Chapter 280

2016 -- H 8151 Enacted 07/01/2016

A N   A C T

AUTHORIZING THE TOWN OF BRISTOL TO FINANCE THE DESIGN, ENGINEERING AND CONSTRUCTION OF CAPITAL IMPROVEMENT PROJECTS INCLUDING, WITHOUT LIMITATION, DRAINAGE, ROAD AND SIDEWALK REPAIRS AND IMPROVEMENTS, ADDITIONS AND RENOVATIONS TO PUBLIC BUILDINGS AND TOWN-OWNED MARINA, ACQUISITION OF OPEN SPACE, AND THE ACQUIRING OF EQUIPMENT IN CONNECTION THEREWITH BY ISSUANCE OF NOT MORE THAN $17,000,000 BONDS THEREFOR

Introduced By: Representative Kenneth A. Marshall

Date Introduced: May 04, 2016

It is enacted by the General Assembly as follows:

SECTION 1. Authorization. The town of Bristol is hereby empowered, subject to the

approval of the electors of the town, in addition to authority previously granted, to issue bonds

and notes to an aggregate 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 may be

issued for purposes of designing, engineering and construction of capital improvement projects

including, without limitation, drainage projects, road and sidewalk repairs and improvements,

additions and renovations to public buildings and the town-owned marina in the Bristol Harbor

adjacent to the Town Maritime Center located at 127 Thames Street, acquisition of open space,

and the acquiring of equipment in connection therewith and such bonds shall be designated as

capital improvement bonds. Notwithstanding any other provision of the general laws, the town

shall not be required to obtain approval of a town meeting for any aspect of any projects to be

funded herein.

SECTION 2. Bonds. 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 (5) years and the last

installment not later than thirty (30) years after the date of the bonds. For each issue, the amounts

payable annually for the 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. The

bonds shall be signed by the town treasurer and by the chairman of the town council and shall be

issued and sold at public or private sale in such amounts as the town council may authorize by

resolution. The provisions of section 306(c) and section 414 of the town charter shall not apply to

the authorization or issue of bonds or notes under this act. 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 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 bonds shall be delivered to the treasurer, and such proceeds exclusive of premiums and

accrued interest shall be expended for: (1) The purposes applicable to such bonds as specified in

section 1; or (2) The payment of the principal of or interest on temporary notes issued in

connection with such bonds pursuant to section 3; or (3) The repayment of advances made in

connection with such bonds pursuant to section 4; or (4) The payment of capitalized interest;

and/or (5) In payment of the costs of issuance associated with the issuance of bonds or notes

hereunder. 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 funded with

proceeds of the bonds shall be carried out and all contracts made therefor on behalf of the town

by the town administrator, or as may be otherwise directed by the town council. The proceeds of

the bonds or notes issued under this act, any applicable federal or state assistance and the other

monies referred to in section 6 shall be deemed appropriated for the purposes of this act without

further action than that required by this act. This 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. Temporary Notes. The town council may by resolution authorize the issue

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 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 chairman 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. Pending authorization 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 applicable purposes specified in section 1, such advances to be repaid

without interest from the proceeds of applicable bonds or notes subsequently issued or from the

proceeds of applicable federal or state assistance or from other available funds.

SECTION 5. Investments. 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 America or by any agency or instrumentality thereof or as may be invested pursuant to

§35-10-11 of the general laws or any similar law of the State of Rhode Island, by resolution of the

town council.

SECTION 6. Application of accrued interest, premiums and investment earnings. 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 the cost of additional improvements within the description of the project

listed herein, 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 the cost of preparing,

issuing and marketing bonds or notes hereunder shall be applied to the payment of the principal

of or interest on corresponding 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 her necessary 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: (1) Paying to the

federal government of any rebate or earnings derived from the deposit or investment of the

proceeds of such bonds or notes that may be required therefor; and (2) 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. Security for the 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

§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 under section 414 of the town charter

or §45-12-2 of the general laws. 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 monies 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 the law to the contrary, all taxable property in the town shall be

subject to ad volorem taxation by the town without limitation as to rate or amount.

SECTION 8. Execution 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 and State Aid. 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 monies 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. Conditions precedent to the issuance of bonds. 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: (1) As specifically required by this

act for such issue; and (2) The approving vote of the town council of the town to issue the bonds

or notes authorized hereunder. 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. Referendum. The question of the approval of this act shall be submitted to

the electors of the town at a general or special election to be held at polling places in the town on

November 8, 2016 or any other date to be determined by the town council. The question shall be

submitted in substantially the following form: "Shall an Act, passed at the 2016 session of the

general assembly, entitled 'AN ACT AUTHORIZING THE TOWN OF BRISTOL TO FINANCE

THE DESIGN, ENGINEERING AND CONSTRUCTION OF CAPITAL IMPROVEMENT

PROJECTS INCLUDING, WITHOUT LIMITATION, DRAINAGE PROJECTS, ROAD AND

SIDEWALK REPAIRS AND IMPROVEMENTS, ADDITIONS AND RENOVATIONS TO

PUBLIC BUILDINGS AND TOWN-OWNED MARINA, ACQUISITION OF OPEN SPACE,

AND THE ACQUIRING OF EQUIPMENT IN CONNECTION THEREWITH BY ISSUANCE

OF NOT MORE THAN $17,000,000 BONDS THEREFOR' be approved?" and the warning for

the election shall contain the questions 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 the town

clerk's 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 town charter, this act

shall prevail.

SECTION 12. Effective date. This section and section 11 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 section 11.

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LC005857

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