Chapter
04-094
2004 -- S 3036
Enacted 06/11/04
A N A C T
AUTHORIZING THE CITY OF
PAWTUCKET TO PROVIDE FOR THE CONSTRUCTIONAND RECONSTRUCTION OF STREETS AND
SIDEWALKS IN THE CITY OF PAWTUCKET AND AUTHORIZING THE FINANCING THEREOF,
INCLUDING THE ISSUE OF NOT MORE THAN $1,000,000 BONDS AND NOTES THEREFOR, TO
FUND THE CAPITAL IMPROVEMENT PROGRAM FOR THE TWO FISCAL YEARS 2005 AND 2006
Introduced By: Senators
McBurney, and Issa
Date
Introduced: April 07, 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 million ($1,000,000)
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 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 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 construction
and reconstruction of streets and sidewalks 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
principal 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 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
that the question of the approval of this act shall 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 authorizing the city of
Pawtucket to provide for the
construction and reconstruction of streets and sidewalks in the city
of Pawtucket and authorizing the
financing thereof, including the issue of not more than
$1,000,000 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 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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LC03058
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