Chapter
468
2007 -- S 1097
Enacted 07/05/07
A N A C T
AUTHORIZING
THE TOWN OF NORTH SMITHFIELD TO BORROW UP TO $21,000,000 FOR THE PURPOSE OF
FINANCING THE CONSTRUCTION AND EXTENSION OF SEWERS AND SEWER LINES AND THE ACQUISITION,
CONSTRUCTION AND INSTALLATION OF PUMPING STATIONS AND RELATED FACILITIES AND
EQUIPMENT WITHIN THE TOWN THROUGH THE ISSUANCE OF ITS GENERAL OBLIGATION BONDS
OR NOTES INCLUDING BUT NOT LIMITED TO ANY BONDS OR NOTES ISSUED PURSUANT TO
FINANCING AGREEMENTS WITH THE RHODE ISLAND CLEAN WATER FINANCE AGENCY
Introduced
By: Senators Tassoni, Cote, and P Fogarty
Date
Introduced: June 08, 2007
It is enacted by the General Assembly as
follows:
SECTION 1. The
Town of North Smithfield is hereby empowered, in addition to
authority previously granted, to issue bonds to
an amount not exceeding twenty-one million
dollars ($21,000,000) 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 five (5) years and the last
installment not later than thirty (30) 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, or shall
be arranged as required pursuant to Financing
Agreements with the Rhode Island Clean Water
Finance Agency.
SECTION 2. The
bonds shall be signed by the manual or facsimile signatures of the town
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. Notwithstanding anything
contained in this act, the town may enter into
financing agreements with the Rhode Island Clean
Water Finance Agency pursuant to title 46,
Chapter 12.2 of the general laws and, with respect to
notes or bonds issued in connection with such
financing agreements, if any, the town may elect to
have the provisions of Title 46, Chapter 12.2 of
the general laws apply to the issuance of the
bonds or notes issued hereunder to the extent
the provisions of Title 46, Chapter 12.2 of the
general laws are inconsistent herewith. Such
election may be fixed by the proceedings of the town
council authorizing such issuance 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) for the construction and extensions
of sewers and sewer lines and the acquisition,
construction and installation of pumping
stations and related facilities and equipment within the
town, (b) in payment of the principal of or
interest on temporary notes issued under section three
(c) in payment of capitalized interest on bonds
or notes (d) in repayment of advances under
section four, or (e) in payment of related costs
of issuance of any bonds or notes. 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 sales thereof. The
project shall be carried out and all contracts made
therefor on behalf of the town by the town
council. The proceeds of bonds or notes issued under
this act, any applicable federal or state
assistance and other moneys referred to in section six shall
be deemed appropriated for the purposes of this
act without further action than that required by
this act. This 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 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 director of finance,. Temporary notes
issued hereunder shall be signed by the manual
or facsimile signatures of 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 thereunder, providing the period
from the date of an original note to the maturity
or any note issued to renew or pay the same debt
or the interest thereon shall not exceed five
(5) years. 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 at shall
continue provide 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.
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 may be 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 the notes being
refunded. Upon payment of all principal of an
interest on the notes, any excess moneys in the
fund shall be distributed to the town.
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 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 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 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 and any
earnings or net profit realized from the deposit or
investment of funds 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
(1) or more of the foregoing. The cost of
preparing, issuing and marketing bonds or notes
hereunder any 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 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 earning 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 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 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
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
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
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. All or
any portion of the authority to issue bonds and notes under this act
may extinguished by resolution of the town
council without further action by the general
assembly.
SECTION 12. The
town director of finance and the president of the town council, on
behalf of the town, are hereby authorized to
execute such 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 (the Rule) and to execute and deliver
a continuing disclosure agreement or
certificate in connection with the bonds or
notes in the form as shall be deemed advisable by such
officers in order to comply with the Rule.
SECTION 13. The
question of the approval of this act shall be submitted to the electors
of the town at a general or special election to
be held on a date as shall be designated by the town
council or, in lieu thereof, the town
administrator. The questions 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 NORTH SMITHFIELD TO
BORROW UP TO $21,000,000 FOR THE PURPOSE OF
FINANCING THE CONSTRUCTION
AND EXTENSION OF SEWERS AND SEWER LINES AND THE
ACQUISITION,
CONSTRUCTION AND INSTALLATION OF PUMPING
STATIONS AND RELATED
FACILITIES AND EQUIPMENT WITHIN THE TOWN THROUGH
THE ISSUANCE OF ITS
GENERAL OBLIGATION BONDS OR NOTES INCLUDING BUT
NOT LIMITED TO, ANY
BONDS OR NOTES ISSUED PURSUANT TO FINANCING
AGREEMENTS WITH THE
RHODE ISLAND CLEAN WATER FINANCE AGENCY' be
approved?" and the warning for
the election shall contain the question to be
submitted. From the time the election is warned for
and until it is held, it shall be the duty of
the town clerk to keep a copy of the act available at his
office for public inspection, but the validity
of the elections shall not be affected by this
requirement. To the extent of any inconsistency
between this act and the town charter, this act
shall prevail. Any contest questioning the time,
place, manner, notice and timeliness of notice of
the election held must be commenced in superior
court against the town not later than twenty (20)
calendar days from the date such election is
held; otherwise, the validity of the election shall be
conclusively presumed and such election shall be
deemed legally compliant notwithstanding any
irregularities, omissions or defects with
respect to such matters.
SECTION 14. 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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LC03249
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