2025 -- H 6077

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LC002245

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

AUTHORIZING THE CITY OF CENTRAL FALLS TO FINANCE THE CONSTRUCTION,

RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND

EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES IN THE CITY BY THE ISSUANCE

OF NOT MORE THAN $15,000,000 BONDS, NOTES AND/OR OTHER EVIDENCES OF

INDEBTEDNESS THEREFOR

     Introduced By: Representatives Giraldo, Voas, Alzate, and Stewart

     Date Introduced: March 12, 2025

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. The city of Central Falls was authorized by the voters of the City to issue not

to exceed twenty-six million forty-nine thousand dollars $26,049,000 bonds and other evidences

of indebtedness (hereinafter "bonds"). Pursuant to that authority, the city of Central Falls is hereby

empowered, in addition to authority previously granted, to issue bonds up to an amount not

exceeding fifteen million dollars ($15,000,000) from time to time under its corporate name and seal

or a facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds or

term bonds or a combination thereof and shall be payable either by maturity of principal in the case

of serial bonds or by mandatory sinking fund installments in the case of term bonds, in annual

installments of principal, the first installment to be not later than five (5) years and the last

installment not later than thirty (30) years after the date of the bonds. All such bonds of a particular

issue may be issued in the form of zero coupon bonds, capital appreciation bonds, serial bonds or

term bonds or a combination thereof. The amount of principal appreciation each year on any bonds,

after the date of original issuance, shall not be considered to be principal indebtedness for the

purposes of any constitutional or statutory debt limit or any other limitation. The appreciation of

principal after the date of original issue shall be considered interest. Only the original principal

amount shall be counted in determining the principal amount so issued and any interest component

shall be disregarded.

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

director of finance and the mayor and shall be issued and sold in such amounts as the city council

may authorize by resolution. The manner of sale, denominations, maturities, interest rates and other

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

proceedings of the city council authorizing the issue or by separate resolution of the city council

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

authorized to sign the bonds. Notwithstanding anything contained in this act to the contrary, the

city may enter into financing agreements with the Rhode Island Health and Educational Building

Corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, with respect to bonds

or notes issued in connection with such financing agreements, if any, the city may elect to have the

provisions of chapter 38.1 of title 45 apply to the issuance of the notes or bonds issued hereunder

to the extent the provisions of chapter 38.1 of title 45 are inconsistent herewith. In addition, the city

may enter into financing agreements with the Rhode Island infrastructure bank pursuant to the

provisions of chapter 12.2 of title 46 and, with respect to notes or bonds issued in connection with

such financing agreements, if any, the city may elect to have the provisions of chapter 12.2 of title

46 apply to the issuance of the bonds or notes issued hereunder to the extent the provisions of

chapter 12.2 of title 46 are inconsistent herewith. Such election may be fixed by the proceedings of

the city council authorizing such issuance by separate resolution of the city council, or, to the extent

provisions for these matters are not so made, they may be fixed by the officers authorized to sign

the bonds or notes. The proceeds derived from the sale of the bonds shall be delivered to the city

director of finance, and such proceeds, exclusive of accrued interest shall be expended: (1) For the

construction, renovation, improvement, alteration, repair, furnishing and equipping of schools and

school facilities in the city and all costs related thereto; (2) In payment of the principal of or interest

on temporary notes issued under section 3; (3) In repayment of advances under section 4; (4) In

payment of related costs of issuance of any bonds or notes; and/or (5) In payment of capitalized

interest during construction. No purchaser of any bonds or notes under this act shall be in any way

responsible for the proper application of the proceeds derived from the sale thereof. The project

shall be carried out and all contracts made therefor on behalf of the city by the city school building

committee. The proceeds of bonds or notes issued under this act, any applicable federal or state

assistance and the other monies referred to in sections 6 and 9 shall be deemed appropriated for the

purposes of this act without further action than that required by this act. The bonds authorized by

this act may be consolidated for the purpose of issuance and sale with any other bonds of the city

heretofore or hereafter authorized; provided that, notwithstanding any such consolidation, the

proceeds from the sale of the bonds authorized by this act shall be expended for the purposes set

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forth above.

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

of interest bearing or discounted notes in anticipation of the issuance of bonds or in anticipation of

the receipt of federal or state aid for the purposes of this act. The amount of original notes issued

in anticipation of bonds may not exceed the amount of bonds which may be issued under this act,

and the amount of original notes issued in anticipation of federal or state aid may not exceed the

amount of available federal or state aid as estimated by the director of finance. Temporary notes

issued hereunder shall be signed by the manual or facsimile signatures of the city director of finance

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

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

time by the issuance of other notes hereunder; provided, the period from the date of an original note

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

five (5) years. Any temporary notes in anticipation of bonds issued under this section may be

refunded prior to the maturity of the notes by the issuance of additional temporary notes; provided

that, no such refunding shall result in any amount of such temporary notes outstanding at any one

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

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

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

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

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

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

paying agent at the direction of the city director of finance in any investment permitted under

section 5. The monies in the fund and any investments held as part of the fund shall be held in trust

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

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

any excess monies in the fund shall be distributed to the city. The city may pay the principal of and

interest on notes in full from other than the issuance of refunding notes prior to the issuance of

bonds pursuant to section 1 hereof. In such case, the city's authority to issue bonds or notes in

anticipation of bonds under this act shall continue; provided that: (1) The city council passes a

resolution evidencing the city's intent to pay off the notes without extinguishing the authority to

issue bonds or notes; and (2) That the period from the date of an original note to the maturity date

of any other note shall not exceed five (5) years.

