2020 -- S 2865 | |
======== | |
LC005413 | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
____________ | |
A N A C T | |
AUTHORIZING THE CITY OF WARWICK TO ISSUE NOT TO EXCEED $56,000,000 | |
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 CITY, TO FUND THE CAPITAL | |
IMPROVEMENT PROGRAM FOR THE FISCAL YEARS 2022 THROUGH 2026, SUBJECT | |
TO APPROVAL OF STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE | |
SHARE RATIO OF NOT LESS THAN 35% 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: Senator Michael J. McCaffrey | |
Date Introduced: June 12, 2020 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The city of Warwick is hereby authorized, in addition to authority previously |
2 | granted, to issue bonds and other evidences of indebtedness (hereinafter “bonds”) up to an amount |
3 | not exceeding fifty-six million dollars ($56,000,000) from time to time under its corporate name |
4 | and seal or a facsimile of such seal; provided, however, that bonds shall not be issued unless the |
5 | conditions of section 2 hereof as to the level of state aid are met. The bonds of each issue may be |
6 | issued in the form of serial bonds or term bonds or a combination thereof and shall be payable |
7 | either by maturity of principal in the case of serial bonds or by mandatory sinking fund installments |
8 | in the case of term bonds, in annual installments of principal, the first installment to be not later |
9 | than five (5) years and the last installment not later than thirty (30) years after the date of the bonds. |
10 | All such bonds of a particular issue may be issued in the form of zero coupon bonds, capital |
11 | appreciation bonds, serial bonds or term bonds or a combination thereof. The amount of principal |
12 | appreciation each year on any bonds, after the date of original issuance, shall not be considered to |
13 | be principal indebtedness for the purposes of any constitutional or statutory debt limit or any other |
| |
1 | limitation. The appreciation of principal after the date of original issue shall be considered interest. |
2 | Only the original principal amount shall be counted in determining the principal amount so issued |
3 | and any interest component shall be disregarded. |
4 | SECTION 2. The city may be eligible for school housing aid reimbursement on debt |
5 | service pursuant to chapter 7 of title 16, or for a grant, loan or other financial assistance from |
6 | proceeds of bonds issued by the state of Rhode Island (the “state”), from the Rhode Island |
7 | Department of Education (“RIDE”) or from the Rhode Island School Building Authority. The |
8 | amount of borrowing authorized pursuant to this act shall be reduced by the amount of certain |
9 | grants actually received by the city from state bond proceeds, from RIDE or from the Rhode Island |
10 | School Building Authority; provided however, that the amount of borrowing authorized shall not |
11 | be reduced by the amount of any grant received by the city for any portion of the projects funded |
12 | by capital reserve funds. Bonds, notes or other evidences of indebtedness shall not be issued |
13 | under this act unless the city has received a letter from RIDE confirming that the then-current school |
14 | housing aid reimbursement rate under chapter 7 of title 16, as amended from time to time, or |
15 | financial assistance from the School Building Authority Capital Fund, or pursuant to any other law |
16 | hereafter enacted providing for funds to municipalities for school housing purposes, is not less than |
17 | thirty-five percent (35%) of debt service for those expenditures which are eligible for state aid. |
18 | SECTION 3. The bonds shall be signed by the city treasurer and by the manual or facsimile |
19 | signature of the mayor and be issued and sold in such amounts as the city council may determine |
20 | by resolution. The manner of sale, denominations, maturities, interest rates and other terms, |
21 | conditions and details of any bonds or notes issued under this act may be fixed by the proceedings |
22 | of the city council authorizing the issue or by separate resolution of the city council or, to the extent |
23 | provisions for these matters are not so made, they may be fixed by the officers authorized to sign |
24 | the bonds or notes. Notwithstanding anything contained in this act to the contrary, the city may |
25 | enter into financing agreements with the Rhode Island Health and Educational Building |
26 | Corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, with respect to bonds |
27 | or notes issued in connection with such financing agreements, if any, the city may elect to have the |
28 | provisions of chapter 38.1 of title 45 apply to the issuance of the bonds or notes issued hereunder |
29 | to the extent the provisions of chapter 38.1 of title 45 are inconsistent herewith. In addition, the city |
30 | may enter into financing agreements with the Rhode Island Infrastructure Bank pursuant to the |
31 | provisions of chapter 12.2 of title 46 and, with respect to bonds or notes issued in connection with |
32 | such financing agreements, if any, the city may elect to have the provisions of chapter 12.2 of title |
