2024 -- S 3029 | |
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LC006000 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
AUTHORIZING THE TOWN OF JOHNSTON TO ISSUE NOT TO EXCEED $40,000,000 | |
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF | |
INDEBTEDNESS TO FINANCE CONSTRUCTION, ADDITIONS, RENOVATION, | |
IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF | |
STORMWATER MANAGEMENT AND SEWER FACILITIES THROUGHOUT THE TOWN | |
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Introduced By: Senator Frank A. Ciccone | |
Date Introduced: May 02, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The town of Johnston is hereby empowered, in addition to authority |
2 | previously granted, to issue bonds in an amount not exceeding forty million dollars ($40,000,000) |
3 | from time to time under its corporate name and seal. The bonds of each issue may be issued in the |
4 | form of zero coupon bonds, capital appreciation bonds, serial bonds or term bonds or a combination |
5 | thereof and shall be payable either by maturity of principal in the case of serial bonds or by |
6 | mandatory serial redemption in the case of term bonds, in installments of principal, the first |
7 | installment to be not later than five (5) years and the last installment not later than thirty (30) years |
8 | after the date the bonds are issued. |
9 | SECTION 2. The bonds shall be signed by the mayor and the director of finance and shall |
10 | be issued and sold in such amounts as the town council may authorize. The manner of sale, |
11 | denominations, maturities, interest rates and other terms, conditions and details of any bonds or |
12 | notes issued under this act may be fixed by the officers authorized to sign the bonds or notes. |
13 | Notwithstanding anything contained in this act to the contrary, the town may enter into financing |
14 | agreements with the Rhode Island infrastructure bank pursuant to the provisions of chapter 12.2 of |
15 | title 46 and, with respect to bonds or notes issued in connection with such financing agreements, if |
16 | any, the town may elect to have the provisions of chapter 12.2 of title 46 apply to the issuance of |
17 | the bonds or notes issued hereunder to the extent the provisions of chapter 12.2 of title 46 are |
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1 | inconsistent herewith. Such election may be fixed by the officers authorized to sign the bonds or |
2 | notes. The proceeds derived from the sale of the bonds shall be delivered to the director of finance, |
3 | and such proceeds exclusive of premiums and accrued interest shall be expended: (1) For the |
4 | construction, additions, renovation, improvement, alteration, repair furnishing and equipping of |
5 | stormwater management and sewer facilities in the town and all costs related thereto, including, |
6 | but not limited to, the costs of land acquisition; (2) For payment of the principal or interest on |
7 | temporary notes issued under Section 3; (3) For payment of capitalized interest on bonds or notes; |
8 | (4) For repayment of advances under Section 4; or (5) For payment of related costs of issuance of |
9 | any bonds or notes. No purchaser of any bonds or notes under this act shall be in any way |
10 | responsible for the proper application of the proceeds derived from the sales thereof. The project |
11 | shall be carried out and all contracts made therefor on behalf of the town by the mayor. The |
12 | proceeds of bonds or notes issued under this act, any applicable federal or state assistance and other |
13 | monies referred to in Sections 6 and 9 shall be deemed appropriated for the purposes of this act |
14 | without further action than that required by this act. The bond issue authorized by this act may be |
15 | consolidated for the purposes of issuance and sale with any other bond issue of the town heretofore |
16 | or hereafter authorized; provided that, notwithstanding any such consolidation, the proceeds from |
17 | the sale of the bonds authorized by this act shall be expended for the purposes set forth above. |
18 | SECTION 3. The town council may by resolution or ordinance authorize the issue from |
19 | time to time of interest bearing or discounted notes in anticipation of the issue of bonds or in |
20 | anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original |
21 | notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued |
22 | under this act (without any reduction for any grant received), and the amount of original notes |
23 | issued in anticipation of federal or state aid may not exceed the amount of available federal or state |
24 | aid as estimated by the director of finance. Temporary notes issued hereunder shall be signed by |
25 | the manual or facsimile signatures of the director of finance and the mayor and shall be payable |
26 | within five (5) years from their respective dates, but the principal of and interest on notes issued |
27 | for a shorter period may be renewed or paid from time to time by the issuance of other notes |
28 | thereunder; provided the period from the date of an original note to the maturity or any note issued |
29 | to renew or pay the same debt or the interest thereon shall not exceed five (5) years. Any temporary |
30 | notes in anticipation of bonds issued under this section may be refunded prior to the maturity of the |
31 | notes by the issuance of additional temporary notes; provided that, no such refunding shall result |
