City of Pawtucket, RI
Providence County
By using eCode360 you agree to be legally bound by the Terms of Use. If you do not agree to the Terms of Use, please do not use eCode360.
Table of Contents
Table of Contents

Sec. 5-100 Authority to issue bonds.

The city, subject to the limitations of law, and subject to the terms of this Charter, may incur indebtedness by issuing its bonds to finance any capital project which it may lawfully construct or acquire.

Sec. 5-101 Bond ordinance and referendum required; when general assembly authorization required; contents of bond ordinance.

The city shall authorize the issuance of bonds by ordinance; provided, however, that no such ordinance shall become effective unless approved by a majority of the electors of the city voting thereon at a regular or special election; provided further, that authorization to issue such bonds shall be obtained from the general assembly of the state if the law shall require such authorization. A bond ordinance shall contain in substance at least the following provisions:
(1) 
An appropriation of a sum of money for a capital project, sufficiently described for reasonable identification;
(2) 
An authorization of the incurring of indebtedness by the issuance of bonds in a stated amount;
(3) 
A statement of the estimated maximum cost of the capital project, including any sums theretofore or thereby appropriated;
(4) 
A statement of the amount of the down payment, if any, appropriated in the budget of that year in anticipation of such bond issue;
(5) 
A determination of the period of usefulness of the project.

Sec. 5-102 Two or more projects in bond ordinance.

A bond ordinance may combine two or more projects, in which event, it shall, for each project, establish a separate appropriation and state separately the data provided in Section 5-101 hereof, but shall authorize a single issue of bonds to finance the aggregate of the appropriations thereby made. Such ordinance shall further contain the average weighed periods of usefulness of the several projects.

Sec. 5-103 Bonds to be payable in annual installments; installment requirements.

All bonds issued shall be paid in consecutive annual installments, the smallest of which shall be not less than two-thirds the average installment and the largest of which shall be not more than one and one-half times the average installment, and the first installment shall be payable within the fiscal year next following the fiscal year in which said bonds shall be issued.

Sec. 5-104 Last bond installment to be paid within period of usefulness.

The last annual installment of each authorized bond issue shall be paid not later than the date of the expiration of the period of usefulness of the project for the financing of which such bonds are issued, or the average weighted period of combined projects as determined in the bond ordinance authorizing the issuance of bonds. All periods of usefulness shall be computed from the date of final passage of the bond ordinance.

Sec. 5-105 When bonds shall mature; determination of period of usefulness; terms of bonds not to exceed thirty years.

Bonds shall mature not later than the expiration of the period of usefulness of the capital project for which they are issued, as determined by the engineering department, stated in the bond ordinance, but the terms shall not exceed thirty years.

Sec. 5-106 When notes may be issued; restrictions upon notes.

Whenever the issuance of bonds shall be authorized, notes in anticipation of bonds may be issued, but all such notes shall mature not later than twelve months after their issuance, and said notes may be paid from the proceeds of the bonds in anticipation of which they were issued.

Sec. 5-107 Sale of bonds and notes.

All bonds issued and all notes in anticipation of bonds shall be sold by the director of finance at the direction of the council after written bids shall have been submitted to the council.

Sec. 5-108 Bonds deemed valid twenty days after declaration of referendum result.

When twenty days shall have elapsed after the passage of a bond ordinance and the declaration of the result of the referendum thereon, the recitals and statements of fact therein shall be deemed to be true for the purpose of determining the validity of the bonds; the ordinance shall be conclusively presumed to have been duly and regularly passed and to comply with the provisions of this Charter, and the validity of such bond ordinance shall not thereafter be questioned by either a party plaintiff or a party defendant except in a suit, action or proceeding commenced prior to the expiration of such twenty days.

Sec. 5-109 Funds received from sale of bonds to be kept separate; disposition of excess funds.

