Chapter 147
2006 -- H 8003
Enacted 06/16/06
A N A C T
AUTHORIZING
THE CITY OF WARWICK TO ISSUE BONDS AND NOTES IN AN AMOUNT NOT TO EXCEED
$3,500,000 FOR THE REPAIR AND RENOVATION OF PARKS AND RECREATIONAL FACILITIES
Introduced
By: Representatives Ginaitt, Naughton, Flaherty, Gemma, and McNamara
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 Three Million Five Hundred
Thousand Dollars ($3,500,000) 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
not 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 sections 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 repair and renovation of parks and
recreational facilities; (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. 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
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 of 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
marketing 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 bet 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 sue 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
the general laws. 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 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
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 city at the general election to be held
on November 7, 2006. 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 $3,500,000 for the
Repair and Renovation of Parks and Recreational
Facilities' 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 of this act by a majority of
those voting on the question at the election
prescribed by the foregoing section.
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LC02998
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