2023 -- H 6427
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LC003011
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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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 SHE LTER
Introduced By: Representatives Casimiro, and Craven
Date Introduced: May 19, 2023
Referred To: House Municipal Government & Housing
It is enacted by the General Assembly as follows:
SECTION 1. The town of North Kingstown is hereby empowered, in addition to authority 1
previously granted, to issue bonds to an amount not exceeding twenty-five million dollars 2
($25,000,000) from time to time under its corporate name and seal or a facsimile of such seal. The 3
bonds of each issue may be issued in the form of serial bonds or term bonds or a combination 4
thereof and shall be payable either by maturity of principal in the case of serial bonds or by 5
mandatory serial redemption in the case of term bonds, in annual installments of principal, the first 6
installment to be not later than five (5) years and the last installment not later than thirty (30) years 7
after the date of the bonds. For each issue the amounts payable annually for principal and interest 8
combined either shall be as nearly equal from year to year as is practicable in the opinion of the 9
officers authorized to issue the bonds, or shall be arranged in accordance with a schedule providing 10
for a more rapid amortization of principal. 11
SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the town 12
treasurer and the president of the town council and shall be issued and sold in such amounts as the 13
town council may authorize by resolution. The manner of sale, denominations, maturities, interest 14
rates and other terms, conditions and details of any bonds or notes issued under this act may be 15
fixed by the resolution of the town council authorizing the issue or by separate resolution of the 16
town council or, to the extent provisions for these matters are not so made, they may be fixed by 17
the officers authorized to sign the bonds or notes. The proceeds derived from the sale of the bonds 18
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shall be delivered to the town treasurer, and such proceeds exclusive of premiums and accrued 1
interest shall be expended for: (1) Land acquisition, construction and other improvements and/or 2
related furniture, fixtures and equipment for an indoor recreation center which may also be used as 3
an emergency shelter and other town functions, and all costs incidental thereto; (2) In payment of 4
the principal of or interest on temporary notes issued under Section 3 of this act; or (3) In repayment 5
of advances under Section 4 of this act. No purchaser of any bonds or notes under this act shall be 6
in any way responsible for the proper application of the proceeds derived from the sale thereof. The 7
projects shall be carried out and all contracts made therefor on behalf of the town by the town 8
council or as may be otherwise directed by the town council. The proceeds of bonds or notes issued 9
under this act, any applicable federal or state assistance and the other monies referred to in Section 10
6 of this act shall be deemed appropriated for the purposes of this act without further action than 11
that required by this act. The bond issue authorized by this act may be consolidated for the purposes 12
of issuance and sale with any other bond issue of the town heretofore or hereafter authorized; 13
provided that, notwithstanding any such consolidation, the proceeds from the sale of the bonds 14
authorized by this act shall be expended for the purposes set forth above. 15
SECTION 3. The town council may by resolution authorize the issue from time to time of 16
interest bearing or discounted notes in anticipation of the authorization or issue of bonds or in 17
anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original 18
notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued 19
under this act and the amount of original notes issued in anticipation of federal or state aid may not 20
exceed the amount of available federal or state aid as estimated by the treasurer. Temporary notes 21
issued hereunder shall be signed by the treasurer and by the president of the town council and shall 22
be payable within five (5) years from their respective dates, but the principal of and interest on 23
notes issued for a shorter period may be renewed or paid from time to time by the issue of other 24
notes hereunder; provided the period from the date of an original note to the maturity of any note 25
issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years. Any 26
temporary notes in anticipation of bonds issued under this section may be refunded prior to maturity 27
of the notes by the issuance of additional temporary notes; provided that, no such refunding shall 28
result in any amount of temporary notes outstanding at any one time in excess of two hundred 29
percent (200%) of the amount of bonds that may be issued under this act; and provided further that, 30
if the issuance of any such refunding notes results in excess of the amount of bonds that may be 31
issued under this act, the proceeds of such refunding notes shall be deposited in a separate fund 32
established with the paying agent which is the paying agent for the notes being refunded. Pending 33
their use to pay the notes being refunded, monies in the fund shall be invested for the benefit of the 34
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town by the paying agent at the direction of the treasurer in any investment permitted under Section 1
5. The monies in the fund and any investments held as a part of the fund shall be held in trust and 2
shall be applied by the paying agent solely to the payment or prepayment of the principal and 3
interest on the notes being refunded. Upon payment of all principal and interest on the notes being 4
refunded, any excess monies in the fund shall be distributed by the paying agent to the town. The 5
town may pay the principal of and interest on the notes in full or in part from other than the issuance 6
of refunding notes prior to the issuance of bonds pursuant to Section 1 hereof. In such case the 7
town's authority to issue bonds or notes in anticipation of bonds under this act shall continue: 8
provided that: (1) The town council passes a resolution evidencing the town's intent to pay off the 9
notes without extinguishing the authority to issue bonds or notes; and (2) That the period from the 10
date of the original note to the maturity of any other note shall not exceed five (5) years. 11
SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu 12
of any authorization or issue of notes hereunder, the treasurer, with the approval of the town 13
council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the treasury 14
of the town to the purposes specified in Section 2, such advances to be repaid without interest from 15
the proceeds of bonds or notes subsequently issued or from the proceeds of applicable federal or 16
state assistance or from other available funds. 17
SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal 18
or state assistance, pending their expenditure may be deposited or invested by the treasurer, in 19
demand deposits, time deposits or savings deposits in banks which are members of the Federal 20
Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of 21
America or by any agency or instrumentality thereof or as may be provided in any other applicable 22
