2006 -- S 3137

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LC03379

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2006

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A N A C T

AUTHORIZING THE CITY OF WARWICK TO ISSUE BONDS AND NOTES IN AN

AMOUNT NOT TO EXCEED $9,000,000 FOR THE REPAIR AND IMPROVEMENT OF

CITY BUILDINGS

     Introduced By: Senators Revens, McCaffrey, Walaska, Roberts, and Raptakis

     Date Introduced: June 01, 2006

     Referred To: Senate Commerce, Housing & Municipal Government

It is enacted by the General Assembly as follows:

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     SECTION 1. The City of Warwick is hereby empowered, in addition to authority

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previously granted, to issue bonds to an amount not exceeding Nine Million Dollars ($9,000,000)

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from time to time under its corporate name and seal or a facsimile of such seal. The bonds of each

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issue may be issued in the form of serial bonds or term bonds or a combination thereof and shall

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be payable either by maturity of principal in the case of serial bonds or by mandatory sinking

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fund redemption in the case of term bonds, in annual installments of principal, the first

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installment to be not later than three (3) years and the last installment not later than twenty (20)

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years after the date of the bonds.

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

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treasurer and the mayor and shall be issued and sold at not less than par and accrued interest in

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such amounts as the city council may authorize by resolution. Article VII and sections 2-19 and

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6-14 of the city charter shall not apply to the authorization or issue of bonds and notes hereunder

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or to the execution of the projects for which the bonds or notes are issued. The manner of sale,

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denominations, maturities, interest rates and other terms, conditions and details of any bonds or

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notes issued under this act may be fixed by the proceedings of the city council authorizing the

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issue or by separate resolution of the city council or, to the extent provisions for these matters are

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not so made, they may be fixed by the officers authorized to sign the bonds or notes. Interest

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coupons, if any, shall bear the facsimile signature of the city treasurer. The proceeds derived from

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the sale of the bonds shall be delivered to the city treasurer, and such proceeds exclusive, of

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premiums and accrued interest shall be expended (a) for the necessary repairs and improvements

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of the City's buildings; (b) in payment of the principal of or interest on temporary notes issued

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under section three; or (c) in repayment of advances under section four.

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     No purchaser of any bonds or notes under this act shall be in any way responsible for the

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proper application of the proceeds derived from the sale thereof. The proceeds of bonds or notes

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

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section six shall be deemed appropriated for the purposes of this act without further action than

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that required by this act.

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     SECTION 3. The city council may by resolution authorize the issue from time to time of

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interest bearing or discounted notes in anticipation of the issue of bonds under section two or in

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anticipation of the receipt of federal or state aid for the purposes of this act. The amount of

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original notes issued in anticipation of bonds may not exceed the amount of bonds which may be

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issued under this act and the amount of original notes issued in anticipation of federal or state aid

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may not exceed the amount of available federal or state aid as estimated by the city treasurer.

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Temporary notes issued hereunder shall be signed by the city treasurer and by the mayor and shall

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be payable within five (5) years from their respective dates, but the principal of and interest on

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notes issued for a shorter period may be renewed or paid from time to time by the issue of other

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notes hereunder, provided the period from the date of an original note to the maturity of any note

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issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years. Any

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

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

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refunding shall result in any amount of such temporary notes outstanding at any one time in

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excess of two hundred percent (200%) of the amount of bonds which may be issued under this

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act, and provided further that if issuance of any such refunding notes results in any amount of

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such temporary notes outstanding at any one time in excess of the amount of bonds which may be

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

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

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

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

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five. The moneys in the fund and any investments held as a part of the fund shall be held in trust

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

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

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notes, any excess moneys in the fund shall be distributed to the city.

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     SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu

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of any authorization or issue of notes hereunder, the city treasurer, with the approval of the city

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council, may, to the extent that the bonds or notes may be issued hereunder, apply funds in the

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treasury of the city to the purposes specified in section two, such advances to be repaid without

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interest from the proceeds of bonds or notes subsequently issued or from the proceeds of

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applicable federal or state assistance or from other available funds.

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     SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable

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federal or state assistance, pending their expenditure, may be deposited or invested by the city

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treasurer in demand deposits, time deposits or saving deposits in banks which are members of the

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Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States

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of America or by any agency or instrumentality thereof or as may be provided in any other

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applicable law of the state of Rhode Island and by ordinance or resolution of the city.

