Chapter 425
2006 -- S 3144
Enacted 07/06/06
A N A C T
AUTHORIZING
THE TOWN OF NORTH KINGSTOWN TO FINANCE RENOVATIONS, ALTERATIONS, ADDITIONS AND
OTHER IMPROVEMENTS AND/OR RELATED EQUIPMENT FOR THE WICKFORD MIDDLE AND THE DAVISVILLE
ELEMENTARY SCHOOLS AND TO ISSUE NOT MORE THAN $27,200,000 BONDS AND NOTES
THEREFOR
Introduced
By: Senators Lenihan, and Sheehan
Date
Introduced: June 08, 2006
It is enacted by the General Assembly as
follows:
SECTION 1. The
town of North Kingstown is hereby empowered, in addition to
authority previously granted, to issue bonds to
an amount not exceeding Twenty Seven Million
Two Hundred Thousand Dollars ($27,200,000) from
time to time under its corporate name and
seal or a facsimile of such 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 years and the last
installment not later than thirty years after
the date of the bonds. For each issue the amounts
payable annually for 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.
SECTION 2. The
bonds shall be signed by the manual or facsimile signatures of the
town treasurer 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 resolution 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 town treasurer, and such proceeds
exclusive of premiums and accrued interest shall
be expended for (a) for renovations, alterations,
additions and other improvements and/or related
equipment for the Wickford Middle School and
the Davisville Elementary Schools and all costs
incidental thereto, (b) in payment of the principal
of or interest on temporary notes issued under
Section 3 of this act or (c) in repayment of
advances under Section 4 of this act. 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 shall be carried out and all
contracts made therefor on behalf of the Town by a
School Building Committee appointed by the Town
Council or as may be otherwise directed by
the Town Council. The proceeds of bonds or notes
issued under this act, any applicable federal
or state assistance and the other monies
referred to in Section 6 of this act 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 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 the authorization or 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 by the president of the
Town Council and shall be payable within five
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 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 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 purposes specified
in Section 2, 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
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 law of the State of Rhode Island.
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 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, or
to the cost of additional improvements coming
within the description of the projects in
Section 2 of this act, 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
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 said additional improvements
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. In exercising any
discretion under this Section, the treasurer shall be
governed by any instructions adopted by
resolution of the town council. The treasurer is
authorized to take any action deemed by him or
her necessary (1) to assure that interest on the
bonds or notes issued hereunder remains
excludable from gross income of the recipients thereof
for federal income tax purposes, including,
without limitation, paying to the federal government
any rebate of earnings derived from the deposit
or investment of the proceeds of such bonds or
notes that may be required therefor, (2) to
comply with the requirements of federal law, including
without being limited to regulations and other
requirements of the Securities and Exchange
Commission and the Municipal Securities
Rulemaking Board, imposed directly on the Town or
on the underwriters of such bonds and notes
and/or (3) to comply with the provisions of sections
16-7-35 to 16-7-47 of the Rhode Island General
Laws, 1956, as amended; including making all
necessary contracts and agreements to issue said
bonds and/or notes through the Rhode Island
Health and Educational Building Corporation.
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 2.
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. To the extent of any
inconsistency between this act and the Town
Charter, this act shall prevail.
SECTION 11. The
question of the approval of this act shall be submitted to the electors
of the town at an election on a date to be
determined by the Town Council which occurs at least
thirty (30) days after the passage of this act.
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 KINGSTOWN TO
FINANCE
RENOVATIONS, ALTERATIONS, ADDITIONS AND OTHER
IMPROVEMENTS AND/OR
RELATED EQUIPMENT FOR THE WICKFORD MIDDLE AND THE
DAVISVILLE
ELEMENTARY SCHOOLS AND TO ISSUE NOT MORE THAN
$27,200,000 BONDS AND
NOTES THEREFOR’ be approved?” and the warning
for the election shall contain the question
to be submitted. The Town Board of Canvassers
may combine any two or more voting districts
for the election and when so combined shall be
treated as a voting district. If so combined, the
Town Board of Canvassers shall advertise the
combination of districts in a newspaper of general
circulation in the Town. 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.
SECTION 12. This Section
and Section 11 shall take effect upon the passage. 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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LC03429
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