Chapter 393
2006 -- S 3118
Enacted 07/06/06
A N A C T
AUTHORIZING
THE CITY OF CRANSTON TO ISSUE NOT MORE THAN $3,000,000 BONDS AND NOTES TO
FINANCE THE REPAIR, CONSTRUCTION AND REHABILITATION OF PUBLIC HIGHWAYS
THROUGHOUT THE CITY OF CRANSTON
Introduced
By: Senators Roberts, Gallo, and Lanzi
Date
Introduced: May 25, 2006
It is enacted by the General Assembly as
follows:
SECTION 1. The
City of Cranston is hereby empowered, in addition to authority
previously granted, to issue bonds to an amount
not exceeding three million dollars ($3,000,000)
from time to time under its corporate name and
seal or a facsimile of such seal. The bonds of each
issue shall mature 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. 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,
statutory, or charter 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
director of finance and the mayor and shall be
issued and sold in such amounts as the city council
may authorize. 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 by
separate order or 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 director of finance. 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) to finance the repair, construction
and rehabilitation of public highways throughout
the City of Cranston, but for no other uses or
purposes (such as temporary borrowings for the
benefit of any other city department), or (b) in
payment of the principal or of 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
sections six and nine shall be deemed
appropriated for the purposes of this act without further
action than that required by this act. In
addition to such funds, there may be expended for the
purposes of this act such other sums as may be
appropriated therefor. The bond issue authorized
by this act may be consolidated for the purposes
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.
SECTION 3. The
city council may, by order or resolution authorizing the bonds or by
separate order or resolution, authorize the
issuance from time to time of interest bearing or
discounted notes in anticipation of the issue of
the bonds under Section Two or in anticipation of
the receipt of federal or state aid for the
purposes of this act. The amount of the original notes
issued in anticipation of the 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 signature of the
director of finance and countersigned by the
manual or facsimile signature of the mayor and shall
be payable within five (5) 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 (5) years. Any
temporary notes in anticipation of the 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 (1) time in
excess of two hundred percent (200%) of the
amount of the 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 (1)
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 that 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 given by an order or resolution passes
and approved in the manner provided in Chapter 12
of the city charter, but not subject to the
provisions of Section 12.03 of said Chapter, 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, and subject to the approval of the
investment committee mentioned in Section 7.05
of the city charter, may be deposited or invested
by the city treasurer 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 laws of the State of
Rhode Island and by ordinance or resolution of the
city council.
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 net earnings or profits
realized from the investment of funds hereunder
and any premiums arising from the sale of bonds
or notes hereunder shall, in the discretion of
the city treasurer, 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 to the
cost of additional improvements coming within the
description of the projects in Section Two of
this act, 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
treasurer, 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 projects and the cost of
additional improvements coming within the description
of the projects in Section Two of this act, and
to 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 law, 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 treasurer shall be
governed by any instructions adopted by any order or
resolution of the city council.
SECTION 7. All
bonds and notes issued under this act and the debts evidenced thereby
shall be obligatory to 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
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 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 the officers of the
city 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 the officers
shall for any reason have ceased to hold office.
SECTION 9. The
city, acting by order or resolution of its city council, passed and
approved in the manner provided in chapter 12 of
the city charter, but not subject to the provision
of Section 12.03 of said chapter, 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 of this act.
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 projects 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 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 Cranston to issue not more than
$3,000,000 bonds and notes to finance the
repair, construction and rehabilitation of public
highways throughout the City of Cranston' 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. To the
extent of any inconsistency between this act and
the city charter, this act shall prevail.
SECTION 12.
Sections 11 and 12 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
Section 11.
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LC03277
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