Chapter 267
2010 -- S 2933
Enacted 06/25/10
A N A C T
AUTHORIZING THE
CITY OF NEWPORT TO FINANCE THE DESIGN, ACQUISITION, DEMOLITION, CONSTRUCTION,
REPAIR, REHABILITATION, IMPROVEMENT, FURNISHING AND EQUIPPING OF A NEW ELEMENTARY
SCHOOL, INCLUDING, BUT NOT LIMITED TO, LANDSCAPING AND CONSTRUCTION MANAGEMENT
SERVICES, BY THE ISSUANCE OF NOT MORE THAN $30,000,000 BONDS AND/OR NOTES
THEREFOR
Introduced By: Senators Paiva-Weed, and DiPalma
Date Introduced: May 26, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. The city of
previously granted, to issue bonds to an amount not exceeding
thirty million dollars
($30,000,000)
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 sinking fund
installments 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 sinking fund installments 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 manual or
facsimile signatures of the city
finance director and the mayor and shall be issued and sold
in such amounts as the city council
may authorize by resolution. 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
proceedings of the city council authorizing the issue or by
separate resolution of the city 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. Interest coupons (if any)
shall bear the manual or facsimile
signature of the city finance director. Notwithstanding
anything contained in this act to the
contrary, the city may enter into financing agreements with
the Rhode Island Health and
Educational Building
Corporation pursuant to title 16 chapter 7 and title 45 chapter 38.1 of the
general laws and, with respect to notes or bonds issued in
connection with such financing
agreements, if any, the city may elect to have the provisions of
title 45, chapter 38.1 of the
general laws apply to the issuance of the bonds or notes
issued hereunder to the extent the
provisions of title 45, chapter 38.1 of the general laws are
inconsistent herewith. Such election
may be fixed by the proceedings of the city council
authorizing such issuance of by separate
resolution of the city 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 city finance
director, and such proceeds, exclusive of
premiums and accrued interest, shall be expended to: a)
finance the design, acquisition,
demolition, construction, repair, rehabilitation, improvement,
furnishing and equipping of a new
elementary school, including but not limited to, landscaping and
construction management
services (the "Project"), or b) pay the principal of
or interest on temporary notes issued under
section three, or c) pay the costs in connection with the
issuance of the bonds or notes, or d)
finance capitalized interest on the Project or e) repay any
advances under section four. 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
sections six and nine, shall be deemed appropriated for the
purposes of this act without further
action than that required by this act. The bond issue authorized
by this act may be consolidated
for the purposes of issuance and sale with any other bond
issue of the city 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 city
finance director and the mayor, on behalf of the city, 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 3. The city council may by resolution authorize the
issuance from time to time
of interest bearing or discounted notes in anticipation
of the issuance 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 city finance director.
Temporary notes issued
hereunder shall be signed by the manual or facsimile signatures of the
city finance director and the mayor 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 issuance 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 city by
the paying agent at the direction of the city
finance director 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 city. The city 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 city’s authority to issue bonds or
notes in anticipation of bonds under
this act shall continue provided that 1) the city council
passes a resolution evidencing the city’s
intent to pay off the 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
city finance director, with the approval of the
city council, may, to the extent that bonds or notes may
be issued hereunder, apply funds in the
treasury of the city 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 city
finance director 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
in any other applicable law of the state of
pursuant to an investment policy of the city.
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 premium arising from the
sale of bonds or notes hereunder shall, in the discretion
of the city finance director, be applied to
the cost of preparing, issuing and marketing bonds or
notes hereunder to the extent not otherwise
provided, to the payment of project costs, 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 city finance
director, 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 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 city from property taxes. In
exercising any discretion under this
section, the city finance director shall be governed by any
instructions adopted by resolution of
the city council.
SECTION 7. All bonds and notes issued under this act and the
debts evidenced thereby
shall be obligatory on the city 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
and the provisions of the city charter. No such
obligation shall at any time be included in the debt
of the city for the purpose of ascertaining its
borrowing capacity. The city 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 city shall be subject to ad valorem
taxation by the city without limitation as to rate
or amount.
SECTION 8. Any bonds or notes issued under the provisions of
this act, and coupons, if
any, if properly executed by officers of the city 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 city, acting by resolution of its city
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 the 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 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 be extinguished by resolution of the city council,
without further action by the general
assembly, seven (7) years after the effective date of this
act.
SECTION 12. The city finance director and the mayor, on
behalf of the city, 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
(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 city at a general or special election (other than
a primary election) to be held on any date as
shall be designated by the city council. The question shall
be submitted in substantially the
following form: "Shall an act passed at the 2010 session
of the general assembly entitled 'AN
ACT AUTHORIZING THE CITY OF
ACQUISITION, DEMOLITION,
CONSTRUCTION, REPAIR, REHABILITATION,
IMPROVEMENT, FURNISHING AND
EQUIPPING OF A NEW ELEMENTARY SCHOOL,
INCLUDING BUT NOT LIMITED
TO, LANDSCAPING AND CONSTRUCTION
MANAGEMENT SERVICES, BY THE
ISSUANCE OF NOT MORE THAN $30,000,000
BONDS AND/OR NOTES
THEREFOR,' 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 city 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 city
charter, this act shall prevail.
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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LC02751
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