The bill allows the town of North Kingstown to issue bonds up to $137,200,000 for school facility improvements, including the construction of a new Wickford Middle School. The bonds, which can be either serial or term, must have the first principal installment due within five years and the last within thirty years from the issuance date. Bonds issued for school projects require approval from the Rhode Island Department of Education to qualify for state housing aid reimbursement, and there may be increased reimbursement rates as incentives upon project completion. The bill details the procedures for signing, issuing, and selling the bonds, and permits the issuance of temporary notes in anticipation of bonds or federal/state aid, with a maximum period of five years from the original note to the maturity of any renewals.
The bill also grants the town treasurer the authority to deposit or invest the proceeds from the sale of bonds or notes, with accrued interest being used for the first interest payment and any premiums or profits applied to the costs associated with the bonds or notes or the projects they finance. The bonds or notes will be considered obligatory debts of the town but will not count towards the town's borrowing capacity. The town must annually appropriate funds for the principal and interest of the bonds or notes, and failure to do so will result in the sum being added to the annual tax levy. The town may also apply for and expend federal or state grants for the purposes of the act. The authority to issue bonds and notes will expire seven years from the act's effective date unless extinguished by the town council. The act's approval will be determined by the town's electors at a general election, with certain sections effective upon passage and the remainder upon voter approval.