Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0018 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0018
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7	7	LC000543
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	AUTHORIZING THE TOWN OF NORTH PROVIDENCE TO ISSUE NOT TO EXCEED
16	16	$125,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF
17	17	INDEBTEDNESS TO FINANCE THE CONSTRUCTION , RENOVATION,
18	18	REHABILITATION, REPAIR, IMPROVEMENTS, FURNISHING AND EQUIPPING OF
19	19	AND/OR ADDITIONS TO SCHOOLS AND SCHOOL FACILITIES IN THE TOWN,
20	20	INCLUDING, BUT NOT LIMITED TO, THE CONSTRUCTION OF THREE ELEMENTARY
21	21	SCHOOLS, THE RENOVATION OF TWO MIDDLE SCHOOLS AND THE
22	22	CONSTRUCTION OF NEW ADMINISTRATIVE OFFICES, SUBJECT TO APPROVAL OF
23	23	STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF
24	24	NOT LESS THAN 79.8% FOR EXPENDITURES ELIGIBLE FOR REIMBURSEMENT
25	25	Introduced By: Senators Ruggerio, Tikoian, and Pearson
26	26	Date Introduced: January 18, 2023
27	27	Referred To: Senate Finance
28	28
29	29
30	30	It is enacted by the General Assembly as follows:
31	31	SECTION 1. The town of North Providence is hereby empowered, in addition to authority 1
32	32	previously granted, to issue bonds in an amount not exceeding one hundred twenty-five million 2
33	33	dollars ($125,000,000) from time to time under its corporate name and seal or a facsimile of such 3
34	34	seal. The bonds of each issue may be issued in the form of zero-coupon bonds, capital appreciation 4
35	35	bonds, serial bonds or term bonds or a combination thereof and shall be payable either by maturity 5
36	36	of principal in the case of serial bonds or by mandatory sinking fund installments in the case of 6
37	37	term bonds, in installments of principal, the first installment to be not later than five (5) years and 7
38	38	the last installment not later than thirty (30) years after the date the bonds are issued. All such bonds 8
39	39	of a particular issue may be issued in the form of zero-coupon bonds, capital appreciation bonds, 9
40	40	serial bonds or term bonds or a combination thereof and may bear interest at a fixed rate or rates or 10
41	41	at a variable or auction rate or rates. The bonds may be sold by a negotiated sale or by competitive 11
42	42	bid and may be issued pursuant to a resolution or an indenture of trust. Annual installments of 12
43	43	principal may be provided for by maturity of principal in the case of serial bonds or by mandatory 13
44	44	serial redemption in the case of term bonds. The amount of principal appreciation each year on any 14
45	45
46	46
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48	48	bonds, after the date of original issuance, shall not be considered to be principal indebtedness for 1
49	49	the purposes of any constitutional or statutory debt limit or any other limitation. The appreciation 2
50	50	of principal after the date of original issue shall be considered interest. Only the original principal 3
51	51	amount shall be counted in determining the principal amount so issued and any interest component 4
52	52	or premium shall be disregarded. 5
53	53	SECTION 2. The town may be eligible for school housing aid reimbursement on debt 6
54	54	service pursuant to chapter 7 of title 16, or for a grant, loan or other "financial assistance" as defined 7
55	55	in § 45-38.2-1(6), from the school building authority capital fund under chapter 38.2 of chapter 45. 8
56	56	Bonds, notes or other evidences of indebtedness shall not be issued under this act unless the town 9
57	57	has received a letter from the Rhode Island department of education ("RIDE") confirming that the 10
58	58	anticipated school housing aid reimbursement rate under chapter 7 of title 16, as amended from 11
59	59	time to time, or financial assistance from the school building authority capital fund, or pursuant to 12
60	60	any other law hereafter enacted providing for funds to municipalities for school housing purposes, 13
61	61	is not less than seventy-nine and eight tenths percent (79.8%) for those expenditures which are 14
62	62	eligible for state aid. This act shall constitute an enabling act of the general assembly that is required 15
63	63	pursuant to § 16-7-44. Any bonds, notes or other evidence of indebtedness issued under this act for 16
64	64	school projects shall not be eligible for state housing aid reimbursement pursuant to § 16-7-44 17
65	65	unless the school projects described herein have been approved by the Rhode Island department of 18
66	66	education. 19
67	67	SECTION 3. The bonds shall be signed by the manual or facsimile signatures of the town 20
68	68	director of finance and the mayor and shall be issued and sold in such amounts as the town council 21
69	69	may authorize. The manner of sale, denominations, maturities, interest rates and other terms, 22
70	70	conditions and details of any bonds or notes issued under this act may be fixed by the proceedings 23
71	71	of the town council authorizing the issue or by separate resolution of the town council or, to the 24
72	72	extent provisions for these matters are not so made, they may be fixed by the officers authorized to 25
