Town of Smithfield, RI
Providence County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Town Council of the Town of Smithfield as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Capital improvements — See Ch. 19.
Waterline extensions — See Ch. 350.
[Adopted 6-19-2012 by Ord. No. 2012-05]
A. 
The sum of $227,000 is appropriated for the purchase and installation of approximately 1,200 radio-based water meters with automatic meter read modules in the Smithfield Water Supply Board service area (the "project").
B. 
In accordance with Chapter 45-12-2 of the Rhode Island General Laws, the Town Manager and the Town Treasurer are authorized to borrow an amount not exceeding $227,000 from the Rhode Island Clean Water Finance Agency, and to evidence such loan, such officers are hereby authorized to issue general obligation bonds of the Town in an amount not exceeding $227,000 (the "bonds"), at one time or from time to time in order to meet the foregoing appropriation.
C. 
Said officers from time to time may issue and refund not exceeding $227,000 interest-bearing or discounted notes (the "notes") under Chapter 45-12-18 of the Rhode Island General Laws in anticipation of the issue of said bonds or in anticipation of the receipt of federal or state aid for the purposes specified in Subsection A hereof.
D. 
The manner of sale and the forms, denominations, maturities, interest rates and other details of the bonds and notes shall be fixed by the said officers.
E. 
Pending the issue of bonds under Subsection B hereof or pending or in lieu of the issue of notes under Subsection C hereof, the Finance Director may expend funds from the general treasury of the Town for the purposes specified in Subsection A hereof. Any advances made under this subsection shall be repaid without interest from the proceeds of bonds or notes issued hereunder or from the proceeds of applicable federal or state assistance or from other available funds.
F. 
Said officers are also authorized, empowered and directed, in the name and on behalf of the Town, to execute and deliver all documents required to be executed and delivered in connection with the issuance of the bonds and the notes, including, without limitation, a loan agreement, all in such form and with such provisions as such officers shall deem advisable.
G. 
If the bonds and notes can be issued so that the interest thereon is excludable from gross income for federal tax purposes, the Town Manager and the Town Treasurer are hereby authorized, if required, to take all lawful action necessary under the Internal Revenue Code of 1986, as amended (the "Code"), to ensure that the interest on the bonds and the notes will remain exempt from federal income taxation to the extent provided in Section 103 of the Code, and to refrain from taking any action which will cause interest on the bonds or notes to lose the benefit of exclusion from gross income provided by Section 103(a) of the Code.
H. 
This article is an affirmative action of the Town Council of the Town toward the issuance of the bonds and notes in accordance with the purposes of the laws of the state. This article constitutes the Town's declaration of official intent, pursuant to Treasury Regulation § 1.150-2, to reimburse the Town funds and accounts for certain capital expenditures for the project paid on or after the date which is 60 days prior to the date of this article but prior to the issuance of the bonds or notes. Such amounts to be reimbursed shall be reimbursed not later than 18 months after a) the date on which the expenditure is paid or b) the date the particular project is placed in service or abandoned, but in no event more than three years after the date the expenditure is paid.
[Adopted 1-7-2020 by Ord. No. 2020-01]
A. 
Water infrastructure improvements. The sum of $3,000,000 is hereby appropriated for the purpose of financing improvements to the Town drinking water system, including costs of issuance and capitalized interest, if any (the "Project").
B. 
In order to meet the foregoing appropriation, the Town Manager and the Town Council President, each acting singly, are authorized to issue the Town's limited obligation bonds in an aggregate amount not to exceed $3,000,000 in one or more series and at one time or from time to time pursuant to Chapter 46- 12.8 of the Rhode Island General Laws of 1956, as amended, and Article II, C-2.12(4), and Article V, C-5.16, of the Smithfield Town Charter.
C. 
The said officers, each acting singly, from time to time may issue limited obligation bond anticipation notes in an amount not to exceed $3,000,000 pursuant to Chapter 46-12.8 of the Rhode Island General Laws of 1956, as amended, and Article V, C-5.16, of the Smithfield Town Charter in anticipation of the issuance of said bonds. Said notes may be sold at not less than par plus accrued interest.
