This bill grants the town of North Kingstown the authority to issue bonds up to $137,200,000 for school facility improvements, including the construction of a new Wickford Middle School. The bonds must be issued with the first installment of principal due within five years and the last installment due within thirty years. The bill specifies that these bonds will not be eligible for state housing aid reimbursement unless approved by the Rhode Island Department of Education and allows for the possibility of increased reimbursement rates through incentives. It outlines the procedures for the signing, issuing, and selling of the bonds, and permits the issuance of temporary notes in anticipation of the bonds or federal or state aid, with a maximum note period of five years. The town council is authorized to use town funds for the specified purposes, with repayment from the bond proceeds.
The bill details how the proceeds from the bond sales may be used, including for construction, renovation, and other capital improvements, and how they may be invested, with interest and profits allocated to project costs or repayment of the bonds or notes. The town treasurer is given discretion in applying these funds, subject to town council instructions. The obligations from these bonds or notes are considered lawful debts of the town and are not included in the town's debt limit for borrowing capacity. The town must annually appropriate funds for repayment and may levy taxes if necessary. The act requires approval by the town's electors in the general election on November 5, 2024, with sections 14 and 15 effective upon passage and the authority to issue bonds and notes extinguishing seven years after the act's effective date without further legislative action.