Chapter
484
2007 -- S 0961
Enacted 07/05/07
A N A C T
(I)
AUTHORIZING THE CHARIHO REGIONAL SCHOOL DISTRICT TO ISSUE NOT TO EXCEED
$26,000,000 GENERAL OBLIGATION BONDS AND/OR NOTES TO FINANCE IMPROVEMENTS TO THE
SWITCH ROAD CAMPUS INCLUDING, BUT NOT LIMITED TO THE CONSTRUCTION, RENOVATION,
IMPROVEMENT, DEMOLITION, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF NEW
CONSTRUCTION AND ADDITIONS TO THE HIGH SCHOOL, THE MIDDLE SCHOOL, THE RYSE
SCHOOL, A MAINTENANCE FACILITY, A RUNNING TRACK, PARKING, PAVING AND LANDSCAPING
AND (II) AMENDING THE CHARIHO REGIONAL SCHOOL DISTRICT ENABLING ACT TO PROVIDE
THAT THE PRINCIPAL OF, REDEMPTION PREMIUM AND INTEREST ON BONDS AND NOTES
ISSUED FOR THESE PROJECTS WILL BE BORNE BY THE MEMBER TOWNS IN EQUAL AMOUNTS,
WITH EACH MEMBER TOWN PAYING ONE-THIRD
Introduced
By: Senators Breene, and Algiere
Date
Introduced: May 01, 2007
It is enacted by the General Assembly as
follows:
SECTION 1. The
regional school district incorporated pursuant to Chapter 55 of the
Public Laws of 1958, as amended, known as the
Chariho Regional School District, is hereby
empowered, in addition to authority previously
granted, to issue general obligation bonds and
notes to an amount not exceeding twenty-six
million dollars ($26,000,000) 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, zero coupon bonds, capital
appreciation bonds, or compound interest 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. 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 district treasurer and the chairperson of the
regional school district committee and shall be
issued and sold in such amounts as the regional
school district committee 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 regional school
district committee authorizing the issue or by
separate resolution of the regional school
district committee 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 treasurer of the regional
school district committee, and such proceeds,
exclusive of premiums and accrued interest, shall
be expended (a) to finance improvements to the
Switch Road Campus including, but not limited
to the construction, renovation, improvement,
demolition, alteration, repair, furnishing and
equipping of new construction and additions to
the high school, the middle school, the RYSE
School, a maintenance facility, a running track,
parking, paving and landscaping, (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 (e)
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. This bond issue authorized by this
act may be consolidated for the purpose of issuance
and sale with any other bond issue of the
regional school district 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 district
treasurer and the chairperson of the regional
school district committee, on behalf of the regional
school district, 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 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
regional school district committee 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
treasurer of the regional school district.
Temporary notes issued hereunder shall be signed by the
district treasurer and the chairperson of the
regional school district committee and shall be
payable within five (5) years from their
respective dates, but the principal of and interest on notes
issued of 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. 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 begin refunded, moneys in the fund
shall be invested for the benefit of the regional
school district by the paying agent at the
direction of the treasurer of the regional school district
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 and interest on the
notes, any excess moneys in the fund shall be
distributed to the regional school district
committee. The regional school district committee may
pay the principal of and interest on notes in
full from sources other than the issuance of refunding
notes prior to the issuance of bonds pursuant to
Section 1 hereof. In such case, the regional school
district committee's authority to issue bonds or
notes in anticipation of bonds under this act shall
continue provided that 1) the regional school
district committee passes a resolution evidencing
the regional school district committee'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 treasurer of the regional school district, with
the approval of the regional school district
committee, may, to the extent that bonds or notes may
be issued hereunder, apply funds in the treasury
of the regional school district committee 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
treasurer of the regional school district 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
("Government Obligations") or as may
be provided in any other applicable law of the state of
Rhode Island or resolution of the regional
school district committee or pursuant to an investment
policy of the regional school district
committee. Any bank deposits or investments, other than
investments in Government Obligations, must
either be directly insured by the Federal Deposit
Insurance Corporation or be collateralized by
Government Obligations which have a value equal
to or greater than 102% of the deposit or
investment amount.
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 treasurer of the regional school
district, 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, 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 issued hereunder may also, in the
discretion of the treasurer of the regional
school district, be met from bond or note proceeds
exclusive of accrued interest or from other
moneys available therefor. If, upon completion of any
of the Projects there shall be any balance of
bond or note proceeds remaining not required for the
payment of the costs of such Project, such funds
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 regional school district
from the member towns. In exercising any
discretion under this section, the treasurer shall be
governed by any instructions adopted by
resolution of the regional school district committee.
