Chapter
04-093
2004 --
S 3087
Enacted
06/11/04
A N A C T
AUTHORIZING
THE TOWN OF SOUTH KINGSTOWN TO FINANCE THE ACQUISITION OF LAND FOR OPEN SPACE,
RECREATION AND AGRICULTURAL PURPOSES AND TO ISSUE NOT MORE THAN $2,000,000
BONDS THEREFOR
Introduced
By: Senator V. Susan Sosnowski
Date
Introduced: May 05, 2004
It is enacted by the General Assembly as
follows:
Section 1. The
town of South Kingstown is hereby empowered, in addition to authority
previously granted, to issue bonds to an amount
not exceeding two million dollars ($2,000,000)
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 years
and the last installment not later than thirty
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.
Section 2. The
bonds shall be signed by the director of finance and by the president of the
town council 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 acquisition of land and
interests in land consisting of open, agricultural or
littoral property, including existing and future
well fields and aquifer recharge areas, fresh and
saltwater marshes and adjoining uplands, barrier
beaches, wildlife habitats, land providing access
to or views of the ocean, harbors and ponds,
land for unpaved bicycling, bridle and hiking paths
and for future passive recreational use, and
land for agricultural use or (b) in payment of the
principal of or interest on temporary notes
issued under section three or (c) in repayment of
advances under 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
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 purposes 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 and by the president of the town
council and shall be payable within five 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 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 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 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 and any earnings or net
profit realized from the deposit or investment of
funds 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 projects, to
the payment of the principal of or interest on bonds
or 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 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
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 bonds or notes issued hereunder. 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 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. 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 the general state election to be
held on 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 SOUTH KINGSTOWN
TO FINANCE THE ACQUISITION OF LAND FOR OPEN
SPACE, RECREATION AND
AGRICULTURAL PURPOSES AND TO ISSUE NOT MORE THAN
$2,000,000 BONDS
THEREFOR' 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
town clerk to keep a copy of the act available
at his office for public inspection, but the validity of
the election shall not be affected by this
requirement.
Section 12. This
section and the foregoing section 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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LC03313
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