act24041

LA 041

2024 -- H 8299
Enacted 06/26/2024

A N A C T

AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN $137,200,000 OF BONDS AND NOTES FOR CONSTRUCTION, IMPROVEMENT, RENOVATION, DEMOLITION, REMEDIATION, FURNISHING, EQUIPPING AND OTHER CAPITAL IMPROVEMENTS OF SCHOOL FACILITIES THROUGHOUT THE TOWN, INCLUDING, BUT NOT LIMITED TO, A NEW WICKFORD MIDDLE SCHOOL

Introduced By: Representatives Casimiro, and Craven

Date Introduced: May 22, 2024

It is enacted by the General Assembly as follows:

SECTION 1. The town of North Kingstown is hereby empowered, in addition to authority

previously granted, to issue bonds to an amount not exceeding one hundred thirty seven million

two hundred thousand dollars ($137,200,000) from time to time under its corporate name and seal

or a facsimile of such 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 five (5) years and the last installment not later

than thirty (30) years after the date of the bonds.

SECTION 2. This act shall constitute an enabling act of the general assembly that is

required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under

this act for school projects shall not be eligible for state housing aid reimbursement pursuant to §

16-7-44 unless the school projects described herein shall have been approved by the Rhode Island

department of education. 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 town

treasurer and the president of the town council and shall be issued and sold in such amounts as the

town council may authorize by resolution, which resolution may authorize any and all actions to

be taken under this act by the president of the town council, to be taken by the president pro tempore

of the town council or other member of the town council. 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 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. Notwithstanding anything

contained in this act to the contrary, the town 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 town acting by said officers may elect to have the provisions of chapter 38.1 of title 45

apply to the issuance of bonds or notes issued hereunder to the extent the provisions of said chapter

are inconsistent herewith. In addition, the town may enter into financing agreements with the Rhode

Island infrastructure bank pursuant to the provision of chapter 12.2 of title 46 and, with respect to

bonds or notes issued in connection with such financing agreements, if any, the town acting by said

officers may elect to have the provisions of chapter 12.2 of title 46 apply to the issuance of bonds

or notes issued hereunder to the extent the provisions of said chapter are inconsistent herewith.

SECTION 4. The proceeds derived from the sale of the bonds shall be delivered to the

treasurer, and such proceeds exclusive of premiums and accrued interest shall be expended: (1) For

construction, improvement, renovation, demolition, remediation, furnishing, equipping and other

capital improvements of school facilities throughout the town, including, but not limited to, a new

Wickford Middle School and all expenses incidental thereto, (collectively, the “projects”); (2) In

payment of the principal of or interest on temporary notes issued under section 5; or (3) In

repayment of advances under section 6. 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 or as may be otherwise directed by the town council. The proceeds of bonds or notes issued

under this act, any applicable federal or state assistance and the other monies referred to in sections

8 and 11 shall be deemed appropriated for the purposes of this act without further action than that

required by this act. The bond issue, and any issue of notes, authorized by this act may be

consolidated for the purposes of issuance and sale with any other bond and/or note issue of the

town heretofore or hereafter authorized; provided that, notwithstanding any such consolidation, the

proceeds from the sale of the bonds and notes authorized by this act shall be expended for the

purposes set forth above.

SECTION 5. The town council may by resolution authorize the issue from time to time of

interest bearing or discounted notes in anticipation of the authorization or 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 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. Any

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

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

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

percent (200%) of the amount of bonds that may be issued under this act; and provided, further,

that if the issuance of any such refunding notes results in excess of the amount of bonds that may

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

established with the paying agent 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

town by the paying agent at the direction of the treasurer in any investment permitted under section

7. 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 and

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

refunded, any excess monies in the fund shall be distributed by the paying agent to the town. The

town may pay the principal of and interest on the notes in full or in part 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 the original note to the maturity of any other note shall not exceed five (5) years.

SECTION 6. Pending any authorization or issue 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 purposes specified in section 4, 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 7. 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 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 8. 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: (1) To the cost of preparing,

issuing and marketing bonds or notes hereunder to the extent not otherwise provided; (2) To the

cost of capitalized interest on temporary notes issued under section 5; (3) To the payment of the

cost of the projects for which such bonds were issued or to the cost of additional improvements

coming within the description of the projects in section 4; and/or (4) 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 said additional improvements 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 treasurer shall be governed by any instructions adopted by resolution of the

town council. The treasurer is authorized to take any action deemed by them necessary: (1) 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, paying to

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

proceeds of such bonds or notes that may be required therefor; (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; and/or (3) To comply with the

provisions of §§ 16-7-35 through 16-7-47; including making all necessary contracts and agreements

to issue said bonds and/or notes through the Rhode Island health and educational building

corporation.

SECTION 9. All bonds or 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. 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 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 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 10. 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 11. 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 4.

SECTION 12. 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. To the

extent of any inconsistency between this act and the town charter, this act shall prevail.

SECTION 13. All of any portion of the authority to issue bonds and notes under this act

may be extinguished by resolution of the town council, without further action by the general

assembly seven (7) years after the effective date of this act.

SECTION 14. The question of the approval of this act shall be submitted to the electors of

the town at the general election to be held on November 5, 2024. The question shall be submitted

in substantially the following form: "Shall an act, passed at the 2024 session of the General

Assembly, entitled ‘AN ACT AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO

ISSUE NOT MORE THAN $137,200,000 BONDS AND NOTES FOR CONSTRUCTION,

IMPROVEMENT, RENOVATION, DEMOLITION, REMEDIATION, FURNISHING,

EQUIPPING AND OTHER CAPITAL IMPROVEMENTS OF SCHOOL FACILITIES

THROUGHOUT THE TOWN, INCLUDING, BUT NOT LIMITED TO, A NEW WICKFORD

MIDDLE SCHOOL’ be approved?" and the warning for the election shall contain the question to

be submitted. The town board of canvassers may combine any two (2) or more voting districts for

the election and when so combined shall be treated as one voting district. If so combined, the town

board of canvassers shall advertise the combination of districts in a newspaper of general

circulation in the town. 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 their office for public inspection, but the

validity of the election shall not be affected by this requirement.

SECTION 15. This section and section 14 shall take effect upon passage. 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 14.

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LC006135

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