D. 
The bonds and notes shall be limited obligations of the Town payable solely from revenues of the Town's drinking water system, including, but not limited to, usage fees, service connection fees, annual service and fire charges, water quality protection charges, connection and disconnection fees and hydrant fees (the "Water System Revenues"). The bonds and notes shall not be general obligations of the Town. The Town may issue bonds, notes or other obligations on a parity with the bonds or notes authorized by this article.
E. 
The manner of sale, amount, denominations, maturities, conversion or registration privileges, interest rates, medium of payment, and other terms, conditions and details of the bonds and notes authorized herein may be fixed by the officers authorized to sign the bonds and notes.
F. 
Pending the issuance of bonds under Subsection B hereof or the notes under Subsection C hereof, the Finance Director may expend funds from the general treasury of the Town for the purposes specified in Subsection A hereof. Any advances made under this Subsection F shall be repaid without interest from the proceeds of bonds or notes issued hereunder or from the proceeds of applicable federal or state assistance or from other available funds.
G. 
This article constitutes the Town's declaration of official intent, pursuant to Treasury Regulation § 1.150-2, to reimburse the Town funds and accounts for certain capital expenditures for the Project paid on or after the date which is 60 days prior to the date of this article, but prior to the issuance of the bonds or notes. Such amounts to be reimbursed shall be reimbursed not later than 18 months after a) the date on which the expenditure is paid or b) the date the particular portion of the Project is placed in service or abandoned, but in no event more than three years after the date the expenditure is paid.
H. 
The Town Manager and the Town Council President, each acting singly, are hereby authorized and instructed to take all actions, on behalf of the Town, necessary to ensure that interest on the bonds and notes will be excludable from gross income for federal income tax purposes and to refrain from taking any action which would cause interest on the bonds and notes to become subject to federal income taxes.
I. 
The Town Manager and the Town Council President, each acting singly, are also authorized, empowered and directed, on behalf of the Town, to: a) execute, acknowledge and deliver a trust indenture (the "Trust Indenture") by and between the Town and a corporate trustee (the "Trustee"), one or more supplemental indentures (the "Supplemental Indentures") relating to the bonds and any and all other loan agreements, documents, certificates or instruments necessary to effectuate such borrowing; b) amend, modify or supplement the Trust Indenture, Supplemental Indentures, bonds or notes and any and all other loan agreements, documents, certificates or instruments at any time and from time to time, in such manner and for such purpose as such officers shall deem necessary, desirable or advisable; c) pledge the Water System Revenues to secure payment of the bonds or notes; d) direct the Trustee with regard to investments of trust funds pursuant to the Trust Indenture; and e) do and perform all such other acts and things deemed by said officers to be necessary, desirable or advisable with respect to any matters contemplated by this article in order to effectuate said borrowing and the intent hereof.
J. 
The Town Manager and the Town Council President, each acting singly, are authorized to take all actions necessary to comply with federal tax and securities laws, including Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and, if required by the Rule, to execute and deliver a Continuing Disclosure Certificate in connection with the bonds in the form as shall be approved by the Town Manager and the Town Council President in order to comply with the Rule. The Town hereby covenants and agrees that it will comply with and carry out all of the provisions of such Continuing Disclosure Certificate, as it may be amended from time to time. Notwithstanding any other provision of this article or the bonds, failure of the Town to comply with such Continuing Disclosure Certificate shall not be considered an event of default; however, any bondholder may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Town to comply with its obligations under this section and under such Continuing Disclosure Certificate.
K. 
The Town Manager and the Town Council President, each acting singly, are authorized, empowered and directed, on behalf of the Town, to: a) execute, acknowledge and deliver any and all other documents, certificates or instruments necessary to effectuate such borrowing, all in such form and with such provisions as such officers shall deem advisable; b) amend, modify or supplement the bonds and notes and any and all other documents, certificates or instruments at any time and from time to time, in such manner and for such purposes as such officers shall deem necessary, desirable or advisable; c) do and perform all such other acts and things deemed by such officers to be necessary, desirable or advisable with respect to any matters contemplated by this article in order to effectuate said borrowing and the intent hereof.