2014 – S 2478
Enacted 04/16/14
A N A C T
Introduced By: Senators Sheehan, and Hodgson
Date Introduced: February 27, 2014
It is enacted by the General Assembly as follows:
SECTION 1. Additional issuance of bonds.
The
Town of North Kingstown is hereby empowered and authorized, in addition to
authority previously granted pursuant to Cchapters 25
and 37 of the Public Laws of 2009 and Cchapters 263
and 291 of the Public Laws of 2010, to issue bonds to an amount not exceeding six
million six hundred thousand dollars ($6,600,000) 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 three (3) years and the last installment
not later than thirty (30) years after the date of the bonds. The bonds shall
be signed by the town director of finance and by 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, principal amounts,
interest rates and other terms, conditions, and details of any bonds or
notes issued under this act may be fixed by 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.
SECTION 2. Proceeds of the bonds. -- 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) for
the construction of sewers and sewerage systems, including, but not limited to,
lift stations and pumping stations and the acquisitions, by purchase or
condemnation, of land and interests therein necessary in connection with the
construction thereof in the town of North Kingstown, primarily for Post Road
North as that area is designated in the Ttown’s Wastewater
Management Facilities Plan as the same may exist from time to time.
(B) in payment of the principal or of interest on temporary notes issued under section 3; or
(C) in repayment of advances under section 4.
The
particular facilities to be provided in any area of the town from the proceeds
of the bonds and notes authorized hereunder, as well as the proceeds of bonds
and notes issued pursuant to Cchapters 25
and 37 of the Public Laws of 2009 and Cchapters 263
and 291 of the Public Laws of 2010, shall be determined in accordance with
priorities determined by the town council from time to time. 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 6 shall be
deemed appropriated for the purposes of this act without further action than
that required by this act.
SECTION 3. Temporary notes.
The
town council may by resolution authorize the issuance 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 that may be issued under this act and
the amount of original notes issued in anticipation of federal or state aid as
estimated by the director of finance. Temporary notes issued hereunder shall be
signed by the director of finance and by 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.
SECTION 4. Advances from general fund. -- Pending any authorization or issue of bonds hereunder, or pending or in lieu of any authorization or 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 general fund of the town to the purposes specified in section 2, such advances to be repaid with 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. Investment of money.
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 that are members of the fFederal
dDeposit iInsurance cCorporation,
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.
SECTION 6. Expenditures.
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 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 director of finance, be met from bond or note proceeds exclusive of premium and accrued interest or from other moneys available therefore. Any balance of bond or note proceeds remaining after payment of 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. Security for bonds and notes.
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 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. Validity of bonds or notes.
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. Federal or state advances or grant.
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
of assistance which that may be available for the purposes of
this act, and any such expenditure 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 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. Conditions precedent to issuance.
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, which that shall be authorized hereby and carried out
in the manner described by chapter 1 of title 24 of the general laws as
it may be amended from time to time, 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 that 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. Assessments.
(A) The
town council shall cause the cost of constructing, operating, and
maintaining the sewer system to be paid by assessments and annual charges as
set forth herein. The town council shall assess the costs (including financing
costs and debt service on bonds or notes issued hereunder) of any project or
projects financed under this act which that it has determined
will be paid from assessments, upon the owners of the estates which that
abut that portion of any street or highway in or along which any sewer
constituting any portion of such project or projects may be located or which
that otherwise specially benefit from such project or projects. Any
such property owned by the state of Rhode Island shall be subject to
assessments and charges under this act in the same manner and to the same
extent as any other such property. Such assessment may be made separately for
each project separately identified by the town council or for several projects
taken together, including, but not limited to, those financed pursuant to Cchapters 25 and 37 of the Public Laws of 2009 and/or Cchapters 263 and 291 of the Public Laws of 2010, as the
town council may deem equitable.
(B)
Such assessments shall be just and equitable and shall be based upon frontage
or area within a specified reasonable distance from the street or highway or
other equitable method or combination of methods as may be determined by the
town council. The town council shall not make any particular assessment in
excess of the benefit conferred and may make reasonable adjustments or
deferments of such assessments against estates having a frontage upon more than
one street or against estates which that for any reason are
unable to derive the normal benefits from the system. The town council may
adopt ordinances governing the making of such assessments and the collection
thereof. A copy of such assessments shall be recorded with the collector of
taxes as a public record. From the date of delivery to the collector of taxes
the assessments and interest accruing thereon shall constitute a lien upon the
respective estates on a parity with the lien for town taxes until paid in full.
The collector of taxes of the town shall have the same rights to enforce such
liens against the estates and to collect such assessments and interest from the
owners as he has in the case of town taxes.
SECTION 12. Sewer service charges.
(A) The
town council may fix and revise from time to time a schedule of sewer service
charges for the use of sewer facilities and services furnished under this act
for the purpose of paying the cost of maintaining, repairing, and operating
such facilities, and any other expenses not otherwise provided for which
that may arise under this act, to the extent that monies for the
foregoing purposes are not otherwise provided. Such charges shall be just and
equitable and may be based upon the quantity of water used; or units
assessed; or the number and size of sewer connections made; or
the number and kind of plumbing fixtures installed on the estate; or
upon the number or average number of persons residing or working in or
otherwise connected therewith; or upon any other factor affecting the
use of or the value of the facilities and services furnished; or upon
any combination of such factors. The town may provide by ordinance for the
making and collection of such sewer service charges.
(B) Delinquent service charges together with any interest and charges accruing thereon shall constitute a lien upon real estate on a parity with the lien for town taxes. The collector of taxes shall have the same rights to enforce such liens and to collect the service charges and interest thereon as he has in the case of town taxes.
SECTION 13. Appropriation of charges and assessments.
The
receipts from sewer service charges and assessments, including any net earning
and profits realized from the deposit or investment thereof, shall be deemed
appropriated for the purposes set forth in this act, without the necessity of
any further action. Except as provided in this act and in Cchapters 25 and 37 of the Public Laws of 2009 and/or Cchapters 263 and 291 of the Public Laws of 2010, the
assessment and collection of sewer service charges and assessments shall be
governed by ordinances adopted by the town council and applicable to such
charges and assessments in the town.
SECTION 14. Other bonds for similar purposes, instruments, documents and agreements.
The
bond issue authorized by this act may be consolidated for the purposes of
issuance 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.
The assessments and charges for the issuance and debt service costs of the bonds authorized by this act may be consolidated with those assessed and charged for other bonds issued for the town’s of sewers and sewerage systems heretofore or hereafter authorized.
The
town director of finance and the president of the town council, on behalf of
the town, are hereby authorized to execute such agreements, instruments,
documents, or other papers as either of them deem necessary or desirable
to carry out the intent of this act including, but not limited to, those
pursuant to chapter 24.5 of title 45 and chapter 12.2 of Ttitle
46 as amended of the general laws, 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
15. The question of the approval of this act shall be
submitted to the electors of the town at a general or special election which
that is not a primary on such date as the town council shall designate.
The question shall be submitted in substantially the following form:
"Shall
an act, passed at the 2014 session of the general assembly, entitled 'An act
authorizing the Town of North Kingstown to issue bonds and notes to an amount
not exceeding $6,600,000 to finance the construction of sewers and sewerage
systems in the town, primarily for Post Road North, including the acquisition
of land therefor and authorizing the imposition of sewer assessments and user fees’
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 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 16. 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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LC004730
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