Chapter
124
2006 -- S 3028
Enacted 06/16/06
A N A
C T
AUTHORIZING THE TOWN
OF CUMBERLAND TO FINANCE THE ACQUISITION, PRESERVATION, IMPROVEMENT AND
RESTORATION OF OPEN SPACE IN THE TOWN BY THE ISSUANCE OF NOT MORE THAN
$5,000,000 BONDS AND/OR NOTES THEREFOR
Introduced By: Senators
Connors, Badeau, and Issa
Date Introduced: April 12,
2006
It is
enacted by the General Assembly as follows:
SECTION
1. The town of Cumberland is hereby authorized, in addition to authority
previously
granted, to issue bonds up to an amount not exceeding five million dollars
($5,000,000)
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
three
(3) years and the last installment not later than thirty (30) years after the
date of the bonds.
All
such bonds of a particular issue may be issued in the form of zero coupon
bonds, capital
appreciation
bonds, serial bonds or term bonds, or a combination thereof. The amount of
principal
appreciation each year on any bonds, after the date of original issuance, shall
not be
considered
to be principal indebtedness for the purposes of any constitutional or
statutory debt
limit or
any other limitation. The appreciation of principal after the date of original
issue shall be
considered
interest. Only the original principal amount shall be counted in determining
the
principal
amount so issued and any interest component shall be disregarded.
SECTION
2. The bonds shall be signed by the manual or facsimile signatures of the town
director
of finance and the mayor 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 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 bonds
shall
be delivered to the director of finance, and such proceeds, exclusive of premiums
and
accrued
interest, shall be expended as follows: a) for the purpose of financing the
acquisition,
preservation,
improvement and restoration of open space in the town (the
"Project"), b) in
payment
of the principal of or interest on temporary notes issued under section three,
c) in
repayment
of advances under section four, d) in payment of the costs of issuance
associated with
the
issuance of bonds or notes hereunder and/or (e) in payment of capitalized
interest during
construction
of the Project. 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 by the mayor on behalf of the
town. The
proceeds
of bonds or notes issued under this act, any applicable federal or state
assistance and the
other
moneys referred to in sections six and nine shall be deemed appropriated for
the purposes of
this
act without further action than that required by this act. This 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 issuance 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 director of
finance.
Temporary
notes issued hereunder shall be signed by the manual or facsimile signatures of
the
director
of finance and 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. The town may pay the principal of and interest
on notes in
full
from other than the issuance of refunding notes prior to the issuance of bonds
pursuant to
Section
1 hereof. In such case, the town's authority to issue bonds or notes in
anticipation of
bonds
under this act shall continue provided that 1) the town council passes a
resolution
evidencing
the town's intent to pay off the notes and 2) that the period from the date of
an original
note to
the maturity date of any other note 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
(200%) of the amount of bonds which may be issued under this act, and provided
further
that if
the 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 town by the paying
agent at
the
direction of the director of finance 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 town.
SECTION
4. Pending any authorization or issue of bonds hereunder or pending or in lieu
of any
authorization or issue of notes hereunder, the director of finance, 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 director
of
finance, 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 or resolution of the town council or pursuant
to an
investment
policy of the town.
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 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 project costs, 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
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 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 or interest on bonds or notes
issued
hereunder.
To the extent permitted by applicable federal laws, any earnings or net profit
realized
from
the deposit or investment of funds hereunder may upon receipt be added to and
dealt with as
part of
the revenues of the town from property taxes. In exercising any discretion
under this
section,
the director of finance 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 debt evidenced hereby
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 of
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 approval
of any
governmental agency or the taking of any proceeding 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 director of finance and the mayor, on behalf of the town are
hereby
authorized
to execute such instruments, documents or other papers as either of the
foregoing
deem
necessary or desirable to carry out the intent of this act and are also
authorized to take all
actions
and execute all documents necessary to comply with federal tax and securities
laws
including
Rule 15c2-12 of the Securities and Exchange Commission (the "Rule")
and to execute
and
deliver a continuing disclosure agreement or certificate in connection with the
bonds or notes
in the
form as shall be deemed advisable by such officers in order to comply with the
Rule.
SECTION
12. The question of the approval of this act shall be submitted to the electors
of the
town at a general or special election which is not a primary to be held on such
date as shall
be
designated by the town council. 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 Town of Cumberland to Finance the Acquisition, Preservation, Improvement
and
Restoration
of Open Space in the Town by the Issuance of Not More Than $5,000,000 Bonds
and/or
Notes Therefor' be approved?" 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. To
the extent
of any
inconsistency between this act and the town charter, this act shall prevail.
SECTION
13. 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 of this act
by a majority of
those voting
on the question at the election prescribed by the foregoing section.
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LC03011
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