Chapter 534
2004 -- H 8698
Enacted 07/07/04
A N A C T
AUTHORIZING
THE TOWN OF NORTH KINGSTOWN TO FINANCE FIRE SUPPRESSION SYSTEMS, HEATING AND
VENTILATION SYSTEMS, SEPTIC SYSTEMS AND OTHER REPAIRS AND RENOVATIONS AND/OR RELATED
EQUIPMENT AT THE DAVISVILLE, FOREST PARK, FISHING COVE AND WICKFORD ELEMENTARY
SCHOOLS AND THE WICKFORD MIDDLE SCHOOL AND TO ISSUE NOT MORE THAN $9,000,000
BONDS AND NOTES THEREFOR
Introduced
By: Representatives Carter, Benson, and Lally
Date
Introduced: June 24, 2004
It
is enacted by the General Assembly as follows:
SECTION
1. The Town of North Kingstown is hereby empowered, in addition to
authority
previously granted, to issue bonds to an amount not exceeding Nine Million
Dollars
($9,000,000.00)
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 of
principal, the
first
installment to be not later than five years and the last installment not later
than thirty 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 manual or facsimile signatures of 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 by resolution. 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 resolution 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 town treasurer, and such proceeds
exclusive of
premiums
and accrued interest shall be expended for (a) fire suppression systems,
heating and
ventilation
systems, septic systems and other repairs and renovations and/or related
equipment at
the
Davisville, Forest Park, Fishing Cove and Wickford Elementary Schools and the
Wickford
Middle
School and all costs incidental thereto, (b) in payment of the principal of or
interest on
temporary
notes issued under Section 3 of this act or (c) in repayment of advances under
Section
4 of
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 Town by a School Building
Committee
appointed
by the Town Council or as may be otherwise directed by the Town Council. The
proceeds
of bonds or notes issued under this act, any applicable federal or state
assistance and the
other
monies referred to in Section 6 of this act shall be deemed appropriated for
the purposes of
this
act without further action than that required by this act. The bond issue
authorized by this act
may
be consolidated for the purposes of issuance and sale with any other bond issue
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.
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 authorization or
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
treasurer.
Temporary
notes issued hereunder shall be signed by the treasurer and by the president of
the
Town
Council and shall be payable within five 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
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 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 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
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 any earnings or net profit realized from the
deposit or
investment
of funds hereunder shall, in the discretion of the 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 or to the cost of additional
improvements coming within
the
description of the projects in Section 2 of this act, 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 hereunder may also, in the discretion of the
treasurer, be
met
from bond or note proceeds exclusive of accrued interest or from other monies
available
therefor.
Any balance of bond or note proceeds remaining after payment of the cost of the
projects
and said additional improvements 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. In exercising any discretion under this Section, the treasurer shall
be governed
by
any instructions adopted by resolution of the Town Council. The treasurer is
authorized to take
any
action deemed by him or her necessary (1) to assure that interest on the bonds
or notes issued
hereunder
remains excludable from gross income of the recipients thereof for federal
income tax
purposes,
including, without limitation, paying to the federal government any rebate of
earnings
derived
from the deposit or investment of the proceeds of such bonds or notes that may
be
required
therefor, (2) to comply with the requirements of federal law, including without
being
limited
to regulations and other requirements of the Securities and Exchange Commission
and the
Municipal
Securities Rulemaking Board, imposed directly on the Town or on the
underwriters of
such
bonds and note and/or (3) to comply with the provisions of sections 16-7-35 to
16-7-47 of
the
Rhode Island General Laws, 1956, as amended; including making all necessary
contracts and
agreements
to issue said bonds and notes through the Rhode Island Health and Educational
Building
Corporation.
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 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 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 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. To the extent of any inconsistency between this act and the
Town
Charter,
this act shall prevail.
SECTION
11. The question of the approval of this act shall be submitted to the electors
of
the town at an election on a date to be determined by the Town Council which
occurs at least
thirty
days after the passage of this act. 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 NORTH KINGSTOWN TO FINANCE FIRE
SUPPRESSION
SYSTEMS, HEATING AND VENTILATION SYSTEMS, SEPTIC SYSTEMS
AND
OTHER REPAIRS AND RENOVATIONS AND/OR RELATED EQUIPMENT AT THE
DAVISVILLE,
FOREST PARK, FISHING COVE AND WICKFORD ELEMENTARY
SCHOOLS
AND THE WICKFORD MIDDLE SCHOOL AND TO ISSUE NOT MORE THAN
$9,000,000
BONDS AND NOTES THEREFOR’ be approved?” and the warning for the election
shall
contain the question to be submitted. The Town Board of Canvassers may combine
any two
or
more voting districts for the election and when so combined shall be treated as
a voting district.
If
so combined, the Town Board of Canvassers shall advertise the combination of
districts in a
newspaper
of general circulation in the Town. 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.
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 those
voting on the
question
at the election prescribed by Section 11.
=======
LC03743
=======