2012 -- S 2923

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LC02543

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

AUTHORIZING THE TOWN OF NARRAGANSETT TO FINANCE THE IMPROVEMENT,

REPLACEMENT, CONSTRUCTION, RENOVATION, REPAIR, RECONSTRUCTION

AND/OR RESTORATION OF ROADWAYS, SIDEWALKS AND STORM DRAINS IN THE

TOWN OF NARRAGANSETT AND TO ISSUE NOT MORE THAN $17,000,000 BONDS

AND NOTES THEREFOR

     Introduced By: Senators Sheehan, Sosnowski, and Gallo

     Date Introduced: May 03, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. The Town of Narragansett is hereby empowered, in addition to authority

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previously granted, to issue bonds to an amount not exceeding seventeen million dollars

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($17,000,000) from time to time under its corporate name and seal or a facsimile of such seal.

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The bonds of each issue may be issued in the form of serial bonds or term bonds or a combination

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thereof and shall be payable either by maturity of principal in the case of serial bonds or by

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mandatory serial redemption in the case of term bonds, in annual installments of principal, the

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first installment to be not later than five years and the last installment not later than thirty years

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after the date of the bonds. For each issue the amounts payable annually for principal and interest

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combined either shall be as nearly equal from year to year as is practicable in the opinion of the

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officers authorized to issue the bonds, or shall be arranged in accordance with a schedule

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providing for a more rapid amortization of principal.

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

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treasurer and the president of the Town Council and shall be issued and sold in such amounts as

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the Town Council may authorize by resolution. The manner of sale, denominations, maturities,

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interest rates and other terms, conditions and details of any bonds or notes issued under this act

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may be fixed by the resolution of the Town Council authorizing the issue or by separate

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resolution of the Town Council or, to the extent provisions for these matters are not so made, they

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may be fixed by the officers authorized to sign the bonds or notes. The proceeds derived from the

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

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premiums and accrued interest shall be expended for: (a) the improvement, replacement,

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construction, renovation, repair, reconstruction and/or restoration of roadways, sidewalks and

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storm drains in the Town of Narragansett and all costs incidental thereto; (b) in payment of the

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principal of or interest on temporary notes issued under Section 3 of this act; or (c) in repayment

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of advances under Section 4 of this act. No purchaser of any bonds or notes under this act shall be

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in any way responsible for the proper application of the proceeds derived from the sale thereof.

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The projects shall be carried out and all contracts made therefor on behalf of the Town by the

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Town Council or as may be otherwise directed by the Town Council. The proceeds of bonds or

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notes issued under this act, any applicable federal or state assistance and the other monies referred

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to in Section 6 of this act shall be deemed appropriated for the purposes of this act without further

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action than that required by this act. The bond issue authorized by this act may be consolidated

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for the purposes of issuance and sale with any other bond issue of the town heretofore or hereafter

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authorized, provided that, notwithstanding any such consolidation, the proceeds from the sale of

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the bonds authorized by this act shall be expended for the purposes set forth above.

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     SECTION 3. The Town Council may by resolution authorize the issue from time to time

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of interest bearing or discounted notes in anticipation of the authorization or issue of bonds 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 treasurer.

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Temporary notes issued hereunder shall be signed by the treasurer and by the president of the

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Town Council and shall be payable within five years from their respective dates, but the principal

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of and interest on notes issued for a shorter period may be renewed or paid from time to time by

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the issue of other notes hereunder, provided the period from the date of an original note to the

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maturity of any note issued to renew or pay the same debt or the interest thereon shall not exceed

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five years.

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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 treasurer, with the approval of the Town

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

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treasury of the Town to the purposes specified in section 2, 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

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

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

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States 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.

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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 and any earnings or net profit realized from the deposit or

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investment of funds hereunder shall, in the discretion of the treasurer, be applied to the cost of

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preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise provided,

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to the payment of the cost of the projects or to the cost of additional improvements coming within

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the description of the projects in Section 2 of this act, to the payment of the principal of or interest

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on bonds or notes issued hereunder or to any one or more of the foregoing. The cost of preparing,

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

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met from bond or note proceeds exclusive of accrued interest or from other monies available

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therefor. Any balance of bond or note proceeds remaining after payment of the cost of the

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projects and said additional improvements and the cost of preparing, issuing and marketing bonds

