2015 -- H 5008

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LC000287

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

AUTHORIZING THE TOWN OF JAMESTOWN TO PURCHASE 138 NARRAGANSETT

AVENUE IN SAID TOWN AND TO FINANCE THE PURCHASE AND RENOVATION

THEREOF BY THE ISSUANCE OF NOT MORE THAN $1,500,000 BONDS AND NOTES

THEREFOR

     

     Introduced By: Representative Deborah L. Ruggiero

     Date Introduced: January 08, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. The town of Jamestown is hereby empowered, in addition to authority

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previously granted, to issue bonds to an amount not exceeding one million five hundred thousand

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dollars ($1,500,000.00) from time to time under its corporate name and seal or a facsimile of such

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seal. The bonds of each issue may be issued in the form of serial bonds or term bonds or a

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combination thereof and shall be payable either by maturity of principal in the case of serial

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bonds or by mandatory serial redemption in the case of term bonds, in annual installments of

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principal, the first installment to be not later than five (5) years and the last installment not later

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than thirty (30) years after the date of the bonds. For each issue the amounts payable annually for

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principal and interest combined either shall be as nearly equal from year to year as is practicable

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in the opinion of the officers authorized to issue the bonds, or shall be arranged in accordance

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with a schedule providing for a more rapid amortization of principal.

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     SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the

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finance director of the town and the president of the town council and shall be issued and sold in

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such amounts as the town council may authorize by resolution. The manner of sale,

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denominations, maturities, interest rates and other terms, conditions and details of any bonds or

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notes issued under this act may be fixed by the resolution of the town council authorizing the

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issue or by separate resolution of the town council or, to the extent provisions for these matters

 

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are not so made, they may be fixed by the officers authorized to sign the bonds or notes. The

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proceeds derived from the sale of the bonds shall be delivered to the finance director, and such

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proceeds exclusive of premiums and accrued interest shall be expended for: (1) The purchase of

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the land and improvements at 138 Narragansett Avenue in said Town, sometimes also designated

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as tax assessor’s map 8 lot 79 and all costs incidental thereto; (2) The renovation, repair and/or

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expansion of the improvements thereon and equipment therefor; (3) In payment of the principal

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of or interest on temporary notes issued under section 3 of this act; or (4) In repayment of

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advances under section 4 of this act. No purchaser of any bonds or notes under this act shall be in

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any way responsible for the proper application of the proceeds derived from the sale thereof. The

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project shall be carried out and all contracts made therefor on behalf of the town by the town

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council, or as may be heretofore or hereafter otherwise directed by the town council. Without

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limiting the generality of the foregoing, the town administrator’s actions in entering into a

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purchase and sale agreement for such real estate and the consummation of such transaction are

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hereby ratified and approved by the passage of this act by the voters as provided for in section 11

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hereof. The proceeds of bonds or notes issued under this act, any applicable federal or state

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assistance and the other monies referred to in section 6 of this act shall be deemed appropriated

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for the purposes of this act without further action than that required by this act. The bond issue

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authorized by this act may be consolidated for the purposes of issuance and sale with any other

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bond issue of the town heretofore or hereafter authorized, provided that, notwithstanding any

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such consolidation, the proceeds from the sale of the bonds authorized by this act shall be

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expended for the purposes set forth above.

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     SECTION 3. The town council may by resolution authorize the issue from time to time

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of interest bearing or discounted notes in anticipation of the authorization or issue of bonds 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 finance director.

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Temporary notes issued hereunder shall be signed by the finance director and by the president of

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the town council and shall be payable within five (5) years from their respective dates, but the

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

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

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to the maturity of any note issued to renew or pay the same debt or the interest thereon shall not

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exceed five (5) years.

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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 finance director, with the approval of the

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

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treasury of the town 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 finance

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

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

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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.

