Chapter 414

2006 -- S 3200

Enacted 07/06/06

A N A C T

AUTHORIZING THE TOWN OF BRISTOL TO FINANCE THE DESIGN, ENGINEERING AND CONSTRUCTION OF CAPITOL IMPROVEMENT PROJECTS INCLUDING, WITHOUT LIMITATION, DRAINAGE AND WASTE WATER TREATMENT FACILITY SEWER PROJECTS, OPEN SPACE AND PROPERTY ACQUISITION FOR MUNICIPAL PURPOSES, ROAD REPAIRS AND IMPROVEMENTS, ADDITIONS AND REPAIRS TO PUBLIC SAFETY BUILDINGS, AND THE ACQUIRING OF EQUIPMENT IN CONNECTION THEREWITH BY ISSUANCE OF NOT MORE THAN $15,000,000 BONDS

THEREFOR

Introduced By: Senators Bates, Felag, and C Levesque

Date Introduced: June 22, 2006

It is enacted by the General Assembly as follows:

     SECTION 1. Authorization. The town of Bristol is hereby empowered, subject to the

approval of the electors of the town, in addition to authority previously granted, to issue general

obligation bonds and notes to an aggregate amount not exceeding Fifteen Million Dollars

($15,000,000) from time to time under its corporate name and seal. The bonds may be issued for

purposes of designing, engineering and construction of capitol improvement projects including,

without limitation, drainage and waste water treatment facility sewer projects, open space and

property acquisition for municipal purposes, road repairs and improvements, additions and repairs

to public safety buildings, and the acquiring of equipment in connection therewith, and such

bonds shall be designated as capital improvement bonds. Notwithstanding any other provision of

the general laws, the town shall not be required to obtain approval of the town meeting for any

aspect of any projects to be funded herein.

     SECTION 2. Bonds. The bonds of each issue 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. For each issue, the amounts payable annually for

the principal and interest combined either shall be as nearly equal from year to year as is

practicable in the opinion of the officers authorized to issue the bonds, or shall be arranged in

accordance with a schedule providing for a more rapid amortization of principal. The bonds shall

be signed by the town treasurer and by the chairman of the town council and shall be issued and

sold at public or private sale in such amounts as the town council may authorize. The provisions

of section 306(c) and all of article four (including, without limitation section 414) of the town

charter shall not apply to the authorization or issue of bonds or notes under this act. 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 treasurer, and such

proceeds exclusive of premiums and accrued interest shall be expended for: (a) the purposes

applicable to such bonds as specified in section one; or (b) the payment of the principal of or

interest on temporary notes issued in connection with such bonds pursuant to section three; or (c)

the repayment of advances made in connection with such bonds pursuant to section four and/or

(d) in payment of the costs of issuance associated with the issuance of bonds or notes hereunder.

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 projects funded with proceeds of

the bonds shall be carried out and all contracts made therefore on behalf of the town by the town

administrator, or as may be otherwise directed by the town council, notwithstanding any

provisions of section 911 of the town charter to the contrary. Section 911 of the town charter

shall not apply to the projects authorized by this act. The proceeds of the 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. 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. Temporary Notes. The town council may by resolution authorize the issue

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 treasurer.

Temporary notes issued hereunder shall be signed by the treasurer and the chairman of the town

council 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.

     SECTION 4. Advances. Pending authorization of bonds hereunder or pending or in lieu

of any authorization or issue of notes hereunder, the treasurer, 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 applicable purposes specified in section one, such advances to be

repaid without interest from the proceeds of applicable bonds or notes subsequently issued or

from the proceeds of applicable federal or state assistance or from other available funds.

     SECTION 5. Investments. 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 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 invested pursuant to

section 35-10-11 of the general laws or any similar laws of the state of Rhode Island, or

resolution of the town council or pursuant to an investment policy of the town as adopted by the

town council.

     SECTION 6. Application of accrued interest, premiums and investment earnings. 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 and any earnings or net profit realized from the deposit or investment of funds

hereunder shall, in the discretion of the treasurer, 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

cost 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 treasurer, be met from bond

or note proceeds exclusive of 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 preparing, issuing and marketing bonds or notes hereunder shall be applied to the payment of

the principal of or interest on corresponding bonds or notes issued hereunder. In exercising any

discretion under this section, the treasurer shall be governed by any instructions adopted by

resolution of the town council.

     SECTION 7. Security for the bonds and notes. All bonds and notes issued under this act

and the debts evidenced thereby 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. Execution of bonds or notes. 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. Federal and state aid. 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 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 costs under section two.

     SECTION 10. Conditions precedent to the issuance of bonds. 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 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. Referendum. The question of the approval of this act shall be submitted to

the electors of the town at the general or special election to be held at polling places on November

7, 2006 or any other date to be determined 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 BRISTOL TO FINANCE THE

DESIGN, ENGINEERING AND CONSTRUCTION OF CAPITOL IMPROVEMENT

PROJECTS INCLUDING, WITHOUT LIMITATION, DRAINAGE AND WASTE WATER

TREATMENT FACILITY SEWER PROJECTS, OPEN SPACE AND PROPERTY

ACQUISITION FOR MUNICIPAL PURPOSES, ROAD REPAIRS AND IMPROVEMENTS,

ADDITIONS AND REPAIRS TO PUBLIC SAFETY BUILDINGS, AND THE ACQUIRING

OF EQUIPMENT IN CONNECTION THEREWITH BY ISSUANCE OF NOT MORE THAN

$15,000,000 BONDS THEREFOR' be approved?" and the warning for the election shall contain

the questions to be submitted. 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 the town 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 town charter, this act shall prevail.

     SECTION 12. Effective date. This section and the foregoing 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.

=======

LC03588

=======