33 | 46 apply to the issuance of the bonds or notes issued hereunder to the extent the provisions of |
34 | chapter 12.2 of title 46 are inconsistent herewith. Such election may be fixed by the proceedings of |
| LC005413 - Page 2 of 8 |
1 | the city council authorizing such issuance or by separate resolution of the city council, or, to the |
2 | extent provisions for these matters are not so made, they may be fixed by the officers authorized to |
3 | sign the bonds or notes. The proceeds derived from the sale of the bonds shall be delivered to the |
4 | city treasurer, and such proceeds, exclusive of premiums and accrued interest, shall be expended: |
5 | (1) For the construction, renovation, improvement, alteration, repair, landscaping, furnishing and |
6 | equipping of schools and school facilities throughout the city of Warwick and all costs related |
7 | thereto, to fund the capital improvement program for the fiscal years 2022 through 2026 (the |
8 | “projects”); (2) In payment of the principal of or interest on temporary notes issued under section |
9 | 4; (3) In repayment of advances under section 5; (4) In payment of related costs of issuance of any |
10 | bonds or notes; and/or (5) In payment of capitalized interest during construction of the projects. |
11 | The city, however, is not required to issue the bonds and notes authorized by this act during the |
12 | fiscal years ending June 30, 2022 through June 30, 2026, but rather may issue them at any time, or |
13 | from time to time. No purchaser of any bonds or notes under this act shall be in any way responsible |
14 | for the proper application of the proceeds derived from the sale thereof. The proceeds of bonds or |
15 | notes issued under this act, any applicable federal or state assistance and the other monies referred |
16 | to in sections 7 and 10 shall be deemed appropriated for the purposes of this act without further |
17 | action than that required by this act. The bonds authorized by this act may be consolidated for the |
18 | purpose of issuance and sale with any other bonds of the city heretofore or hereafter authorized, |
19 | provided that, notwithstanding any such consolidation, the proceeds from the sale of the bonds |
20 | authorized by this act shall be expended for the purposes set forth above. |
21 | SECTION 4. The city council may by resolution authorize the issuance from time to time |
22 | of interest bearing or discounted notes in anticipation of the issue of bonds under section 3 or in |
23 | anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original |
24 | notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued |
25 | under this act and the amount of original notes issued in anticipation of federal or state aid may not |
26 | exceed the amount of available federal or state aid as estimated by the city treasurer. Temporary |
27 | notes issued hereunder shall be signed by the manual or facsimile signatures of the city treasurer |
28 | and the mayor and shall be payable within five (5) years from their respective dates, but the |
29 | principal of and interest on notes issued for a shorter period may be renewed or paid from time to |
30 | time by the issue of other notes hereunder, provided the period from the date of an original note to |
31 | the maturity of any note issued to renew or pay the same debt or the interest thereon shall not exceed |
32 | five (5) years. Any temporary notes in anticipation of bonds issued under this section may be |
33 | refunded prior to the maturity of the notes by the issuance of additional temporary notes, provided |
34 | that no such refunding shall result in any amount of such temporary notes outstanding at any one |
| LC005413 - Page 3 of 8 |
1 | time in excess of two hundred percent (200%) of the amount of bonds which may be issued under |
2 | this act, and provided further that if the issuance of any such refunding notes results in any amount |
3 | of such temporary notes outstanding at any one time in excess of the amount of bonds which may |
4 | be issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund |
5 | established with the bank which is the paying agent for the notes being refunded. Pending their use |
6 | to pay the notes being refunded, monies in the fund shall be invested for the benefit of the city by |
7 | the paying agent at the direction of the city treasurer in any investment permitted under section 6. |
8 | The monies in the fund and any investments held as a part of the fund shall be held in trust and |
9 | shall be applied by the paying agent solely to the payment or prepayment of the principal of and |
10 | interest on the notes being refunded. Upon payment of all principal of and interest on the notes, any |
11 | excess monies in the fund shall be distributed to the city. The city may pay the principal of and |
12 | interest on notes in full from other than the issuance of refunding notes prior to the issuance of |
13 | bonds pursuant to section 1 hereof. In such case, the city's authority to issue bonds or notes in |
14 | anticipation of bonds under this act shall continue provided that: (1) The city council passes a |
15 | resolution evidencing the city's intent to pay off the notes without extinguishing the authority to |
