Chapter 499

2004 -- H 8477

Enacted 07/07/04

A N A C T

PROVIDING FOR THE CONSTRUCTION OF A NEW MIDDLE SCHOOL AND THE

ACQUISITION OF LAND THEREFOR AND FOR THE RENOVATION OF THE

PONAGANSET HIGH SCHOOL AND PONAGANSET MIDDLE SCHOOL BY THE

FOSTER-GLOCESTER REGIONAL SCHOOL DISTRICT AND AUTHORIZING THE

FINANCING THEREOF, INCLUDING THE ISSUE OF NOT MORE THAN $45,720,000.00

IN BONDS THEREFOR

Introduced By: Representatives Gorham, Winfield, and Aubin

Date Introduced: April 29, 2004

It is enacted by the General Assembly as follows:

     SECTION 1. The Foster-Glocester Regional School District (a regional school district

organized and existing under Chapter 109 of the Public Laws of 1958, as amended) is hereby

empowered and authorized, in addition to authority previously granted, to issue bonds in an

amount not exceeding $45,720,000.00 from time to time under its corporate name and seal or a

facsimile of such 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

or principal, the first installment to be not later than three (3) years and the last installment not

later than thirty-three (33) years after the date of the bonds. For each issue the amounts payable

annually for 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 district treasurer and by the manual or

facsimile signature of the chairperson or co-chairpersons of the regional school committee and

shall be issued and sold at not less than par and accrued interest in such amounts as the regional

school committee (hereinafter called the “committee”) may authorize. The manner of the sale,

denomination, 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 committee authorizing the

issue or by separate resolution of the committee 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 district treasurer, and such

proceeds, exclusive of premiums and accrued interest, shall be expended (a) for the designing,

constructing, equipping and furnishing of a new middle school and for the renovation including

equipment and furniture of the buildings currently housing the Ponaganset High School and the

Ponaganset Middle School, and the acquisition of land therefore a new middle school, or (b)

payment of the principal of or interest on temporary notes entered under this act, or (c) and

repayment of advances under this act. 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 projects shall be carried out and all contracts made therefor on behalf of the district by the

regional district building committee or as may be otherwise directed by the regional school

committee. The proceeds of bonds or notes issued under this act, any applicable state assistance,

or other monies referred to in this act shall be deemed appropriated for the purposes of this act

without further action than that required by this act.

     SECTION 3. The committee 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 under this act 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

district treasurer. Temporary notes issued hereunder shall be signed by the district treasurer and

by the chairperson or co-chairpersons of the committee and shall be payable within three years of

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 issuance 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 three years.

     SECTION 4. Pending any authorization or issuance of bonds hereunder or pending or in

lieu of any authorization or issuance of notes hereunder, the district treasurer with the approval of

the committee may to the extent that bonds or notes may be issued hereunder apply funds in the

treasury of the district to the purposes specified in section 2; 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 district

treasurer in demand deposits, time deposits, or saving deposits, in banks which are members of

the Federal Deposit Insurance Corporation, or in other 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 laws 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 shall in the discretion of the district treasurer be applied to the

cost of preparing, issuing, and marketing bonds or notes hereunder to the extent not otherwise

provided or to the payment of the cost of the projects or to the payment of the principal or of

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

district treasurer be met from bond or note proceeds exclusive of premium and accrued interest or

from other monies 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. Any earnings or net profit realized from the deposit or investment of funds

hereunder shall upon receipt be added to and dealt with as part of the revenues of the district

received from the member towns. In exercising any discretion of this section, the district treasurer

shall be governed by any instructions adopted by resolution of the committee.

     SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby

shall be obligatory on the district in the same manner and to the same extent as other debts

lawfully contracted by it. No such obligation shall at any time be included in the debt of the

district or of any of the member towns for the purpose of ascertaining its borrowing capacity and

shall be accepted from the operation of section 45-12-2 of the General laws with respect to each

member town and section 16-3-17 of the General Laws. The district shall annually apportion

among the member towns an amount sufficient to pay the principal and interest coming due

within the year on bonds and notes issued hereunder to the extent that monies therefor not

otherwise provided and each town shall annually appropriate a sum sufficient to pay its share of

such apportionment. If such sum is not appropriated by a member town it shall nevertheless be

added to the town’s annual tax levy. In order to provide such sum each year and notwithstanding

any provision of law to the contrary, all taxable property in each member town shall be subject to

ad valorem taxation by the town without limitation as to rate or amount to pay the town’s share of

such apportionment.

     SECTION 8. Any bonds or notes issued under the provisions of this act, if properly

executed by the officers of the district 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 and all of such officers for any reason have ceased to hold office.

     SECTION 9. The district acting by resolution of its committee 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 purpose 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 affected date of this act, may

be repaid as project costs 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 or such issue. In carrying out any project

financed in whole or in part in this act, including where applicable to 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 actions shall be taken which are 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 voters of

the towns of Foster and Glocester at the general 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 providing for the construction of a new middle

school and for the renovation of the Ponaganset High School and Ponaganset Middle School and

the acquisition of land therefor by the Foster-Glocester Regional School District and authorizing

the financing thereof, including the issue of not more than $45,720,000.00 in bonds therefor’, be

approved?” and the warning for the meeting shall contain the question to be submitted. From the

time the meeting is warned and until it is held, it shall be the duty of each town clerk to keep a

copy of the act available at their office for public inspection but the validity of the meeting shall

not be affected by this requirement.

     SECTION 12. This section and section 11 shall take effect upon passage. The remainder

of this act shall take effect upon the approval of this act by a majority of the voters voting on the

question as prescribed by section 11.

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LC03275

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