Chapter
04-074
2004 --
H 8417
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: Representatives Anguilla, and Gallison
Date
Introduced: April 20, 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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LC03184
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