Chapter 266
2004 -- S 3153
Enacted 07/02/04
A N A C T
AUTHORIZING
THE TOWN OF CHARLESTOWN TO FINANCE THE DESIGN,
CONSTRUCTION,
FURNISHING AND EQUIPPING OF AN AUDITORIUM AT THE
MIDDLE
SCHOOL/HIGH SCHOOL IN THE TOWN BY THE ISSUANCE OF NOT MORE THAN $3,000,000
BONDS AND/OR NOTES THEREFOR
Introduced
By: Senators Algiere, and Breene
Date
Introduced: May 27, 2004
It
is enacted by the General Assembly as follows:
SECTION
1. The town of Charlestown is hereby empowered, in addition to authority
previously
granted, to issue general obligation bonds and notes to an amount not exceeding
Three
Million
Dollars ($3,000,000), 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 (5) years and the last installment not later than thirty
(30) years after the date
of
the bonds. All such bonds of a particular issue may be issued in the form of
zero coupon
bonds,
capital appreciation bonds, serial bonds or term bonds or a combination
thereof. Annual
installments
of principal may be provided for by maturity of principal in the case of serial
bonds
or
by mandatory serial redemption in the case of term bonds. The amount of
principal
appreciation
each year on any bonds, after the date of original issuance, shall not be
considered to
be
principal indebtedness for the purposes of any constitutional or statutory debt
limit or any
other
limitation. The appreciation of principal after the date of original issue
shall be considered
interest.
Only the original principal amount shall be counted in determining the
principal amount
so
issued and any interest component shall be disregarded.
SECTION
2. The bonds shall be signed by the town treasurer and 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) to finance the design, construction, furnishing and equipping of an
auditorium at the
middle
school/high school in the town, (b) in payment of the principal of and/or
interest on
temporary
notes issued under section three, (c) in repayment of advances made pursuant to
section
four, and/or (d) in payment of costs of issuance associated with the issuance
of bonds or
notes
hereunder. 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
project
shall
be carried out and all contracts made therefor on behalf of the town by the
town council.
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 and nine, shall be deemed
appropriated for the
purposes
of this act without further action than that required by this act. The bonds
authorized by
this
act may be consolidated for the purpose of issuance and sale with any other
bonds of the
town
heretofore or hereafter authorized, provided that, notwithstanding any such
consolidation,
the
proceeds from the sale of the bonds authorized by this act shall be expended
for the purposes
set forth
above. The town treasurer and the president of the town council, on behalf of
the town,
are
hereby authorized to execute such instruments, documents or other papers as
either of them
deem
necessary or desirable to carry out the intent of this act and are also
authorized to take all
actions
and execute all documents or agreements 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
and to execute and deliver a continuing disclosure agreement or certificate in
connection
with the bonds or notes.
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 town treasurer. Temporary
notes
issued
hereunder shall be signed by the town treasurer and by the president 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. 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 town by the paying agent at the direction of the town 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
town.
The town 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 town's authority to issue bonds or notes in anticipation of bonds under
this act shall
continue
provided that 1) the town council passes a resolution evidencing the town'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
4. Pending any authorization or issue of bonds hereunder or pending or in lieu
of any
authorization or issue of notes hereunder, the town 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 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 town
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 or resolution of the town council or pursuant
to an
investment
policy of the town.
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 shall, in the discretion of the town 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 or more of the foregoing. The
cost of preparing,
issuing
and marketing bonds or notes issued hereunder may also, in the discretion of
the town
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
project 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. To the
extent
permitted by applicable federal laws, any earnings or net profit realized from
the deposit or
investment
of funds hereunder may, upon receipt, be added to and dealt with as part of the
revenues
of the town from property taxes. In exercising any discretion under this
section, the
town
treasurer 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. All or any portion of the authorized but unissued authority to issue bonds
and notes
under this act may be extinguished by ordinance of the town council, without
further
action
by the general assembly, seven (7) years after the effective date of this act.
SECTION
12. The question of the approval of this act shall be submitted to the electors
of
the town at a general or special election (other than a primary election) held
prior to December
31,
2004 on a date as shall be designated by the town council. 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 CHARLESTOWN TO
FINANCE
THE DESIGN, CONSTRUCTION, FURNISHING AND EQUIPPING OF AN
AUDITORIUM
AT THE MIDDLE SCHOOL/HIGH SCHOOL IN THE TOWN BY THE
ISSUANCE
OF NOT MORE THAN $3,000,000 BONDS AND/OR NOTES THEREFOR' be
approved?"
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 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
town
charter, this act shall prevail.
SECTION
13. Sections 12 and 13 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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LC03507
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