Chapter
04-080
2004 --
H 8377
Enacted 06/11/04
A N A C T
AUTHORIZING
THE CITY OF PAWTUCKET TO PROVIDE FOR THE IMPROVEMENT AND REPLACEMENT OF ROAD
AND TRAFFIC CONTROL DEVICES IN THE CITY OF PAWTUCKET AND AUTHORIZING THE
FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $125,000 BONDS AND
NOTES THEREFOR, TO FUND THE CAPITAL IMPROVEMENT PROGRAM FOR THE TWO FISCAL
YEARS 2005 AND 2006
Introduced
By: Representatives E Coderre, Kilmartin, San Bento, Dennigan, and Rose
Date
Introduced: March 31, 2004
It is enacted by the General Assembly as
follows:
SECTION 1. The
city of Pawtucket is hereby authorized, in addition to authority
previously granted, to issue bonds up to an
amount not exceeding one hundred twenty five
thousand ($125,000) dollars from time to time
under its corporate name and seal or a facsimile of
such. 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 principle in the case of serial
bonds or by mandatory serial redemption in the
case of term bonds, in annual installments of
principle, the first installment to be not later
than three (3) years and the last installment not later
than thirty (30) years after the date of the
bonds.
SECTION 2. The
bonds shall be signed by the city treasurer and by the manual or
facsimile signature of the mayor and be issued
and sold in such amounts as the city council may
determine. 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 city council authorizing the issue or by
separate resolution of the city 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 city treasurer, and such proceeds exclusive
of premiums and accrued interest shall be
expended: (a) for the improvement and
replacement of road and traffic control devices in the city
of Pawtucket (the "project"); (b) in
payment of the principal of or interest on temporary notes
issued under section three; (c) in repayment of
advances under section four; (d) in payment of
related costs of issuance of any bonds or notes
and/or (e) in payment of capitalized interest during
construction of the project. There being no
local election planned for the calendar year 2005 in
the city of Pawtucket, the amounts authorized by
this act to finance the project are intended to
fund appropriations for two fiscal years. The
city, however, is not required to issue the bonds and
notes authorized by this act during the fiscal
years ending June 30, 2005 or June 30, 2006, but
may issue them at any time, or from time to
time. 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 monies referred to in
sections six and nine shall be deemed appropriated
for the purposes of this act without further
action than that required by this act.
SECTION 3. The
city council may by resolution authorize the issuance from time to time
of interest bearing or discounted notes in
anticipation of the issue of bonds under section 2 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 city treasurer.
Temporary notes issued hereunder shall be signed
by the city treasurer and by the mayor 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. Any
temporary notes in anticipation of bonds issued
under this section may be refunded prior to the
maturity of the notes by the issuance of
additional temporary notes, provided that no such
refunding shall result in any amount of such
temporary notes outstanding at any one time in
excess of two hundred percent (200%) of the
amount of bonds which may be issued under this
act, and provided further that if the issuance
of any such refunding notes results in any amount of
such temporary notes outstanding at any one time
in excess of the amount of bonds which may be
issued under this act, the proceeds of such
refunding notes shall be deposited in a separate fund
established with the bank which is paying agent
for the notes being refunded. Pending their use
to pay the notes being refunded, moneys in the
fund shall be invested for the benefit of the city by
the paying agent at the direction of the city
treasurer in any investment permitted under section
five. The moneys in the fund and any investments
held as a part of the fund shall be held in trust
and shall be applied by the paying agent solely
to the payment or prepayment of the principal of
and interest on the notes being refunded. Upon
payment of all principal of and interest on the
notes, any excess moneys in the fund shall be
distributed to the city. The city may pay the
principle of and interest on notes in full from
other than the issuance of refunding notes prior to
the issuance of bonds pursuant to Section 1
hereof. In such case, the city's authority to issue
bonds or notes in anticipation of bonds under
this act shall continue provided that 1) the city
council passes a resolution evidencing the
city's intent to pay off the notes without extinguishing
the authority to issue bonds or notes and 2)
that the period from the date of an original note to the
maturity date of any other note shall not exceed
five (5) years. Section 5-106 of the city charter
shall not apply to the issue of notes in
anticipation of bonds.
SECTION 4. Pending
any authorization or issue of bonds hereunder or pending or in lieu
of any authorization or issue of notes
hereunder, the city treasurer, with the approval of the city
council may, to the extent that bonds or notes
may be issued hereunder, apply funds in the general
treasury of the city 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 city
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 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, to the
extent permitted by applicable federal laws, any net
earnings or profits realized from the deposit or
investment of funds hereunder shall, in the
discretion of the city 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 project,
to the payment of the principal of or interest
on bonds or notes issued hereunder, to the revenues
of the city and dealt with as part of the
revenues of the city from property taxes to the extent
permitted by federal law, 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 city treasurer, be met
from the bond or note proceeds exclusive of
premium and accrued interest or from other monies
available therefor. In exercising any discretion
under this section, the city treasurer shall be
governed by any instructions adopted by
resolution of the city council. Any balance of bond or
note proceeds remaining after completion of the
project shall be subject to section 5-109 of the
city charter.
SECTION 7. All bonds
and notes issued under this act and the debt evidenced hereby
shall be obligatory on the city 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 city for the purpose of
ascertaining its borrowing capacity. The city
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 the monies 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 provisions of law to the
contrary, all taxable property in the city shall be
subject to ad valorem taxation by the city
without limitation as to rate or amount.
SECTION 8. Any
bonds or notes issued under the provisions of this act, if properly
executed by the officers of the city 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
city, acting by resolution of its city 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
monies 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 a cost of the project under
section 2.
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. Without limiting the
generality of the foregoing, the validity of bonds
and notes issued hereunder shall in no way be
affected by sections 2-308 and 4-1602 of the city
charter, and the purposes of this act shall be
deemed to constitute a single project under Article V
of the city charter.
SECTION 11. The
city treasurer and the mayor, on behalf of the city are hereby
authorized to execute such instruments,
documents or other papers as either of the foregoing
deem necessary or desirable to carry out the
intent of this act and are also authorized to take all
actions and execute all documents necessary to
comply with federal tax and securities laws,
which documents or agreements may have a term
coextensive with the maturity of the bonds
authorized hereby, including Rule 15c2-12 of the
Securities and Exchange Commission (the
Rule) and to execute and deliver a continuing
disclosure agreement or certificate in connection
with the bonds or notes in the form as shall be
deemed advisable by such officers in order to
comply with the Rule.
SECTION 12. All or
any portion of the authorized but unissued authority to issue bonds
and notes under this act may be extinguished by
resolution of the city council, without further
action by the general assembly, seven (7) years
after the effective date of this act.
SECTION 13. The
question of the approval of this act shall be submitted to the electors
of the city at the next general election but if
a special city-wide election or special state election,
in either case other than a primary, is called
for a date earlier than the date of such general
election, the mayor may direct the question of
the approval of this act be submitted at such special
election. 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 to authorizing the city of
Pawtucket to provide for the improvement and
replacement of road and traffic control devices in
the city of Pawtucket and authorizing the
financing thereof, including the issue of not more than
$125,000 bonds and notes therefor, to fund the
Capital Improvement Program for the two fiscal
years 2005 and 2006' 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
city 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. To the extent of any
inconsistency between this act and the city
charter or any law of special applicability to the city,
this act shall prevail.
SECTION 14. 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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LC03051
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