2024 -- S 3097 | |
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LC006160 | |
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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 NORTH KINGSTOWN TO ISSUE NOT MORE THAN | |
$137,200,000 OF BONDS AND NOTES FOR CONSTRUCTION, IMPROVEMENT, | |
RENOVATION, DEMOLITION, REMEDIATION, FURNISHING, EQUIPPING AND OTHER | |
CAPITAL IMPROVEMENTS OF SCHOOL FACILITIES THROUGHOUT THE TOWN, | |
INCLUDING BUT NOT LIMITED TO A NEW WICKFORD MIDDLE SCHOOL | |
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Introduced By: Senators Valverde, and DiMario | |
Date Introduced: May 29, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The town of North Kingstown is hereby empowered, in addition to authority |
2 | previously granted, to issue bonds to an amount not exceeding One Hundred Thirty-Seven Million |
3 | Two Hundred Thousand Dollars ($137,200,000) from time to time under its corporate name and |
4 | seal or a facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds |
5 | or term bonds or a combination thereof and shall be payable either by maturity of principal in the |
6 | case of serial bonds or by mandatory serial redemption in the case of term bonds, in annual |
7 | installments of principal, the first installment to be not later than five years and the last installment |
8 | not later than thirty years after the date of the bonds. |
9 | SECTION 2. This act shall constitute an enabling act of the general assembly that is |
10 | required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under |
11 | this act for school projects shall not be eligible for state housing aid reimbursement pursuant to § |
12 | 16-7-44 unless the school projects described herein shall have been approved by the Rhode Island |
13 | department of education. Notwithstanding any other provision of the general laws governing school |
14 | housing aid reimbursement rates or share ratios or any school-related regulations, for any project |
15 | financed with proceeds of bonds issued pursuant to this act, the school housing aid ratio for such |
16 | project shall be increased by the percentages provided in § 16-7-40 as it may be amended from time |
17 | to time, so long as the construction of the project commences by December 30, 2024 and is |
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1 | completed by December 30, 2029, or such later dates as set forth in § 16-7-40, as amended from |
2 | time to time. |
3 | SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town |
4 | treasurer and the president of the Town Council and shall be issued and sold in such amounts as |
5 | the Town Council may authorize by resolution, which resolution may authorize any and all actions |
6 | to be taken under this act by the president of the Town Council to be taken by the president pro tem |
7 | of the Town Council or other member of the Town Council. The manner of sale, denominations, |
8 | maturities, interest rates and other terms, conditions and details of any bonds or notes issued under |
9 | this act may be fixed by the resolution of the Town Council authorizing the issue or by separate |
10 | resolution of the Town Council or, to the extent provisions for these matters are not so made, they |
11 | may be fixed by the officers authorized to sign the bonds or notes. Notwithstanding anything |
12 | contained in this act to the contrary, the town may enter into financing agreements with the Rhode |
13 | Island health and educational building corporation pursuant to chapter 7 of title 16 and chapter 38.1 |
14 | of title 45 and, with respect to bonds or notes issued in connection with such financing agreements, |
15 | if any, the town acting by said officers may elect to have the provisions of chapter 38.1 of title 45 |
16 | apply to the issuance of bonds or notes issued hereunder to the extent the provisions of said chapter |
17 | are inconsistent herewith. In addition, the town may enter into financing agreements with the Rhode |
18 | Island infrastructure bank pursuant to the provision of chapter 12.2 of title 46 and, with respect to |
19 | bonds or notes issued in connection with such financing agreements, if any, the town acting by said |
20 | officers may elect to have the provisions of chapter 12.2 of title 46 apply to the issuance of bonds |
21 | or notes issued hereunder to the extent the provisions of said chapter are inconsistent herewith. |
22 | SECTION 4. The proceeds derived from the sale of the bonds shall be delivered to the |
23 | treasurer, and such proceeds exclusive of premiums and accrued interest shall be expended (a) for |
24 | construction, improvement, renovation, demolition, remediation, furnishing, equipping and other |
25 | capital improvements of school facilities throughout the Town, including but not limited to a new |
