LA 151 |
2018 -- H 8201 Enacted 07/10/2018 |
A N A C T |
AUTHORIZING THE TOWN OF JAMESTOWN TO FINANCE LIBRARY RENOVATIONS, REPAIRS AND/OR EXPANSION AND RELATED EQUIPMENT BY THE ISSUANCE OF NOT MORE THAN $1,000,000 BONDS AND NOTES THEREFOR |
Introduced By: Representative Deborah L. Ruggiero |
Date Introduced: May 16, 2018 |
It is enacted by the General Assembly as follows: |
SECTION 1. The town of Jamestown is hereby empowered, in addition to authority |
previously granted, to issue bonds to an amount not exceeding one million dollars ($1,000,000) |
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 serial |
redemption 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. For each issue the amounts payable annually for principal and interest combined |
either shall be as nearly equal from year to year as is practicable in the opinion of the officers |
authorized to issue the bonds, or shall be arranged in accordance with a schedule providing for a |
more rapid amortization of principal. |
SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the |
finance director of the town and the president of the town council and shall be issued and sold in |
such amounts as the town 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 resolution of the town council authorizing the |
issue or by separate resolution of the town 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 finance director, and such |
proceeds exclusive of premiums and accrued interest shall be expended for: (1) The renovation, |
repair and/or expansion of the Jamestown Philomenian Library included related equipment |
therefor; (2) In payment of the principal of or interest on temporary notes issued under section 3 |
of this act; or (3) In repayment of advances under section 4 of this act. 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 town by the town council, or as may be heretofore or hereafter otherwise directed by |
the town council. The proceeds of bonds or notes issued under this act, any applicable federal or |
state assistance and the other monies referred to in section 6 of this act shall be deemed |
appropriated for the purposes of this act without further action than that required by this act. The |
bond issue authorized by this act may be consolidated for the purposes of issuance and sale with |
any other bond issue of the town 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 forth above. |
SECTION 3. The town council may by resolution authorize the issue from time to time of |
interest bearing or discounted notes in anticipation of the authorization or issue 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 finance director. |
Temporary notes issued hereunder shall be signed by the finance director and by the president of |
the town council 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 issue 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 the interest thereon 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 finance director, with the approval of the |
town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the |
treasury of the town 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 finance |
director, 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. |
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 premiums arising from the |
sale of bonds or notes hereunder and any earnings or net profit realized from the deposit or |
investment of funds hereunder shall, in the discretion of the finance director, 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 cost of the projects or to the cost of additional improvements |
coming within the description of the projects in section 2 of this act, 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 finance director, 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 said additional improvements 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. In exercising any discretion under this section, the finance |
director shall be governed by any instructions adopted by resolution of the town council. The |
finance director is authorized to take any action deemed necessary to ensure that interest on the |
bonds or notes issued hereunder remains excludable from gross income of the recipients thereof |
for federal income tax purposes, including, without limitation, paying to the federal government |
any rebate of earnings derived from the deposit or investment of the proceeds of such bonds or |
notes that may be required therefor; and to comply with the requirements of federal law, |
including without being limited to regulations and other requirements of the Securities and |
Exchange Commission and the Municipal Securities Rulemaking Board, imposed directly on the |
town or on the underwriters of such bonds and notes. |
SECTION 7. All bonds or notes issued under this act and the debts evidenced thereby |
shall be obligatory on the town in the same manner and to the same extent as other debts lawfully |
contracted by it and shall be excepted from the operation of ยง 45-12-2 of the general laws. No |
such obligation shall at any time be included in the debt of the town for the purpose of |
ascertaining its borrowing capacity. The town 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 moneys therefor are not otherwise provided. If such sum is not appropriated, it shall |
nevertheless be added to the annual tax levy. In order to provide such sum in each year and |
notwithstanding any provision of law to the contrary, all taxable property in the town shall be |
subject to ad valorem taxation by the town without limitation as to rate or amount. |
SECTION 8. Any bonds or notes issued under the provisions of this act, if properly |
executed by officers of the town 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 town, acting by resolution of its town 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 other |
moneys 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. Without limiting the |
generality of the foregoing, bonds and notes may be issued under this act without any action at |
the financial town meeting. 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. To the extent of any |
inconsistency between this act and the town charter, this act shall prevail. |
SECTION 11. The question of the approval of this act shall be submitted to the electors |
of the town at the election on November 6, 2018. The question shall be submitted in substantially |
the following form: "Shall an act, passed at the 2018 session of the General Assembly, entitled |
'AN ACT AUTHORIZING THE TOWN OF JAMESTOWN TO FINANCE LIBRARY |
RENOVATIONS, REPAIRS AND/OR EXPANSION AND RELATED EQUIPMENT BY THE |
ISSUANCE OF NOT MORE THAN $1,000,000 BONDS AND NOTES THEREFOR' be |
approved?" and the warning for the election shall contain the question to be submitted. The town |
board of canvassers may combine any two (2) or more voting districts for the election and when |
so combined shall be treated as a voting district. If so combined, the town board of canvassers |
shall advertise the combination of districts in a newspaper of general circulation in the town. |
From the time the election is warned and until it is held, it shall be the duty of the town clerk to |
keep a copy of the act available at the clerk's office for public inspection, but the validity of the |
election shall not be affected by this requirement. |
SECTION 12. This section and section 11 shall take effect upon passage. The remainder |
of this act shall take effect upon the approval of this act by a majority of those voting on the |
question at the election prescribed by section 11. |
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LC005645 |
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