Chapter
364
2007 -- H 6526
Enacted 07/05/07
A N A
C T
AUTHORIZING THE TOWN
OF JAMESTOWN TO FINANCE THE CONSTRUCTION OF A HIGHWAY GARAGE AT A SITE TO BE
ACQUIRED FROM THE RHODE ISLAND TURNPIKE AND BRIDGE AUTHORITY AND ADJACENT TOWN-OWNED
LAND, AND TO ISSUE NOT MORE THAN $1,500,000 BONDS AND NOTES THEREFOR
Introduced By:
Representative Bruce J. Long
Date Introduced: June 13,
2007
It is
enacted by the General Assembly as follows:
SECTION
1. The town of Jamestown is hereby empowered, in addition to authority
previously
granted, to issue bonds to an amount not exceeding one million five hundred
thousand
dollars
($1,500,000) 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
finance
director of the town 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 finance director,
and such
proceeds
exclusive of premiums and accrued interest shall be expended for (a) the
construction of
a
highway garage and related building equipment at a site to be acquired from the
Rhode Island
Turnpike
and Bridge Authority and adjacent Town-owned land, (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
project
shall
be carried out and all contracts made therefor on behalf of the Town 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 finance
director.
Temporary
notes issued hereunder shall be signed by the finance director 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 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 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 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.
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 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 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
finance director, be met from bond or note proceeds exclusive of accrued
interest or from
other
monies 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 finance
director
shall be governed by any instructions adopted by resolution of the Town
Council. The
finance
director 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 and (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.
SECTION
7. All bonds or 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 hall 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 later 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. Without limiting the
generality
of the foregoing, bonds and notes may be issued under this act without any
action at
the
financial town meeting. 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
days after the passage of this act. 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 JAMESTOWN TO FINANCE THE CONSTRUCTION
OF A
HIGHWAY GARAGE AT A SITE TO BE ACQUIRED FROM THE RHODE ISLAND
TURNPIKE
AND BRIDGE AUTHORITY AND ADJACENT TOWN-OWNED LAND, AND
TO
ISSUE NOT MORE THAN $1,500,000 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 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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LC03335
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