A N
A C T
RELATING TO
ESTABLISHING THE WESTERLY MUNICIPAL LAND TRUST
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Introduced
By: Representatives Lewiss, Thompson, and Kennedy |
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Date
Introduced: May 01, 2002 |
It is enacted by
the General Assembly as follows:
SECTION 1. Establishment of Trust.
Pursuant to the
authority contained in Rhode Island general law section 42-17.1-20 or any
subsequent modifications or amendments thereto or substitutions, there is
established a Westerly Municipal Land Trust (hereinafter called
"trust") for the purpose of acquiring, holding, and managing real
property and interests therein, including development rights situated in the
town of Westerly, consisting of open, residential, agricultural, recreational,
historical, and littoral property, including existing and future well fields
and aquifer recharge areas, freshwater marsh and adjoining uplands, wildlife
habitats, and/or buildings providing access to or views of water bodies, or for
bicycling and hiking paths, or for future public recreation, agricultural, or
educational use, or for opportunistic acquisitions in order to further health,
welfare, and safety of the citizens of Westerly, now and in the future.
SECTION 2. Administration.
The trust shall
be administered by seven (7) trustees who shall be appointed by the town
council of the town of Westerly. The trustees who are first appointed shall be
designated to serve for terms of one (1), two (2), three (3), four (4) and five
(5) years respectively, terms to expire on December 31 annually. Thereafter,
trustees shall be appointed as aforesaid for a term of office of five (5)
years, except that all vacancies occurring during a term shall be filled for
the expired term. In addition to the seven (7) trustees appointed by the town
council, the current chairperson, or member designee of the Westerly planning
board, the town planner, and the finance director shall serve as ex-officio
members of the trust. Trustees shall be resident electors or taxpayers of the
town of Westerly, shall serve without compensation and shall hold office until
their successors have been appointed. No trustee may be an elected office or
salaried employee of the town.
SECTION 3. Organization of Trust.
The members of
the trust shall elect a chairperson and vice-chairperson from amongst its
members. The trustees shall elect or appoint a secretary who need not be a
voting member of the trust. The term of office of the chairperson and secretary
shall be for the calendar year, or for that portion thereafter remaining after
each such officer is designated or elected. The secretary may be a paid
position at the discretion of the trustees and approval of the town council.
The trust shall re-organize annually in January, and shall file forthwith a
list of the officers for the ensuing year with the town clerk.
SECTION 4. Rules and Regulations.
The trustees
shall adopt reasonable rules and regulations governing the conduct of trust
affairs, including the acquisition and management of its holdings not
inconsistent with the provisions of this ordinance. All rules and regulations
of the trust are subject to the approval of the town council. A quorum for
holding legitimate business meetings is four (4) members, and decisions shall
be by a majority of those members present and voting, excepting in decisions of
the acquisition of land, easements, rights of way, which must be by a majority
vote of all members. The trustees shall file copies of their minutes with the
town clerk. All meetings of the trust shall be open to the public and held in
accordance with any Rhode Island general laws pertaining to open meetings and
posting of meetings.
SECTION 5. Powers of the Trust.
