A N A C T
RELATING TO TOWNS AND CITIES -- NEW SHOREHAM WATER SUPPLY SYSTEM
It is enacted by the General Assembly as follows:
SECTION 1. Sections 9, 10, 11, 12, 13, 14, 15, 16, 17, and 18 of Chapter 18 of the Public Laws of 2000 entitled "An Act authorizing the town of New Shoreham to Plan, Construct, Operate and Maintain a Water Supply System and Authorize the Financing Thereto" are hereby repealed.
SECTION 9. The town of New Shoreham shall have the power and is hereby authorized, from time to time, to issue bonds under its corporate name and seal or a facsimile of such seal. The bonds of each issue shall mature in annual installments or principal, the first installment to be not later than three (3) years and the last installment not later than (30) years after the date of the bonds. No installment of principal of any issue shall exceed any prior installment by more than six percent (6%) of the total principal amount of the issue.
SECTION 10. The bonds shall be signed by the town finance director and by the manual signature of the first warden of the town council, and shall be issued and sold at not less than par, and shall accrue interest in such amounts as the town council may authorize. 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 town council authorizing the issue, or by separate resolution of the town council, or to the extent provisions for these matters are not so made, fixed by the officers authorized to sign the bonds or notes. Interest coupons (if any) shall bear the facsimile signature of the town finance director. The proceeds derived from the sale of the bonds shall be delivered to the town finance director, and such proceeds, exclusive of premiums and accrued interest shall be expended (a) for the purposes set forth in section one of this act other than current expenses, or (b) in payment of the principle of or interest on temporary notes issued under section 11, or (c) in repayment of advances under section twelve. 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 section fourteen shall be deemed appropriated for the purposes of this act without further action than that required by this act.
SECTION 11. The town council may, by resolution, authorize the issue, from time to time, of interest bearing or discounted notes in anticipation of the issue of bonds under section 10 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 town finance director. Temporary notes issued thereunder shall be signed by the town finance director and by the first warden of the town council and shall be payable within six (6) years from their respective dates, but the principal 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 six (6) years.
SECTION 12. Pending any authorization or issue of bonds hereunder, or pending or in lieu of any authorization or issue of notes hereunder, the town finance director, with the approval of the town council, may apply funds in the general treasury of the town to the purposes specified in section 10. 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 13. 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 town finance director in demand deposits, time deposits, or saving deposits in banks which are member 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.
SECTION 14. 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, any net earnings or profits realized from the deposit or investment of funds hereunder, and any balance of bond or note proceeds remaining after completion of the projects shall, at the discretion of the town finance director, be applied to the cost of preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise provided, to the payment of the cost of the projects or the cost of additional improvements coming within the description of the projects in section 10 to the payment of the principal of or interest on bonds or notes issued hereunder, or to any one or more of the foregoing. The cost of preparing issuing and marketing bonds or notes hereunder may also at the discretion of the town finance director, be met from bond or note proceeds exclusive of premium and accrued interest or from other monies available therefor. In exercising any discretion under this section, the town finance director shall be governed by any instructions adopted by resolution of the town council.
SECTION 15. All bonds and notes issued under this act and the debts evidenced thereby shall be obligatory on the town in the same manner and to the same extent as other debts lawfully contracted by it and shall be excepted from the operation of RIGL section 45-12-2. No such obligation shall at any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. The town 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 provision of law to the contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without limitations as to rate or amount.
SECTION 16. Any bonds or notes issued under the provisions of this act, and coupons on any bonds if properly executed by officers of the town 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 17. The town, acting by resolution of its board of water commissioners, shall have the power is hereby authorized to apply for, contract for, and expend any federal or state advances or other grants or assistance which may be available for the purposes of this act. 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 project costs under Section 10.
SECTION 18. 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 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 2. Section 20 of Chapter 18 of the Public Laws of 2000 entitled " An Act authorizing the town of New Shoreham a Water Supply System and Authorize the Financing thereto" is hereby amended to read as follows:
SECTION 20. The question of approval of this act shall be submitted to the qualified electors of the town of New Shoreham at a special local election to be held within ninety (90) days of the date of passage of this act at a date to be set by the New Shoreham town council. The question shall be submitted in substantially the following form: "Shall an act passed at the 2000 session of the general assembly entitled "An Act Authorizing the Town of New Shoreham to Plan, Construct, Operate, and Maintain a Water Supply System and authorize the financing thereto be approved?" and the warning for the election shall contain the question to be submitted.
Notwithstanding anything contained in section 17-19-7 of the General Laws to the contrary, The New Shoreham Board of Canvassers may certify the question to the Secretary of State not later than June 1, 2000. From the time the election is warned and until it is held, it shall be the duty of the town clerk to keep a copy of the act available at their office for public inspection, but any failure of the clerk to perform this duty shall not affect the validity of the election.
SECTION 3. This act shall take effect upon passage.