2023 -- H 6453
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LC003087
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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 LINCOLN TO ISSUE NOT TO EXCEED $14,000,000
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF
INDEBTEDNESS TO FINANCE THE DEVELOPMENT AND CONSTRUCTION OF A NEW
TOWN-WIDE CENTRALIZED RESCUE STATION AND THE FURNISHING AND
EQUIPPING THEREOF AND ALL COSTS RELATED THERETO
Introduced By: Representatives Ackerman, Shallcross Smith, and Costantino
Date Introduced: May 26, 2023
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. The town of Lincoln is hereby empowered, in addition to authority previously 1
granted, to issue general obligation bonds, notes and other evidences of indebtedness in an amount 2
not exceeding fourteen million dollars ($14,000,000) from time to time under its corporate name 3
and seal. The bonds of each issue may be issued in the form of zero-coupon bonds, capital 4
appreciation bonds, serial bonds or term bonds or a combination thereof and shall be payable either 5
by maturity of principal in the case of serial bonds or by mandatory serial redemption in the case 6
of term bonds, in installments of principal, the first installment to be not later than five (5) years 7
and the last installment not later than thirty (30) years after the date the bonds are issued. All such 8
bonds of a particular issue may be issued in the form of zero-coupon bonds, capital appreciation 9
bonds, serial bonds or term bonds or a combination thereof, and may bear interest at a fixed rate or 10
rates or at a variable or auction rate or rates. The bonds may be sold by a negotiated sale or by 11
competitive bid and may be issued pursuant to a resolution or an indenture of trust. Annual 12
installments of principal may be provided for by maturity of principal in the case of serial bonds or 13
by mandatory serial redemption in the case of term bonds. The amount of principal appreciation 14
each year on any bonds, after the date of original issuance, shall not be considered to be principal 15
indebtedness for the purposes of any constitutional or statutory debt limit or any other limitation. 16
The appreciation of principal after the date of original issue shall be considered interest. Only the 17
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original principal amount shall be counted in determining the principal amount so issued and any 1
interest component or premium shall be disregarded. 2
SECTION 2. The bonds shall be signed by the town director of finance, the town 3
administrator and the president of the town council and shall be issued and sold in such amounts as 4
the town council may authorize. The manner of sale, denominations, maturities, interest rates and 5
other terms, conditions and details of any bonds or notes issued under this act may be fixed by the 6
proceedings of the town council authorizing the issue or by separate resolution of the town council 7
or, to the extent provisions for these matters are not so made, they may be fixed by the officers 8
authorized to sign the bonds or notes. The proceeds derived from the sale of the bonds shall be 9
delivered to the director of finance, and such proceeds shall be expended: (1) For the development 10
and construction of a new town-wide centralized rescue station and the furnishing and equipping 11
thereof and all costs related thereto; (2) For payment of the principal or interest on temporary notes 12
issued under section 3; (3) In payment of capitalized interest on bonds or notes; (4) In repayment 13
of advances under section four; or (5) In payment of related costs of issuance of any bonds or notes. 14
No purchaser of any bonds or notes under this act shall be in any way responsible for the proper 15
application of the proceeds derived from the sales thereof. The project shall be carried out and all 16
contracts made therefor on behalf of the town by the town administrator, subject to approval of the 17
town council. The proceeds of bonds or notes issued under this act, any applicable federal or state 18
assistance and other monies referred to in section 6 and 9, shall be deemed appropriated for the 19
purposes of this act without further action than that required by this act. The bond issue authorized 20
by this act may be consolidated for the purposes of issuance and sale with any other bond issue of 21
the town heretofore or hereafter authorized; provided that, notwithstanding any such consolidation, 22
the proceeds from the sale of the bonds authorized by this act shall be expended for the purposes 23
set forth above. The director of finance, the town administrator and the president of the town 24
council, on behalf of the town, are hereby authorized to execute such instruments, documents or 25
other papers as either of them deem necessary or desirable to carry out the intent of this act and are 26
also authorized to take all actions and execute all documents or agreements necessary to comply 27
with federal tax and securities laws, which documents or agreements may have a term coextensive 28
with the maturity of the bonds authorized hereby, including Rule 15c2-12 of the Securities and 29
Exchange Commission and to execute and deliver a continuing disclosure agreement or certificate 30
in connection with the bonds or notes. 31
SECTION 3. The town council may by resolution authorize the issue from time to time of 32
interest bearing or discounted notes in anticipation of the issue of bonds or in anticipation of the 33
receipt of federal or state aid for the purposes of this act. The amount of original notes issued in 34
