LA 053
2022 -- S 3008
Enacted 07/06/2022

A N   A C T
AUTHORIZING THE CITY OF WARWICK TO ISSUE NOT TO EXCEED $350,000,000 GENERAL ‎OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS TO ‎FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, ‎REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF TWO NEW HIGH SCHOOLS AND SCHOOL ‎FACILITIES TO REPLACE PILGRIM HIGH SCHOOL AND TOLLGATE HIGH SCHOOL, AND ALL ATTENDANT EXPENSES ‎INCLUDING, BUT NOT LIMITED TO, DEMOLITION, ENGINEERING AND ARCHITECTURAL ‎COSTS, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS THAN 45% AT THE TIME OF ISSUANCE AND 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 McCaffrey, and Calkin

Date Introduced: June 09, 2022

It is enacted by the General Assembly as follows:
     SECTION 1. The city of Warwick 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 three hundred fifty million dollars ($350,000,000) from time to time under its
corporate name and seal or a facsimile of such seal; provided, however, that bonds shall not be
issued unless the conditions of section 2 hereof as to the level of state aid are met. 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 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 city 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 city from state bond proceeds, from RIDE or from the Rhode Island school
‎building authority; provided however, that the amount of borrowing authorized shall not be reduced
by the amount of any grant received by the city for any portion of the projects funded by capital
reserve funds. Bonds, notes or other evidences of indebtedness shall not be issued under ‎this act
unless the city has received a letter from RIDE confirming that the then-current school housing aid
reimbursement rate under chapter 7 ‎of title 16, as amended from time to time, or financial assistance
from the school building ‎authority capital fund, or pursuant to any other law hereafter enacted
providing for funds to ‎municipalities for school housing purposes, is not less than forty-five percent
(45%) of debt ‎service for those expenditures which are eligible for state aid.
     SECTION 3. 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. Notwithstanding anything contained in this act to the contrary, the city 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 notes or bonds
issued in connection with such financing agreements, if any, the city 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 city
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 city 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 city council authorizing such issuance of 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 the construction, renovation, improvement, alteration, ‎repair, ‎landscaping, furnishing and
equipping of two (2) new high schools and ‎school ‎facilities to replace Pilgrim High School and
Tollgate High ‎School, and all attendant expenses ‎including, but not limited to, ‎demolition,
engineering and architectural ‎costs (the “projects”); (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 projects. 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 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 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 4. 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 3 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 6. 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. 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 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 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 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 premiums arising from the sale of
bonds or notes hereunder may, 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
and, notwithstanding any other provisions of the general laws regarding the use of premium, shall
not be applied to costs of the projects other than costs of issuance. Any premium in excess of the
amounts to be applied to costs of issuance shall be applied to reduce the principal amount of the
bonds or notes issued. 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.
     SECTION 8. 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 § 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 9. 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 10. 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 projects 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 city treasurer and the mayor, on behalf of the city 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 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 13. 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 14. 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 8, 2022. The question shall be submitted in
substantially the following form: "Shall an act passed at the 2022 session of the general assembly
entitled 'AN ACT AUTHORIZING THE CITY OF WARWICK TO ISSUE NOT TO EXCEED
‎‎$350,000,000 GENERAL ‎OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF
INDEBTEDNESS TO ‎FINANCE THE CONSTRUCTION, RENOVATION, ‎IMPROVEMENT,
ALTERATION, ‎REPAIR, LANDSCAPING, FURNISHING AND ‎EQUIPPING OF TWO NEW
HIGH SCHOOLS AND SCHOOL ‎FACILITIES TO REPLACE ‎PILGRIM HIGH SCHOOL AND
TOLLGATE HIGH SCHOOL, AND ALL ATTENDANT ‎EXPENSES ‎INCLUDING, BUT NOT
LIMITED TO, DEMOLITION, ENGINEERING AND ‎ARCHITECTURAL ‎COSTS, SUBJECT
TO APPROVAL OF STATE HOUSING AID AT A ‎REIMBURSEMENT RATE OR STATE
SHARE RATIO OF NOT LESS THAN 45% AT THE ‎TIME OF ISSUANCE AND 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 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 15. This act shall constitute an enabling act of the general assembly that is
required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under
this act for school projects shall not be eligible for state aid reimbursement pursuant to § 16-7-44
unless the school projects described herein have been approved by RIDE.
     SECTION 16. Sections 14 and 16 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 section 14.
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LC006106
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