SECTION 7. All
bonds and notes issued under this act and the debts evidenced thereby
shall be obligatory on the regional school
district committee in the same manner and to the same
extent as other debts are obligatory under the
laws of this state on incorporated towns of this state
and such debt evidenced by said bonds or notes
shall not be construed at any time to form a part
of the debt of any individual town which is a
member of the regional school district for the
purpose of ascertaining the borrowing capacity
of such town, nor shall said debt contracted by the
regional school district in any way apply to the
operation of section 45-12-2 of the general laws,
as amended, with respect to any member town. The
regional school district shall annually
appropriate a sum sufficient to pay the
principal and interest coming due within the year on bonds
and notes issued hereunder until such bonds and
notes and the interest thereon are paid in full.
SECTION 8. Any
bonds or notes issued under the provisions of this act, if properly
executed by officers of the regional school
district 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
regional school district, acting by resolution of its regional school
district committee, 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 now 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 be extinguished by resolution of the
regional school district committee, without further
action by the general assembly, seven (7) years
after the effective date of this act.
SECTION 12.
Section 15 of Chapter 55 of the Public Laws of 1958, as amended,
including amendments made by Chapter 490 of the
Public Laws of 2006, is amended to read as
follows:
SECTION 15. (1) It
shall be the duty of the district superintendent, or chief
administrative officer to present to the
regional school committee a preliminary budget containing
his estimates if the amount of money needed to
operate the regional school for the ensuing year.
The form of said budget shall conform to the
accounting system of the state department of
education.
(2) The regional
school committee shall prepare and approve a proposed budget which it
believes will efficiently operate the regional school
district for the ensuing year not later than the
fifteenth (15th) day of February in each year.
(3) Not later than
the third (3rd) Tuesday in March in each year, and subsequent to the
public hearing at the annual regional school
district meeting on the proposed budget, the district
school committee shall adopt a final proposed
budget. The regional school district finance
committee, established in accordance with the
provisions of section 12 hereof, may by and
through its individual members or by appointed
delegates attend budget hearings and provide
advice and assistance to the school committee on
budget matters.
(3)(A) Within
thirty (30) days after the school committee adopts its final proposed budget
for the ensuing year, a budget approval
referendum must be held in each of the member towns on
a single day to be determined by the regional
school committee. The vote at referendum shall be
for the purpose of approving or rejecting the
overall total district budget as proposed by the
regional school committee, and for approving or
rejecting any special warrant items proposed by
the regional school committee. The votes cast in
all of the member towns shall be counted in the
aggregate. The regional school committee shall
provide to the canvassers of each of the member
towns printed information to be displayed at
polling places to assist voters in voting. The budget
approval referendum ballot to be voted on must
be substantially as follows:
"Shall the
Chariho Regional School District annual budget for the school year as adopted
by the regional school committee be approved?
___________________Yes
___________________ No"
A majority of all
of the votes cast in the member towns at the budget approval
referendum counted in the aggregate, shall be
required to approve the annual regional school
district budget proposed by the regional school
committee. If the voters do not approve the budget
proposed by the regional school committee at the
budget approval referendum vote, the regional
school committee shall hold a school committee
meeting within fifteen (15) days after the
referendum to adopt a revised budget in such an
amount as the school committee shall determine
to be the minimum amount necessary to allow the regional
school district to operate for the
ensuing fiscal year in compliance with its
contractual obligations and the mandates of applicable
federal and state laws. Any revised budget
adopted at the subsequent school committee meeting
must thereafter be submitted within thirty (30)
days to the voters for approval at referendum in
accordance with this section. This process shall
be repeated until a budget is adopted by the
regional school committee and approved by the
voters at referendum. If, however, a budget is not
adopted by the regional school committee and
approved by the voters before July 1 of each year,
then the regional school committee shall operate
the regional school district in accordance with
the provisions of section 16-2-23 of the general
laws, and the member towns shall make payments
to the regional school district, based upon the
amounts appropriated for the support of the schools
by the member towns in the preceding fiscal
year; provided, however, that the right of the
regional school committee to take all actions it
deems necessary under the provisions of section
16-2-21.4 of the general laws shall in all
events remain in full force and effect at all times and
shall not be impaired or restricted in any
respect by any of the provisions of this act. Any
referendum held with respect to an annual school
budget under this act shall be considered in the
nature of a local financial meeting and shall
not be subject to the provisions of title 17 of the
general laws.
(4) Operating
costs shall include all costs of the said school district not included in the
construction costs paid out of the receipts and
realizations of the sale of bonds or notes as
hereinbefore provided.
(5) Operating
expenses for each fiscal year or portion thereof shall be apportioned among
the member towns in proportion to the
relationship of their respective pupil enrollment in the said
district school system on October 1 of the
previous calendar year to the total pupil enrollment in
said school system on said date. In the event
that enrollment in the said district school system has
not been accomplished on October 1 of any year,
operating expenses for the ensuing year or
portion thereof shall be apportioned among the
member towns in proportion to the ratio that the
total number of students enrolled in grades
kindergarten through twelve (12), inclusive, residing
in each of said towns and receiving education at
such town's expense as of said October 1 bears to
the total number of such students in the entire
district.
