Chapter 323
2012 -- S 2923
Enacted 06/20/12
A N A C T
AUTHORIZING THE
TOWN OF
Introduced By: Senators Sheehan, Sosnowski, and Gallo
Date Introduced:
May 03, 2012
It is enacted by the
General Assembly as follows:
SECTION 1. The Town of
previously granted, to issue bonds to an amount not exceeding
seventeen million dollars
($17,000,000)
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 town
treasurer 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 town
treasurer, and such proceeds exclusive of
premiums and accrued interest shall be expended for: (a) the
improvement, replacement,
construction, renovation, repair, reconstruction and/or
restoration of roadways, sidewalks and
storm drains in the Town of Narragansett and all costs
incidental thereto; (b) in payment of the
principal of or interest on temporary notes issued under
Section 3 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 projects 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 treasurer.
Temporary notes issued
hereunder shall be signed by the treasurer 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
treasurer, 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
treasurer, 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
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
treasurer, 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 treasurer, 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 treasurer shall be governed
by any instructions adopted by resolution of the Town
Council. The treasurer 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, or 6431 of
the Internal Revenue Code of 1986, as amended, as Build
America Bonds and/or Recovery Zone
Economic Development Bonds
or other similar federal programs; and (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.
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.
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. 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 an election on a date to be determined by
the Town Council which occurs at least
sixty days after the passage of this act. The question
shall be submitted in substantially the
following form: "Shall an act, passed at the 2012 session
of the General Assembly, entitled “ AN
ACT AUTHORIZING THE TOWN OF
IMPROVEMENT, REPLACEMENT,
CONSTRUCTION, RENOVATION, REPAIR,
RECONSTRUCTION AND/OR
RESTORATION OF ROADWAYS, SIDEWALKS AND
STORM DRAINS IN THE TOWN OF
THAN $17,000,000 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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LC02543
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