law of the State of Rhode Island or resolution of the town council or pursuant to an investment 23
policy of the town. 24
SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall 25
be applied to the payment of the first interest due thereon. Any premiums arising from the sale of 26
bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of 27
funds hereunder shall, in the discretion of the treasurer, be applied to the cost of preparing, issuing 28
and marketing bonds or notes hereunder to the extent not otherwise provided, to the payment of the 29
cost of the projects or to the cost of additional improvements coming within the description of the 30
projects in Section 2 of this act, to the payment of the principal of or interest on bonds or notes 31
issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing and 32
marketing bonds or notes hereunder may also, in the discretion of the treasurer, be met from bond 33
or note proceeds exclusive of accrued interest or from other monies available therefor. Any balance 34
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of bond or note proceeds remaining after payment of the cost of the projects and said additional 1
improvements and the cost of preparing, issuing and marketing bonds or notes hereunder shall be 2
applied to the payment of the principal of or interest on bonds or notes issued hereunder. In 3
exercising any discretion under this section, the treasurer shall be governed by any instructions 4
adopted by resolution of the town council. The treasurer is authorized to take any action deemed 5
by him or her necessary: (1) To assure that interest on the bonds or notes issued hereunder remains 6
excludable from gross income of the recipients thereof for federal income tax purposes, including, 7
without limitation, paying to the federal government any rebate of earnings derived from the deposit 8
or investment of the proceeds of such bonds or notes that may be required therefor; (2) To comply 9
with the requirements of federal law, including without being limited to regulations and other 10
requirements of the Securities and Exchange Commission and the Municipal Securities 11
Rulemaking Board, imposed directly on the town or on the underwriters of such bonds and notes; 12
and/or (3) If applicable, to comply with the provisions of chapter 12.2 of title 46; including making 13
all necessary contracts and agreements to issue bonds and/or notes through the Rhode Island 14
infrastructure bank. 15
SECTION 7. All bonds or notes issued under this act and the debts evidenced thereby shall 16
be obligatory on the town in the same manner and to the same extent as other debts lawfully 17
contracted by it and shall be excepted from the operation of ยง 45-12-2. No such obligation shall at 18
any time be included in the debt of the town for the purpose of ascertaining its borrowing capacity. 19
The town shall annually appropriate a sum sufficient to pay the principal and interest coming due 20
within the year on bonds and notes issued hereunder to the extent that monies therefor are not 21
otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax 22
levy. In order to provide such sum in each year and notwithstanding any provision of law to the 23
contrary, all taxable property in the town shall be subject to ad valorem taxation by the town without 24
limitation as to rate or amount. 25
SECTION 8. Any bonds or notes issued under the provisions of this act, if properly 26
executed by officers of the town in office on the date of execution, shall be valid and binding 27
according to their terms notwithstanding that before the delivery thereof and payment therefor any 28
or all of such officers shall for any reason have ceased to hold office. 29
SECTION 9. The town, acting by resolution of its town council is authorized to apply for, 30
contract for and expend any federal or state advances or other grants or assistance which may be 31
available for the purposes of this act, and any such expenditures may be in addition to other monies 32
provided in this act. To the extent of any inconsistency between any law of this state and any 33
applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 34
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where applicable, whether contracted for prior to or after the effective date of this act, may be 1
repaid as project costs under Section 2. 2
SECTION 10. Bonds and notes may be issued under this act without obtaining the approval 3
of any governmental agency or the taking of any proceedings or the happening of any conditions 4
except as specifically required by this act for such issue. In carrying out any project financed in 5
whole or in part under this act, including where applicable the condemnation of any land or interest 6
in land, and in the levy and collection of assessments or other charges permitted by law on account 7
of any such project, all action shall be taken which is necessary to meet constitutional requirements 8
whether or not such action is otherwise required by statute; but the validity of bonds and notes 9
issued hereunder shall in no way depend upon the validity or occurrence of such action. To the 10
extent of any inconsistency between this act and the Town Charter, this act shall prevail. 11
SECTION 11. The question of the approval of this act shall be submitted to the electors of 12
the town at an election on a date to be determined by the town council which occurs at least sixty 13
(60) days after the passage of this act. The question shall be submitted in substantially the following 14
form: "Shall an act, passed at the 2023 session of the General Assembly, entitled 'AN ACT 15
AUTHORIZING THE TOWN OF NORTH KINGSTOWN TO ISSUE NOT MORE THAN 16
$25,000,000 BONDS AND NOTES TO FINANCE AN INDOOR RECREATION CENTER/ 17
EMERGENCY SHELTER' be approved?" and the warning for the election shall contain the 18
question to be submitted. The town board of canvassers may combine any two (2) or more voting 19
districts for the election and when so combined shall be treated as a voting district. If so combined, 20
the town board of canvassers shall advertise the combination of districts in a newspaper of general 21
circulation in the town. From the time the election is warned and until it is held, it shall be the duty 22
of the town clerk to keep a copy of the act available at his or her office for public inspection, but 23
the validity of the election shall not be affected by this requirement. 24
SECTION 12. This Section and Section 11 shall take effect upon passage. The remainder 25
of this act shall take effect upon the approval of this act by a majority of those voting on the question 26
at the election prescribed by Section 11. 27
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EXPLANATION
OF
A N A C T
AUTHORIZING THE TOWN OF NORTH KINGSTOWN T O ISSUE NOT MORE THAN
$25,000,000 BONDS AND NOTES TO FINANCE AN INDOOR RECREATION
CENTER/EMERGENCY SHE LTER
***
This act would authorize the town of North Kingstown to issue bonds in the amount of 1
twenty-five million dollars ($25,000,000) to finance an indoor recreation center/emergency shelter 2
upon voter approval. 3
Section 11 would take effect upon passage. The remainder of this act would take effect 4
upon the approval of this act by a majority of those voting on the question at the election prescribed 5
in Section 11. 6
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LC003011
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