Chapter 417
2006 -- S 3181
Enacted 07/06/06
A N A C T
AUTHORIZING
THE TOWN OF EAST GREENWICH TO FINANCE THE REMEDIATION AND RESTORATION OF THE
FORMER TOWN LANDFILL LOCATED ADJACENT TO GREENWICH BAY BY THE ISSUANCE OF NOT MORE
THAN $1,600,000.00 BONDS AND/OR NOTES THEREFORE
Introduced
By: Senators Lenihan, and Raptakis
Date
Introduced: June 20, 2006
It is enacted by the General Assembly as
follows:
SECTION 1. The
Town of East Greenwich is hereby empowered, in addition to authority
previously granted, to issue bonds to an amount
not exceeding one million six hundred thousand
dollars ($1,600,000.00) from time to time under
its corporate name and seal. 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
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. 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 town
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 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 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 as follows: (a) for the purpose of
financing the remediation and restoration of the
former town landfill located adjacent to
Greenwich Bay ("the project"), (b) in
payment of the principal of or interest on temporary notes
issued under section three, (c) in repayment of
advances under section four, (d) in payment of the
costs associated with the issuance of bonds or
notes hereunder and/or (e) in payment of
capitalized interest during construction of the
project. No purchases 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 project shall be carried
out and contracts made therefore by the town council
on behalf of the town. The proceeds of bonds or
notes issued under this act, in the applicable
federal or state assistance and the other monies
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. This bond issue authorized by this act
shall 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. The
town council may by resolution authorize the issue from time to time of
interest bearing or discounted notes in
anticipation 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 manual or
facsimile signatures of 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. 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. 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.
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 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 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 therefore 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 therefore
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 in a general or special election to
be held on a date that shall be designated by the
town council or in lieu thereof by the town
manager. 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 East Greenwich to Finance The Remediation
and Restoration of the Former Town Landfill
Located Adjacent to Greenwich Bay By The
Issuance Of Not More Than $1,600,000.00 Bonds
And/Or Notes Thereof' be approved?" It is
specifically noted that the precise amount of
the bonds and/or notes to be issued will be in an
amount not to exceed $1,600,000.00, the precise
amount to be determined prior to the election by
the town council. The warning for the election
shall contain the question to be submitted.
Notwithstanding anything contained in R.I.G.L.
Section 17-19-7 to the contrary, the East
Greenwich Board of Canvassers may certify the
question to the Secretary of State not later than
August 9, 2006. 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. 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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LC03507
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