Chapter 568
2004 -- S 3136
Enacted 07/09/04
A
N A C T
AUTHORIZING
THE TOWN OF BURRILLVILLE TO FINANCE THE CONSTRUCTION,
EQUIPPING
AND FURNISHING OF AN ADDITION TO AND REMODELING,
RECONSTRUCTING
AND MAKING EXTRAORDINARY REPAIRS TO THE W.L.
CALLAHAN
ELEMENTARY SCHOOL AND TO ISSUE NOT MORE THAN $7,500,000
BONDS
THEREFOR
Introduced
By: Senators P Fogarty, Gallo, Felag, Sheehan, and Walaska
Date
Introduced: May 20, 2004
It
is enacted by the General Assembly as follows:
SECTION
1. The town of Burrillville is hereby empowered, in addition to authority
previously
granted, to issue bonds to an amount not exceeding seven million five hundred
thousand
dollars ($7,500,000) 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 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 finance director and by 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
finance
director, and such proceeds exclusive of premiums and accrued interest shall be
expended
(a)
for constructing, originally equipping and furnishing an addition to and
remodeling,
reconstructing,
and making extraordinary repairs to the W.L. Callahan Elementary School or (b)
in
payment of the principal of or interest on temporary notes issued under section
three or (c) in
repayment
of advances under section four or (d) for the cost of preparing, issuing and
marketing
bonds
or notes issued 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 school
building
committee appointed by the town council, the authority of which shall be set 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 moneys
referred to in
section
six shall be deemed appropriated for the purposes of this act without further
action than
that
required by this act.
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 finance director.
Temporary notes
issued
hereunder shall be signed by the finance director 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 finance director, 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 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 finance
director
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 finance director, 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 hereunder may also, in the discretion of the
finance
director,
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. In
exercising
any discretion under this section, the finance director 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 expected 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 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. The question of the approval of this act shall be submitted to the electors
of
the town at an election to be held on a date to be determined by the town
council, such date to
be
not later than November 30, 2006. 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 BURRILLVILLE TO FINANCE THE
CONSTRUCTION,
EQUIPPING AND FURNISHING OF AN ADDITION TO AND
REMODELING,
RECONSTRUCTING AND MAKING EXTRAORDINARY REPAIRS TO
THE
W.L. CALLAHAN ELEMENTARY SCHOOL AND TO ISSUE NOT MORE THAN
$7,500,000
BONDS THEREFOR’ 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 town clerk to keep a copy of the act available at his office for
public inspection,
but
the validity of the election shall not be affected by this requirement.
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LC03466
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