Chapter
06-051
2006 -- H 7998
Enacted 06/08/06
A N A C T
AUTHORIZING THE CITY
OF WARWICK TO ISSUE BONDS AND NOTES IN AN AMOUNT NOT TO EXCEED $2,000,000 FOR
THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF A FIRE STATION IN THE POTOWOMUT
SECTION OF THE CITY OF WARWICK
Introduced By: Representatives Flaherty, Ginaitt, Naughton, Gemma, and Trillo
Date Introduced: April 12,
2006
It is
enacted by the General Assembly as follows:
SECTION
1. The city of Warwick is hereby empowered, in addition to authority
previously
granted, to issue bonds to an amount not exceeding Two Million Dollars
($2,000,000)
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 sinking
fund
redemption in the case of term bonds, in annual installments of principal, the
first
installment
to be not later than three years and the last installment not later than twenty
years after
the
date of the bonds.
SECTION
2. The bonds shall be signed by the manual or facsimile signatures of the city
treasurer
and the mayor and shall be issued and sold at not less than par and accrued
interest in
such
amounts as the city council may authorize by resolution. Article VII and
section 2-19 and 6-
14 of
the city charter shall not apply to the authorization or issue of bonds and
notes hereunder or
to the
execution of the projects for which the bonds or notes are issued. 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 city council
authorizing the
issue
or by separate resolution of the city 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.
Interest
coupons
(if any) shall bear the facsimile signature of the city treasurer. The proceeds
derived
from
the sale of the bonds shall be delivered to the city treasurer, and such
proceeds exclusive, of
premiums
and accrued interest shall be expended (a) for the acquisition, construction
and
equipping
of a fire station in the Potowomut section of the city of Warwick; (b) in
payment of the
principal
of or interest on temporary notes issued under section three; or (c) in
repayment of the
advances
under section four.
No
purchase 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 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 city council may by resolution authorize the issue from time to time of
interest
bearing or discounted notes in anticipation of the issue of bonds under section
two 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 city
treasurer.
Temporary
notes issued hereunder shall be signed by the city treasurer and by the mayor
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 the 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 of the amount of bonds which may be issued under this
act, and
provided
further that if 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 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 city by
the
paying agent at the direction of the city 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 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 city.
SECTION
4. Pending any authorization or issue of bonds hereunder or pending or in lieu
of any
authorization or issue of notes hereunder, the city treasurer, with the
approval or the city
council,
may, to the extent that the bonds or notes may be issued hereunder, apply funds
in the
treasury
of the city 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 city
treasurer
in demand deposits, time deposits or saving 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 and by ordinance or resolution of the city.
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 city director of
finance, 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 costs of the projects, to the payment of the
principal of
or
interest on bonds or notes issued hereunder or to any one (1) or more of the
foregoing. The cost
of
preparing, issuing, and marketing bonds or notes hereunder may also, in the
discretion of the
city
director of finance, be met from bond or note proceeds exclusive of premium and
accrued
interest
or from other moneys available therefor. Any balance of bonds or note proceeds
remaining
after payment of the cost of the projects and the cost of preparing, issuing
and market
bonds
or notes hereunder shall upon receipt 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 city from property taxes. In exercising any discretion under this
section, the city
director
of finance shall be governed by any instructions adopted by resolution of the
city council.
SECTION
7. All bonds and notes issued under this act and the debts evidenced thereby
shall
be obligatory on the city 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 city for the
purpose of
ascertaining
its borrowing capacity. The city 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 city shall be
subject
to ad valorem taxation by the city without limitation as to rate or amount.
SECTION
8. Any bonds or notes issued under the provisions of this act, and coupons, if
any, on
any bonds, if properly executed by officers of the city 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 city, acting by resolution of its city 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 cost under section two.
SECTION
10. Bonds and notes issued under this act and the use of proceeds of such
bonds
and notes shall, unless otherwise specifically excepted under this act, be in
accordance with
title
45, chapter 12 and title 35, chapter 11 of general laws. Bonds and notes may be
issued under
this
act without obtaining the approval or 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 projects financed in whole or in part under this act,
including where
applicable
the condemnation of any land or interest in land, and in levying of assessments
or
other
charges permitted by law on account of any such projects, all action shall be
taken which is
necessary
to meet constitutional requirements whether or not such action is otherwise
required by
statue,
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
city at the general election to be held on November 7, 2006 provided, however,
if a special
city-wide
election (which is not a primary) is to be held prior to said general election,
the City
Council
may by resolution designate such special election as the date the question of
approval of
this
act shall be submitted to the electors of the city. The question shall be
submitted in
substantially
the following form: "Shall an Act, passed at the 2006 session of the
General
Assembly
entitled 'An Act Authorizing the City of Warwick to Issue Bonds and Notes in an
Amount
Not to Exceed $2,000,000 for the Acquisition, Construction and Equipping of a
Fire
Station
in the Potowomut section of the City of Warwick' 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 city clerk to keep a copy of the act
available at the city clerk's
office
for public inspection, but the validity of the election shall not be affected
by this
requirement.
SECTION
12. This section and the foregoing section shall take effect upon the passage
of
this
act. The remainder of this act shall take effect upon the approval or this act
by a majority of
those
voting on the question at the election prescribed by the foregoing section.
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LC03008
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