Chapter
04-071
2004 --
H 8483
Enacted
06/11/04
A N A C T
AUTHORIZING
THE TOWN OF LINCOLN TO ISSUE GENERAL OBLIGATION BONDS AND NOTES IN AN AMOUNT
NOT TO EXCEED $5,000,000 FOR THE IMPROVEMENT, REPAIR, AND RENOVATIONS TO PUBLIC
MUNICIPAL BUILDINGS (OTHER THAN SCHOOLS) AND FOR REPAIRS AND IMPROVEMENTS TO
SEWER INFRASTRUCTURE IN THE TOWN
Introduced
By: Representatives Menard, Petrarca, and McManus
Date
Introduced: May 04, 2004
It is enacted by the General Assembly as
follows:
SECTION 1. The
Town of Lincoln is hereby empowered, in addition to authority
previously granted, to issue general obligation
bonds and notes to an amount not exceeding five
million dollars ($5,000,000) 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, the president of the
town council and the town administrator 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
improvement, repair, and renovations to public
municipal buildings (other than schools) and for
repairs and improvements to sewer infrastructure
in the town or (b) in payment of principal or
interest on temporary notes issued under Section
three or (c) in repayment of advances under
Section four or (d) in payment of costs of issuance
for bonds or notes issued hereunder including
capitalized interest. 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
shall be carried out and all contracts made therefor on
behalf of the town by town administrator subject
to the approval of the town council.
Notwithstanding any other law, regulation or
policy to the contrary, the provisions of Section 7-5
of the town charter shall apply to such
contracts. 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 purpose 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 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, the president of the town council and
the town administrator 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 purpose 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 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
project, 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 issued
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 for ancillary costs remaining after
payment of such costs may be applied to the cost
of a project authorized in Section 2 hereof. Any
balance of bond or note proceeds remaining after
payment of the cost of a project and the cost of
preparing, issuing and marketing bonds or notes
hereunder may be applied to any other project
authorized in Section 2 hereof or may be applied
to the payment of the principal of or interest on
bonds or notes issued hereunder, as provided in
a resolution of the town council. Any earnings or
net profit realized from the deposit or
investment of funds hereunder may, upon receipt, be added
to and dealt with as part of the revenues of the
town from property taxes. 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, except as
otherwise provided in tax concessions authorized
pursuant to Chapter 3798 of the Public Laws of
1956.
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 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. 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 or special election to
be held on November 2, 2004 or such other date as
shall be designated by the town council prior to
November 2, 2004. 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 LINCOLN TO ISSUE
GENERAL OBLIGATION BONDS AND NOTES IN AN AMOUNT
NOT TO EXCEED FIVE
MILLION DOLLARS ($5,000,000) FOR THE
IMPROVEMENT, REPAIR, AND
RENOVATIONS TO PUBLIC MUNICIPAL BUILDINGS (OTHER
THAN SCHOOLS) AND
FOR REPAIRS AND IMPROVEMENTS TO SEWER
INFRASTRUCTURE IN THE TOWN’
be approved?”
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 or her office for public
inspection, but the validity of the election shall not be
affected by this requirement.
SECTION 12.
Sections 11 and 12 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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LC03282
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