LA 024
2024 -- H 8050 AS AMENDED
Enacted 06/17/2024

A N   A C T
AUTHORIZING THE CITY OF PROVIDENCE TO ISSUE NOT TO EXCEED $400,000,000 GENERAL OBLIGATION BONDS AND NOTES TO FINANCE THE CONSTRUCTION, RELATED DEMOLITION, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, LANDSCAPING, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES THROUGHOUT THE CITY AND ALL COSTS RELATED THERETO, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS THAN 75% AT THE TIME OF ISSUANCE AND PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY THE ‎AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE BOND PROCEEDS, ‎FROM THE RHODE ISLAND DEPARTMENT OF EDUCATION OR FROM THE ‎RHODE ISLAND SCHOOL BUILDING AUTHORITY

Introduced By: Representatives Biah, DeSimone, Hull, Diaz, Slater, J. Lombardi, Kislak, Baginski, McNamara, and Batista

Date Introduced: March 08, 2024

It is enacted by the General Assembly as follows:
     SECTION 1. The city of Providence is hereby authorized, in addition to authority
previously granted, to issue bonds up to an amount not exceeding four hundred million dollars
($400,000,000) from time to time under its corporate name and seal or a facsimile of such seal;
provided, however, that bonds shall not be issued unless the conditions of section 2 hereof as to the
level of state aid are met. 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. 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, charter 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 city may be eligible for school housing aid reimbursement on debt
service pursuant to chapter ‎‎7 of title 16, or for a grant, loan or other financial assistance from
proceeds of bonds issued by the State of Rhode Island (the "state"), ‎from the Rhode Island
department of education ("RIDE") or from the Rhode Island school building authority. The
principal amount of borrowing authorized pursuant to this act shall be reduced by the amount of
certain grants actually received by the city from state bond proceeds, from RIDE or from the Rhode
Island school building authority; provided, however, that the amount of borrowing authorized shall
not be reduced by the amount of any grant received by the city for any portion of the project
financed by capital reserve funds. Bonds and notes shall not be issued under ‎this act unless the city
has received a letter from RIDE confirming that the then-current school housing aid reimbursement
rate under chapter 7 ‎of title 16, as amended from time to time, or financial assistance from the
school building authority capital fund, or pursuant to any other law hereafter enacted providing for
funds to ‎municipalities for school housing purposes, is not less than seventy-five percent (75%) of
debt ‎service for those expenditures which are eligible for state aid. Such school housing aid
reimbursement rate or state share ratio may be increased through the award of incentives pursuant
to §§ 16-7-39, 16-7-40 and 16-105-3 of the general laws at the completion of each project.
     SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the city
treasurer and the mayor and shall be issued and sold in such amounts as the city council may
determine 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
proceedings of the city council authorizing the issuance or by separate resolution of the city 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. Notwithstanding anything contained in this act to the
contrary, the city may enter into financing agreements with the Rhode Island Health and
Educational Building Corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and,
with respect to bonds or notes issued in connection with such financing agreements, if any, the city
may elect to have the provisions of chapter 38.1 of title 45 apply to the issuance of the notes or
bonds issued hereunder to the extent the provisions of chapter 38.1 of title 45 are inconsistent
herewith. In addition, the city may enter into financing agreements with the Rhode Island
Infrastructure Bank pursuant to the provisions of chapter 12.2 of title 46 and, with respect to notes
or bonds issued in connection with such financing agreements, if any, the city may elect to have
the provisions of chapter 12.2 of title 46 apply to the issuance of the bonds or notes issued hereunder
to the extent the provisions of chapter 12.2 of title 46 are inconsistent herewith. Such election may
be fixed by the proceedings of the city council authorizing such issuance or by separate resolution
of the city 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 city treasurer, and such proceeds, exclusive of premiums and accrued
interest, shall be expended: (1) For the construction, related demolition, renovation, improvement,
alteration, repair, landscaping, furnishing and equipping of schools and school facilities throughout
the city of Providence and all costs related thereto (the "projects"); (2) In payment of the principal
of or interest on temporary notes issued under section 4; (3) In repayment of advances under section
5; (4) In payment of related costs of issuance of any bonds or notes; and/or (5) In payment of
capitalized interest during construction of the projects. 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 monies referred to in sections 7 and 10 shall be deemed appropriated for
the purposes of this act without further action than that required by this act. The bonds authorized
by this act may be consolidated for the purpose of issuance and sale with any other bonds of the
city 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 4. The city council may by resolution authorize the issuance from time to time
of interest bearing or discounted notes in anticipation of the issuance of bonds under section 3 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 city treasurer.
Temporary notes issued hereunder shall be signed by the manual or facsimile signatures of the city
treasurer and the mayor 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 the 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 the paying agent for the notes being refunded.
