Chapter
116
2007 -- S 0260 AS AMENDED
Enacted 06/27/07
A N A C T
AUTHORIZING
THE TOWN OF PORTSMOUTH TO ISSUE GENERAL OBLIGATION BONDS AND/OR NOTES IN AN
AMOUNT NOT TO EXCEED $3,000,000 TO FINANCE THE ACQUISITION AND INSTALLATION OF A
WIND TURBINE AT PORTSMOUTH HIGH SCHOOL AND/OR A WIND TURBINE AT PORTSMOUTH
MIDDLE SCHOOL
Introduced
By: Senator C Levesque
Date
Introduced: February 07, 2007
It is enacted by the General Assembly as
follows:
SECTION 1. The
Town of Portsmouth 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, 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. 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. 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 Finance Director 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
Finance Director, and such proceeds, exclusive
of premiums and accrued interest, shall be
expended as follows: (a) to finance the
acquisition and installation of a wind turbine at
Portsmouth High School and/or a wind turbine at
Portsmouth Middle School, (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, (d) in
payment of costs of issuance associated with the
issuance of bonds or notes hereunder, and/or (e)
to finance capitalized interest on the project. 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 project shall be carried out and all
contracts made therefor on behalf of the Town by
the Town Council. The proceeds of bonds or
notes issued under this act, any applicable
federal or state assistance and the other moneys
referred to in section six and nine, shall be
deemed appropriated for the purpose of this act
without further action than that required by
this act. The bonds authorized by this act may be
consolidated for the purpose of issuance and
sale with any other bonds 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.
The Finance Director 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 authorized 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 Finance Director. Temporary notes
issued hereunder shall be signed by the Finance
Director 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 Finance Director 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 without extinguishing the
authority to issue bonds or 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 Finance Director, 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 Finance
Director 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 Finance Director, 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 Finance
Director, 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 project 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
Finance Director 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 carryout 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. All or
any portion of the authorized but unissued authority to issue bonds
and notes under this act may be extinguished by
ordinance of the Town Council, without further
action by the general assembly, seven (7) years
after the effective date of this act.
SECTION 12. The
question of the approval of this act shall be submitted to the electors
of the Town at a special or general election to
be held on a date as shall be set by the Town
Council. The question shall be submitted in
substantially the following form: "Shall an act,
passed at the 2007 session of the general
assembly, entitled 'AN ACT AUTHORIZING THE
TOWN OF PORTSMOUTH TO ISSUE GENERAL OBLIGATION
BONDS AND/OR NOTES
IN AN AMOUNT NOT TO EXCEED $3,000,000 TO FINANCE
THE ACQUISITION AND
INSTALLATION OF A WIND TURBINE AT PORTSMOUTH
HIGH SCHOOL AND/OR A
WIND TURBINE AT PORTSMOUTH MIDDLE SCHOOL' be
approved?" 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
Portsmouth Board of Canvassers may certify the
question to the Secretary of State not later
than thirty (30) days prior to the date set for any
special town election. 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 13. Notwithstanding
any provision of the general or public laws, or rule or
regulation to the contrary, the project set forth in this
act shall not qualify for school housing aid
as set forth in chapter 16-7 of the general laws.
SECTION 14. Sections 12, 13
and 14 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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LC00753
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