Title 46
Waters and Navigation

Chapter 12.2
Rhode Island Infrastructure Bank

§ 46-12.2-10. Powers of local governmental units.

Notwithstanding any provision of general law, special law or municipal charter to the contrary:

(1) In addition to authority granted otherwise by this chapter and in any bond act or other law, a local governmental unit, acting by and through the officer or officers, board, committee, or other body authorized by law, if any, or otherwise the chief executive officer, shall have the power to:

(i) Issue local governmental obligations as provided herein: (A) if and to the amount authorized by a bond act; (B) without limitation as to the amount, if issued as limited obligations, pursuant to § 46-12.2-12 or § 46-12.2-12.1; or (C) without limitation as to the amount, if issued as a financing lease or other appropriation obligation;

(ii) Plan, design, acquire, construct, operate, maintain, and otherwise undertake any project subject to the rules, regulations, procedures, and guidelines of the department, if applicable, in effect from time to time and the requirements of any other applicable law;

(iii) Apply for, accept, and expend, financial assistance and grants for the purpose of financing costs of projects subject to the rules, regulations, procedures, and guidelines of the agency and the department, if applicable, in effect from time to time, the provisions of the applicable loan agreement, and the requirements of other applicable law;

(iv) Authorize, execute, deliver, and comply with loan agreements, trust agreements, grant agreements, financing leases, appropriation agreements, and other agreements, and instruments with the agency, the department, and other persons relating to financial assistance and grants hereunder, and the issue of local governmental obligations to evidence loans, and perform the same;

(v) Receive, apply, pledge, assign, and grant security interests in its general revenues and wastewater system revenues to secure its obligations under local governmental obligations and other financial assistance; and

(vi) Fix, revise, charge, and collect such fees, rates, rents, assessments, and other charges of general or special application for the costs and/or use of any approved project, any wastewater system and any other revenue producing facilities from which the local governmental unit may derive wastewater system revenues, or for the services provided thereby, as it shall deem necessary to meet its obligations under any loan agreement or local governmental obligations outstanding or otherwise to provide for the costs and/or operation of the project and any wastewater system.

(2) In order to provide for the collection and enforcement of fees, rates, rents, assessments, and other charges for the operation of any approved project, any wastewater system, and any other revenue producing facilities from which the local governmental units may derive wastewater system revenues, in addition to any other authority provided by law or any bond act applicable to a particular local governmental unit, local governmental units are hereby granted all the powers and privileges granted to them by the general laws of the state with respect to any similar fee, rate, rent, assessment, or other charge. All unpaid fees, rates, rents, assessments, and other charges shall be a lien upon the real estate served for which the unpaid fees, rates, rents, assessments, or other charges have been made. A lien shall arise and attach as of the due date of each unpaid fee, rate, rent, assessment, or other charge. Subject to the provisions of § 39-26.5-6, the lien shall be superior to any other lien other than a tax lien, encumbrance, or interest in the real estate, whether by way of mortgage, attachment, or otherwise, except easements and restrictions. In the case of a life estate, the interest of the tenant for life shall first be liable for the unpaid fees, rates, rents, assessments, or other charges. The local governmental unit may enforce the lien by advertising and selling any real estate liable for unpaid fees, rents, assessments, and other charges in the manner provided for the enforcement of liens for unpaid taxes by chapter 9 of title 44, as amended from time to time.

(3) Any city or town and any other local governmental unit acting by and through the officer or officers, board, committee, other body authorized by law, or otherwise the chief executive officer, may enter into agreements with the agency or the department, if applicable, regarding the operation of a pricing system adopted under any applicable law for the services provided by any approved project, the wastewater system of which it is a part, and any other revenue producing facilities from which the local governmental unit may derive wastewater system revenues. The agreements may include, without limitation, provisions defining the costs of services, the approved project, and the wastewater system and other facilities, and covenants or agreements, regarding the fixing and collection of fees, rates, rents, assessments and other charges for the costs and the maintenance of the pricing system at levels sufficient to pay or provide for all the costs and any payments due the agency under any loan agreement or local governmental obligations.

(4) Any city or town and any other local governmental unit acting by and through the officer or officers, board, committee, or other body authorized by law, or otherwise the chief executive officer, may enter into agreements with the agency and the department, if applicable, regarding the operation of an enterprise fund established for any approved project, any wastewater system, and any other revenue producing facilities from which the local governmental unit may derive wastewater system revenues. The agreements may include, without limitation, fiscal and accounting controls and procedures, provisions regarding the custody, safeguarding, and investment of revenues, and other amounts credited thereto, the establishment of reserves and other accounts and funds, and the application of any surplus funds.

(5) The provisions of any charter, other laws or ordinances, general, special, or local, or of any rule or regulation of the state or any municipality, restricting or regulating in any manner the power of any municipality to lease (as lessee or lessor) or sell property, real, personal, or mixed, shall not apply to leases and sales made with the agency pursuant to this chapter.

(6) Any municipality, notwithstanding any contrary provision of any charter, other laws or ordinances, general, special or local, or of any rule or regulations of the state or any municipality, is authorized and empowered to lend, pledge, grant, convey to, or lease from the agency, at its request, upon terms and conditions that the chief executive officer, if any, or where no chief executive officer exists, the city or town council of the municipality, may deem reasonable and fair and without the necessity for any advertisement, order of court, or other action or formality, any real property or personal property which may be necessary or convenient to effectuation of the authorized purpose of the agency, including other real property already devoted to public use.