Chapter
376
2006 -- S 2274
Enacted 07/06/06
A N A
C T
AUTHORIZING THE CITY
OF NEWPORT TO FINANCE THE DESIGN, CONSTRUCTION, REPAIR, REHABILITATION AND
IMPROVEMENT OF STREETS AND SIDEWALKS IN THE CITY, INCLUDING, BUT NOT LIMITED TO,
TRAFFIC CONTROL DEVICES, LANDSCAPING AND CONSTRUCTION MANAGEMENT SERVICES, BY
THE ISSUANCE OF NOT MORE THAN $12,000,000 BONDS AND/OR NOTES THEREFOR
Introduced By: Senators
Paiva-Weed, and Gibbs
Date Introduced: February
02, 2006
It is
enacted by the General Assembly as follows:
SECTION
1. The city of Newport is hereby empowered, in addition to authority
previously
granted, to issue bonds to an amount not exceeding twelve million dollars
($12,000,000)
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
five
(5) 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. Annual installments
of
principal
may be provided for by maturity of principal in the case of serial bonds or by
mandatory
serial
redemption in the case of term bonds. 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 city
finance
director and the mayor and shall be issued and sold in such amounts as the city
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
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 manual or
facsimile
signature
of the city finance director. The proceeds derived from the sale of the bonds
shall be
delivered
to the city finance director, and such proceeds, exclusive of premiums and
accrued
interest,
shall be expended: a) to finance the design, construction, repair, rehabilitation
and
improvement
of streets and sidewalks in the city, including, but not limited to, traffic
control
devices,
landscaping and construction management services (the "Project"), or
b) pay the
principal
of or interest on temporary notes issued under section three, or c) pay the
costs in
connection
with the issuance of the bonds or notes, or d) finance capitalized interest on
the
Project
or e) repay any 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 sections 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 purpose of issuance
and sale with
any
other bond issue of the city 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. The city finance director and the mayor, on
behalf of
the
city, are hereby authorized to execute such instruments, documents or other
papers as either of
them
deem necessary or desirable to carry out the intent of this act and are also
authorized to take
all
actions and execute all documents or agreements necessary to comply with
federal tax and
securities
laws, which documents or agreements may have a term coextensive with the
maturity
of the
bonds authorized hereby.
SECTION
3. The city council may by resolution authorize the issuance from time to time
of interest
bearing or discounted notes in anticipation of the issuance 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 city finance
director.
Temporary
notes issued hereunder shall be signed by the manual or facsimile signatures of
the
city
finance director 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 issuance 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 (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 city by the paying agent at the
direction of the city
finance
director 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. The city 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 city's authority to issue bonds or notes in
anticipation of bonds under
this
act shall continue provided that 1) the city council passes a resolution
evidencing the city'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.
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 finance director, with the approval of
the
city
council, may, to the extent that 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
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 or resolution of the city
council or
pursuant
to an investment policy 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 premium
arising from the
sale of
bonds or notes hereunder shall, in the discretion of the city 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 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 city
finance
director,
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 of 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 city from property taxes. In exercising any discretion
under this
section,
the city finance director 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
and the
provisions of the city charter. 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, 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 of assistance which
may be
available
for the purposes of this act, and any such expenditures may be in addition to
the 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 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. All or any portion of the authority to issue bonds and notes under this act
may be
extinguished by resolution of the city council, without further action by the
general
assembly.
SECTION
12. The city finance director and the mayor, on behalf of the city, are hereby
authorized
to execute such instruments, documents or other papers as either of them deem
necessary
or desirable to carry out the intent of this act and are also authorized to
take all actions
and
execute all documents or agreements necessary to comply with federal tax and
securities
laws,
which documents or agreements may have a term coextensive with the maturity of
the
bonds
authorized hereby, 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
13. The question of the approval of this act shall be submitted to the electors
of the
city at a general or special election (other than a primary election) to be
held on any date as
shall
be designated by the city 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 CITY OF NEWPORT TO FINANCE THE DESIGN,
CONSTRUCTION,
REPAIR, REHABILITATION AND IMPROVEMENT OF STREETS AND
SIDEWALKS
IN THE CITY, INCLUDING, BUT NOT LIMITED TO, TRAFFIC CONTROL
DEVICES,
LANDSCAPING AND CONSTRUCTION MANAGEMENT SERVICES, BY THE
ISSUANCE
OF NOT MORE THAN $12,000,000 BONDS AND/OR NOTES 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 city
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
city
charter, this act shall prevail.
SECTION
14. 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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LC01406
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