Chapter 415
2006 -- S 3188
Enacted 07/06/06
A N A C T
AUTHORIZING
THE TOWN OF NORTH SMITHFIELD TO FINANCE THE ACQUISITION AND PRESERVATION IN
PERPETUITY OF OPEN SPACE AND/OR THE PURCHASE OF DEVELOPMENT RIGHTS TO OPEN SPACE
IN THE TOWN BY THE ISSUANCE OF NOT MORE THAN $3,000,000 OF BONDS AND/OR NOTES
THEREFOR
Introduced
By: Senator John J. Tassoni
Date
Introduced: June 21, 2006
It is enacted by the General Assembly as
follows:
SECTION 1. The
town of North Smithfield is hereby empowered, in addition to authority
previously granted, to issue general obligation
bonds and notes to an amount not exceeding three
million dollars ($3,000,000) 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, in such installments as
are fixed by the proceedings of the town council
authorizing the issue or by separate resolution of
the town council. 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, and may
bear interest at a fixed rate or rates or at a
variable or auction rate or rates, as determined by the
proceedings of the town council authorizing the issue
or by separate resolution of the town
council. The bonds may be sold by a negotiated
sale or by competitive bid and issued pursuant to
a resolution or an indenture of trust, as is
determined by the proceedings of the town council
authorizing the issue or by separate resolution
of the town council, provided that the final
maturity of such bonds shall not exceed thirty
(30) years from and after the date the bonds are
issued. 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 director of finance and the president of the
town council and shall be issued and sold in
such amounts as the town 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 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 the bonds shall be delivered to the
director of finance, and such proceeds,
exclusive of premiums and accrued interest, shall be
expended (a) for the purpose of financing the
acquisition and preservation in perpetuity of open
space and/or the purchase of development rights
to open space in the town, (b) in payment of the
principal of and/or interest on temporary notes
issued under section three, (c) in repayment of
advances made pursuant to section four, and/or
(d) in payment of 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 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 purpose of this act without further
action than that required by this act. This bond issue
authorized by this act may be consolidated for the
purpose 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 purpose set forth above. The
director of finance and the president of the town
council, on behalf of the town, 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 and to
execute and deliver a continuing disclosure
agreement or certificate in connection with the
bonds or notes.
SECTION 3. 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 director of finance. Temporary notes
issued hereunder shall be signed by the director
of finance and the president 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. 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. 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.
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 the cost of the
project, to the payment of the principal of or interest
on bonds or notes issued hereunder or to any one
or more of the foregoing. The cost of preparing,
issuing and marketing bonds or notes issued
hereunder may also, in the discretion of the director
of finance, 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 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 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. 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 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. 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. The
question of the approval of this act shall be submitted to the electors
of the town at the general election to be held
on November 7, 2006 or at a general or special
election (other than a primary election) to be
held on a 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 NORTH SMITHFIELD TO FINANCE THE
ACQUISITION AND
PRESERVATION IN PERPETUITY OF OPEN SPACE AND/OR
THE PURCHASE OF
DEVELOPMENT RIGHTS TO OPEN SPACE IN THE TOWN BY
THE ISSUANCE OF NOT
MORE THAN $3,000,000 OF BONDS AND/OR NOTES
THEREFOR' be approved?" 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 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 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
the foregoing section.
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LC03557
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