Chapter
349
2007 -- H 6514 AS AMENDED
Enacted 07/05/07
A N A C T
AUTHORIZING THE TOWN
OF COVENTRY TO FINANCE THE ACQUISITION, CONSTRUCTION, RENOVATION, DEMOLITION,
IMPROVEMENT, ALTERATION, REPAIR, ADDITIONS TO, AND FURNISHING AND EQUIPPING OF,
NEW AND EXISTING PUBLIC FACILITIES IN THE TOWN FOR USE AS A GOVERNMENT CENTER
FOR TOWN OFFICES, SCHOOLS, A POLICE STATION, A SENIOR CENTER LIBRARY SPACE AND
OTHER PUBLIC USES, BY THE ISSUANCE OF NOT MORE THAN $32,250,000 BONDS AND/OR
NOTES THEREFOR
Introduced By:
Representatives Sullivan, Moffitt, Williamson, and Serpa
Date Introduced: June 12,
2007
It is
enacted by the General Assembly as follows:
SECTION
1. The town of Coventry is hereby empowered, in addition to authority
previously
granted, to issue general obligation bonds and notes to an amount not exceeding
thirty-
two
million two hundred fifty thousand dollars ($32,250,000) or such lesser amount
as is
determined
by resolution of the town council pursuant to Section 12 hereof, 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 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 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.
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
(a) to finance the acquisition, construction, renovation, demolition,
improvement,
alteration,
repair, additions to, and furnishing and equipping of, new and existing public
facilities
in the
town for use as a government center for town offices, schools, a police
station, a senior
center,
library space and other public uses, (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 to finance capitalized interest. 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 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 director of finance 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 authorize the issue from time to time of
interest
bearing or discounted notes in anticipation of the issue of bonds or in
anticipation of
receipt
of federal or state aid for the purpose 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 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 form 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 maybe 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 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 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
applicable
federal
or state assistance or form 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 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 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
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
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 therefor are not otherwise provided. If such sum is not
appropriate, 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 and advances or other grants or
assistance which
may be
available for the purposes if 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 actions 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. It shall be condition precedent to holding of the referendum described in
section
13 hereof and the issuance of bonds or notes hereunder that the town council
adopt a
resolution
which provides for an exact amount of bond and notes to be issued.
SECTION
13. At a general, special or local election (other than a primary) to be held
on
a date
that shall be designated by the town council, there shall be submitted to
electors of the
town a
question in substantially the following form:
"Shall
the Town of Coventry issue General Obligation Bonds and Notes in an Amount
Not to
Exceed $32,250,000 for the Purpose of Financing the Acquisition, Construction,
Renovation,
Demolition, Improvement, Alteration, Repair, Additions to, and Furnishing and
Equipping
of New and Existing Public Facilities in the Town for use as a Government
Center for
Town
Offices, Schools, a Police Station, a Senior Center, Library Space and Other
Public Uses?"
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 town clerk to keep
a copy of this
act
available at the clerk's 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
14. It shall be a condition precedent to receiving the forty-nine percent (49%)
school
aid reimbursement that the school related projects be approved by the board of
regents
prior
to August 15, 2007.
SECTION
15. Sections 12, 13, 14 and 15 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 question at the election prescribed by the foregoing section.
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LC03281
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