act23042

LA 042

2023 -- S 1075
Enacted 06/19/2023

A N A C T

AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN $25,000,000 BONDS AND NOTES TO FINANCE AN INDOOR RECREATION CENTER/EMERGENCY SHELTER

Introduced By: Senators Valverde, and DiMario

Date Introduced: May 25, 2023

It is enacted by the General Assembly as follows:

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

previously granted, to issue bonds to an amount not exceeding twenty-five million dollars

($25,000,000) 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 town

treasurer 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 town treasurer, and such proceeds exclusive of premiums and accrued

interest shall be expended for: (1) Land acquisition, construction and other improvements and/or

related furniture, fixtures and equipment for an indoor recreation center which may also be used as

an emergency shelter and other town functions, and all costs incidental thereto; (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

projects shall be carried out and all contracts made therefor on behalf of the town by the town

council or as may be 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 treasurer. Temporary notes

issued hereunder shall be signed by the treasurer 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. Any

temporary notes in anticipation of bonds issued under this section may be refunded prior to maturity

of the notes by the issuance of additional temporary notes; provided that, no such refunding shall

result in any amount of temporary notes outstanding at any one time in excess of two hundred

percent (200%) of the amount of bonds that may be issued under this act; and provided further that,

if the issuance of any such refunding notes results in excess of the amount of bonds that may be

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

established with the paying agent which is the 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 treasurer in any investment permitted under Section

5. The monies in the fund and any investments held as a 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 and

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

refunded, any excess monies in the fund shall be distributed by the paying agent to the town. The

town may pay the principal of and interest on the notes in full or in part 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 the original note to the maturity 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 treasurer, 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 treasurer, 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 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 treasurer, 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 treasurer, 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 treasurer shall be governed by any instructions

adopted by resolution of the town council. The treasurer is authorized to take any action deemed

by him or her necessary: (1) To assure 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; (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;

and/or (3) If applicable, to comply with the provisions of chapter 12.2 of title 46; including making

all necessary contracts and agreements to issue bonds and/or notes through the Rhode Island

infrastructure bank.

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. 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 2023 session of the General Assembly, entitled 'AN ACT

AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN

$25,000,000 BONDS AND NOTES TO FINANCE AN INDOOR RECREATION CENTER/

EMERGENCY SHELTER' 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.

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LC003093

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