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     SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder

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shall be applied to the payment of the first interest due thereon. Any premiums arising from the

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sale of bonds or notes hereunder shall, in the discretion of the city director of finance, be applied

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to the cost of preparing, issuing and marketing bonds or notes hereunder to the extent not

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otherwise provided, to the payment of the costs of the projects, to the payment of the principal of

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or interest on bonds or notes issued hereunder or to any one (1) or more of the foregoing. The cost

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of preparing, issuing, and marketing bonds or notes hereunder may also, in the discretion of the

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city director of finance, be met from bond or notes proceeds exclusive of premium and accrued

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interest or from other moneys available therefor. Any balance of bonds or note proceeds

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remaining after payment of the cost of the projects and the cost of preparing, issuing and

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marketing bonds or notes hereunder shall upon receipt be applied to the payment of the principal

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of or interest on bonds or notes issued hereunder. Any earnings or net profit realized from the

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deposit or investment of funds hereunder, shall upon receipt be added to and dealt with as part of

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the revenues of the city from property taxes. In exercising any discretion under this section, the

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city director of finance shall be governed by any instructions adopted by resolution of the city

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council.

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     SECTION 7. All bonds and notes issued under this act and the debts evidences thereby

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shall be obligatory on the city in the same manner and to the same extent as other debts lawfully

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contracted by it and shall be excepted from the operation of section 45-12-2 of the general laws.

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No such obligation shall at any time be included in the debt of the city for the purpose of

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ascertaining its borrowing capacity. The city shall annually appropriate a sum sufficient to pay

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the principal and interest coming due within the year on bonds and notes issued hereunder to the

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extent that moneys therefor are not otherwise provided. If such sum is not appropriated, it shall

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nevertheless be added to the annual tax levy. In order to provide such sum in each year and

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notwithstanding any provision of law to the contrary, all taxable property in the city shall be

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subject to ad valorem taxation by the city without limitation as to rate or amount.

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     SECTION 8. Any bonds or notes issued under the provisions of this act, and coupons, if

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any, on any bonds, if properly executed by officers of the city in office on the date of execution,

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shall be valid and binding according to their terms notwithstanding that before the delivery

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thereof and payment therefor any or all of such officers shall for any reason have ceased to hold

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office.

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     SECTION 9. The city, acting by resolution of its city council, is authorized to apply for,

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contract for and expend any federal or state advances or other grants or assistance which may be

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

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moneys provided in this act. To the extent of any inconsistency between any law of this state and

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any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with

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interest where applicable, whether contracted for, prior to or after the effective date of this act,

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may be repaid as project cost under section two.

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     SECTION 10. Bonds and notes issued under this act and the use of proceeds of such

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bonds and notes shall, unless otherwise specifically excepted under this act, be in accordance with

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title 45, chapter 12 and title 35, chapter 11 of the general laws. Bonds and notes may be issued

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under this act without obtaining the approval of any governmental agency or the taking of any

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proceedings or the happening of any conditions except as specifically required by this act for such

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issue. In carrying out any projects financed in whole or in part under this act, including where

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applicable the condemnation of any land or interest in land, and in levying of assessments or

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other charges permitted by law on account of any such projects, all action shall be taken which is

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necessary to meet constitutional requirements whether or not such action is otherwise required by

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statute; but the validity of bonds and notes issued hereunder shall in no way depend upon the

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validity or occurrence of such action.

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     SECTION 11. The question of the approval of this act shall be submitted to the electors

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of the city at the general election to be held on November 7, 2006 provided, however, if a special

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city-wide election, which is not a primary, is to be held prior to said general election, the City

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Council may by resolution designate such special election as the date the question of approval of

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this act shall be submitted to the electors of the city. The question shall be submitted in

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substantially the following form: "Shall an Act, passed at the 2006 session of the General

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Assembly entitled 'An Act Authorizing the City of Warwick to Issue Bonds and Notes in an

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Amount Not to Exceed $9,000,000 for the Repair and Improvement of City Buildings' be

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approved?" and the warning for the election shall contain the question to be submitted. From the

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time the election is warned and until it is held, it shall be the duty of the city clerk to keep a copy

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of the act available at the city clerk's office for public inspection, but the validity of the election

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shall not be affected by this requirement.

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     SECTION 12. This section and the foregoing section shall take effect upon the passage of

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this act. The remainder of this act shall take effect upon the approval of this act by a majority of

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those voting on the question at the election prescribed by the foregoing section.

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LC03379

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

AUTHORIZING THE CITY OF WARWICK TO ISSUE BONDS AND NOTES IN AN

AMOUNT NOT TO EXCEED $9,000,000 FOR THE REPAIR AND IMPROVEMENT OF

CITY BUILDINGS

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     This Act would authorize the City of Warwick to issue not in excess of $9,000,000 bonds

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and notes for the repair and improvement of city buildings.

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     Sections 11 and 12 of the Act would take effect upon passage. The remainder of the Act

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would take effect upon approval by the electors of the City of the question provided for in Section

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11.

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LC03379

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