A N
A C T
AUTHORIZING THE
TOWN OF SOUTH KINGSTOWN TO FINANCE THE ACQUISITION OF LAND FOR OPEN SPACE,
RECREATION AND AGRICULTURAL PURPOSES AND TO ISSUE NOT MORE THAN $1,300,000
BONDS THEREFOR
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Introduced
By: Senators Sosnowski, and McDonald |
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Date
Introduced: May 09, 2002 |
It is enacted
by the General Assembly as follows:
SECTION 1. The town of South Kingstown is hereby empowered, in
addition to authority previously granted, to issue bonds to an amount not
exceeding one million three hundred thousand dollars ($1,300,000) from time to
time under its corporate name and seal. The bonds of each issue may be issued
in the form of serial bonds or term bonds or a combination thereof and shall be
payable either by maturity of principal in the case of serial bonds or by
mandatory serial redemption in the case of term bonds, in annual installments
of principal, the first installment to be not later than five (5) years and the
last installment not later than thirty (30) years after the date of the bonds.
For each issue the amounts payable annually for principal and interest combined
either shall be as nearly equal from year to year as is practicable in the
opinion of the officers authorized to issue the bonds, or shall be arranged in
accordance with a schedule providing for a more rapid amortization of
principal.
SECTION 2. The bonds shall be signed by the director of finance and
by the president of the town council and shall be issued and sold 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, they may be fixed
by the officers authorized to sign the bonds or notes. The proceeds derived
from the sale of the bonds shall be delivered to the director of finance, and
such proceeds, exclusive of premiums and accrued interest, shall be expended
(a) for the acquisition of land and interests in land consisting of open,
agricultural or littoral property, aquifer recharge areas, fresh and saltwater
marshes and adjoining uplands, barrier beaches, wildlife habitats, land
providing access to or view of the ocean, harbors and ponds, land for bicycling
and hiking paths and for future passive recreational use, and land for
agricultural use or (b) in payment of the principal of or interest on temporary
notes issued under section three or (c) in repayment of advances under section
four. 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 moneys referred to in section six
shall be deemed appropriated for the purposes of this act without further
action than that required by this act.
SECTION 3. 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 the bonds or 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 director of finance. Temporary notes issued hereunder
shall be signed by the director of finance and by the president of the town
council and shall be payable within five (5) years from their respective dates,
but the principal of 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 five (5) years.
SECTION 4. Pending any authorization or issue of bonds hereunder,
or pending or in lieu of any authorization or issue of notes hereunder, the
director of finance, with the approval of the town council, may, to the extent
that bonds or notes may be issued hereunder, apply funds in the treasury of the
town to the purposes specified in section two, 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 5. 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 director of finance in demand deposits, time
deposits or savings deposits in banks which are members 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 of Rhode Island.
SECTION 6. 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 and any
earnings or net profit realized from the deposit or investment of funds
hereunder shall, in the discretion of the director of finance, 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, 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, in the discretion of the director
of finance, be met from bond or note proceeds exclusive of accrued interest or
from other moneys available therefor. Any balance of bond or note proceeds
remaining after payment of the cost of the projects and the cost of preparing,
issuing and marketing bonds or notes hereunder shall be applied to the payment
of the principal of or interest on bonds or notes issued hereunder. In
exercising any discretion under this section, the director of finance shall be
governed by any instructions adopted by resolution of the town council.
SECTION 7. 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 section 45-12-2 of the General Laws. 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 moneys 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 limitation as to rate
or amount.
SECTION 8. Any bonds or notes issued under the provisions of this
act, 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 9. The town, acting by resolution of its town council, is
authorized to apply for, contract for and expend any federal or state advances
or other grants of assistance which may be available for the purposes of this
act, and any such expenditures may be in addition to other moneys 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 two.
SECTION 10. 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 otherwise 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 11. The
question of the approval of this act shall be submitted to the electors of the
town at a general state election to be held on November 5, 2002. The question
shall be submitted in substantially the following form: "Shall an act,
passed at the 2002 session of the General Assembly, entitled 'AN ACT
AUTHORIZING THE TOWN OF SOUTH KINGSTOWN TO FINANCE THE ACQUISITION OF LAND FOR
OPEN SPACE, RECREATION AND AGRICULTURAL PURPOSES AND TO ISSUE NOT MORE THAN
$1,300,000 BONDS THEREFOR' be approved?" and the warning for the election
shall contain the question to be submitted. 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 his office for public inspection, but the validity
of the election shall not be affected by this requirement.
SECTION 12. This section and the foregoing section shall take effect upon the passage of this act. The remainder of this act shall take effect upon the approval of this act by a majority of those voting on the question at the election prescribed by the foregoing section.