16 | issue bonds or notes; and (2) That the period from the date of an original note to the maturity date |
17 | of any other note shall not exceed five (5) years. |
18 | SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu |
19 | of any authorization or issue of notes hereunder, the city treasurer, with the approval of the city |
20 | council may, to the extent that bonds or notes may be issued hereunder, apply funds in the general |
21 | treasury of the city to the purposes specified in section 3, such advances to be repaid without interest |
22 | from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal |
23 | or state assistance or from other available funds. |
24 | SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
25 | or state assistance, pending their expenditure may be deposited or invested by the city treasurer, in |
26 | demand deposits, time deposits or savings deposits in banks which are members of the Federal |
27 | Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of |
28 | America or by any agency or instrumentality thereof or as may be provided in any other applicable |
29 | law of the state of Rhode Island or resolution of the city council or pursuant to an investment policy |
30 | of the city. |
31 | SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall |
32 | be applied to the payment of the first interest due thereon. Any premiums arising from the sale of |
33 | bonds or notes hereunder and, to the extent permitted by applicable federal laws, any net earnings |
34 | or profits realized from the deposit or investment of funds hereunder shall, in the discretion of the |
| LC005413 - Page 4 of 8 |
1 | city treasurer, be applied to the cost of preparing, issuing, and marketing bonds or notes hereunder |
2 | to the extent not otherwise provided, to the payment of the cost of the projects, to the payment of |
3 | the principal of or interest on bonds or notes issued hereunder, to the revenues of the city and dealt |
4 | with as part of the revenues of the city from property taxes to the extent permitted by federal law, |
5 | or to any one or more of the foregoing. The cost of preparing, issuing, and marketing bonds or notes |
6 | hereunder may also, in the discretion of the city treasurer, be met from bond or note proceeds |
7 | exclusive of premium and accrued interest or from other monies available therefor. Any balance of |
8 | bond or note proceeds remaining after payment of the cost of the projects and the cost of preparing, |
9 | issuing and marketing bonds or notes hereunder shall be applied to the payment of the principal of |
10 | or interest on bonds or notes issued hereunder. To the extent permitted by applicable federal laws, |
11 | any earnings or net profit realized from the deposit or investment of funds hereunder may, upon |
12 | receipt, be added to and dealt with as part of the revenues of the city from property taxes. In |
13 | exercising any discretion under this section, the city treasurer shall be governed by any instructions |
14 | adopted by resolution of the city council. |
15 | SECTION 8. All bonds and notes issued under this act and the debt evidenced hereby shall |
16 | be obligatory on the city in the same manner and to the same extent as other debts lawfully |
17 | contracted by it and shall be excepted from the operation of § 45-12-2 and any provision of the city |
18 | charter. No such obligation shall at any time be included in the debt of the city for the purpose of |
19 | ascertaining its borrowing capacity. The city shall annually appropriate a sum sufficient to pay the |
20 | principal and interest coming due within the year on bonds and notes issued hereunder to the extent |
21 | that monies therefor are not otherwise provided. If such sum is not appropriated, it shall |
22 | nevertheless be added to the annual tax levy. In order to provide such sum in each year and |
23 | notwithstanding any provisions of law to the contrary, all taxable property in the city shall be |
24 | subject to ad valorem taxation by the city without limitation as to rate or amount. |
25 | SECTION 9. Any bonds or notes issued under the provisions of this act, if properly |
26 | executed by the officers of the city in office on the date of execution, shall be valid and binding |
27 | according to their terms notwithstanding that before the delivery thereof and payment therefor any |
28 | or all of such officers shall for any reason have ceased to hold office. |
29 | SECTION 10. The city, acting by resolution of its city council is authorized to apply for, |
30 | contract for and expend any federal or state advances or other grants of assistance which may be |
31 | available for the purposes of this act, and any such expenditures may be in addition to other monies |
32 | provided in this act. To the extent of any inconsistency between any law of this state and any |
33 | applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest |
34 | where applicable, whether contracted for prior to or after the effective date of this act, may be |
| LC005413 - Page 5 of 8 |
1 | repaid as a cost of the projects under section 3. |
2 | SECTION 11. Bonds and notes may be issued under this act without obtaining the approval |
