Chapter 318

2016 -- H 7963 Enacted 07/02/2016

A N   A C T

AUTHORIZING THE TOWN OF EAST GREENWICH TO FINANCE THE CONSTRUCTION, RENOVATION, REHABILITATION, REPAIR, IMPROVEMENT AND LANDSCAPING OF ROADS, SIDEWALKS AND DRAINAGE FACILITIES IN THE TOWN, AND ALL COSTS INCIDENTAL OR RELATED THERETO INCLUDING, BUT NOT LIMITED TO, ENGINEERING COSTS AND APPROVING THE ISSUANCE OF BONDS AND NOTES THEREFOR IN AN AMOUNT NOT TO EXCEED $5,000,000

Introduced By: Representative Antonio Giarrusso

Date Introduced: March 18, 2016

It is enacted by the General Assembly as follows:

SECTION 1. The town of East Greenwich is hereby empowered, in addition to authority

previously granted, to issue bonds to an amount not exceeding five million dollars ($5,000,000),

or such lesser amount as is approved by the electors of the town pursuant to sections 12 and 13

hereof, 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 sinking fund

installments 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. All such bonds of a particular issue may be issued in the form of zero coupon

bonds, capital appreciation bonds, serial bonds or term bonds or a combination thereof. Annual

installments of principal may be provided for by maturity of principal in the case of serial bonds

or by mandatory sinking fund installments in the case of term bonds. The amount of principal

appreciation each year on any bonds, after the date of original issuance, shall not be considered to

be principal indebtedness for the purposes of any constitutional or statutory debt limit or any

other limitation. The appreciation of principal after the date of original issue shall be considered

interest. Only the original principal amount shall be counted in determining the principal amount

so issued and any interest component shall be disregarded.

SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the town

director of finance 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 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. Interest coupons (if

any) shall bear the manual or facsimile signature of the town director of finance. The proceeds

derived from the sale of the bonds shall be delivered to the town director of finance, and such

proceeds, exclusive of premium and accrued interest, shall be expended as follows: (1) to finance

the construction, renovation, rehabilitation, repair, improvement and landscaping of roads,

sidewalks and drainage facilities in the town, and all costs incidental or related thereto including,

but not limited to, engineering costs ("the projects"), (2) in payment of the principal of or interest

on temporary notes issued under section three, (3) in repayment of advances under section four,

(4) in payment of the costs associated with the issuance of bonds or notes hereunder and/or (5) in

payment of capitalized interest during construction of the project. 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. The proceeds of bonds or notes issued under this act, any

applicable federal or state assistance and the other moneys referred to in sections 6 and 9 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. The town director of finance and

president of the town council, on behalf of the town, are hereby authorized to execute such

instruments, documents or other papers as either of them deem necessary or desirable to carry out

the intent of this act and are also authorized to take all actions and execute all instruments,

documents or agreements necessary to comply with federal tax and securities laws, which

instruments, documents or agreements may have a term coextensive with the maturity of the

bonds authorized hereby, including Rule 15c2-12 of the Securities and Exchange Commission

and to execute and deliver a continuing disclosure agreement or certificate in connection with the

bonds or notes.

SECTION 3. The town council may by resolution authorize the issuance from time to

time of interest bearing or discounted notes in anticipation of the issuance 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 town director of

finance. Temporary notes issued hereunder shall be signed by the manual or facsimile signatures

of the town director of finance and 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 issuance 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 interest thereon shall not exceed five (5) years. Any temporary

notes in anticipation of bonds issued under this section may be refunded prior to the maturity of

the notes by the issuance of additional temporary notes, provided that no such refunding shall

result in any amount of such temporary notes outstanding at any one time in excess of two

hundred percent (200%) of the amount of bonds which may be issued under this act, and provided

further that if the issuance of any such refunding notes results in any amount of such temporary

notes outstanding at any one time in excess of the amount of bonds which may be issued under

this act, the proceeds of such refunding notes shall be deposited in a separate fund established

with the bank which is paying agent for the notes being refunded. Pending their use to pay the

notes being refunded, moneys in the fund shall be invested for the benefit of the town by the

paying agent at the direction of the town director of finance in any investment permitted under

section 5. The moneys in the fund and any investments held as part of the fund shall be held in

trust and shall be applied by the paying agent solely to the payment or prepayment of the

principal of and interest on the notes being refunded. Upon payment of all principal of and

interest on the notes, any excess moneys in the fund shall be distributed to the town. The town

may pay the principal of and interest on notes in full from other than the issuance of refunding

notes prior to the issuance of bonds pursuant to section 1 hereof. In such case, the town's

authority to issue bonds or notes in anticipation of bonds under this act shall continue provided

that (1) the town council passes a resolution evidencing the town's intent to pay off the notes

without extinguishing the authority to issue bonds or notes and (2) that the period from the date of

an original note to the maturity date of any other note shall not exceed five (5) 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 town 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 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 S. 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 town

director of finance 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 provided

in any other applicable law of the State of Rhode Island or resolution of the town council or

pursuant to an investment policy of the town.

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 premium arising from the

sale of bonds or notes hereunder shall, in the discretion of the town 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 project costs, 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 town

director of finance, be met from bond or note proceeds exclusive of premium and accrued interest

or from other moneys 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 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 town director of finance shall be governed by any instructions adopted by

resolution of the town council.

SECTION 7. 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

and any provision of the town charter. 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, and coupons, if

any, 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 of assistance which may

be available for the purposes of this act, and any such expenditures may be in addition to the

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 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.

SECTION 11. All or any portion of the authorized but unissued authority to issue bonds

and notes under this act may be extinguished by ordinance of the town council, without further

action by the general assembly.

SECTION 12. It shall be a condition precedent to holding of the referendum described in

section 13 hereof and the issuance of bonds and notes hereunder that the town council adopt one

or more resolutions which provide for the exact amount of bonds and notes to be issued.

SECTION 13. At a general or local election to be held on a date that shall be designated

by the town council, there shall be submitted to electors of the town a question or questions in

substantially the following form, providing for the maximum amount to be issued (not to exceed

$5,000,000 in the aggregate):

"SHALL THE TOWN OF EAST GREENWICH ISSUE GENERAL OBLIGATION

BONDS AND/OR NOTES IN AN AMOUNT NOT TO EXCEED $[ ] FOR THE PURPOSE

OF FINANCING THE CONSTRUCTION, RENOVATION, REHABILITATION, REPAIR,

IMPROVEMENT AND LANDSCAPING OF ROADS, SIDEWALKS AND DRAINAGE

FACILITIES IN THE TOWN AND ALL ATTENDANT EXPENSES INCLUDING, BUT NOT

LIMITED TO, ENGINEERING AND ARCHITECTURAL COSTS?" 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 this act available 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 14. Sections 12, 13 and 14 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 13.

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LC005504

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