Pending their use to pay the notes being refunded, monies in the fund shall be invested for the
benefit of the city by the paying agent at the direction of the city treasurer in any investment
permitted under section 6. The monies in the fund and any investments held as a 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 monies in the fund shall be distributed to the city. The city 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 city's authority to issue
bonds or notes in anticipation of bonds under this act shall continue; provided that: (1) The city
council passes a resolution evidencing the city'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 5. Pending any authorization or issuance of bonds hereunder or pending or in
lieu of any authorization or issuance of notes hereunder, the city treasurer, with the approval of the
city council may, to the extent that bonds or notes may be issued hereunder, apply funds in the
general treasury of the city to the purposes specified in section 3, 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 6. 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 city 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 provided in any other applicable
law of the State of Rhode Island or resolution of the city council or pursuant to an investment policy
of the city.
     SECTION 7. 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, to the extent permitted by applicable federal laws, any net earnings
or profits realized from the deposit or investment of funds hereunder shall, in the discretion of the
city 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, to the payment of
the principal of or interest on bonds or notes issued hereunder, to the revenues of the city and dealt
with as part of the revenues of the city from property taxes to the extent permitted by federal law,
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 city treasurer, be met from bond or note proceeds
exclusive of premium and 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 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 city from property taxes. In
exercising any discretion under this section, the city treasurer shall be governed by any instructions
adopted by resolution of the city council.
     SECTION 8. All bonds and notes issued under this act and the debt evidenced hereby shall
be obligatory on the city 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 and any provision of the city
charter. No such obligation shall at any time be included in the debt of the city for the purpose of
ascertaining its borrowing capacity. The city 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 provisions of law to the contrary, all taxable property in the city shall be
subject to ad valorem taxation by the city without limitation as to rate or amount.
     SECTION 9. Any bonds or notes issued under the provisions of this act, if properly
executed by the officers of the city 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 10. The city, acting by resolution of its city 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 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 a cost of the projects under section 3.
     SECTION 11. 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.
     SECTION 12. The city treasurer and the mayor, on behalf of the city 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
documents 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,
including Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and to execute
and deliver a continuing disclosure agreement or certificate in connection with the bonds or notes
in the form as shall be deemed advisable by such officers in order to comply with the Rule.
     SECTION 13. All or any portion of the authorized but unissued authority to issue bonds
and notes under this act may be extinguished by resolution of the city council, without further action
by the general assembly, seven (7) years after the effective date of this act.
     SECTION 14. This act shall constitute an enabling act of the general assembly that is
required pursuant to § 16-7-44. Any bonds issued under this act for school projects shall not be
eligible for state aid reimbursement pursuant to § 16-7-44 unless the school projects described
herein have been approved by RIDE.
     SECTION 15. At the general election on November 5, 2024 or at an election, other than a
primary, to be held on a date designated by the city council, there shall be submitted to electors of
the city a question in substantially the following form: "Shall an act passed at the 2024 session of
the general assembly entitled 'AN ACT AUTHORIZING THE CITY OF PROVIDENCE TO
ISSUE NOT TO EXCEED $400,000,000 GENERAL OBLIGATION BONDS AND NOTES TO
FINANCE THE CONSTRUCTION, RELATED DEMOLITION, RENOVATION,
IMPROVEMENT, ALTERATION, REPAIR, LANDSCAPING, FURNISHING AND
EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES THROUGHOUT THE CITY AND
ALL COSTS RELATED THERETO, SUBJECT TO APPROVAL OF STATE HOUSING AID
AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS THAN 75% AT
THE TIME OF ISSUANCE AND PROVIDED THAT THE AUTHORIZATION SHALL BE
REDUCED BY THE ‎AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE BOND
PROCEEDS, ‎FROM THE RHODE ISLAND DEPARTMENT OF EDUCATION OR FROM THE
‎RHODE ISLAND SCHOOL BUILDING AUTHORITY' 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 city clerk to keep a copy of this act available at the 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 city charter, this act shall prevail. To the
extent of any inconsistency between this act and any private, public, general, special or any ‎other
law, and the city home rule charter and city ordinances, this act shall prevail.
     SECTION 16. Sections 15 and 16 of this act shall take effect upon passage. The remainder
of the act shall take effect upon approval by the electors of the city of the question provided for in
section 15.
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LC005054
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