2012 -- S 2931

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LC02485

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE

RECONSTRUCTION OF BRIDGES IN THE CITY OF PAWTUCKET AND AUTHORIZING

THE FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $200,000

BONDS AND NOTES THEREFOR, TO FUND THE CAPITAL IMPROVEMENT PROGRAM

FOR THE TWO FISCAL YEARS 2013 AND 2014

     Introduced By: Senator James E. Doyle

     Date Introduced: May 03, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. The city of Pawtucket is hereby authorized, in addition to authority

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previously granted, to issue bonds up to an amount not exceeding two hundred thousand dollars

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($200,000) from time to time under its corporate name and seal or a facsimile of such. The bonds

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of each issue may be issued in the form of serial bonds or term bonds or a combination thereof

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and shall be payable either by maturity of principal in the case of serial bonds or by mandatory

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sinking fund installments in the case of term bonds, in annual installments of principal, the first

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installment to be not later than three (3) years and the last installment not later than thirty (30)

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years after the date of the bonds.

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     SECTION 2. The bonds shall be signed by the city treasurer and by the manual or

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facsimile signature of the mayor and be issued and sold in such amounts as the city council may

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determine by resolution. The manner of sale, denominations, maturities, interest rates and other

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terms, conditions and details of any bonds or notes issued under this act may be fixed by the

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proceedings of the city council authorizing the issue or by separate resolution of the city council

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or, to the extent provisions for these matters are not so made, they may be fixed by the officers

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authorized to sign the bonds or notes. The proceeds derived from the sale of the bonds shall be

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delivered to the city treasurer, and such proceeds exclusive of premiums and accrued interest

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shall be expended: (a) for the reconstruction of bridges in the city of Pawtucket (the “project”);

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(b) in payment of the principal of or interest on temporary notes issued under section 3; (c) in

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repayment of advances under section 4; (d) in payment of related costs of issuance of any bonds

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or notes; and/or (e) in payment of capitalized interest during construction of the project. There

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being no local election planned for the calendar year 2013 in the city of Pawtucket, the amounts

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authorized by this act to finance the project are intended to fund appropriations for two fiscal

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years. The city, however, is not required to issue the bonds and notes authorized by this act during

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the fiscal years ending June 30, 2013 or June 30, 2014, but may issue them at any time, or from

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time to time. No purchaser of any bonds or notes under this act shall be in any way responsible

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for the proper application of the proceeds derived from the sale thereof. The proceeds of bonds or

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notes issued under this act, any applicable federal or state assistance and the other monies referred

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to in sections 6 and 9 shall be deemed appropriated for the purposes of this act without further

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action than that required by this act.

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     SECTION 3. The city council may by resolution authorize the issuance from time to time

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of interest bearing or discounted notes in anticipation of the issue of bonds under section 2 or in

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anticipation of the receipt of federal or state aid for the purposes of this act. The amount of

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original notes issued in anticipation of bonds may not exceed the amount of bonds which may be

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issued under this act and the amount of original notes issued in anticipation of federal or state aid

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may not exceed the amount of available federal or state aid as estimated by the city treasurer.

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Temporary notes issued hereunder shall be signed by the manual or facsimile signatures of the

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city treasurer and the mayor and shall be payable within five (5) years from their respective dates,

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but the principal of and interest on notes issued for a shorter period may be renewed or paid from

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time to time by the issue of other notes hereunder, provided the period from the date of an

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original note to the maturity of any note issued to renew or pay the same debt or the interest

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thereon shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued under

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this section may be refunded prior to the maturity of the notes by the issuance of additional

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temporary notes, provided that no such refunding shall result in any amount of such temporary

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notes outstanding at any one time in excess of two hundred percent (200%) of the amount of

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bonds which may be issued under this act, and provided further that if the issuance of any such

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refunding notes results in any amount of such temporary notes outstanding at any one time in

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excess of the amount of bonds which may be issued under this act, the proceeds of such refunding

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notes shall be deposited in a separate fund established with the bank which is paying agent for the

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notes being refunded. Pending their use to pay the notes being refunded, moneys in the fund shall