The trust shall
have the power to:
(a) Purchase,
receive by gift, acquire, hold, lease, encumber, manage, dispose of and issue
bonds, or otherwise acquire fee simple or lesser interests in real property,
including development rights of any kind or any interest in real property
situated in the town of Westerly, but not limited to Westerly;
(b) Accept
gifts, grants or loans of funds or resources or services from any source,
public or private, and comply, subject to the provisions of this ordinance,
with any terms and conditions thereof within the limits of its available funds;
(c) Accept
donations of real or personal property from donors whose intentions, as
expressed in deed or gift, is not to preserve or protect the property donated,
but to enable the trust to sell the same to raise funds to finance the
conservation activities of the trust. The trust may sell property so donated
upon the vote of the trustees in which at least four (4) members vote in favor
of the disposition;
(d) Accept from
state and/or federal agencies, loans or grants or resources for use in carrying
out the trust's purpose and enter into agreements with such agencies,
respecting any such loans and grants within the limits of its available funds;
(e) Employ
counsel, auditors, engineers, appraisers, private consultants, advisors,
secretaries, or other personnel needed to perform its duties within the limits
of its available funds;
(f) Administer
and manage land interest in land held by it in a manner which allows, where
possible, public use and enjoyment consistent with the natural and scenic
resources thereof (including conveyance of any such land or interest in land
to, and contracts with, nonprofit organizations) provided such land shall
continue to be used in a manner consistent with the purposes of this ordinance
and with the terms of any grant or devise by which such land was acquired by
the trust;
(g) Incur debt
only after authorization in each such instance by vote of Westerly town council
and in accordance with the requirement for the issuance of bonds by referendum
pursuant to town charter. The trust shall be obligated to pay debt service on
all such debt to the extent funds are available and to reimburse any town funds
expended to pay such debt service. Whenever the town shall have been required
to pay over any sums of money to the trust, the trust shall be precluded from
acquiring any additional property until the trust shall have repaid the town in
full for all sums paid to the trust hereunder and to reimburse the town for any
town funds expended to pay such debt service;
(h) Dispose of
all or any portion of its real property or interest therein held by it,
whenever in the opinion of the trustees, said lands or properties have become
unsuitable or have ceased to be used for the purposes set forth in this
ordinance. Such dispositions shall be made only by a vote of the trustees in
which at least four (4) members vote in favor of such disposition, and further
only after having been approved by a vote of the Westerly town council;
provided, that town council approval shall not be required for the disposition
of property donated with the intention of the donor that the trust would resell
the property for fundraising purposes. Nothing in this subsection shall be
construed to authorize the sale, lease or conveyance of lands or improvements
held by the trust as part of a charitable trust or acquired by gift of devise
for public use, whether or not such gift or devise is subject to conditions
subsequent or reverted;
(i) Otherwise
do all things necessary for the performance of its duties, the fulfillment of
its obligations and conduct of its business.
SECTION 6.
Accounting Procedures
All funds
collected shall be deposited in a revolving and restricted account set up by
the finance director. All monies or other liquid assets received as voluntary
contributions, grants or loans, funds appropriated to the trust by vote of the
town council, or proceeds from disposal of real property or interests shall be
deposited into said account. All expenses lawfully incurred by the trust in
carrying out the provisions of this ordinance shall be evidenced by vouchers
and shall be paid by the finance director of the town only upon submission by
warrants duly approved by the trust. The finance director shall prudently
invest available assets of the funds in accordance with the town's investment
policies, and all income thereon shall accrue to the fund.
SECTION 7.
Issuance of Bonds
The town is
empowered, in addition to the authority previously granted, to issue bonds from
time to time, upon the written request of the trust, under its corporate name
and seal for the purpose of financing the activities of the trust under this
ordinance.
(a) Bonds may
be issued or authorized only upon the approval of the Westerly town council in
accordance with the requirement for the issuance of bonds by referendum. The
bonds of each issue may be issued in a form acceptable to the town council, 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: (1) shall be as nearly equal from year
to year as is practicable in the opinion of the officers authorized to issue
the bonds; or (2) shall be arranged in accordance with a schedule providing for
a more rapid authorization of principal; or (3) shall be arranged in annual
installments of principal each of which does not exceed any prior installment
by more than sixteen (16) percent of the total principal amount.
(b) The bonds
shall be signed by the finance director and by the president of the town
council and shall be issued and sold in such amounts as authorized by the town
council. The manner of the sales, denominations, maturities, interest rates and
other terms and conditions and details of any bonds or notes issued under this
ordinance 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
of 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 exclusive of premiums, and accrued interest shall be expended: (1) for
the purpose of real property or interests therein by the trust; or (2) in
payment of the principal or interests on temporary notes issued under
subsection c of this section; or (3) in repayment of advances under subsection
d of this section. No purchaser of any bonds or notes under this ordinance
shall be in any way the proper application of the proceeds derived form the
sale thereof. The proceeds of the bonds or notes issued under this ordinance,
any applicable federal or state assistance, and the other money referred to in
subsection c of this section shall be deemed appropriated for the purposes of
this ordinance without further action than that required by this ordinance.
