Chapter
254
2007 -- H 6149 SUBSTITUTE A AS AMENDED
Enacted 07/03/07
A N A C T
AUTHORIZING
THE CITY OF WOONSOCKET TO FINANCE THE ACQUISITION OF LAND FOR SCHOOL
FACILITIES, INCLUDING THE DEMOLITION OF EXISTING BUILDINGS AND SITE PREPARATION,
AND THE CONSTRUCTION, FURNISHING AND EQUIPPING OF TWO NEW MIDDLE SCHOOLS AND
RELATED SCHOOL FACILITIES AND THE REHABILITATION OF APPURTENANT HISTORIC
BUILDINGS, IF ANY, IN THE CITY AND TO ISSUE NOT MORE THAN $74,000,000 BONDS
AND/OR NOTES THEREFOR INCLUDING, BUT NOT LIMITED TO, ANY BONDS OR NOTES ISSUED
PURSUANT TO FINANCING AGREEMENTS WITH THE RHODE ISLAND HEALTH AND EDUCATIONAL
BUILDING CORPORATION
Introduced
By: Representatives Brien, Baldelli-Hunt, and Picard
Date
Introduced: March 13, 2007
It is enacted by the General Assembly as
follows:
SECTION 1. The
city of Woonsocket is hereby empowered, in addition to authority
previously granted, to issue bonds and notes to
an amount not exceeding seventy-four million
dollars ($74,000,000) 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 manual or facsimile signatures of the city
treasurer and the mayor and shall be issued and
sold in such amounts as the city 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
proceedings of the city council authorizing the
issue or by separate resolution of the city 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. Interest
coupons (if any) shall bear the manual or facsimile
signature of the city treasurer. Notwithstanding
anything contained in this act to the contrary, the
city may enter into financing agreements with
the Rhode Island Health and Educational Building
Corporation pursuant to title 16 chapter 7 and
title 45 chapter 38.1 of the general laws and, with
respect to notes or bonds issued in connection
with such financing agreements, if any, the city
may elect to have the provisions of title 45,
chapter 38.1 of the general laws apply to the issuance
of the bonds or notes issued hereunder to the
extent the provisions of title 45, chapter 38.1 of the
general laws are inconsistent herewith. Such
election may be fixed by the proceedings of the city
council authorizing such issuance or by separate
resolution of the city 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 city
treasurer, and such proceeds, exclusive of
premiums and accrued interest, shall be expended (a) to
finance the acquisition of land for school
facilities, including the demolition of existing buildings
and site preparation, and the construction,
furnishing and equipping of two new middle schools
and related school facilities and the
rehabilitation of appurtenant historic buildings, if any, in the
city (all of which shall be hereinafter referred
to as the "projects"), (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 related costs of
issuance of any bonds or notes, and/or (e) to
finance capitalized interest on the projects. 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 therefore on behalf of the city by
the city council or as otherwise may be directed
by the city council. 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 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 city 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 city treasurer and the mayor, on behalf of
the city, 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 in the form
as shall be deemed advisable by such officers in
order to comply with the Rule.
SECTION 3. The
city council may by resolution authorize the issuance from time to
time of interest bearing or discounted notes in
anticipation of the issuance 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 city treasurer.
Temporary notes issued hereunder shall be signed
by the manual or facsimile signatures of the
city treasurer and the mayor 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 issuance 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 city by the
paying agent at the direction of the city treasurer 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 city. The city 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 city's authority to issue
bonds or notes in anticipation of bonds under this act
shall continue provided that 1) the city council
passes a resolution evidencing the city’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 city treasurer, with the approval of the city
council, may, to the extent that bonds or notes
may be issued hereunder, apply funds in the
treasury of the city 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 city
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 or
resolution of the city council or pursuant to an
investment policy of the city.
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 premium arising from the
sale of bonds or notes hereunder shall, in the
discretion of the city 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 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 city treasurer,
be met from bond or note proceeds exclusive of
premium and 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 city from property taxes. In
exercising any discretion under this section, the
city treasurer shall be governed by any
instructions adopted by resolution of the city council.
SECTION 7. All
bonds and notes issued under this act and the debts evidenced thereby
shall be obligatory on the city 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
and any provision of the city charter. No such
obligation shall at any time be included in the debt
of the city for the purpose of ascertaining its
borrowing capacity. The city 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 city shall be subject to ad
valorem taxation by the city without limitation as to
rate or amount.
SECTION 8. Any
bonds or notes issued under the provisions of this act, and coupons, if
any, if properly executed by officers of the city
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
city, acting by resolution of its city council, is authorized to apply for,
contract for and expend any federal or state
advances or other grants of assistance which may be
available for the purposes of this act, and any
such expenditures may be in addition to the moneys
provided in this act. Provided, however, the
amount eligible for reimbursement for school
construction cost shall be limited to seventy
million dollars ($70,000,000) for the purpose of
chapter 7 of title 16. 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 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. All or
any portion of the authorized but unissued authority to issue bonds
and notes under this act may be extinguished by
resolution of the city council, without further
action by the general assembly.
SECTION 12. The
question of the approval of this act shall be submitted to the electors
of the city at a general or special election to
be held on a date as shall be designated by the city
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 City of
Woonsocket to finance the Acquisition of Land
for School Facilities, Including the Demolition of
Existing Buildings and Site Preparation, and the
Construction, Furnishing and Equipping of Two
New Middle Schools and Related School Facilities
and the Rehabilitation of Appurtenant Historic
Buildings, if any, in the City and to Issue Not
More Than $74,000,000 Bonds and/or Notes
THEREFOR INCLUDING, BUT NOT LIMITED TO, ANY
BONDS OR NOTES ISSUED
PURSUANT TO FINANCING AGREEMENTS WITH THE RHODE
ISLAND HEALTH AND
EDUCATIONAL BUILDING CORPORATION’ be
approved?" and 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 city clerk to
keep a copy of this act available 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 city
charter, this act shall prevail. Any contest questioning
the time, place, manner, notice and timeliness
of notice of the election held must be commenced
in superior court against the city not later
than twenty (20) calendar days from the date such
election is held; otherwise, the validity of the
election shall be conclusively presumed and such
election shall be deemed legally compliant
notwithstanding any irregularities, omissions or
defects with respect to such matters.
SECTION 13. 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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LC02600/SUB A
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