ALL ATTENDANT EXPENSES
INCLUDING, BUT NOT LIMITED TO, ENGINEERING AND ARCHITECTURAL COSTS,
PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF
CERTAIN GRANTS RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE
ISLAND DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL
BUILDING AUTHORITY’ 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 this 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 town charter, this act shall prevail.
     SECTION 15. This section and section 14 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 section 14.
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LC001964
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