Chapter 04-069

2004 -- S 3029

Enacted 06/11/04

A N A C T

AUTHORIZING THE TOWN OF BRISTOL TO FINANCE ROAD AND SIDEWALK

IMPROVEMENT PROJECTS BY ISSUANCE OF NOT MORE THAN $5,000,000 BONDS

THEREFOR

Introduced By: Senators Felag, Bates, and Parella

Date Introduced: April 07, 2004

It is enacted by the General Assembly as follows:

     SECTION 1. Authorization. The town of Bristol is hereby empowered, subject to the

approval of the electors of the town, in addition to authority previously granted, to issue bonds

and notes to an aggregate amount not exceeding five million dollars ($5,000,000) from time to

time under its corporate name and seal. The bonds may be issued for purposes of construction,

repair, replacement, extension and/or improvement of the town's roads and public sidewalks, and

such bonds shall be designated as road and sidewalk improvement bonds. Notwithstanding any

other provision of the general laws, the town shall not be required to obtain approval of the town

meeting for any aspect of any projects to be funded herein.

     SECTION 2. Bonds. 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 the 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. The

bonds shall be signed by the town treasurer and by the chairman of the town council and shall be

issued and sold at public or private sale in such amounts as the town council may authorize. The

provisions of section 306(c) and article four (including, without limitation, section 414) of the

town charter shall not apply to the authorization or issue of bonds or notes under this act. 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 treasurer, and

such proceeds exclusive of premiums and accrued interest shall be expended for: (a) the purposes

applicable to such bonds as specified in section one; or (b) the payment of the principal of or

interest on temporary notes issued in connection with such bonds pursuant to section three; or (c)

the repayment of advances made in connection with such bonds pursuant to 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 projects funded with proceeds of

the bonds shall be carried out and all contracts made therefor on behalf of the town by the town

administrator, or as may be otherwise directed by the town council, notwithstanding any

provisions of section 911 of the town charter to the contrary. The proceeds of the 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. Temporary notes. 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 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 treasurer.

Temporary notes issued hereunder shall be signed by the treasurer and by the chairman 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. Advances. Pending authorization of bonds hereunder or pending or in lieu

of any authorization or issue of notes hereunder, the treasurer, 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 applicable purposes specified in section one, such advances to be

repaid without interest from the proceeds of applicable bonds or notes subsequently issued or

from the proceeds of applicable federal or state assistance or from other available funds.

     SECTION 5. Investments. 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 treasurer 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 invested pursuant to

Section 35-10-11 of the general laws or any similar law of the State of Rhode Island.

     SECTION 6. Application of accrued interest, premiums and investment earnings. 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 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 projects, to the payment of the principal of or interest on bonds or notes issued

hereunder or to any one (1) or more of the foregoing. The cost of preparing, issuing and

marketing bonds or notes hereunder may also, in the discretion of the treasurer, 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 corresponding bonds or notes issued hereunder. In exercising any

discretion under this section, the treasurer shall be governed by any instructions adopted by

resolution of the town council.

     SECTION 7. Security for the bonds and notes. 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 the 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. Execution of bonds or notes. 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. Federal and State Aid. 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 or

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. Conditions precedent to the issuance of bonds. 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. Referendum. The question of the approval of this act shall be submitted to

the electors of the town at an election to be held prior to December 31, 2005 on a date to be

determined by the town council which may be either the date upon which a statewide or local

election is being held or upon any other date prior to December 31, 2005. The question shall be

submitted in substantially the following form: "Shall an act passed at the 2004 session of the

general assembly entitled 'AN ACT AUTHORIZING THE TOWN OF BRISTOL TO FINANCE

ROAD AND SIDEWALK IMPROVEMENT PROJECTS BY ISSUANCE OF NOT MORE

THAN $5,000,000 BONDS THEREFOR' be approved?" and the warning for the election shall

contain the questions 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 the town clerk's office for

public inspection, but the validity of the election shall not be affected by this requirement.

     SECTION 12. Effective date. This section and the foregoing 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.

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LC03180

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