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or notes hereunder shall be applied to the payment of the principal of or interest on bonds or notes

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issued hereunder. In exercising any discretion under this section, the treasurer shall be governed

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by any instructions adopted by resolution of the Town Council. The treasurer is authorized to take

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any action deemed by him or her necessary: (1) to assure that interest on the bonds or notes issued

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hereunder remains excludable from gross income of the recipients thereof for federal income tax

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purposes, including, without limitation, paying to the federal government any rebate of earnings

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derived from the deposit or investment of the proceeds of such bonds or notes that may be

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required therefor; (2) to qualify the bonds under Sections 54AA, 1400U-1, 1400U-2, or 6431 of

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the Internal Revenue Code of 1986, as amended, as Build America Bonds and/or Recovery Zone

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Economic Development Bonds or other similar federal programs; and (3) to comply with the

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requirements of federal law, including without being limited to regulations and other

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requirements of the Securities and Exchange Commission and the Municipal Securities

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Rulemaking Board, imposed directly on the Town or on the underwriters of such bonds and

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notes.

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

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shall be obligatory on the town 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 town for the purpose of

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ascertaining its borrowing capacity. The town 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 town shall be

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

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

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executed by officers of the town in office on the date of execution, shall be valid and binding

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according to their terms notwithstanding that before the delivery thereof and payment therefor

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any or all of such officers shall for any reason have ceased to hold office.

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     SECTION 9. The town, acting by resolution of its Town Council is authorized to apply

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

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be 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 costs under section 2.

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     SECTION 10. Bonds and notes may be issued under this act without obtaining the

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approval of any governmental agency or the taking of any proceedings or the happening of any

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conditions except as specifically required by this act for such issue. In carrying out any project

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financed in whole or in part under this act, including where applicable the condemnation of any

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land or interest in land, and in the levy and collection of assessments or other charges permitted

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by law on account of any such project, all action shall be taken which is necessary to meet

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constitutional requirements whether or not such action is otherwise required by statute; but the

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validity of bonds and notes issued hereunder shall in no way depend upon the validity or

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occurrence of such action. To the extent of any inconsistency between this act and the Town

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Charter, this act shall prevail.

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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 town at an election on a date to be determined by the Town Council which occurs at least

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sixty days after the passage of this act. The question shall be submitted in substantially the

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following form: "Shall an act, passed at the 2012 session of the General Assembly, entitled “ AN

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ACT AUTHORIZING THE TOWN OF NARRAGANSETT TO FINANCE THE

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IMPROVEMENT, REPLACEMENT, CONSTRUCTION, RENOVATION, REPAIR,

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RECONSTRUCTION AND/OR RESTORATION OF ROADWAYS, SIDEWALKS AND

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STORM DRAINS IN THE TOWN OF NARRAGANSETT AND TO ISSUE NOT MORE

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THAN $17,000,000 BONDS AND NOTES THEREFOR” be approved?" and the warning for the

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election shall contain the question to be submitted. The Town Board of Canvassers may combine

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any two or more voting districts for the election and when so combined shall be treated as a

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voting district. If so combined, the Town Board of Canvassers shall advertise the combination of

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districts in a newspaper of general circulation in the Town. From the time the election is warned

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and until it is held, it shall be the duty of the Town Clerk to keep a copy of the act available at his

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or her office for public inspection, but the validity of the election shall not be affected by this

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requirement.

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     SECTION 12. This section and Section 11 shall take effect upon passage. The remainder

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of this act shall take effect upon the approval of this act by a majority of those voting on the

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question at the election prescribed by Section 11.

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LC02543

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EXPLANATION

OF

A N A C T

AUTHORIZING THE TOWN OF NARRAGANSETT TO FINANCE THE IMPROVEMENT,

REPLACEMENT, CONSTRUCTION, RENOVATION, REPAIR, RECONSTRUCTION

AND/OR RESTORATION OF ROADWAYS, SIDEWALKS AND STORM DRAINS IN THE

TOWN OF NARRAGANSETT AND TO ISSUE NOT MORE THAN $17,000,000 BONDS

AND NOTES THEREFOR

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     This act would authorize the town of Narragansett to issue bonds in an amount not to

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exceed $17,000,000 for roadways, sidewalks and storm drains, subject to the approval of the

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town’s voters.

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     This act would take effect upon approval by the town’s voters.

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LC02543

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