LA 052

2020 -- S 2856 Enacted 06/27/2020

A N   A C T

AUTHORIZING THE TOWN OF JAMESTOWN TO FINANCE LIBRARY RENOVATIONS, REPAIRS AND/OR EXPANSION AND/OR RELATED EQUIPMENT BY THE ISSUANCE OF NOT MORE THAN $1,500,000 BONDS AND NOTES THEREFOR

Introduced By: Senator Dawn M. Euer

Date Introduced: June 10, 2020

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 five hundred thousand

dollars ($1,500,000) 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 by him or her 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, (1) 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 (2) 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 § 45-12-2. 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 monies 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 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. 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 an election on a date to be determined by the town council which occurs at least sixty

(60) days after the passage of this act. The question shall be submitted in substantially the following

form: "Shall an act, passed at the 2020 session of the general assembly, entitled ‘AN ACT

AUTHORIZING THE TOWN OF JAMESTOWN TO FINANCE LIBRARY RENOVATIONS,

REPAIRS AND/OR EXPANSION AND/OR RELATED EQUIPMENT BY THE ISSUANCE OF

NOT MORE THAN $1,500,000 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 his or her 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.

========

LC005389

========