32 | in any amount of such temporary notes outstanding at any one time in excess of two hundred |
33 | percent (200%) of the amount of bonds which may be issued under this act; and provided, further, |
34 | that if the issuance of any such refunding notes results in any amount of such temporary notes |
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1 | outstanding at any one time in excess of the amount of bonds which may be issued under this act, |
2 | the proceeds of such refunding notes shall be deposited in a separate fund established with the bank |
3 | which is paying agent for the notes being refunded. Pending their use to pay the notes being |
4 | refunded, monies in the fund shall be invested for the benefit of the town by the paying agent at the |
5 | direction of the director of finance in any investment permitted under Section 4. The monies in the |
6 | fund and any investments held as a part of the fund shall be held in trust and shall be applied by the |
7 | paying agent solely to the payment or prepayment of the principal of and interest on the notes being |
8 | refunded. Upon payment of all principal of and interest on the notes, any excess monies in the fund |
9 | shall be distributed to the town. The town may pay the principal of and interest on notes in full |
10 | from other than the issuance of refunding notes prior to the issuance of bonds pursuant to Section |
11 | 1 hereof. In such case, the town’s authority to issue bonds or notes in anticipation of bonds under |
12 | this act shall continue; provided that: (1) The town council passes a resolution or ordinance |
13 | evidencing the town’s intent to pay off the notes without extinguishing the authority to issue bonds |
14 | or notes; and (2) That the period from the date of an original note to the maturity date of any other |
15 | note shall not exceed five (5) years. |
16 | SECTION 4. Pending any authorization or issuance of bonds hereunder or pending or in |
17 | lieu of any authorization or issuance of notes hereunder, the director of finance, may, to the extent |
18 | that bonds or notes may be issued hereunder, apply funds in the treasury of the town to the purposes |
19 | specified in Section 1, such advances to be repaid without interest from the proceeds of bonds or |
20 | notes subsequently issued or from the proceeds of applicable federal or state assistance or from |
21 | other available funds. |
22 | SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
23 | or state assistance, pending their expenditure, may be deposited or invested by the director of |
24 | finance in demand deposits, time deposits or savings deposits in banks which are members of the |
25 | Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States |
26 | of America or by any agency or instrumentality thereof or as may be provided in any other |
27 | applicable law of the State of Rhode Island or resolution of the town council or pursuant to an |
28 | investment policy of the town. |
29 | SECTION 6. Any accrued interest received upon the sale of bonds or notes issued |
30 | hereunder shall be applied to the payment of the first interest due thereon. Any premiums arising |
31 | from the sale of bonds or notes issued hereunder and any earnings or net profit realized from the |
32 | deposit or investment of funds hereunder shall, in the discretion of the director of finance, be |
33 | applied to the cost of preparing, issuing, and marketing bonds or notes hereunder to the extent not |
34 | otherwise provided, to the payment of the cost of the project, to the payment of the principal of or |
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1 | interest on bonds or notes issued hereunder or to any one or more of the foregoing. The cost of |
2 | preparing, issuing and marketing bonds or notes hereunder may also, in the discretion of the director |
3 | of finance, be met from bond or note proceeds exclusive of accrued interest or from other monies |
4 | available therefor. Any balance of bond or note proceeds remaining after payment of the cost of |
5 | the projects and the cost of preparing, issuing and marketing bonds or notes hereunder shall be |
6 | applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the |
7 | extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or |
8 | investment of funds hereunder may, upon receipt, be added to and dealt with as part of the revenues |
9 | of the town from property taxes. In exercising any discretion under this section, the director of |
10 | finance shall be governed by the town’s financial policies or any instructions adopted by resolution |
11 | of the town council. |
12 | SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby |
13 | shall be obligatory on the town in the same manner and to the same extent as other debts lawfully |
14 | contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at |
15 | any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. |
16 | The town shall annually appropriate a sum sufficient to pay the principal and interest coming due |
17 | within the year on bonds and notes issued hereunder to the extent that monies therefor are not |
18 | otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax |
19 | levy. In order to provide such sum in each year and notwithstanding any provision of law to the |
20 | contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without |
21 | limitation as to rate or amount. |
