Chapter 287
2004 -- S 3154
Enacted 07/02/04
A N A C T
AUTHORIZING
THE TOWN OF CHARLESTOWN TO FINANCE CAPITAL COSTS
ASSOCIATED
WITH THE TOWN'S WITHDRAWAL FROM THE CHARIHO REGIONAL SCHOOL DISTRICT INCLUDING
THE ACQUISITION OF LAND FOR AND THE DESIGN, CONSTRUCTION, FURNISHING AND
EQUIPPING OF A MIDDLE SCHOOL/HIGH SCHOOL COMPLEX AND THE RENOVATION,
REHABILITATION, REPAIR, IMPROVEMENT AND EQUIPPING OF AND/OR ADDITIONS TO
EXISTING SCHOOLS AND SCHOOL FACILITIES IN THE TOWN BY THE ISSUANCE OF NOT MORE
THAN $34,900,000 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
Thirty-Four
Million Nine Hundred Thousand Dollars ($34,900,000), 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 not be later than five (5) years and the
last
installment
and 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 capital costs associated with the town's withdrawal from the
Chariho
Regional
School District including the acquisition of land for and the design,
construction,
furnishing
and equipping of a middle school/high school complex and the renovation,
rehabilitation,
repair, improvement and equipping of and/or additions to existing schools and
school
facilities 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 purpose 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 the 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 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 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 the
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 the
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 project, 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 of
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 or 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 or 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 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 or 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
or
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
CAPITAL COSTS ASSOCIATED WITH THE TOWN'S WITHDRAWAL FROM
THE
CHARIHO REGIONAL SCHOOL DISTRICT INCLUDING THE ACQUISITION OF
LAND
FOR AND THE DESIGN, CONSTRUCTION, FURNISHING AND EQUIPPING OF A
MIDDLE
SCHOOL/HIGH SCHOOL COMPLEX AND THE RENOVATION,
REHABILITATION,
REPAIR, IMPROVEMENT AND EQUIPPING OF AND/OR
ADDITIONS
TO EXISTING SCHOOLS AND SCHOOL FACILITIES IN THE TOWN BY
THE ISSUANCE
OF NOT MORE THAN $34,900,000 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, is 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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LC03506
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