2023 -- H 6454
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LC003062
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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 $25,000,000
GENERAL OBLIGATION BONDS AND NOTES FOR THE CONSTRUCTION,
RENOVATION, REHABILITATION, REPAIR, IMPROVEMENTS, FURNISHING AND
EQUIPPING OF AND/OR ADDITIONS TO LINCOLN ELEMENTARY SCHOOLS
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 and notes in an amount not exceeding twenty-five million 2
dollars ($25,000,000) from time to time under its corporate name and seal. The bonds of each issue 3
may be issued in the form of zero-coupon bonds, capital appreciation bonds, serial bonds or term 4
bonds or a combination thereof and shall be payable either by maturity of principal in the case of 5
serial bonds or by mandatory serial redemption in the case of term bonds, in installments of 6
principal, the first installment to be not later than five (5) years and the last installment not later 7
than thirty (30) years after the date the bonds are issued. All such bonds of a particular issue may 8
be issued in the form of zero-coupon bonds, capital appreciation bonds, serial bonds or term bonds 9
or a combination thereof, and may bear interest at a fixed rate or rates or at a variable or auction 10
rate or rates. The bonds may be sold by a negotiated sale or by competitive bid and may be issued 11
pursuant to a resolution or an indenture of trust. Annual installments of principal may be provided 12
for by maturity of principal in the case of serial bonds or by mandatory serial redemption in the 13
case of term bonds. The amount of principal appreciation each year on any bonds, after the date of 14
original issuance, shall not be considered to be principal indebtedness for the purposes of any 15
constitutional or statutory debt limit or any other limitation. The appreciation of principal after the 16
date of original issue shall be considered interest. Only the original principal amount shall be 17
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counted in determining the principal amount so issued and any interest component or premium 1
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 construction, 10
renovation, rehabilitation, repair, improvements, furnishing and equipping of and/or additions to 11
Lincoln elementary schools; (2) For payment of the principal or interest on temporary notes issued 12
under section 3; (3) In payment of capitalized interest on bonds or notes; (4) In repayment of 13
advances under section 4; or (5) In payment of related costs of issuance of any bonds or notes. No 14
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. Notwithstanding anything contained in this act to the 31
contrary, the town may enter into financing agreements with the Rhode Island health and 32
educational building corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, 33
with respect to bonds or notes issued in connection with such financing agreements, if any, the 34
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town may elect to have the provisions of chapter 38.1 of title 45 apply to the issuance of the bonds 1
or notes issued hereunder to the extent the provisions of chapter 38.1 of title 45 are inconsistent 2
herewith. In addition, the town may enter into financing agreements with the Rhode Island 3
infrastructure bank pursuant to the provisions of chapter 12.2 of title 46 and, with respect to bonds 4
or notes issued in connection with such financing agreements, if any, the town may elect to have 5
the provisions of chapter 12.2 of title 46 apply to the issuance of the bonds or notes issued hereunder 6
to the extent the provisions of chapter 12.2 of title 46 are inconsistent herewith. Such election may 7
be fixed by the proceedings of the town council authorizing such issuance of by separate resolution 8
of the town council, or, to the extent provisions for these matters are not so made, they may be 9
fixed by the officers authorized to sign the bonds or notes. 10
SECTION 3. The town council may by resolution authorize the issue from time to time of 11
interest bearing or discounted notes in anticipation of the issue of bonds or in anticipation of the 12
receipt of federal or state aid for the purposes of this act. The amount of original notes issued in 13
anticipation of bonds may not exceed the amount of bonds which may be issued under this act and 14
the amount of original notes issued in anticipation of federal or state aid may not exceed the amount 15
of available federal or state aid as estimated by the director of finance. Temporary notes issued 16
hereunder shall be signed by the manual or facsimile signatures of the director of finance, the town 17
manager and the president of the town council shall be payable within five (5) years from their 18
respective dates, but the principal of and interest on notes issued for a shorter period may be 19
renewed or paid from time to time by the issue of other notes thereunder, provided the period from 20
the date of an original note to the maturity or any note issued to renew or pay the same debt or the 21
interest thereon shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued 22
under this section may be refunded prior to the maturity of the notes by the issuance of additional 23
temporary notes; provided that, no such refunding shall result in any amount of such temporary 24
