Chapter 319
2011 -- H 6218
Enacted 07/12/11
A N A C T
AUTHORIZING THE
TOWN OF
Introduced By: Representative Deborah L. Ruggiero
Date Introduced: June 02, 2011
It is enacted by the
General Assembly as follows:
SECTION 1. The Town of
previously granted, to issue bonds to an amount not exceeding
One Million Dollars ($1,000,000)
from time to time under its corporate name and seal or a
facsimile of such 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 years and the last installment
not later than thirty 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.
SECTION 2. The bonds shall be signed by the manual or
facsimile signatures of the
finance director of the town and the president of the Town Council
and shall be issued and sold in
such amounts as the Town 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 the resolution
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 finance director, and such
proceeds exclusive of premiums and accrued interest shall be
expended for:
(a)
Costs of closure of the former town landfill on
consultants, materials, equipment, testing, fees and other costs
related thereto;
(b) In payment of the principal of or interest on temporary notes issued under
Section
Three of this act; or
(c)
In repayment of advances under Section 4 of this act. 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, or as may be
otherwise directed by the Town Council.
The proceeds of bonds or
notes issued under this act, any applicable federal or state assistance
and the other monies referred to in Section 6 of this act
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 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 authorization or 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 finance director.
Temporary notes issued
hereunder shall be signed by the finance director and by the president of
the Town Council and shall be payable within five 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 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
finance director, 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 2,
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 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
of
applicable law of the State of
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
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 the cost of the projects or to the
cost of additional improvements
coming within the description of the projects in Section 2
of this act, 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 finance director, be met from bond or note
proceeds exclusive of accrued interest or from
other monies available therefor.
Any balance of bond or note proceeds remaining after payment
of the cost of the projects and said additional
improvements 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. In exercising any
discretion under this section, the finance
director shall be governed by any instructions adopted by
resolution of the Town Council. The
finance director is authorized to take any action deemed by
him or her necessary: (1) To assure
that interest on the bonds or notes issued hereunder
remains excludable from gross income of the
recipients thereof for federal income tax purposes, including,
without limitation, paying to the
federal government any rebate of earnings derived from the
deposit or investment of the proceeds
of such bonds or notes that may be required therefor; (2) To qualify the bonds under Sections
54AA, 1400U-1, 1400U-2,
and/or 6431 of the Internal Revenue Code of 1986, as amended, or as
otherwise may exist from time to time, as Build America Bonds
and/or Recovery Zone Economic
Development Bonds or other
similar federal programs; (3) To comply with the
requirements of
federal law, including without being limited to regulations
and other requirements of the
Securities and Exchange
Commission and the Municipal Securities Rulemaking Board, imposed
directly on the Town or on the underwriters of such bonds and
notes; and/or (4) To comply with
or fulfill the requirements of the Rhode Island Clean
Water Finance Agency or other state or
federal agency.
SECTION 7. All bonds or 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 2 hereof.
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. Without limiting the
generality of the foregoing, bonds and notes may be issued under
this act without any action at
the financial town meeting. 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. To the extent of any
inconsistency between this act and the Town Charter, this act shall
prevail.
SECTION 11. The question of the approval of this act shall
be submitted to the electors
of the town at the November 8, 2011 general election.
The question shall be submitted in
substantially the following form: "Shall an act, passed at the
2011 session of the General
Assembly, entitled ‘AN ACT
AUTHORIZING THE TOWN OF JAMESTOWN TO FINANCE
THE COSTS OF CLOSURE OF THE
TOWN LANDFILL AND TO ISSUE NOT MORE THAN
$1,000,000 BONDS AND NOTES
THEREFOR' be approved?" and the warning for the election
shall contain the question to be submitted. The Town Board
of Canvassers may combine any two
or more voting districts for the election and when so
combined shall be treated as a voting district.
If so combined, the Town
Board of Canvassers shall advertise the combination of districts in a
newspaper of general circulation in the Town. 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.
SECTION 12. This section and Section 11 shall take effect
upon passage. 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 Section 11.
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LC02754
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