Chapter
530
2006 -- H 8210
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: Representatives Carter, Ehrhardt, and Lally
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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LC03420
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