(c) 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 or in
anticipation of the receipt of federal or state aid for the purpose of this
ordinance. The amount of original notes issued in anticipation of bonds may not
exceed the amount of bonds, which may be issued under this ordinance, and the
amount of original notes issued in anticipation of federal or state aid as
estimated by the finance director, temporary notes issued hereunder shall be
signed by the finance director and president of the town council and shall be
payable within one year 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 years.
(d) Pending any
authorization or issue hereunder or pending or in lieu of any authorization or
issue of notes hereunder, the finance director, 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 subsection b of
this section, such advances to be repaid without interest from the proceeds of
the bonds or notes subsequently issued or from proceeds of applicable federal
or state assistance or from other available funds.
(e) Any accrued
interest received upon the sale of bonds or notes hereunder shall be applied to
the first payment of the first interest due thereon. Any premiums arising from
the sale of bonds or notes hereunder, shall, in the discretion of the
treasurer, 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 acquisition of real property, to the payment of the principal of or
interest on bonds and 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 finance director be met from bond
or note proceeds exclusive of premium and accrued interest or from other monies
available therefore.
(f) All bonds
and notes issued under this ordinance and the debts evidence thereby shall be
obligatory on the town in the same manner and to the same extent as other debts
lawfully contracted by the municipality. 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 therefore are not otherwise provided by the
trust. 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 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 the rate or
amount.
(g) Any bonds
or notes issued under the provisions of this ordinance, if properly executed by
officers of the town in the office on the date of execution, shall be valid an
binding according to their terms notwithstanding that before the delivery
thereof and payment therefore any or all of such officers shall for any reason
have ceased to hold office.
(h) The town,
acting by resolution of the town council, is 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 ordinance, and any such
expenditures may be in addition to the monies provided in the ordinance. 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 ordinance, may be repaid as projected costs
under subsection b of this section.
(i) Bonds and
notes may be issued under this ordinance without obtaining approval of any
governmental agency or the taking of any proceedings or the happening of any
conditions except as specifically required by this chapter for such issue. In
carrying out any project financed in whole or in part under this ordinance, all
action shall be taken which is necessary to meet constitutional requirements
whether or not such action is otherwise required; but the validity of bonds and
notes issued hereunder shall in no way depend upon validity of occurrence of
such action.
(j) Notwithstanding the foregoing provisions of this section, no
bonds shall be issued in excess of amounts approved by a vote of the Westerly
town council. A vote not to approve an amount of bonds hereunder shall not
preclude any later vote to approve the same or a different amount.
SECTION 8. Tax Status of Trust.
The trust and
all its revenues, income and real and personal property used by the trust for
the furtherance of its public purpose shall be exempt from taxation and from
betterment and special assessments, and the trust shall not be required to pay
any tax, excise or assessment to the state of Rhode Island or any of its
political subdivisions.
SECTION 9.
Dissolution of the Trust.
The decision to
dissolve the trust shall only result after a vote of the trustees in which four
(4) members vote to recommend dissolution of the trust to the Westerly town
council. The town council shall then hold a public hearing on the
recommendation to dissolve. At the conclusion of the public hearing, the town
council shall vote on the matter within forty-five (45) days of said hearing on
the dissolution and the question shall then be put to public referendum within
ninety (90) days and upon a majority vote of the electors voting, the trust
shall be terminated. Upon termination or dissolution of the trust, the titles
of all funds and other properties owned by the trust, which remain after
payment or making provisions for payment, all bonds, notes and other
obligations of the trust shall vest in the town of Westerly, which shall manage
the lands of the dissolved trust in the open space function for which they were
purchased or donated. If, in the opinion of a majority of the town council said
lands no longer function in the purposes set forth in this ordinance, the town
may dispose of those properties provided that a two-thirds (2/3) vote of an
annual or special meeting of the town shall affirm said disposal.
SECTION 10.
Severability.
The provisions
of this chapter are severable, and if any provision thereof shall be held
invalid in any circumstances, such invalidity shall not affect any other
provisions or circumstances. This chapter shall be construed in all respects so
as to meet all constitutional requirements in carrying out the purposes and
provisions of this chapter and all steps shall be taken which are necessary to
meet constitutional requirements whether or not such steps are required by
statute.
SECTION 11. This act shall take effect upon passage.