3 | of any governmental agency or the taking of any proceedings or the happening of any conditions |
4 | except as specifically required by this act for such issue. In carrying out any project financed in |
5 | whole or in part under this act, including where applicable the condemnation of any land or interest |
6 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
7 | of any such project, all action shall be taken which is necessary to meet constitutional requirements |
8 | whether or not such action is otherwise required by statute, but the validity of bonds and notes |
9 | issued hereunder shall in no way depend upon the validity or occurrence of such action. |
10 | SECTION 12. The city treasurer and the mayor, on behalf of the city are hereby authorized |
11 | to execute such instruments, documents or other papers as either of them deem necessary or |
12 | desirable to carry out the intent of this act and are also authorized to take all actions and execute all |
13 | documents necessary to comply with federal tax and securities laws, which documents or |
14 | agreements may have a term coextensive with the maturity of the bonds authorized hereby, |
15 | including Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and to execute |
16 | and deliver a continuing disclosure agreement or certificate in connection with the bonds or notes |
17 | in the form as shall be deemed advisable by such officers in order to comply with the Rule. |
18 | SECTION 13. All or any portion of the authorized but unissued authority to issue bonds |
19 | and notes under this act may be extinguished by resolution of the city council, without further action |
20 | by the general assembly, seven (7) years after the effective date of this act. |
21 | SECTION 14. The question of the approval of this act shall be submitted to the electors of |
22 | the city at the general election to be held on November 3, 2020 or, if so determined by the city |
23 | council, at a special city-wide election, other than a primary, held on a date to be determined by |
24 | resolution of the city council. The question shall be submitted in substantially the following form: |
25 | "Shall an act passed at the 2020 session of the general assembly entitled 'AN ACT AUTHORIZING |
26 | THE CITY OF WARWICK TO ISSUE NOT TO EXCEED $56,000,000 GENERAL |
27 | OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS TO |
28 | FINANCE THE CONSTRUCTION, RENOVATION, IMPROVEMENT, ALTERATION, |
29 | REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL |
30 | FACILITIES THROUGHOUT THE CITY, TO FUND THE CAPITAL IMPROVEMENT |
31 | PROGRAM FOR THE FISCAL YEARS 2022 THROUGH 2026, SUBJECT TO APPROVAL OF |
32 | STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT |
33 | LESS THAN 35% AT THE TIME OF ISSUANCE AND PROVIDED THAT THE |
34 | AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF CERTAIN GRANTS |
| LC005413 - Page 6 of 8 |
1 | RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE ISLAND |
2 | DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL BUILDING |
3 | AUTHORITY' be approved?" and the warning for the election shall contain the question to be |
4 | submitted. From the time the election is warned and until it is held, it shall be the duty of the city |
5 | clerk to keep a copy of the act available at the clerk's office for public inspection, but the validity |
6 | of the election shall not be affected by this requirement. To the extent of any inconsistency between |
7 | this act and the city charter or any law of special applicability to the city, this act shall prevail. |
8 | SECTION 15. This act shall constitute an enabling act of the general assembly that is |
9 | required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under |
10 | this act for school projects shall not be eligible for state aid reimbursement pursuant to § 16-7-44 |
11 | unless the school projects described herein have been approved by RIDE. |
12 | SECTION 16. This section 16 and sections 14 and 15 of this act shall take effect upon |
13 | passage. The remainder of this act shall take effect upon the approval of this act by a majority of |
14 | those voting on the question at the election prescribed by section 14. |
======== | |
LC005413 | |
======== | |
| LC005413 - Page 7 of 8 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
AUTHORIZING THE CITY OF WARWICK TO ISSUE NOT TO EXCEED $56,000,000 | |
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 CITY, TO FUND THE CAPITAL | |
IMPROVEMENT PROGRAM FOR THE FISCAL YEARS 2022 THROUGH 2026, SUBJECT | |
TO APPROVAL OF STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE | |
SHARE RATIO OF NOT LESS THAN 35% 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 | |
*** | |
1 | This act would authorize the city of Warwick to issue up to fifty-six million dollars |
2 | ($56,000,000) in bonds/notes for schools/school facilities upon voter approval. |
3 | Sections 14, 15, and 16 of this act would take effect upon passage. The remainder of this |
4 | act would take effect upon the approval of this act by a majority of those voting on the question at |
5 | the election prescribed by section 14. |
======== | |
LC005413 | |
======== | |
| LC005413 - Page 8 of 8 |