Chapter 04-589
2004 -- S 3242
Enacted 08/02/04
A N A C T
AUTHORIZING
THE TOWN OF JAMESTOWN TO FINANCE THE CONSTRUCTION OF A PUBLIC WORKS HIGHWAY
FACILITY AND TO ISSUE NOT MORE THAN $2,400,000 BONDS AND NOTES THEREFOR
Introduced
By: Senator M. Teresa Paiva-Weed
Date
Introduced: July 23, 2004
It
is enacted by the General Assembly as follows:
SECTION
1. The Town of Jamestown is hereby empowered, in addition to authority
previously
granted, to issue bonds to an amount not exceeding Two Million Four Hundred
Thousand
Dollars ($2,400,000.00) 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
finance
director of the town 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
by separate order or 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) the
construction
of a
public works highway facility and related building equipment, (b) in payment of
the principal
or
of interest on temporary notes issued under Section Three of this act or (c) in
repayment of
advances
under Section Four 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
project shall be carried out and all contracts made therefor on behalf of the
Town 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 Six and nine 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
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 an 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 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 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 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 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
finance
director,
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 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. The
finance director
is
authorized to take any action deemed by him or her necessary 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 and (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 notes.
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 years on bonds and notes issued
hereunder to the
extent
that moneys thereof 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 the officers of the town in office on the date of execution, shall be valid
and binding
according
to their terms notwithstanding that before 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 order or 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 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. Without limiting
the
generality
of the foregoing, bonds and notes may be issued under this act without any
action at
the
financial town meeting. 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 or 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 JAMESTOWN TO FINANCE THE CONSTRUCTION
OF A
PUBLIC WORKS HIGHWAY FACILITY AND TO ISSUE NOT MORE THAN
$2,400,000.00
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
tow 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 the act by a majority of those
voting on the
question
at the election prescribed by Section 11.
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LC03802
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