2015 -- H 5927

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LC001559

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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

RELATING TO RHODE ISLAND TURNPIKE AND BRIDGE AUTHORITY -- DEBT

MANAGEMENT

     

     Introduced By: Representatives Edwards, Canario, Gallison, Marshall, and Reilly

     Date Introduced: March 19, 2015

     Referred To: House Finance

     (RI Bridge & Turnpike Authority)

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     Joint Resolution as to the Rhode Island Turnpike and Bridge Authority Project submitted

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pursuant to Rhode Island General Law chapter 18 of title 35, "Public Corporation Debt

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Management," specifically regarding the issuance of bonds by the Rhode Island turnpike and

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bridge authority, and amendments to the general laws regarding bond issuance by said authority.

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     WHEREAS, The Rhode Island Turnpike and Bridge Authority (the "Authority") is a

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public corporation of the State of Rhode Island (the "State"), constituting a public instrumentality

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and agency exercising public and essential governmental functions of the State, created by the

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General Assembly pursuant to Rhode Island General Laws § 24-12-1, et seq. (as enacted,

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reenacted and amended, hereinafter referred to as the "Act"); and

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     WHEREAS, The State recognizes that the Pell Bridge, the Jamestown Verrazzano Bridge

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and other facilities of the Authority are an essential part of the State's transportation system and

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facilitates the tourism industry; and it is the policy of the State that the public welfare and the

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further economic development and the prosperity of the State requires the maintenance of such

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facilities and the financing thereof; and

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     WHEREAS, The Act provides that the Authority shall have the power to charge and

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collect tolls for the use of its facilities; and

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     WHEREAS, Pursuant to Rhode Island General Laws § 31-36-20, three and one-half cents

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($0.035) per gallon of the motor fuel tax is transferred to the Authority to be used for

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maintenance, operations, capital expenditures and debt service on any of its projects as defined in

 

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chapter 12 of title 24; and

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     WHEREAS, The Act also provides that the Authority shall have the power to acquire,

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hold and dispose of real and personal property in the exercise of its powers and performance of its

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duties; and

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     WHEREAS, The Act authorizes the Authority to make and enter into all contracts and

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agreements necessary or incidental to the performance of its duties and the execution of its

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powers under the Act, to issue revenue bonds of the Authority for any of its purposes and to

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refund its bonds, borrow money in anticipation of the issuance of its bonds, and secure its bonds

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and notes by the pledge of its tolls and other revenues; and

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     WHEREAS, In furtherance of its corporate purposes, the Authority is authorized to issue

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from time to time its negotiable revenue bonds and notes in one or more series in such principal

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amounts for the purpose of paying all or a part of the costs of any one or more projects authorized

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by the Act, making provision for working capital and a reserve for interest; and

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     WHEREAS, Pursuant to Rhode Island General Laws §§ 35-18-3 and 35-18-4 of the

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Rhode Island Public Corporation Debt Management Act (as enacted, reenacted and amended, the

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"Debt Management Act"), the Authority has requested the approval of the General Assembly of

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the Authority's issuance of not more than sixty five million dollars ($65,000,000) Rhode Island

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Turnpike and Bridge Authority Revenue Bonds with a term not to exceed thirty (30) years and six

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(6) months (together with any notes issued in anticipation of the issuance of bonds, the " Bonds")

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to be secured by toll, transfers of motor fuel taxes and/or other revenues, for the purpose of

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providing funds to finance the renovation, renewal, repair, rehabilitation, retrofitting, upgrading

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and improvement of the Pell Bridge, the Jamestown Verrazzano Bridge, the Sakonnet River

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Bridge, Mount Hope Bridge, and other projects authorized under the Act, replacement of the

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components thereof, working capital, capitalized interest, a debt service reserve and the costs of

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issuing and insuring the Bonds (the "Project"); and

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     WHEREAS, The Project constitutes essential public facilities directly benefiting the

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State; and

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     WHEREAS, The Authority is authorized pursuant to § 24-12-28 of the Act to secure its

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bonds by a pledge of the tolls and other revenues received by the Authority; and

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     WHEREAS, The State shall directly benefit economically from the Project by the repair,

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maintenance and improvement of the State transportation infrastructure; and

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     WHEREAS, In the event that not all of the Bond proceeds are used to carry out the

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specified Project, the Authority will use any remaining funds to pay debt service on the Bonds;

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     Now, therefore, be it

 

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     RESOLVED, That this General Assembly finds that the Project is an essential public

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facility and is of a type and nature consistent with the purposes and within the powers of the

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Authority to undertake, and hereby approves the Authority's issuance of not more than sixty-five

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million dollars ($65,000,000) in Bonds, which amount is in addition to all prior authorizations;

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and be it further

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     RESOLVED, That the Bonds will be special obligations of the Authority payable from

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funds received by the Authority from tolls and other revenues received by the Authority. The total

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debt service on the Bonds is estimated to average approximately five million seventy-five

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thousand dollars ($5,075,000) per year or approximately one hundred fifty million two hundred

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fifty thousand dollars ($ 152,250,000) in the aggregate, prior to the receipt of any federal subsidy

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and/or assistance, at an average interest rate of approximately six and three-quarters percent

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(6.75%) and an approximately a thirty (30) year maturity; and be it further

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     RESOLVED, That the Bonds will not constitute indebtedness of the State or any of its

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subdivisions or a debt for which the full faith and credit of the State or any of its subdivisions is

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pledged.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO RHODE ISLAND TURNPIKE AND BRIDGE AUTHORITY -- DEBT

MANAGEMENT

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     This Joint Resolution authorizes the Rhode Island Turnpike and Bridge Authority to issue

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bonds in an amount of not more than sixty-five million dollars ($65,000,000) for a variety of

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purposes, including, but not limited to, the rehabilitation, retrofitting, upgrading and improvement

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of the Pell Bridge, the Jamestown Verrazzano Bridge, the Sakonnet River Bridge and the Mount

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Hope Bridge.

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