26 | Wickford Middle School and all expenses incidental thereto, (collectively, the “projects”), (b) in |
27 | payment of the principal of or interest on temporary notes issued under section 5 of this act or (c) |
28 | in repayment of advances under section 6 of this act. No purchaser of any bonds or notes under this |
29 | act shall be in any way responsible for the proper application of the proceeds derived from the sale |
30 | thereof. The projects shall be carried out and all contracts made therefor on behalf of the Town by |
31 | the Town Council or as may be otherwise directed by the Town Council. The proceeds of bonds or |
32 | notes issued under this act, any applicable federal or state assistance and the other monies referred |
33 | to in Sections 8 and 11 of this act shall be deemed appropriated for the purposes of this act without |
34 | further action than that required by this act. The bond issue, and any issue of notes, authorized by |
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1 | this act may be consolidated for the purposes of issuance and sale with any other bond and/or note |
2 | issue of the town heretofore or hereafter authorized, provided that, notwithstanding any such |
3 | consolidation, the proceeds from the sale of the bonds and notes authorized by this act shall be |
4 | expended for the purposes set forth above. |
5 | SECTION 5. The Town Council may by resolution authorize the issue from time to time |
6 | of interest bearing or discounted notes in anticipation of the authorization or issue of bonds or in |
7 | anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original |
8 | notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued |
9 | under this act and the amount of original notes issued in anticipation of federal or state aid may not |
10 | exceed the amount of available federal or state aid as estimated by the treasurer. Temporary notes |
11 | issued hereunder shall be signed by the treasurer and by the president of the Town Council and |
12 | shall be payable within five years from their respective dates, but the principal of and interest on |
13 | notes issued for a shorter period may be renewed or paid from time to time by the issue of other |
14 | notes hereunder, provided the period from the date of an original note to the maturity of any note |
15 | issued to renew or pay the same debt or the interest thereon shall not exceed five years. Any |
16 | temporary notes in anticipation of bonds issued under this section may be refunded prior to maturity |
17 | of the notes by the issuance of additional temporary notes; provided that no such refunding shall |
18 | result in any amount of temporary notes outstanding at any one time in excess of two hundred |
19 | percent (200%) of the amount of bonds that may be issued under this act; and provided further that, |
20 | if the issuance of any such refunding notes results in excess of the amount of bonds that may be |
21 | issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund |
22 | established with the paying agent which is the paying agent for the notes being refunded. Pending |
23 | their use to pay the notes being refunded, monies in the fund shall be invested for the benefit of the |
24 | town by the paying agent at the direction of the treasurer in any investment permitted under section |
25 | 7. The monies in the fund and any investments held as a part of the fund shall be held in trust and |
26 | shall be applied by the paying agent solely to the payment or prepayment of the principal and |
27 | interest on the notes being refunded. Upon payment of all principal and interest on the notes being |
28 | refunded, any excess monies in the fund shall be distributed by the paying agent to the town. The |
29 | town may pay the principal of and interest on the notes in full or in part from other than the issuance |
30 | of refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such case the |
31 | town’s authority to issue bonds or notes in anticipation of bonds under this act shall continue: |
32 | provided that (1) the town council passes a resolution evidencing the town’s intent to pay off the |
33 | notes without extinguishing the authority to issue bonds or notes; and (2) that the period from the |
34 | date of the original note to the maturity of any other note shall not exceed five (5) years. |
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1 | SECTION 6. Pending any authorization or issue of bonds hereunder or pending or in lieu |
2 | of any authorization or issue of notes hereunder, the treasurer, with the approval of the Town |
3 | Council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the treasury |
4 | of the Town to the purposes specified in Section 4, such advances to be repaid without interest from |