All funds received by the city from the sale of bonds shall be kept separate and apart from the general funds of the city, and shall be used only for the purposes for which the bonds were authorized; provided, however, that if there shall be any balance remaining after completion of the projects for which the bonds were issued, or if for any reason the projects cannot be completed and there shall be funds remaining, the council shall authorize the use of such funds towards the retirement of the bonds from which the funds were obtained, or, if such retirement cannot be made within a reasonable time, then the council may authorize the use of such funds towards the retirement of any outstanding bonds of the city, or that such funds be turned over to the board of sinking fund commissioners.[1]
[1]
Editor's Note: The Board of Sinking Fund Commissioners was abolished 4-25-1969 by Ch. No. 2071. See Sec. 3-703 of this Charter.

Sec. 5-110 Refunding bonds.

The council may at any time authorize the issuance of the bonds by ordinance for the purpose of refunding any bonds issued and outstanding at the time of the adoption of this Charter; provided, however, that no such ordinance shall become effective unless approved by a majority of the electors of the city voting thereon at a regular or special election; provided further, that authorization to issue such bonds shall be contained from the general assembly of the state if the law shall require such authorization. No such refunding bonds shall be issued for a longer term than ten years, and shall be payable as provided in Section 5-103 hereof.

Sec. 5-111 Special bonds.

The council shall have the power at any time after the adoption of this Charter to authorize the issuance of bonds for the purpose of raising sufficient funds to enable the city to meet its general operating budget and to permit the city thereafter to operate upon a current basis. This provision may be utilized but once, and thereafter the provisions hereinafter contained authorizing the city to borrow money in anticipation of taxes shall be and become void. No such ordinance shall become effective, however, until approved by a majority of the electors of the city voting thereon at a regular or special election; provided further, however, that authorization to issue such bonds shall have been obtained from the general assembly of the state if the law shall require such authorization. No such bonds shall be issued for a longer term than twenty years, and the bonds shall be payable as provided in Section 5-103 hereof. The proceeds of such bond issue shall be used to pay the general operating expenses of the city for the then current year, together with any sums borrowed in anticipation of taxes for the then current year. If such bonds shall be issued, all revenue from taxes levied in said fiscal year shall be set aside to be used for the general operating expenses of the city for the next fiscal year.

Sec. 5-200 Borrowing money in anticipation of collection of taxes.

The council may, insofar as permitted by law, authorize the borrowing of money in anticipation of the collection of taxes, the funds to be used for the general operating budget of the city provided, however, that:
(1) 
The aggregate indebtedness of the city on such borrowing shall not exceed ninety per cent of the anticipated sums to be collected from taxes levied by the city during the fiscal year. In addition to sums required to be used and actually used for the payment of the bonded indebtedness of the city and the interest thereon, the aggregate indebtedness of the city on such borrowings at the end of the first, second and third quarters of the fiscal year shall not exceed twenty-five per cent, fifty per cent and seventy-five per cent, respectively, of said anticipated tax collections.
(2) 
For the purposes hereof it shall be assumed that the sums to be collected from taxes levied by the city during the fiscal year shall be no greater than the average percentage of such collections during the three prior fiscal years.
(3) 
All sums borrowed in anticipation of taxes shall be repaid before the close of the fiscal year in which said sums shall be borrowed.
(4) 
The finance director shall maintain an account to be entitled "Working Capital Account" which said account shall have posted to its credit surplus accruals of prior years. The funds in said account shall be used exclusively for the same purposes for which the city is authorized to borrow in anticipation of taxes, provided, however, that all such monies shall be refunded to this account before the close of the fiscal year.
[Added 7-20-1972 by Ch. No. 1360; amended 12-22-1972 by Ch. No. 1371 (Ref. of 2-20-1973)]
(5) 
In the event it is proposed to use funds of the "Working Capital Account" for any other purpose, the question of said use shall first be presented to the voters on referendum for approval or rejection, which said referendum shall be authorized by an ordinance of the city council and shall specifically describe the use to be made of said funds and the specific amount required for said purpose.
[Added 7-20-1972 by Ch. No. 1360; amended 12-22-1972 by Ch. No. 1371 (Ref. of 2-20-1973)]

Sec. 5-201 Sale of notes issued in anticipation of collection of taxes.

All notes issued in anticipation of the collection of taxes shall be sold by the director of finance at the direction of the council after written bids shall have been submitted to the council.