22 | SECTION 8. Any bonds or notes issued under the provisions of this act, if properly |
23 | executed by officers of the town in office on the date of execution, shall be valid and binding |
24 | according to their terms notwithstanding that before the delivery thereof and payment therefor any |
25 | or all of such officers shall for any reason have ceased to hold office. |
26 | SECTION 9. The town is authorized to apply for, contract for and expend any federal or |
27 | state advances or other grants or assistance which may be available for the purposes of this act, and |
28 | any such expenditures may be in addition to other monies provided in this act. To the extent of any |
29 | inconsistency between any law of this state and any applicable federal law or regulation, the latter |
30 | shall prevail. Federal and state advances, with interest where applicable, whether contracted for |
31 | prior to or after the effective date of this act, may be repaid as project costs under Section 2. |
32 | SECTION 10. Bonds and notes may be issued under this act without obtaining the approval |
33 | of any governmental agency or the taking of any proceedings or the happening of any conditions |
34 | except as specifically required by this act for such issue. In carrying out any project financed in |
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1 | whole or in part under this act, including where applicable the condemnation of any land or interest |
2 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
3 | of any such project, all action shall be taken which is necessary to meet constitutional requirements |
4 | whether or not such action is otherwise required by statute; but the validity of bonds and notes |
5 | issued hereunder shall in no way depend upon the validity or occurrence of such action. |
6 | SECTION 11. All or any portion of the authority to issue bonds and notes under this act |
7 | may be extinguished by resolution or ordinance of the town council, without further action by the |
8 | general assembly within seven (7) years after the effective date of this act. |
9 | SECTION 12. The director of finance and the mayor, on behalf of the town, are hereby |
10 | authorized to execute such documents or other papers as either of them deem necessary or desirable |
11 | to carry out the intent of this act and are also authorized to take all actions and execute all documents |
12 | or agreements necessary to comply with federal tax and securities laws, which documents or |
13 | agreements may have a term coextensive with the maturity of the bonds authorized hereby, |
14 | including Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) and to execute |
15 | and deliver a continuing disclosure agreement or certificate in connection with the bonds or notes |
16 | in the form as shall be deemed advisable by such officers in order to comply with the Rule. |
17 | SECTION 13. The question of the approval of this act shall be submitted to the electors of |
18 | the town at a special election (other than a primary), on a date as shall be designated by the town |
19 | council. The question shall be submitted in substantially the following form: “Shall an Act, passed |
20 | at the 2024 session of the General Assembly, entitled, ‘AN ACT AUTHORIZING THE TOWN |
21 | OF JOHNSTON TO ISSUE NOT TO EXCEED $40,000,000 GENERAL OBLIGATION BONDS, |
22 | NOTES AND OTHER EVIDENCES OF INDEBTEDNESS TO FINANCE CONSTRUCTION, |
23 | ADDITIONS, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING |
24 | AND EQUIPPING OF STORMWATER MANAGEMENT AND SEWER FACILITIES |
25 | THROUGHOUT THE TOWN’ be approved?” and the warning for the election shall contain the |
26 | question to be submitted. From the time the election is warned and until it is held, it shall be the |
27 | duty of the town clerk to keep a copy of the act available at his or her office for public inspection, |
28 | but the validity of the election shall not be affected by this requirement. |
29 | SECTION 14. This section and the foregoing section shall take effect upon the passage of |
30 | this act. The remainder of this act shall take effect upon the approval of this act by a majority of |
31 | those voting on the question at the election prescribed by the foregoing section. |
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LC006000 | |
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EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE TOWN OF JOHNSTON TO ISSUE NOT TO EXCEED $40,000,000 | |
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF | |
INDEBTEDNESS TO FINANCE CONSTRUCTION, ADDITIONS, RENOVATION, | |
IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF | |
STORMWATER MANAGEMENT AND SEWER FACILITIES THROUGHOUT THE TOWN | |
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1 | This act authorizes the town of Johnston to issue bonds and notes in an amount not |
2 | exceeding $40,000,000 to finance construction, additions, renovation, improvement, alteration, |
3 | repair, furnishing and equipping of stormwater management and sewer facilities throughout the |
4 | town. |
5 | This act shall constitute an enabling act of the general assembly that is required pursuant |
6 | to § 45-12-19. |
7 | Sections 13 and 14 of this act would take effect upon passage. The remainder of the act |
8 | would take effect upon approval of the question provided for in Section 13. |
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LC006000 | |
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