2013 -- S 0991

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LC02746

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

AUTHORIZING THE STONE BRIDGE FIRE DISTRICT TO ISSUE GENERAL

OBLIGATION BONDS AND/OR NOTES IN AN AMOUNT NOT TO EXCEED ONE

MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000) TO FINANCE CAPITAL

IMPROVEMENTS TO ITS WATER SYSTEM

     Introduced By: Senators Felag, DiPalma, and Ottiano

     Date Introduced: June 05, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. The Stone Bridge Fire District is hereby empowered, in addition to

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authority previously granted, to issue bonds to an amount not exceeding one million five hundred

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thousand dollars ($1,500,000) from time to time under its corporate name and seal or a facsimile

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of such seal. The bonds of each issue shall mature in annual installments of principal, the first

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installment to be not later than five (5) years and the last installment not later than forty (40) years

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after the date of the bonds.

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     SECTION 2. The bonds shall be signed by the district treasurer and by the manual or

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facsimile signature of the moderator and shall be issued and sold at not less than par and accrued

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interest in such amounts as the administrative board may authorize. The manner of sale,

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denominations, maturities, annual installments of principal, interest rates and other terms,

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conditions and details of any bonds or notes issued under this act may be fixed by the proceedings

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of the administrative board authorizing the issue or by separate resolution of the administrative

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board or, to the extent provisions for these matters are not so made, they may be fixed by the

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officers authorized to sign the bonds or notes. The provisions of this act shall govern to the extent

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of any inconsistency between this act and any law or charter provision to the contrary. The

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proceeds derived from the sale of the bonds shall be delivered to the district treasurer, and such

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proceeds exclusive of premiums and accrued interest shall be expended: (a) For making capital

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improvements to the water system; or (b) For payment of principal of or interest on temporary

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notes issued under section three; or (c) In repayment of advances under section four. No

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purchaser of any bonds or notes under this act shall be in any way responsible for the proper

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

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under this act and 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 administrative board may by resolution authorize the issue from time to

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

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or in 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 district treasurer.

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Temporary notes issued hereunder shall be signed by the district treasurer and by the moderator

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

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

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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 (5) 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 district treasurer, with the approval of the

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administrative board, may, to the extent that bonds or notes may be issued hereunder, apply funds

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in the treasury of the district to the purposes specified in section two, such advances to be repaid

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without 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 district

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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 shall, in the discretion of the district treasurer, be applied to the

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

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provided, to the payment of the cost of the project, 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 district

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treasurer, be met from bond or note proceeds exclusive of premium and accrued interest or from

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other moneys available therefor. Any balance of bonds or note proceeds remaining after payment

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of the cost of the project and the cost of preparing, issuing and marketing bonds or notes

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

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hereunder. Any earnings or net profit realized from the deposit or investment of funds hereunder

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shall, upon receipt, be added to and dealt with as part of the revenues of the district from property

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taxes or, in the discretion of the district treasurer, shall upon receipt be added to and dealt with as

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part of the revenues of the district from water rates. In exercising any discretion under this

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section, the district treasurer shall be governed by any instructions adopted by resolution of the

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administrative board.

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

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

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lawfully contracted by it and shall be excepted from the operation of Chapter 974 of the Public

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Laws of 1940 to the extent of any inconsistency therein. The district shall annually appropriate a

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sum sufficient to pay the principal and interest coming due within the year on bonds and notes

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issued hereunder to the extent that moneys therefor are not otherwise provided. If such sum is not

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appropriated, it shall nevertheless be added to the annual tax levy and shall not be subject to the

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five mills limitation set forth in section seven of Chapter 974 of the Public Laws of 1940. In order

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to provide such sum in each year and notwithstanding any provision of law to the contrary, all

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taxable property in the district shall be subject to ad valorem taxation by the district without

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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 district 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 district, acting by resolution of its administrative board, is authorized to

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

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

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to other moneys provided in this act. To the extent of any inconsistency between any law of this

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

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advances, with interest where applicable, whether contracted for prior to or after the effective date

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of this act, may be repaid as project costs under section two.

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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.

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     SECTION 11. Notwithstanding the foregoing provisions of this act, no bonds shall be

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issued in excess of amounts approved from time to time by vote of a majority of the electors

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present and voting on the question at an annual or special district meeting. The vote to authorize

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up to one million five hundred thousand dollars ($1,500,000) bonds or notes taken at the 2012

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Annual Meeting on June 12, 2012 is hereby ratified. A vote not to approve an amount of bonds

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hereunder shall not preclude any later vote to approve the same or a different amount.

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     SECTION 12. This act shall take effect upon passage.

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LC02746

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EXPLANATION

OF

A N A C T

AUTHORIZING THE STONE BRIDGE FIRE DISTRICT TO ISSUE GENERAL

OBLIGATION BONDS AND/OR NOTES IN AN AMOUNT NOT TO EXCEED ONE

MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000) TO FINANCE CAPITAL

IMPROVEMENTS TO ITS WATER SYSTEM

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     This act would authorize the Stone Bridge Fire District to finance capital improvements

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to its water system through the issuance of not to exceed one million five hundred thousand

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dollars ($1,500,000) bonds and/or notes.

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     This act would take effect upon passage.

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LC02746

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