73	73	sign the bonds or notes. Notwithstanding anything contained in this act to the contrary, the town 26
74	74	may enter into financing agreements with the Rhode Island health and educational building 27
75	75	corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, with respect to notes 28
76	76	or bonds issued in connection with such financing agreements, if any, the town may elect to have 29
77	77	the provisions of chapter 38.1 of title 45 apply to the issuance of the bonds or notes issued hereunder 30
78	78	to the extent the provisions of chapter 38.1 of title 45 are inconsistent herewith. In addition, the 31
79	79	town may enter into financing agreements with the Rhode Island infrastructure bank pursuant to 32
80	80	the provisions of chapter 12.2 of title 46 and, with respect to bonds or notes issued in connection 33
81	81	with such financing agreements, if any, the town may elect to have the provisions of chapter 12.2 34
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85	85	of title 46 apply to the issuance of the bonds or notes issued hereunder to the extent the provisions 1
86	86	of chapter 12.2 of title 46 are inconsistent herewith. Such election may be fixed by the proceedings 2
87	87	of the town council authorizing such issuance or by separate resolution of the town council, or, to 3
88	88	the extent provisions for these matters are not so made, they may be fixed by the officers authorized 4
89	89	to sign the bonds or notes. The proceeds derived from the sale of the bonds shall be delivered to 5
90	90	the director of finance, and such proceeds exclusive of premiums and accrued interest shall be 6
91	91	expended (1) For the construction, renovation, rehabilitation, repair, improvements, furnishing and 7
92	92	equipping of and/or additions to schools and school facilities in the town, including, but not limited 8
93	93	to, the construction of three (3) elementary schools, the renovation of two (2) middle schools and 9
94	94	the construction of new administrative offices; (2) For payment of the principal or interest on 10
95	95	temporary notes issued under section 4; (3) In payment of capitalized interest on bonds or notes; 11
96	96	(4) In repayment of advances under section 5; or (5) In payment of related costs of issuance of any 12
97	97	bonds or notes. No purchaser of any bonds or notes under this act shall be in any way responsible 13
98	98	for the proper application of the proceeds derived from the sales thereof. The project shall be carried 14
99	99	out and all contracts made therefor on behalf of the town by the town council. The proceeds of 15
100	100	bonds or notes issued under this act, any applicable federal or state assistance and other monies 16
101	101	referred to in section 7 and 10, shall be deemed appropriated for the purposes of this act without 17
102	102	further action than that required by this act. The bond issue authorized by this act may be 18
103	103	consolidated for the purposes of issuance and sale with any other bond issue of the town heretofore 19
104	104	or hereafter authorized; provided that, notwithstanding any such consolidation, the proceeds from 20
105	105	the sale of the bonds authorized by this act shall be expended for the purposes set forth above. 21
106	106	SECTION 4. The town council may by resolution authorize the issue from time to time of 22
107	107	interest bearing or discounted notes in anticipation of the issue of bonds or in anticipation of the 23
108	108	receipt of federal or state aid for the purposes of this act. The amount of original notes issued in 24
109	109	anticipation of bonds may not exceed the amount of bonds which may be issued under this act and 25
110	110	the amount of original notes issued in anticipation of federal or state aid may not exceed the amount 26
111	111	of available federal or state aid as estimated by the director of finance. Temporary notes issued 27
112	112	hereunder shall be signed by the manual or facsimile signatures of the director of finance and the 28
113	113	mayor and shall be payable within five (5) years from their respective dates, but the principal of 29
114	114	and interest on notes issued for a shorter period may be renewed or paid from time to time by the 30
115	115	issue of other notes thereunder; provided, the period from the date of an original note to the maturity 31
116	116	or any note issued to renew or pay the same debt or the interest thereon shall not exceed five (5) 32
117	117	years. Any temporary notes in anticipation of bonds issued under this section may be refunded prior 33
118	118	to the maturity of the notes by the issuance of additional temporary notes; provided, that no such 34
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122	122	refunding shall result in any amount of such temporary notes outstanding at any one time in excess 1
123	123	of two hundred percent (200%) of the amount of bonds which may be issued under this act; and 2
124	124	provided, further, that if the issuance of any such refunding notes results in any amount of such 3
125	125	temporary notes outstanding at any one time in excess of the amount of bonds which may be issued 4
126	126	under this act, the proceeds of such refunding notes shall be deposited in a separate fund established 5
