Chapter 160
2004 --
S 3034
Enacted
06/26/04
A N A C T
AUTHORIZING
THE CITY OF PAWTUCKET TO PROVIDE FOR THE RENOVATION
AND
EQUIPPING OF PUBLIC SCHOOL BUILDINGS IN THE CITY OF PAWTUCKET
AND
AUTHORIZING THE FINANCING THEREOF, INCLUDING THE ISSUE OF NOT
MORE
THAN $3,000,000 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 three million
($3,000,000)
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 renovation and equipping of public school buildings 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 an 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 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 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 renovation and equipping of public school buildings in the
city of
Pawtucket
and authorizing the financing thereof, including the issue of not more than
$3,000,000
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 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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LC03056
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