notes outstanding at any one time in excess of two hundred percent (200%) of the amount of bonds 25
which may be issued under this act; and provided, further, that if the issuance of any such refunding 26
notes results in any amount of such temporary notes outstanding at any one time in excess of the 27
amount of bonds which may be issued under this act, the proceeds of such refunding notes shall be 28
deposited in a separate fund established with the bank which is paying agent for the notes being 29
refunded. Pending their use to pay the notes being refunded, monies in the fund shall be invested 30
for the benefit of the town by the paying agent at the direction of the director of finance in any 31
investment permitted under section 5. The monies in the fund and any investments held as a part 32
of the fund shall be held in trust and shall be applied by the paying agent solely to the payment or 33
prepayment of the principal of and interest on the notes being refunded. Upon payment of all 34
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principal of and interest on the notes, any excess monies in the fund shall be distributed to the town. 1
The town may pay the principal of and interest on notes in full, from other than the issuance of 2
refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such case, the town’s 3
authority to issue bonds or notes in anticipation of bonds under this act shall continue; provided 4
that: (1) The town council passes a resolution evidencing the town’s intent to pay off the notes 5
without extinguishing the authority to issue bonds or notes; and (2) That the period from the date 6
of an original note to the maturity date of any other note shall not exceed five (5) years. 7
SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu 8
of any authorization or issue of notes hereunder, the director of finance, with the approval of the 9
town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the 10
treasury of the town to the purposes specified in section 2, such advances to be repaid without 11
interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable 12
federal or state assistance or from other available funds. 13
SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal 14
or state assistance, pending their expenditure, may be deposited or invested by the director of 15
finance in demand deposits, time deposits or savings deposits in banks which are members of the 16
Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States 17
of America or by any agency or instrumentality thereof or as may be provided in any other 18
applicable law of the State of Rhode Island or resolution of the town council or pursuant to an 19
investment policy of the town. 20
SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall 21
be applied to the payment of the first interest due thereon. Any premiums arising from the sale of 22
bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of 23
funds hereunder shall, in the discretion of the director of finance, be applied to the cost of preparing, 24
issuing, and marketing bonds or notes hereunder to the extent not otherwise provided, to the 25
payment of the cost of the project, to the payment of the principal of or interest on bonds or notes 26
issued hereunder or to any one or more of the foregoing. The cost of preparing, issuing, and 27
marketing bonds or notes hereunder may also, in the discretion of the director of finance, be met 28
from bond or note proceeds exclusive of accrued interest or from other monies available therefor. 29
Any balance of bond or note proceeds remaining after payment of the cost of the projects and the 30
cost of preparing, issuing, and marketing bonds or notes hereunder shall be applied to the payment 31
of the principal of or interest on bonds or notes issued hereunder. To the extent permitted by 32
applicable federal laws, any earnings or net profit realized from the deposit or investment of funds 33
hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town from 34
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property taxes. In exercising any discretion under this section, the director of finance shall be 1
governed by any instructions adopted by resolution of the town council. 2
SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby 3
shall be obligatory on the town in the same manner and to the same extent as other debts lawfully 4
contracted by it and shall be excepted from the operation of § 45-12-2 of the general laws. No such 5
obligation shall at any time be included in the debt of the town for the purpose of ascertaining its 6
borrowing capacity. The town shall annually appropriate a sum sufficient to pay the principal and 7
interest coming due within the year on bonds and notes issued hereunder to the extent that monies 8
therefor are not otherwise provided. If such sum is not appropriated, it shall nevertheless be added 9
to the annual tax levy. In order to provide such sum in each year and notwithstanding any provision 10
of law to the contrary, all taxable property in the town shall be subject to ad valorem taxation by 11
the town without limitation as to rate or amount. 12
SECTION 8. Any bonds or notes issued under the provisions of this act, if properly 13
executed by officers of the town in office on the date of execution, shall be valid and binding 14