5 | the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal or |
6 | state assistance or from other available funds. |
7 | SECTION 7. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
8 | or state assistance, pending their expenditure may be deposited or invested by the treasurer, in |
9 | demand deposits, time deposits or savings deposits in banks which are members of the Federal |
10 | Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of |
11 | America or by any agency or instrumentality thereof or as may be provided in any other applicable |
12 | law of the State of Rhode Island or resolution of the town council or pursuant to an investment |
13 | policy of the town. |
14 | SECTION 8. Any accrued interest received upon the sale of bonds or notes hereunder shall |
15 | be applied to the payment of the first interest due thereon. Any premiums arising from the sale of |
16 | bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of |
17 | funds hereunder shall, in the discretion of the treasurer, be applied (1) to the cost of preparing, |
18 | issuing and marketing bonds or notes hereunder to the extent not otherwise provided, (2) to the cost |
19 | of capitalized interest on temporary notes issued under Section 5 of this act not otherwise provided, |
20 | (3) to the payment of the cost of the projects for which such bonds were issued or to the cost of |
21 | additional improvements coming within the description of the projects in Section 4 of this act for |
22 | which such bonds were issued, and/or (4) to the payment of the principal of or interest on bonds or |
23 | notes issued hereunder; or to any one or more of the foregoing. The cost of preparing, issuing and |
24 | marketing bonds or notes hereunder may also, in the discretion of the treasurer, be met from bond |
25 | or note proceeds exclusive of accrued interest or from other monies available therefor. Any balance |
26 | of bond or note proceeds remaining after payment of the cost of the projects and said additional |
27 | improvements and the cost of preparing, issuing and marketing bonds or notes hereunder shall be |
28 | applied to the payment of the principal of or interest on bonds or notes issued hereunder. To the |
29 | extent permitted by applicable federal laws, any earnings or net profit realized from the deposit or |
30 | investment of fund hereunder may, upon receipt, be added to and dealt with as part of the revenues |
31 | of the town from property taxes. In exercising any discretion under this Section, the treasurer shall |
32 | be governed by any instructions adopted by resolution of the Town Council. The treasurer is |
33 | authorized to take any action deemed by him or her necessary (1) to assure that interest on the |
34 | bonds or notes issued hereunder remains excludable from gross income of the recipients thereof for |
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1 | federal income tax purposes, including, without limitation, paying to the federal government any |
2 | rebate of earnings derived from the deposit or investment of the proceeds of such bonds or notes |
3 | that may be required therefor, (2) to comply with the requirements of federal law, including without |
4 | being limited to regulations and other requirements of the Securities and Exchange Commission |
5 | and the Municipal Securities Rulemaking Board, imposed directly on the Town or on the |
6 | underwriters of such bonds and notes and/or (3) to comply with the provisions of §§ 16-7-35 to 16- |
7 | 7-47 of the Rhode Island General Laws, 1956,as amended; including making all necessary contracts |
8 | and agreements to issue said bonds and/or notes through the Rhode Island Health and Educational |
9 | Building Corporation. |
10 | SECTION 9. All bonds or notes issued under this act and the debts evidenced thereby shall |
11 | be obligatory on the town in the same manner and to the same extent as other debts lawfully |
12 | contracted by it and shall be excepted from the operation of Section 45 12 2 of the General Laws. |
13 | No such obligation shall at any time be included in the debt of the town for the purpose of |
14 | ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay |
15 | the principal and interest coming due within the year on bonds and notes issued hereunder to the |
16 | extent that moneys therefor are not otherwise provided. If such sum is not appropriated, it shall |
17 | nevertheless be added to the annual tax levy. In order to provide such sum in each year and |
18 | notwithstanding any provision of law to the contrary, all taxable property in the town shall be |
19 | subject to ad valorem taxation by the town without limitation as to rate or amount. |
20 | SECTION 10. Any bonds or notes issued under the provisions of this act, if properly |
21 | executed by officers of the town in office on the date of execution, shall be valid and binding |
