Chapter
466
2007 -- S 1095 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: Senators Blais, and Raptakis
Date
Introduced: June 08, 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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LC03287
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