act23038

LA 038

2023 -- H 6404
Enacted 06/14/2023

A N A C T

AUTHORIZING THE TOWN OF BARRINGTON TO FINANCE THE ‎CONSTRUCTION, IMPROVEMENT, RENOVATION, ALTERATION, FURNISHING AND ‎EQUIPPING OF PUBLIC ‎SCHOOLS AND SCHOOL FACILITIES IN THE TOWN AND ALL EXPENSES INCIDENT THERETO ‎INCLUDING, BUT ‎NOT LIMITED TO, COSTS OF DESIGN, ‎ATHLETIC ‎FIELDS, PLAYGROUNDS, LANDSCAPING, PARKING AND COSTS OF FINANCING AND TO ISSUE NOT MORE THAN $250,000,000 BONDS AND/OR NOTES THEREFOR, SUBJECT TO APPROVAL OF STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF NOT LESS THAN 35 PERCENT AT THE TIME OF ISSUANCE AND 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: Representatives Knight, and Boylan

Date Introduced: May 12, 2023

It is enacted by the General Assembly as follows:

SECTION 1. The town of Barrington is hereby empowered, in addition to authority

previously granted, to issue bonds (hereinafter “bonds”) up to a principal amount not exceeding

two hundred fifty million dollars ($250,000,000) or such lesser amount as is approved by the voters

of the town pursuant to Sections 14 and 15 hereof, from time to time under its corporate name and

seal or a facsimile of such seal provided; however, that, bonds shall not be issued unless the

conditions of Section 2 hereof as to the level of state aid are met. 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

principal 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; provided however, that, the amount of borrowing

authorized shall not be reduced by the amount of any grant received by the town for any portion of

the project financed by capital reserve funds. Bonds and notes shall not be issued under ‎this act

unless the town has received a letter from RIDE confirming that the then current school housing

aid reimbursement rate under chapter 7 ‎of title 16, as amended from time to time, or financial

assistance from the school building authority capital fund, or pursuant to any other law hereafter

enacted providing for funds to ‎municipalities for school housing purposes, is not less than thirty-

five percent (35%) of debt ‎service for those expenditures which are eligible for state aid.

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

finance director and the president of the town council and shall be issued and sold in such principal

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 proceedings 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. 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

of the general laws and, with respect to notes or bonds issued in connection with such financing

agreements, if any, the town may elect to have the provisions of chapter 38.1 of title 45 of the

general laws apply to the issuance of the bonds or notes issued hereunder to the extent the

provisions of title 45, chapter 38.1 of the general laws 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 finance director, and such proceeds exclusive of premiums and accrued interest, shall be

expended: (1) To finance the ‎construction, improvement, renovation, alteration, furnishing and

‎‎equipping of public ‎schools and school facilities in the town, or such specific schools and school

facilities as are determined pursuant to Sections 14 and 15, and all expenses incident thereto

‎‎including, but ‎not limited to, costs of design, athletic ‎fields, playgrounds, landscaping, parking and

‎costs of financing‎; (2) In payment of the principal of or interest on temporary notes issued under

Section 4; (3) In repayment of advances under Section 4; (4) In payment of related costs of issuance

of any bonds or notes; and/or (5) To finance 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, or the town council

may delegate such authority to the town school 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

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 principal amount of original notes

issued in anticipation of bonds may not exceed the principal 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 manual or facsimile signatures of the town finance

director 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 principal amount of

such temporary notes outstanding at any one time in excess of two hundred percent (200%) of the

principal 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 principal 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 town by the paying agent at the

direction of the town finance director 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 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 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 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 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 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 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 finance director, be met

from bond or note proceeds exclusive of premium and 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 finance

director 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 and any provisions of the

town charter. 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 finance director 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 resolution of the town council after seven (7) years

shall have passed from the approval of this act provided for in Section 15, without further action

by the general assembly.

SECTION 14. It shall be a condition precedent to holding of the referendum described in

Section 15 hereof and the issuance of bonds and notes hereunder that the town council adopt one

or more resolutions which provide for the exact principal amount of bonds and notes to be presented

to the voters, with due regard to any recommendation of the school committee.

SECTION 15. At the general election to be held on November 7, 2023, there shall be

submitted to voters of the town a question or questions in substantially the following form,

providing for the maximum principal amount to be issued (not to exceed $250,000,000 in the

aggregate) and, if the town council so determines, providing for specific schools and school

facilities to be improved:

“Shall the town of Barrington issue general obligation bonds and/or notes in a principal

amount not to exceed $____________ for the purpose of financing the construction, improvement,

renovation, alteration, furnishing and equipping of ____________ public schools and school

facilities in the town and all expenses incident thereto including, but not limited to, costs of design,

athletic fields, playgrounds, landscaping, parking, and costs of financing, subject to approval of

state housing aid at a reimbursement rate or state share ratio of not less than 35% at the time of

issuance and 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?” 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 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 16. This act shall constitute an enabling act of the general assembly that is

required pursuant to § 16-7-44 of the general laws. Bonds or other evidences of indebtedness issued

under this act for school projects shall not be eligible for state aid reimbursement pursuant to § 16-

7-44 of the general laws unless the school projects have been approved by the Rhode Island

department of education.

SECTION 17. This Section 17 and Sections 14 and 15 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 15.

========

LC002993

========