(6) Within ten
(10) days after the date at which the annual regional school district budget
is approved by referendum each year, the
treasurer of the regional school district shall determine
the total cost of operating the school district
for the next budget year, including therein operating
costs, operating expenses, and all other
anticipated expenses, incurred in the operation of the
school district. This sum shall then be divided
by the number of students enrolled in the school
district as of October 1 of the current school
year and the resulting figure shall then be determined
as the annual pupil charge. The charge so
determined shall forthwith be certified by said district
treasurer to the respective treasurers of each
member town. Each member town shall then pay to
the treasurer of the district a sum equal to the
number of pupils enrolled in the district from the
town multiplied by the annual pupil charge.
(7) Construction
costs of the regional school district shall be all costs of retirement of
principal or payment of interest of bonds or
notes hereinbefore authorized or which may be by
special act authorized for future construction
within the said district, or such costs as may be
financed by means other than the issue of bonds
or notes for the purpose of construction or
renovation of buildings, land acquisition, or
extraordinary repairs to buildings, and all other costs
and expenses of the district shall be operating
costs. In each year subsequent to the passage of this
act, construction costs shall be bone by each
member town in the same proportion as the
enrollment of students from that town bears to
the total student enrollment of the district. The
district treasurer annually shall determine the
share of each member town of construction costs by
dividing the construction costs for the current
year of operation by the number of pupils enrolled
in the district on October 1 of the current
school year. The district treasurer shall then certify to
the treasurer of the member towns the shares of
each town of construction costs determined as
hereinbefore provided at the same time and in
the same manner as operating costs are certified to
each town. Notwithstanding the foregoing
three sentences, the principal of, redemption premium
and interest on the bonds and/or notes in an
amount not to exceed twenty-six million dollars
($26,000,000) authorized by an act passed at the
2007 session of the general assembly shall be
borne by the member towns in equal amounts, with
each member town paying one-third of the
costs.
(8) The amount of
construction costs certified by the treasurer of said school district to
the town treasurers of the member towns shall for
the purpose of section 45-12-11 of the general
laws, be deemed an indebtedness of the town or
interest thereon for which a member town may
assess its ratable property in any one (1) year
in excess of three and one-half percent (3½%) of its
ratable value.
(9) The treasurer
of each member town shall forward monthly to the regional school
district treasurer the proportioned operating
and construction costs for that fiscal year.
(10) The regional
school district fiscal year shall begin on July 1 and end on June 30.
(11) The
superintendent of schools of said district shall certify to the commissioner of
education on or before July 15 of each year such
information as may be needful for the operation
of this agreement and conformity to the laws of
this state in such form and upon such blanks as
the commissioner of education shall require.
(12) The electors
in each of said member towns qualified to vote upon a proposition to
impose a tax or for the expenditure of money
shall in their respective towns, in annual or special
financial town meetings legally assembled,
appropriate and raise sufficient monies for their
respective towns to meet the requirements of the
costs of construction and operation of said
regional school as determined by the said
district annual meeting and proportioned to the said
member towns as provided in subsections (6) and
(7) of this section.
SECTION 13. The
question of the approval of this act shall be submitted to the electors
of the towns of Charlestown, Richmond and
Hopkinton at an election (other than a primary
election) to be held on a date to be set by the
regional school district committee. 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 (I)
AUTHORIZING THE CHARIHO REGIONAL
SCHOOL DISTRICT TO ISSUE NOT TO EXCEED
$26,000,000 GENERAL OBLIGATION
BONDS AND/OR NOTES TO FINANCE IMPROVEMENTS TO
THE SWITCH ROAD
CAMPUS INCLUDING, BUT NOT LIMITED TO THE
CONSTRUCTION, RENOVATION,
IMPROVEMENT, DEMOLITION, ALTERATION, REPAIR,
FURNISHING AND
EQUIPPING OF NEW CONSTRUCTION AND ADDITIONS TO
THE HIGH SCHOOL, THE
MIDDLE SCHOOL, THE RYSE SCHOOL, A MAINTENANCE
FACILITY, A RUNNING
TRACK, PARKING, PAVING AND LANDSCAPING AND (II)
AMENDING THE CHARIHO
REGIONAL SCHOOL DISTRICT ENABLING ACT TO PROVIDE
THAT THE PRINCIPAL
OF, REDEMPTION PREMIUM, AND INTEREST ON BONDS
AND NOTES ISSUED FOR
THESE PROJECTS WILL BE BORNE BY THE MEMBER TOWNS
IN EQUAL AMOUNTS,
WITH EACH MEMBER TOWN PAYING ONE-THIRD' be
approved?" 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
clerks of the respective towns of Charlestown,
Richmond and Hopkinton to keep a copy of the act
available at their offices 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 home rule
charter of any member town, this act shall
prevail.
SECTION 14.
Sections 13 and 14 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 in each town of
those voting on the question at the election
prescribed by the foregoing section.
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LC02963
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