127	127	with the bank which is paying agent for the notes being refunded. Pending their use to pay the notes 6
128	128	being refunded, monies in the fund shall be invested for the benefit of the town by the paying agent 7
129	129	at the direction of the director of finance in any investment permitted under section 6. The monies 8
130	130	in the fund and any investments held as a part of the fund shall be held in trust and shall be applied 9
131	131	by the paying agent solely to the payment or prepayment of the principal of and interest on the 10
132	132	notes being refunded. Upon payment of all principal of and interest on the notes, any excess monies 11
133	133	in the fund shall be distributed to the town. The town may pay the principal of and interest on notes 12
134	134	in full, from other than the issuance of refunding notes prior to the issuance of bonds pursuant to 13
135	135	section 1 hereof. In such case, the town’s authority to issue bonds or notes in anticipation of bonds 14
136	136	under this act shall continue; provided, that (1) The town council passes a resolution evidencing 15
137	137	the town’s intent to pay off the notes without extinguishing the authority to issue bonds or notes; 16
138	138	and (2) That the period from the date of an original note to the maturity date of any other note shall 17
139	139	not exceed five (5) years. 18
140	140	SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu 19
141	141	of any authorization or issue of notes hereunder, the director of finance, with the approval of the 20
142	142	town council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the 21
143	143	treasury of the town to the purposes specified in section 3, such advances to be repaid without 22
144	144	interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable 23
145	145	federal or state assistance or from other available funds. 24
146	146	SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal 25
147	147	or state assistance, pending their expenditure, may be deposited or invested by the director of 26
148	148	finance in demand deposits, time deposits or savings deposits in banks which are members of the 27
149	149	Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States 28
150	150	of America or by any agency or instrumentality thereof or as may be provided in any other 29
151	151	applicable law of the State of Rhode Island or resolution of the town council or pursuant to an 30
152	152	investment policy of the town. 31
153	153	SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall 32
154	154	be applied to the payment of the first interest due thereon. Any premiums arising from the sale of 33
155	155	bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of 34
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159	159	funds hereunder shall, in the discretion of the director of finance, be applied to the cost of preparing, 1
160	160	issuing, and marketing bonds or notes hereunder, to the extent not otherwise provided, to the 2
161	161	payment of the cost of the project or additional projects, to fund a revolving fund for capital school 3
162	162	projects, to the payment of the principal of or interest on bonds or notes issued hereunder, to the 4
163	163	revenues of the town and dealt with as part of the revenues of the town from property taxes to the 5
164	164	extent permitted by federal law or to any one or more of the foregoing. The cost of preparing, 6
165	165	issuing and marketing bonds or notes hereunder may, in the discretion of the director of finance, 7
166	166	be met from bond or note proceeds exclusive of accrued interest or from other monies available 8
167	167	therefor. Any balance of bond or note proceeds remaining after payment of the cost of the projects 9
168	168	and the cost of preparing, issuing and marketing bonds or notes hereunder shall be applied to the 10
169	169	payment of the principal of or interest on bonds or notes issued hereunder. To the extent permitted 11
170	170	by applicable federal laws, any earnings or net profit realized from the deposit or investment of 12
171	171	funds hereunder may, upon receipt, be added to and dealt with as part of the revenues of the town 13
172	172	from property taxes. In exercising any discretion under this section, the director of finance shall be 14
173	173	governed by any instructions adopted by resolution of the town council. 15
174	174	SECTION 8. All bonds and notes issued under this act and the debts evidenced thereby 16
175	175	shall be obligatory on the town in the same manner and to the same extent as other debts lawfully 17
176	176	contracted by it and shall be excepted from the operation of § 45-12-2 and any provision of the 18
177	177	town charter. No such obligation shall at any time be included in the debt of the town for the purpose 19
178	178	of ascertaining its borrowing capacity. The town shall annually appropriate a sum sufficient to pay 20
179	179	the principal and interest coming due within the year on bonds and notes issued hereunder to the 21
180	180	extent that monies therefor are not otherwise provided. If such sum is not appropriated, it shall 22
181	181	nevertheless be added to the annual tax levy. In order to provide such sum in each year and 23
