Chapter 327
2008 -- S 3125
Enacted 07/08/08
A N A C T
AUTHORIZING
THE TOWN OF GLOCESTER TO FINANCE THE ACQUISITION OF OPEN SPACE FOR
PRESERVATION, CONSERVATION AND GROUNDWATER PROTECTION AND TO ISSUE NOT MORE
THAN $500,000 BONDS AND NOTES THEREFOR
Introduced
By: Senator P Fogarty
Date
Introduced: June 17, 2008
It is enacted by the General Assembly as
follows:
SECTION 1. The
town of Glocester is hereby empowered, in addition to authority
previously granted, to issue general obligation
bonds and notes to an amount not exceeding five
hundred thousand dollars ($500,000), 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. 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 of open
space for preservation and groundwater protection
by the issuance of not more than $500,000 bonds
and/or notes therefor, (b) in payment of the
principal of and/or interest on temporary notes
issued under Section 3, (c) in repayment of
advances made pursuant to section four, and/or
(d) in payment of costs of issuance associated
with the issuance of bonds or notes hereunder.
For the purpose of this act, the term “open space”
means any lot or parcel of land in the town, or
portion thereof or interest therein, including
development rights, the preservation,
conservation or restriction of use of which would (1)
maintain or enhance the conservation of natural
resources, (2) promote conservation of farmland,
(3) protect natural streams, groundwater or
water supply, and/or (4) provide for passive
recreational use, as determined by the Glocester
Land Trust. 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. The proceeds of
bonds or notes issued under this act, any
applicable federal or state assistance and the
other moneys referred to in Sections 6 and 9, 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 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 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 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 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 5. 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
town. The town may pay the principal of and
interests 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 of 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 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 issued
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 accepted 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
apply 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 of 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 regulations, 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 of 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 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. The
question of the approval of this act shall be submitted to the electors
of the town at a general or special election (other
than a primary election) held prior to December
31, 2008 on a date as shall be designated by the
town council. The question shall be submitted in
substantially the following form: “Shall an act,
passed at the 2008 session of the general
assembly, entitled ‘AN ACT AUTHORIZING THE TOWN
OF GLOCESTER TO FINANCE
THE ACQUISITION OF OPEN SPACE FOR PRESERVATION,
CONSERVATION AND
GROUNDWATER PROTECTION BY THE ISSUANCE OF NOT
MORE THAN $500,000
BONDS AND/OR NOTES THEREFOR’ 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 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. To the extent
of any inconsistency between this act and the
town charter, this act shall prevail.
SECTION 13.
Sections 12 and 13 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.
=======
LC02996
=======