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anticipation of bonds may not exceed the amount of bonds which may be issued under this act and 1
the amount of original notes issued in anticipation of federal or state aid may not exceed the amount 2
of available federal or state aid as estimated by the director of finance. Temporary notes issued 3
hereunder shall be signed by the manual or facsimile signatures of the director of finance, the town 4
manager and the president of the town council shall be payable within five (5) years from their 5
respective dates, but the principal of and interest on notes issued for a shorter period may be 6
renewed or paid from time to time by the issue of other notes thereunder, provided the period from 7
the date of an original note to the maturity or any note issued to renew or pay the same debt or the 8
interest thereon shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued 9
under this section may be refunded prior to the maturity of the notes by the issuance of additional 10
temporary notes; provided that, no such refunding shall result in any amount of such temporary 11
notes outstanding at any one time in excess of two hundred percent (200%) of the amount of bonds 12
which may be issued under this act; and provided, further, that if the issuance of any such refunding 13
notes results in any amount of such temporary notes outstanding at any one time in excess of the 14
amount of bonds which may be issued under this act, the proceeds of such refunding notes shall be 15
deposited in a separate fund established with the bank which is paying agent for the notes being 16
refunded. Pending their use to pay the notes being refunded, monies in the fund shall be invested 17
for the benefit of the town by the paying agent at the direction of the director of finance in any 18
investment permitted under section 5. The monies in the fund and any investments held as a part 19
of the fund shall be held in trust and shall be applied by the paying agent solely to the payment or 20
prepayment of the principal of and interest on the notes being refunded. Upon payment of all 21
principal of and interest on the notes, any excess monies in the fund shall be distributed to the town. 22
The town may pay the principal of and interest on notes in full, from other than the issuance of 23
refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such case, the town’s 24
authority to issue bonds or notes in anticipation of bonds under this act shall continue; provided 25
that: (1) The town council passes a resolution evidencing the town’s intent to pay off the notes 26
without extinguishing the authority to issue bonds or notes; and (2) That the period from the date 27
of an original note to the maturity date of any other note shall not exceed five (5) years. 28
SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu 29
of any authorization or issue of notes hereunder, the director of finance, with the approval of the 30
town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the 31
treasury of the town to the purposes specified in section 2, such advances to be repaid without 32
interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable 33
federal or state assistance or from other available funds. 34
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SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal 1
or state assistance, pending their expenditure, may be deposited or invested by the director of 2
finance in demand deposits, time deposits or savings deposits in banks which are members of the 3
Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States 4
of America or by any agency or instrumentality thereof or as may be provided in any other 5
applicable law of the State of Rhode Island or resolution of the town council or pursuant to an 6
investment policy of the town. 7
SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall 8
be applied to the payment of the first interest due thereon. Any premiums arising from the sale of 9
bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of 10
funds hereunder shall, in the discretion of the director of finance, be applied to the cost of preparing, 11
issuing, and marketing bonds or notes hereunder to the extent not otherwise provided, to the 12
payment of the cost of the project, to the payment of the principal of or interest on bonds or notes 13
issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing, and 14
marketing bonds or notes hereunder may also, in the discretion of the director of finance, be met 15
from bond or note proceeds exclusive of accrued interest or from other monies available therefor. 16
Any balance of bond or note proceeds remaining after payment of the cost of the projects and the 17
cost of preparing, issuing, and marketing bonds or notes hereunder shall be applied to the payment 18
of the principal of or interest on bonds or notes issued hereunder. To the extent permitted by 19
applicable federal laws, any earnings or net profit realized from the deposit or investment of funds 20
hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town from 21
property taxes. In exercising any discretion under this section, the director of finance shall be 22
governed by any instructions adopted by resolution of the town council. 23
SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby 24
shall be obligatory on the town in the same manner and to the same extent as other debts lawfully 25
contracted by it and shall be excepted from the operation of section 45-12-2 of the general laws. 26
No such obligation shall at any time be included in the debt of the town for the purpose of 27
ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay 28