182	182	notwithstanding any provision of law to the contrary, all taxable property in the town shall be 24
183	183	subject to ad valorem taxation by the town without limitation as to rate or amount. 25
184	184	SECTION 9. Any bonds or notes issued under the provisions of this act, if properly 26
185	185	executed by officers of the town in office on the date of execution, shall be valid and binding 27
186	186	according to their terms notwithstanding that before the delivery thereof and payment therefor any 28
187	187	or all of such officers shall for any reason have ceased to hold office. 29
188	188	SECTION 10. The town, acting by resolution of its town council is authorized to apply for, 30
189	189	contract for and expend any federal or state advances or other grants or assistance which may be 31
190	190	available for the purposes of this act, and any such expenditures may be in addition to other monies 32
191	191	provided in this act. To the extent of any inconsistency between any law of this state and any 33
192	192	applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest 34
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196	196	where applicable, whether contracted for prior to or after the effective date of this act, may be 1
197	197	repaid as project costs under section 3. 2
198	198	SECTION 11. Bonds and notes may be issued under this act without obtaining the approval 3
199	199	of any governmental agency or the taking of any proceedings or the happening of any conditions 4
200	200	except as specifically required by this act for such issue. In carrying out any project financed in 5
201	201	whole or in part under this act, including where applicable the condemnation of any land or interest 6
202	202	in land, and in the levy and collection of assessments or other charges permitted by law on account 7
203	203	of any such project, all action shall be taken which is necessary to meet constitutional requirements 8
204	204	whether or not such action is otherwise required by statute; but the validity of bonds and notes 9
205	205	issued hereunder shall in no way depend upon the validity or occurrence of such action. 10
206	206	SECTION 12. All or any portion of the authority to issue bonds and notes under this act 11
207	207	may be extinguished by resolution of the town council, without further action by the general 12
208	208	assembly seven (7) years after the effective date of this act. 13
209	209	SECTION 13. The director of finance and the mayor, on behalf of the town, are hereby 14
210	210	authorized to execute such documents or other papers as either of them deem necessary or desirable 15
211	211	to carry out the intent of this act and are also authorized to take all actions and execute all documents 16
212	212	or agreements necessary to comply with federal tax and securities laws, which documents or 17
213	213	agreements may have a term coextensive with the maturity of the bonds authorized hereby, 18
214	214	including Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) and to execute 19
215	215	and deliver a continuing disclosure agreement or certificate in connection with the bonds or notes 20
216	216	in the form as shall be deemed advisable by such officers in order to comply with the Rule. 21
217	217	SECTION 14. The electors of the town have previously approved the issuance of bonds 22
218	218	and notes in the amount and for the purposes described in this act, at the election held on November 23
219	219	8, 2022. Accordingly, this act shall take effect upon the passage. 24
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226	226	EXPLANATION
227	227	OF
228	228	A N A C T
229	229	AUTHORIZING THE TOWN OF NORTH PROVIDENCE TO ISSUE NOT TO EXCEED
230	230	$125,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF
231	231	INDEBTEDNESS TO FINANCE THE CONSTRUCTION , RENOVATION,
232	232	REHABILITATION, REPAIR, IMPROVEMENTS, FURNISHING AND EQUIPPING OF
233	233	AND/OR ADDITIONS TO SCHOOLS AND SCHOOL FACILITIES IN THE TOWN,
234	234	INCLUDING, BUT NOT LIMITED TO, THE CONSTRUCTION OF THREE ELEMENTARY
235	235	SCHOOLS, THE RENOVATION OF TWO MIDDLE SCHOOLS AND THE
236	236	CONSTRUCTION OF NEW ADMINISTRATIVE OFFICES, SUBJECT TO APPROVAL OF
237	237	STATE HOUSING AID AT A REIMBURSEMENT RATE OR STATE SHARE RATIO OF
238	238	NOT LESS THAN 79.8% FOR EXPENDITURES ELIGIBLE FOR REIMBURSEMENT
239	239	***
240	240	This act authorizes the Town of North Providence to issue bonds and notes in an amount 1
241	241	not exceeding one hundred and twenty-five million dollars ($125,000,000) to finance the 2
242	242	construction, renovation, rehabilitation, repair, improvements, furnishing and equipping of and/or 3
243	243	additions to schools and school facilities in the town, including but not limited to, the construction 4
244	244	of three (3) elementary schools, the renovation of two (2) middle schools and the construction of 5
245	245	new administrative offices 6
246	246	As the electors of the town have approved the issuance of bonds and notes in the amount 7
247	247	and for the purposes described in this act, at the election held on November 8, 2022, this act shall 8
248	248	take effect upon passage. 9
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