according to their terms notwithstanding that before the delivery thereof and payment therefor any 15
or all of such officers shall for any reason have ceased to hold office. 16
SECTION 9. The town, acting by resolution of its town council is authorized to apply for, 17
contract for and expend any federal or state advances or other grants or assistance which may be 18
available for the purposes of this act, and any such expenditures may be in addition to other monies 19
provided in this act. To the extent of any inconsistency between any law of this state and any 20
applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 21
where applicable, whether contracted for prior to or after the effective date of this act, may be 22
repaid as project costs under section two. 23
SECTION 10. Bonds and notes may be issued under this act without obtaining the approval 24
of any governmental agency or the taking of any proceedings or the happening of any conditions 25
except as specifically required by this act for such issue. In carrying out any project financed in 26
whole or in part under this act, including where applicable the condemnation of any land or interest 27
in land, and in the levy and collection of assessments or other charges permitted by law on account 28
of any such project, all action shall be taken which is necessary to meet constitutional requirements 29
whether or not such action is otherwise required by statute; but the validity of bonds and notes 30
issued hereunder shall in no way depend upon the validity or occurrence of such action. 31
SECTION 11. All or any portion of the authority to issue bonds and notes under this act 32
may be extinguished by resolution of the town council, without further action by the general 33
assembly. 34
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SECTION 12. The director of finance, the town administrator, and the president of the 1
town council, on behalf of the town, are hereby authorized to execute such documents or other 2
papers as either of them deem necessary or desirable to carry out the intent of this act and are also 3
authorized to take all actions and execute all documents or agreements necessary to comply with 4
federal tax and securities laws, which documents or agreements may have a term coextensive with 5
the maturity of the bonds authorized hereby, including Rule 15c2-12 of the Securities and Exchange 6
Commission (the "Rule") and to execute and deliver a continuing disclosure agreement or 7
certificate in connection with the bonds or notes in the form as shall be deemed advisable by such 8
officers in order to comply with the Rule. 9
SECTION 13. This act shall constitute an enabling act of the general assembly that is 10
required pursuant to §16-7-44. Bonds or other evidences of indebtedness issued under this act for 11
school projects shall not be eligible for state aid reimbursement pursuant to §16-7-44 unless the 12
school projects have been approved by the Rhode Island department of education. Notwithstanding 13
anything contained in this act, the town may enter into financing agreements with the Rhode Island 14
health and educational building corporation pursuant to title 45, chapter 38.1. 15
SECTION 14. The question of the approval of this act shall be submitted to the electors of 16
the town at the special election to be held on November 7, 2023 or a special election (other than a 17
primary), on a date as shall be designated by the town council. The question shall be submitted in 18
substantially the following form: “Shall an Act, passed at the 2023 session of the General 19
Assembly, entitled, ‘AN ACT AUTHORIZING THE TOWN OF LINCOLN TO ISSUE NOT TO 20
EXCEED $25,000,000 GENERAL OBLIGATION BONDS AND NOTES FOR THE 21
CONSTRUCTION, RENOVATION, REHABILITATION, REPAIR, IMPROVEMENTS, 22
FURNISHING AND EQUIPPING OF AND/OR ADDITIONS TO LINCOLN ELEMENTARY 23
SCHOOLS,' be approved?" and the warning for the election shall contain the question to be 24
submitted. From the time the election is warned and until it is held, it shall be the duty of the town 25
clerk to keep a copy of the act available at his/her office for public inspection, but the validity of 26
the election shall not be affected by this requirement. 27
SECTION 15. This section and the foregoing section shall take effect upon the passage of 28
this act. The remainder of this act shall take effect upon the approval of this act by a majority of 29
those voting on the question at the election prescribed by the foregoing section. 30
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EXPLANATION
OF
A N A C T
AUTHORIZING THE TOWN OF LINCOLN TO ISSUE NOT TO EXCEED $25,000,000
GENERAL OBLIGATION BONDS AND NOTES FOR THE CONSTRUCTION,
RENOVATION, REHABILITATION, REPAIR, IMPROVEMENTS, FURNISHING AND
EQUIPPING OF AND/OR ADDITIONS TO LINCOLN ELEMENTARY SCHOOLS
***
This act would authorize the town of Lincoln to issue general obligation bonds and notes 1
in an amount not exceeding $25,000,000 to finance the construction, renovation, rehabilitation, 2
repair, improvements, furnishing and equipping of and/or additions to Lincoln elementary schools. 3
Sections 14 and 15 would take effect upon passage. The remainder of the act would take 4
effect upon approval of the question provided for in section 14. 5
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LC003062
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