act23026

LA 026

2023 -- S 0994
Enacted 06/12/2023

A N A C T

AUTHORIZING THE TOWN OF SOUTH KINGSTOWN TO ISSUE NOT TO EXCEED $125,000,000 GENERAL OBLIGATION BONDS AND NOTES TO FINANCE THE ‎ACQUISITION, ‎CONSTRUCTION, IMPROVEMENT, RENOVATION, FURNISHING AND ‎EQUIPPING OF A NEW ‎HIGH ‎SCHOOL, ATHLETIC FACILITY, AND OTHER SCHOOL FACILITIES IN THE TOWN ‎ AND ALL EXPENSES INCIDENT THERETO, ‎INCLUDING, BUT ‎NOT LIMITED TO, COSTS OF DESIGN, DEMOLITION, ‎ATHLETIC ‎FIELDS, ‎LANDSCAPING AND PARKING AND ALL ATTENDANT EXPENSES, INCLUDING ENGINEERING, ARCHITECTURAL AND OTHER PROJECT-RELATED CONSULTING COSTS, PROVIDED THAT THE AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE ISLAND DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL BUILDING AUTHORITY

Introduced By: Senators Sosnowski, Gu, and Valverde

Date Introduced: May 15, 2023

It is enacted by the General Assembly as follows:

SECTION 1. The town of South Kingstown is hereby empowered, in addition to

authority previously granted, to issue bonds (hereinafter “bonds”) up to an amount not

exceeding one hundred twenty-five million dollars ($125,000,000) 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 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 town may be eligible for school housing aid reimbursement on

debt service pursuant to chapter ‎‎7 of title 16, or for a grant, loan or other financial assistance

from proceeds of bonds issued by the State of Rhode Island (the “State”), ‎from the Rhode

Island department of education (“RIDE”) or from the Rhode Island school building

authority. The amount of borrowing authorized ‎pursuant to this act shall be reduced by the

amount of certain grants actually received by the town from State bond proceeds, from

RIDE or from the Rhode Island school building authority.

SECTION 3. The bonds shall be signed by the manual or facsimile signatures of

the town director of finance 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 resolutions 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. Notwithstanding anything contained in this act to the contrary,

the town 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

town may elect to have the provisions of ‎chapter 38.1 of title 45 apply to the issuance of

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

are inconsistent herewith. In addition, the town 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 bonds or notes issued in connection with such ‎financing agreements,

if any, the town 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

town council authorizing such issuance 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 town director of finance, and such proceeds exclusive of premiums and

accrued interest shall be expended: (1) To finance the ‎acquisition, ‎construction,

improvement, renovation, furnishing and ‎‎equipping of a new ‎high ‎school, athletic facility,

and other school facilities in the town and all ‎expenses incident thereto, ‎including, but ‎not

limited to, costs of ‎design, demolition, ‎athletic ‎fields, ‎landscaping and parking, and all

attendant expenses including, but not limited to, engineering, architectural and other

project-related consulting costs; (2) In payment of the principal of or interest on temporary

notes issued under section 4; (3) In repayment of advances under section 5; (4) In payment

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

interest during construction of the project (the “project”). 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 with due regard to any

recommendation of the school building committee. The town council and the school

building committee and their agents are authorized to enter, without delay and at reasonable

times, any public school buildings and other public school property for the purpose of

accomplishing the project and to do all acts and deeds necessary or convenient in

connection with the project. The proceeds of bonds or notes issued under this act, any

applicable federal or state assistance and the other monies referred to in sections 7 and 10

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 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 4. The town 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 town director of finance and 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 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 trust in a separate fund

established 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 town by the paying agent at the

direction of the town director of finance in any investment permitted under section 6. 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 town. The town 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 town’s

authority to issue bonds or notes in anticipation of bonds under this act shall continue

provided that: (1) The town council passes a resolution evidencing the town’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 5. Pending any authorization or issue of bonds hereunder or pending or

in lieu of any authorization or issue of notes hereunder, the town director of finance, 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 3,

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 6. 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

town 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 town council or pursuant to an investment policy of the town.

SECTION 7. 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 town 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 town 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 added to and dealt with as part of

the revenues of the town from property taxes. In exercising any discretion under this

section, the town director of finance shall be governed by any instructions adopted by

resolution of the town council.

SECTION 8. All bonds and 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 9. Any bonds or notes issued under the provisions of this act, and

coupons, if any, 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 10. 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 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 3.

SECTION 11. 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 12. The town director of finance and the president of the town council,

on behalf of the town, 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 13. All or any portion of the authorized but unissued authority to issue

bonds and notes under this act may be extinguished by ordinance of the town council after

seven (7) years shall have passed from the approval of this act provided for in section 14,

without further action by the general assembly.

SECTION 14. The question of the approval of this act shall be submitted to the

electors of the town at a local election, other than a primary, to be held on November 7,

2023 or on another date determined by resolution of the town council. The question shall

be submitted in substantially the following form: “Shall an act passed at the 2023 session

of the general assembly entitled ‘AN ACT AUTHORIZING THE TOWN OF SOUTH

KINGSTOWN TO ISSUE NOT TO EXCEED $125,000,000 GENERAL OBLIGATION

BONDS AND NOTES TO FINANCE ‎THE ‎ACQUISITION, ‎CONSTRUCTION,

IMPROVEMENT, RENOVATION, ‎FURNISHING AND ‎EQUIPPING OF A NEW

‎HIGH ‎SCHOOL, ATHLETIC ‎FACILITY, AND OTHER SCHOOL FACILITIES IN THE

TOWN ‎ AND ALL ‎EXPENSES INCIDENT THERETO, ‎INCLUDING, BUT ‎NOT

LIMITED TO, COSTS OF ‎DESIGN, DEMOLITION, ‎ATHLETIC ‎FIELDS,

‎LANDSCAPING AND PARKING ‎AND ALL ATTENDANT EXPENSES, INCLUDING

ENGINEERING, ‎ARCHITECTURAL AND OTHER PROJECT-RELATED

CONSULTING COSTS, ‎PROVIDED THAT THE AUTHORIZATION SHALL BE

REDUCED BY THE ‎AMOUNT OF CERTAIN GRANTS RECEIVED FROM STATE

BOND PROCEEDS, ‎FROM THE RHODE ISLAND DEPARTMENT OF EDUCATION

OR FROM THE ‎RHODE ISLAND SCHOOL BUILDING AUTHORITY’ be approved?”

and the warning for the election shall contain the question to be submitted. 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 this act available at the clerk’s office for public inspection, but the validity of the

election shall not be affected by this requirement. To the extent of any inconsistency

between this act and the town charter, this act shall prevail.

SECTION 15. This section and section 14 shall take effect upon the passage of this

act. 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 14.

========

LC002749

========