the principal and interest coming due within the year on bonds and notes issued hereunder to the 29
extent that monies therefor are not otherwise provided. If such sum is not appropriated, it shall 30
nevertheless be added to the annual tax levy. In order to provide such sum in each year and 31
notwithstanding any provision of law to the contrary, all taxable property in the town shall be 32
subject to ad valorem taxation by the town without limitation as to rate or amount. 33
SECTION 8. Any bonds or notes issued under the provisions of this act, if properly 34
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executed by officers of the town in office on the date of execution, shall be valid and binding 1
according to their terms notwithstanding that before the delivery thereof and payment therefor any 2
or all of such officers shall for any reason have ceased to hold office. 3
SECTION 9. The town, acting by resolution of its town council is authorized to apply for, 4
contract for and expend any federal or state advances or other grants or assistance which may be 5
available for the purposes of this act, and any such expenditures may be in addition to other monies 6
provided in this act. To the extent of any inconsistency between any law of this state and any 7
applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 8
where applicable, whether contracted for prior to or after the effective date of this act, may be 9
repaid as project costs under section 2. 10
SECTION 10. Bonds and notes may be issued under this act without obtaining the approval 11
of any governmental agency or the taking of any proceedings or the happening of any conditions 12
except as specifically required by this act for such issue. In carrying out any project financed in 13
whole or in part under this act, including where applicable the condemnation of any land or interest 14
in land, and in the levy and collection of assessments or other charges permitted by law on account 15
of any such project, all action shall be taken which is necessary to meet constitutional requirements 16
whether or not such action is otherwise required by statute; but the validity of bonds and notes 17
issued hereunder shall in no way depend upon the validity or occurrence of such action. 18
SECTION 11. All or any portion of the authority to issue bonds and notes under this act 19
may be extinguished by resolution of the town council, without further action by the general 20
assembly. 21
SECTION 12. The director of finance, the town administrator, and the president of the 22
town council, on behalf of the town, are hereby authorized to execute such documents or other 23
papers as either of them deem necessary or desirable to carry out the intent of this act and are also 24
authorized to take all actions and execute all documents or agreements necessary to comply with 25
federal tax and securities laws, which documents or agreements may have a term coextensive with 26
the maturity of the bonds authorized hereby, including Rule 15c2-12 of the Securities and Exchange 27
Commission (the "Rule") and to execute and deliver a continuing disclosure agreement or 28
certificate in connection with the bonds or notes in the form as shall be deemed advisable by such 29
officers in order to comply with the Rule. 30
SECTION 13. The question of the approval of this act shall be submitted to the electors 31
of the town at the special election to be held on November 7, 2023 or a special election (other than 32
a primary), on a date as shall be designated by the town council. The question shall be submitted 33
in substantially the following form: “Shall an Act, passed at the 2023 session of the General 34
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Assembly, entitled, ‘AN ACT AUTHORIZING THE TOWN OF LINCOLN TO ISSUE NOT TO 1
EXCEED $14,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES 2
OF INDEBTEDNESS TO FINANCE THE DEVELOPMENT AND CONSTRU CTION OF A 3
NEW TOWN-WIDE CENTRALIZED RESCUE STATION AND THE FURNISHING AND 4
EQUIPPING THEREOF AND ALL COSTS RELATED THERETO,' be approved?" and the 5
warning for the election shall contain the question to be submitted. From the time the election is 6
warned and until it is held, it shall be the duty of the town clerk to keep a copy of the act available 7
at his/her office for public inspection, but the validity of the election shall not be affected by this 8
requirement. 9
SECTION 14. This section and the foregoing section shall take effect upon the passage of 10
this act. The remainder of this act shall take effect upon the approval of this act by a majority of 11
those voting on the question at the election prescribed by the foregoing section. 12
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EXPLANATION
OF
A N A C T
AUTHORIZING THE TOWN OF LINCOLN TO ISSUE NOT TO EXCEED $14,000,000
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF
INDEBTEDNESS TO FINANCE THE DEVELOPMENT AND CONSTRUCTION OF A NEW
TOWN-WIDE CENTRALIZED RESCUE STATION AND THE FURNISHING AND
EQUIPPING THEREOF AND ALL COSTS RELATED THERETO
***
This act would authorize the town of Lincoln to issue general obligation bonds, notes and 1
other evidences of indebtedness in an amount not exceeding $14,000,000 to finance the 2
development and construction of a new town-wide centralized rescue station and the furnishing and 3
equipping thereof and all costs related thereto. 4
Sections 13 and 14 would take effect upon passage. The remainder of the act would take 5
effect upon approval of the question provided for in section 13. 6
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LC003087
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