22 | according to their terms notwithstanding that before the delivery thereof and payment therefor any |
23 | or all of such officers shall for any reason have ceased to hold office. |
24 | SECTION 11. The town, acting by resolution of its Town Council is authorized to apply |
25 | for, contract for and expend any federal or state advances or other grants or assistance which may |
26 | be available for the purposes of this act, and any such expenditures may be in addition to other |
27 | moneys provided in this act. To the extent of any inconsistency between any law of this state and |
28 | any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with |
29 | interest where applicable, whether contracted for prior to or after the effective date of this act, may |
30 | be repaid as project costs under Section 4. |
31 | SECTION 12. Bonds and notes may be issued under this act without obtaining the approval |
32 | of any governmental agency or the taking of any proceedings or the happening of any conditions |
33 | except as specifically required by this act for such issue. In carrying out any project financed in |
34 | whole or in part under this act, including where applicable the condemnation of any land or interest |
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1 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
2 | of any such project, all action shall be taken which is necessary to meet constitutional requirements |
3 | whether or not such action is otherwise required by statute; but the validity of bonds and notes |
4 | issued hereunder shall in no way depend upon the validity or occurrence of such action. To the |
5 | extent of any inconsistency between this act and the Town Charter, this act shall prevail. |
6 | SECTION 13. All of any portion of the authority to issue bonds and notes under this act |
7 | may be extinguished by resolution of the town council, without further action by the general |
8 | assembly seven (7) years after the effective date of this act. |
9 | SECTION 14. The question of the approval of this act shall be submitted to the electors of |
10 | the town at an election on a date to be determined by the Town Council which occurs at least sixty |
11 | days after the passage of this act. The question shall be submitted in substantially the following |
12 | form: The question shall be submitted in substantially the following form: "Shall an act, passed at |
13 | the 2024 session of the General Assembly, entitled ‘AN ACT AUTHORIZING THE TOWN OF |
14 | NORTH KINGSTOWN TO ISSUE NOT MORE THAN $137,200,000 BONDS AND NOTES |
15 | FOR CONSTRUCTION, IMPROVEMENT, RENOVATION, DEMOLITION, REMEDIATION, |
16 | FURNISHING, EQUIPPING AND OTHER CAPITAL IMPROVEMENTS OF SCHOOL |
17 | FACILITIES THROUGHOUT THE TOWN, INCLUDING BUT NOT LIMITED TO A NEW |
18 | WICKFORD MIDDLE SCHOOL’ be approved?" and the warning for the election shall contain |
19 | the question to be submitted. The Town Board of Canvassers may combine any two or more voting |
20 | districts for the election and when so combined shall be treated as a voting district. If so combined, |
21 | the Town Board of Canvassers shall advertise the combination of districts in a newspaper of general |
22 | circulation in the Town. From the time the election is warned and until it is held, it shall be the duty |
23 | of the Town Clerk to keep a copy of the act available at his or her office for public inspection, but |
24 | the validity of the election shall not be affected by this requirement. |
25 | SECTION 15. This Section and Section 14 shall take effect upon passage. The remainder |
26 | of this act shall take effect upon the approval of this act by a majority of those voting on the question |
27 | at the election prescribed by Section 14. |
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EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN | |
$137,200,000 OF BONDS AND NOTES FOR CONSTRUCTION, IMPROVEMENT, | |
RENOVATION, DEMOLITION, REMEDIATION, FURNISHING, EQUIPPING AND OTHER | |
CAPITAL IMPROVEMENTS OF SCHOOL FACILITIES THROUGHOUT THE TOWN, | |
INCLUDING BUT NOT LIMITED TO A NEW WICKFORD MIDDLE SCHOOL | |
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1 | This act would authorize the town of North Kingstown to issue not more than $137,200,000 |
2 | bonds and notes for construction, improvement, renovation, demolition, remediation, furnishing |
3 | and equipping and other capital improvements of school facilities throughout the town, including |
4 | a new Wickford middle school in the town. |
5 | Sections 14 and 15 of this act would take effect upon passage. The remainder of the act |
6 | would take effect upon approval by the electors of the town of the question provided for in section |
7 | 14. |
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