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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 any earnings or net profit realized from the deposit or

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investment of funds hereunder shall, in the discretion of the finance director, be applied to the

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cost of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise

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provided, to the payment of the cost of the projects or to the cost of additional improvements

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coming within the description of the projects in section 2 of this act, to the payment of the

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principal of or interest on bonds or notes issued hereunder or to any one or more of the

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foregoing. The cost of preparing, issuing and marketing bonds or notes hereunder may also, in the

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discretion of the finance director, be met from bond or note proceeds exclusive of accrued interest

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or from other monies available therefor. Any balance of bond or note proceeds remaining after

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payment of the cost of the projects and said additional improvements and the cost of preparing,

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issuing and marketing bonds or notes hereunder shall be applied to the payment of the principal

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of or interest on bonds or notes issued hereunder. In exercising any discretion under this section,

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the finance director shall be governed by any instructions adopted by resolution of the town

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council. The finance director is authorized to take any action deemed by him or her necessary to

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assure that interest on the bonds or notes issued hereunder remains excludable from gross income

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of the recipients thereof for federal income tax purposes, including, without limitation: (1) Paying

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to the federal government any rebate of earnings derived from the deposit or investment of the

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proceeds of such bonds or notes that may be required therefor; and (2) To comply with the

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requirements of federal law, including, without being limited to, regulations and other

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requirements of the Securities and Exchange Commission and the Municipal Securities

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Rulemaking Board, imposed directly on the town or on the underwriters of such bonds and notes.

 

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     SECTION 7. All bonds or notes issued under this act and the debts evidenced thereby

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shall be obligatory on the town 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 § 45-12-2 of the general laws. No

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such obligation shall at any time be included in the debt of the town for the purpose of

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ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay

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the principal and interest coming due within the year on bonds and notes issued hereunder to the

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extent that monies therefor are not otherwise provided. If such sum is not appropriated, it shall

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nevertheless be added to the annual tax levy. In order to provide such sum in each year and

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notwithstanding any provision of law to the contrary, all taxable property in the town shall be

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subject to ad valorem taxation by the town without limitation as to rate 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 officers of the town 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 town, acting by resolution of its town council is authorized to apply

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

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be 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 project costs 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. Without limiting the

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generality of the foregoing, bonds and notes may be issued under this act without any action at

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the financial town meeting. In carrying out any project financed in whole or in part under this act,

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including where applicable the condemnation of any land or interest in land, and in the levy and

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collection of assessments or other charges permitted by law on account of any such project, all

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action shall be taken which is necessary to meet constitutional requirements whether or not such

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action is otherwise required by statute, but the validity of bonds and notes issued hereunder shall

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in no way depend upon the validity or occurrence of such action. To the extent of any

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inconsistency between this act and the town charter, this act shall prevail.

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     SECTION 11. The question of the approval of this act shall be submitted to the electors

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of the town at an election on a date to be determined by the town council which occurs at least

 

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thirty (30) days after the passage of this act. The question shall be submitted in substantially the

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following form: "Shall an act, passed at the 2015 session of the general assembly, entitled ‘AN

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ACT AUTHORIZING THE TOWN OF JAMESTOWN TO PURCHASE 138

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NARRAGANSETT AVENUE IN SAID TOWN, AND TO FINANCE THE PURCHASE AND

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RENOVATION THEREOF BY THE ISSUANCE OF NOT MORE THAN $1,500,000 BONDS

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AND NOTES THEREFOR' be approved?" and the warning for the election shall contain the

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question to be submitted. The town board of canvassers may combine any two (2) or more voting

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districts for the election and when so combined shall be treated as a single voting district. If so

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combined, the town board of canvassers shall advertise the combination of districts in a

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newspaper of general circulation in the town. From the time the election is warned and until it is

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held, it shall be the duty of the town clerk to keep a copy of the act available at his or her office

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for public inspection, but the validity of the election shall not be affected by this requirement.

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     SECTION 12. This section and section 11 shall take effect upon passage. The remainder

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of this act shall take effect upon the approval of this act by a majority of those voting on the

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question at the election prescribed by section 11.

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LC000287

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