Chapter
458
2007 -- S 1066
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 ACQUISITION OF LAND THEREFOR AND AUTHORIZING THE IMPOSITION OF
SEWER ASSESSMENTS AND SERVICE FEES
Introduced
By: Senator C Levesque
Date
Introduced: June 05, 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.
=======
LC03232
=======