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be invested for the benefit of the city by the paying agent at the direction of the city treasurer in

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any investment permitted under section 5. The moneys in the fund and any investments held as a

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part of the fund shall be held in trust and shall be applied by the paying agent solely to the

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payment or prepayment of the principal of and interest on the notes being refunded. Upon

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payment of all principal of and interest on the notes, any excess moneys in the fund shall be

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distributed to the city. The city may pay the principal of and interest on notes in full from other

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than the issuance of refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In

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such case, the city's authority to issue bonds or notes in anticipation of bonds under this act shall

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continue provided that 1) the city council passes a resolution evidencing the city's intent to pay

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off the notes without extinguishing the authority to issue bonds or notes and 2) that the period

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from the date of an original note to the maturity date of any other note shall not exceed five (5)

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years. Section 5-106 of the city charter shall not apply to the issue of notes in anticipation of

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bonds.

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     SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu

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of any authorization or issue of notes hereunder, the city treasurer, with the approval of the city

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council may, to the extent that bonds or notes may be issued hereunder, apply funds in the general

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treasury of the city to the purposes specified in section 2, such advances to be repaid without

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interest from the proceeds of bonds or notes subsequently issued or from the proceeds of

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applicable federal or state assistance or from other available funds.

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     SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable

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federal or state assistance, pending their expenditure may be deposited or invested by the city

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treasurer, in demand deposits, time deposits or savings deposits in banks which are members of

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the Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United

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States of America or by any agency or instrumentality thereof or as may be provided in any other

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applicable law of the state of Rhode Island or resolution of the city council or pursuant to an

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investment policy of the city.

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     SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder

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shall be applied to the payment of the first interest due thereon. Any premiums arising from the

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sale of bonds or notes hereunder and, to the extent permitted by applicable federal laws, any net

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earnings or profits realized from the deposit or investment of funds hereunder shall, in the

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discretion of the city treasurer, be applied to the cost of preparing, issuing, and marketing bonds

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or notes hereunder to the extent not otherwise provided, to the payment of the cost of the project,

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to the payment of the principal of or interest on bonds or notes issued hereunder, to the revenues

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of the city and dealt with as part of the revenues of the city from property taxes to the extent

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permitted by federal law, or to any one or more of the foregoing. The cost of preparing, issuing,

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and marketing bonds or notes hereunder may also, in the discretion of the city treasurer, be met

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from bond or note proceeds exclusive of premium and accrued interest or from other monies

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available therefor. Any balance of bond or note proceeds remaining after payment of the cost of

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the projects and the cost of preparing, issuing and marketing bonds or notes hereunder shall be

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applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the

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extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or

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investment of funds hereunder may, upon receipt, be added to and dealt with as part of the

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revenues of the city from property taxes. In exercising any discretion under this section, the city

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treasurer shall be governed by any instructions adopted by resolution of the city council. Any

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balance of bond or note proceeds remaining after completion of the project shall be subject to

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section 5-109 of the city charter.

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     SECTION 7. All bonds and notes issued under this act and the debt evidenced hereby

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shall be obligatory on the city in the same manner and to the same extent as other debts lawfully

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contracted by it and shall be excepted from the operation of section 45-12-2 of the general laws

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and any provision of the city charter. No such obligation shall at any time be included in the debt

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of the city for the purpose of ascertaining its borrowing capacity. The city shall annually

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appropriate a sum sufficient to pay the principal and interest coming due within the year on bonds

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and notes issued hereunder to the extent that monies therefor are not otherwise provided. If such

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sum is not appropriated, it shall nevertheless be added to the annual tax levy. In order to provide

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such sum in each year and notwithstanding any provision of law to the contrary, all taxable

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property in the city shall be subject to ad valorem taxation by the city without limitation as to rate

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or amount.

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     SECTION 8. Any bonds or notes issued under the provisions of this act, if properly

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executed by the officers of the city in office on the date of execution, shall be valid and binding

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according to their terms notwithstanding that before the delivery thereof and payment therefor

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any or all of such officers shall for any reason have ceased to hold office.