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

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

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

treasury of the city to the purposes specified in section 2, such advances to be repaid without interest

from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal

or state assistance or from other available funds.

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

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

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

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

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

applicable law of the State of Rhode Island or resolution of the city council or pursuant to an

investment policy of the city.

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

be applied to the payment of the first interest due thereon. Any premium arising from the sale of

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

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

provided, to the payment of the project costs, to the payment of the principal of or interest on bonds

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

and marketing bonds or notes hereunder may also, in the discretion of the city director of finance,

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

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

and the cost of preparing, issuing and marketing bonds or notes hereunder, shall be applied to the

payment of the principal of or interest on bonds or notes issued hereunder. To the extent permitted

by applicable federal laws, any earnings or net profit realized from the deposit or investment of

funds hereunder may, upon receipt, be used to pay additional project costs, pay the principal of or

interest on bonds or notes issued hereunder or added to and dealt with as part of the revenues of the

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

shall be governed by any instructions adopted by resolution of the city council.

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

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

contracted by it and shall be excepted from the operation of § 45-12-2. No such obligation shall at

any time be included in the debt of the city for the purpose of ascertaining its borrowing capacity.

The city shall annually appropriate a sum sufficient to pay the principal and interest coming due

within the year on bonds and notes issued hereunder to the extent that monies therefor are not

otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax

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levy. In order to provide such sum in each year and notwithstanding any provision of law to the

contrary, all taxable property in the city shall be subject to ad valorem taxation by the city without

limitation as to rate or amount.

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

any, if properly executed by officers of the city in office on the date of execution, shall be valid and

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

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

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

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

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

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

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

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

repaid as project costs under section 2.

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

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

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

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

in land, and in the levy and collection of assessments or other charges permitted by law on account

of any such project, all action shall be taken which is necessary to meet constitutional requirements

whether or not such action is otherwise required by statute, but the validity of bonds and notes

issued hereunder shall in no way depend upon the validity or occurrence of such action.

     SECTION 11. The city director of finance and the mayor, on behalf of the city, are hereby

authorized to execute such instruments, documents or other papers as either of them deem necessary

or desirable to carry out the intent of this act and are also authorized to take all actions and execute

all instruments, documents or agreements necessary to comply with federal tax and securities laws,

which instruments, documents or agreements may have a term coextensive with the maturity of the

bonds authorized hereby, including Rule 15c2-12 of the Securities and Exchange Commission (the

"Rule") and to execute and deliver a continuing disclosure agreement or certificate in connection

with the bonds or notes in the form as shall be deemed advisable by such officers in order to comply

with the Rule.

     SECTION 12. All or any portion of the authorized but unissued authority to issue bonds

and notes under this act may be extinguished by resolution of the city council after seven (7) years

shall have passed from the approval of this act described in section 14, without further action by

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the general assembly.

     SECTION 13. This act shall constitute an enabling act of the general assembly that is

required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under

this act for school projects shall not be eligible for state housing aid reimbursement pursuant to §

16-7-44 unless the school projects described herein have been approved by RIDE.

     SECTION 14. The question of approval of the issuance of the bonds was previously

submitted to and approved by the electors of the city at the November 5, 2024 election and

accordingly, this act shall take effect upon the passage.

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EXPLANATION

OF

A N   A C T

AUTHORIZING THE CITY OF CENTRAL FALLS TO FINANCE THE CONSTRUCTION,

RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND

EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES IN THE CITY BY THE ISSUANCE

OF NOT MORE THAN $15,000,000 BONDS, NOTES AND/OR OTHER EVIDENCES OF

INDEBTEDNESS THEREFOR

***

     This act authorizes the city of Central Falls to issue bonds and notes in an amount not

exceeding $15,000,000 to finance the construction, renovation, improvement, alteration, repair

furnishing and equipping of schools and school facilities in the city.

     This act constitutes an enabling act of the general assembly that is required pursuant to §

16-7-44. Any bonds, notes or other evidences of indebtedness issued under this act for school

projects shall not be eligible for state housing aid reimbursement pursuant to § 16-7-44 unless the

school projects described herein have been approved by the Rhode Island department of education.

     As the question of approval of the issuance of the bonds and notes was previously

submitted to and approved by the electors of the city at the November 5, 2024 election this act takes

effect upon passage.

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