2014 – S 2487
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/or Cchapters 263 and 291 of the Public Laws of
2010, to issue bonds to an amount not exceeding four million nine hundred
thousand dollars ($4,900,000) 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:
(1) 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 the Wickford commercial area;
(2) In payment of the principal or of interest on temporary notes issued under section 3; or
(3) 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/or 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 whichthat 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 whichthat 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 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 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 whichthat 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, whichthat 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 whichthat 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. (1) 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 whichthat it has
determined will be paid from assessments, upon the owners of the estates whichthat 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 whichthat 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. Provided, further, the town
council may defer assessments on residential users while they remain
residential.
(2)
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 whichthat 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/she
has in the case of town taxes.
SECTION
12. Sewer service charges. (1) 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 whichthat 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.
(2) 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/she 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 earnings 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
applicable to all 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 towns 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 Ttitle 45 and Cchapter 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 whichthat 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 $4,900,000 to finance the construction of sewers and sewerage
systems in the town, primarily for the Wickford commercial area, 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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LC004731
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