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     SECTION 9. The city, acting by resolution of its city council is authorized to apply for,

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contract for and expend any federal or state advances or other grants of assistance which may be

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available for the purposes of this act, and any such expenditures may be in addition to other

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monies provided in this act. To the extent of any inconsistency between any law of this state and

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any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with

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interest where applicable, whether contracted for prior to or after the effective date of this act,

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may be repaid as a cost of the project under section 2.

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     SECTION 10. Bonds and notes may be issued under this act without obtaining the

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approval of any governmental agency or the taking of any proceedings or the happening of any

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conditions except as specifically required by this act for such issue. In carrying out any project

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financed in whole or in part under this act, including where applicable the condemnation of any

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land or interest in land, and in the levy and collection of assessments or other charges permitted

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by law on account of any such project, all action shall be taken which is necessary to meet

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constitutional requirements whether or not such action is otherwise required by statute, but the

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validity of bonds and notes issued hereunder shall in no way depend upon the validity or

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occurrence of such action. Without limiting the generality of the foregoing, the validity of bonds

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and notes issued hereunder shall in no way be affected by sections 2-308 and 4-1602 of the city

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charter, and the purposes of this act shall be deemed to constitute a single project under article V

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of the city charter.

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     SECTION 11. The city treasurer and the mayor, on behalf of the city are hereby

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authorized to execute such instruments, documents or other papers as either of the foregoing

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deem necessary or desirable to carry out the intent of this act and are also authorized to take all

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actions and execute all documents necessary to comply with federal tax and securities laws,

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which documents or agreements may have a term coextensive with the maturity of the bonds

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authorized hereby, including Rule 15c2-12 of the Securities and Exchange Commission (the

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Rule) and to execute and deliver a continuing disclosure agreement or certificate in connection

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with the bonds or notes in the form as shall be deemed advisable by such officers in order to

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comply with the Rule.

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     SECTION 12. All or any portion of the authorized but unissued authority to issue bonds

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and notes under this act may be extinguished by resolution of the city council, without further

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action by the general assembly, seven (7) years after the effective date of this act.

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     SECTION 13. The question of the approval of this act shall be submitted to the electors

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of the city at the next general election but if a special city-wide election or special state election,

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in either case other than a primary, is called for a date earlier than the date of such general

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election, the mayor may direct that the question of the approval of this act be submitted at such

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special election. The question shall be submitted in substantially the following form: "Shall an act

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passed at the 2012 session of the general assembly entitled 'An act authorizing the city of

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Pawtucket to provide for the reconstruction of bridges in the city of Pawtucket and authorizing

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the financing thereof, including the issue of not more than $200,000 bonds and notes therefor, to

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fund the Capital Improvement Program for the two fiscal years 2013 and 2014' be approved?" and

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the warning for the election shall contain the question to be submitted. From the time the election

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is warned and until it is held, it shall be the duty of the city clerk to keep a copy of the act

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available at his or her office for public inspection, but the validity of the election shall not be

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affected by this requirement. To the extent of any inconsistency between this act and the city

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charter or any law of special applicability to the city, this act shall prevail.

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     SECTION 14. This section and the foregoing shall take effect upon the passage of this

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act. The remainder of this act shall take effect upon the approval of this act by a majority of those

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voting on the question at the election prescribed by the foregoing section.

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LC02485

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EXPLANATION

OF

A N A C T

AUTHORIZING THE CITY OF PAWTUCKET TO PROVIDE FOR THE

RECONSTRUCTION OF BRIDGES IN THE CITY OF PAWTUCKET AND AUTHORIZING

THE FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $200,000

BONDS AND NOTES THEREFOR, TO FUND THE CAPITAL IMPROVEMENT PROGRAM

FOR THE TWO FISCAL YEARS 2013 AND 2014

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     This act would authorize the city of Pawtucket to issue not more than $200,000 general

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obligation bonds and notes to finance the reconstruction of bridges in the city of Pawtucket to

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cover the two fiscal years 2013 and 2014.

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     Sections 13 and 14 would take effect upon passage. The remainder of the act would take

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effect upon approval of the question provided for in section 13.

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LC02485

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