Chapter
361
2007 -- H 6494
Enacted 07/05/07
A N A
C T
AUTHORIZING THE TOWN
OF PORTSMOUTH TO ISSUE BONDS AND NOTES TO AN AMOUNT NOT EXCEEDING $40,000,000
TO FINANCE THE CONSTRUCTION OF SEWERS AND SEWERAGE SYSTEMS IN THE TOWN INCLUDING
THE ACQUISITIONOF LAND THEREFOR AND AUTHORIZING THE IMPOSITION OF SEWER
ASSESSMENTS AND SERVICE FEES
Introduced By:
Representatives Amaral, and Rice
Date Introduced: June 06,
2007
It is
enacted by the General Assembly as follows:
SECTION
1. Construction of sewer and sewerage systems and issuance of bonds. The
Town
Council of the Town of Portsmouth shall be vested with the power and authority
to plan,
acquire,
construct, operate, maintain, extend and improve a sewage disposal system for
the town
or any
part or parts thereof and to finance operation and maintain such sewage
disposal system.
The
Town Council shall also have the power to employ a superintendent of sewers, to
prescribe
his
duties, and to employ such other assistants and advisors as may be necessary.
The Town
Council
from time to time shall fix the salaries of such employees. The town of
Portsmouth is
hereby
empowered and authorized, in addition to authority previously granted, to issue
bonds to
an amount
not exceeding forty million dollars ($40,000,000) 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 three (3) years and the last
installment not later
than thirty
(30) years after the date of the bonds. The bonds shall be signed by the town
director
of
finance and by 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,
principal
amounts,
interest rates and other terms, conditions and details of any bonds or notes
issued under
this
act may be fixed by 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.
SECTION
2. Proceeds of the bonds. -- 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)
for the construction of sewers and sewerage systems including but not limited
to lift
stations
and pumping stations and the acquisitions, by purchase or condemnation, of land
and
interests
therein necessary in connection with the construction thereof in the town of
Portsmouth;
(b)
in payment of the principal or of interest on temporary notes issued under
section 3;
or
(c)
in repayment of advances under section 4.
The
particular facilities to be provided in each portion of the town described
above shall
be
determined in accordance with priorities determined by the town council. 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 6 shall
be
deemed
appropriated for the purposes of this act without further action than that
required by this
act.
SECTION
3. Temporary notes. -- The town council may by resolution
authorize the
issuance
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 as estimated by the director of finance. Temporary
notes issued
hereunder
shall be signed by the director of finance and by 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.
SECTION
4. Advances from general fund. -- 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 general fund of the town to the purposes
specified in
section
2, such advances to be repaid with 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. Investment of money. -- 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.
SECTION
6. Expenditures. -- 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 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 director of
finance, 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
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. Security for bonds and notes. -- 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. Validity of bonds or notes. -- 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. Federal or state advances or grant. -- 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 of 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 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. Conditions precedent to issuance. -- 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, which shall be authorized hereby
and carried out
in the
manner described by chapter 1 of title 24 of the general laws as it may be
amended from
time to
time, 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. Assessments. -- The town council shall determine what portion
of the cost
of constructing,
operating and maintaining the sewer system shall be paid from general taxation
(not to
exceed 25%) and what portion shall be paid by assessments and annual charges as
set
forth
herein. The town council shall assess the costs (including financing costs and
debt service
on
bonds or notes issued hereunder) of any project or projects financed under this
act which it has
determined
will be paid from assessments, upon the owners of the estates which abut that
portion
of any
street or highway in or along which any sewer constituting any portion of such
project or
projects
may be located or which otherwise specially benefit from such project or
projects. Any
such
property owned by the state of Rhode Island shall be subject to assessments and
charges
under
this act in the same manner and to the same extent as any other such property.
Such
assessment
may be made separately for each project separately identified by the town
council or
for
several projects taken together as the department may deem equitable, with the
approval of the
town
council. The total actual cost to be assessed, including administrative and
engineering costs,
shall
be that which is determined by the town council to provide particular rather
than general
benefit.
Such
assessments shall be just and equitable and shall be based upon frontage or
area
within
a specified reasonable distance from the street or highway or other equitable
method or
combination
of methods as may be determined by the town council. The town council shall not
make
any particular assessment in excess of the benefit conferred and may make
reasonable
adjustments
or deferments of such assessments against estates having a frontage upon more
than
one street
or against estates which for any reason are unable to derive the normal
benefits from
the
system. The town council may adopt ordinances governing the making of such
assessments
and the
collection thereof.
A
copy of such assessments shall be recorded with the collector of taxes as a
public
record.
From the date of delivery to the collector of taxes the assessments and
interest accruing
thereon
shall constitute a lien upon the respective estates on a parity with the lien
for town taxes
until paid
in full. The collector of taxes of the town shall have the same rights to
enforce such
liens
against the estates and to collect such assessments and interest from the
owners as he has in
the
case of town taxes.
SECTION
12. Sewer service charges. -- The town council may fix and revise from
time
to time
a schedule of sewer service charges for the use of sewer facilities and
services furnished
under
this act for the purpose of paying the cost of maintaining, repairing and
operating such
facilities,
and any other expenses not otherwise provided for which may arise under this
act, to
the
extent that monies for the foregoing purposes are not otherwise provided.
Such
charges shall be just and equitable and may be based upon the quantity of water
used or
units assessed or the number and size of sewer connections made or the number
and kind
of
plumbing fixtures installed on the estate or upon the number or average number
of persons
residing
or working in or otherwise connected therewith or upon any other factor
affecting the use
of or
the value of the facilities and services furnished or upon any combination of
such factors.
The
town may provide by ordinance for the making and collection of such sewer
service charges.
Delinquent
service charges together with any interest and charges accruing thereon shall
constitute
a lien upon real estate on a parity with the lien for town taxes. The collector
of taxes
shall
have the same rights to enforce such liens and to collect the service charges
and interest
thereon
as he has in the case of town taxes.
SECTION
13. Appropriation of charges and assessments. -- The receipts from sewer
service
charges and assessments, including any net earning and profits realized from
the deposit
or
investment thereof, shall be deemed appropriated for the purposes set forth in
this act. Except
as
provided in this act the assessment and collection of sewer service charges and
assessments
shall be
governed by ordinances adopted by the town council and applicable to all such
charges
and
assessments in the town.
SECTION
14. Other instruments, documents and agreements. -- The town 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.
SECTION
15. The question of the approval of this act shall be submitted to the
electors
of the
town at a general or special election which is not a primary on such date as
the town
council
shall designate. 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 bonds and notes to an amount not exceeding $40,000,000 to
finance
the
construction of sewers and sewage systems in the town including the acquisition
of land
therefor
and authorizing the imposition of sewer assessments and user fees' 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 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
16. 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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LC03231
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