Establishes the Rockland county deficit reduction taskforce to provide oversight, monitoring and recommendations on the operations and finances of the county of Rockland.
STATE OF NEW YORK
________________________________________________________________________
1314
2013-2014 Regular Sessions
IN ASSEMBLY(Prefiled)
January 9, 2013
___________
Introduced by M. of A. ZEBROWSKI, RABBITT -- read once and referred to
the Committee on Ways and Means
AN ACT to amend the general municipal law, in relation to establishing
the Rockland county deficit reduction task force
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general municipal law is amended by adding a new arti-
2 cle 18-D to read as follows:
3 ARTICLE 18-D
4 ROCKLAND COUNTY DEFICIT REDUCTION TASK FORCE
5 Section 971. Short title.
6 971-a. Definitions.
7 971-b. Rockland county deficit reduction task force.
8 971-c. Administration.
9 971-d. Functions.
10 971-e. Deficit bond authorization.
11 971-f. Comptroller oversight.
12 971-g. Termination.
13 971-h. Construction.
14 § 971. Short title. This act shall be known and may be cited as the
15 "Rockland county deficit reduction task force act".
16 § 971-a. Definitions. (a) "Budget" shall mean a current operating
17 budget of the county prepared or adopted pursuant to general, special or
18 local law, being the annual budget and estimate of expenditures to be
19 made during a fiscal year for the general support and current expenses
20 of the government of the county to be paid from taxes or assessments or
21 other current revenues of the county for such year.
22 (b) "Chief executive officer" shall mean the county executive of the
23 county of Rockland.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00441-01-3
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1 (c) "Chief fiscal officer" shall mean the chief fiscal officer as
2 defined in section 2.00 of the local finance law.
3 (d) "Collecting officer" shall mean the officer empowered to collect
4 and receive county taxes.
5 (e) "Comptroller" shall mean the New York state comptroller.
6 (f) "County" shall mean the county of Rockland.
7 (g) "County executive" shall mean the county executive of Rockland
8 county.
9 (h) "County legislature" shall mean the legislative body of the county
10 of Rockland.
11 (i) "County taxes" shall mean all taxes on real property levied and
12 assessed by the county, based on valuation thereof and shall not mean
13 any rent, rate, fee, special assessment or other charge based on benefit
14 or use.
15 (j) "Deficit bonds" shall mean the bonds authorized to be issued by
16 section nine hundred seventy-one-e of this article.
17 (k) "Deficit notes" shall mean bond anticipation notes issued in
18 anticipation of the issuance of deficit bonds.
19 (l) "Elected official" shall mean any individual that is elected to
20 represent a political subdivision in the state.
21 (m) "Fiscal year" shall mean the fiscal year of the county.
22 (n) "Outstanding", when used with respect to obligations of the county
23 as of any particular date, shall mean all obligations of the county
24 theretofore issued and thereupon being issued except any obligation
25 theretofore paid and discharged or for the payment of the principal of
26 and interest on which money is held by or on behalf of the county, in
27 trust solely and in all events only for the purpose and sufficient to
28 pay in full the principal and redemption premium, if any, of and inter-
29 est on such obligations.
30 (o) "Special debt service" shall mean, with respect to a fiscal year,
31 the amounts required for the timely payment of: (i) all principal due or
32 becoming due and payable in said year with respect to any serial bonds,
33 tax anticipation notes, capital notes or budget notes of the county, and
34 all principal amortization for said year required by law with respect to
35 bond anticipation notes or other securities of the county, and not
36 specifically mentioned in paragraph (ii) of this subdivision; (ii) all
37 interest due or becoming due and payable in said year with respect to
38 any serial bonds, deficit bonds, bond anticipation notes, tax antic-
39 ipation notes, revenue anticipation notes, capital notes, budget notes
40 or other securities of the county not specifically mentioned herein; and
41 (iii) all sinking fund contributions required in said year with respect
42 to any sinking fund bonds.
43 (p) "Special debt service fund" shall mean the fund which is held by
44 the state comptroller and is described and provided for in section nine
45 hundred seventy-one-e of this article.
46 (q) "State aid" shall mean all aid and incentives for municipalities
47 pursuant to section fifty-four of the state finance law, any successor
48 type of aid and any new aid appropriated by the state as local govern-
49 ment assistance for the benefit of the county.
50 (r) "Task force" shall mean the Rockland county deficit reduction task
51 force.
52 § 971-b. Rockland county deficit reduction task force. (a) There is
53 hereby created the Rockland county deficit reduction task force. The
54 task force shall provide oversight, monitoring and recommendations on
55 the operations and finances of the county of Rockland.
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1 (b) The task force shall conduct regular meetings as it deems neces-
2 sary to accomplish its purpose.
3 (c) The task force shall continue its oversight, monitoring and recom-
4 mendations of the county of Rockland until December thirty-first, two
5 thousand sixteen. The task force may, by majority vote, extend the oper-
6 ation of the task force for two years. The task force may extend the
7 expiration every two years thereafter. The vote to extend for additional
8 years shall take place prior to the expiration of the task force. In no
9 event shall the task force exist upon the full repayment of debt associ-
10 ated with the deficiency notes issued pursuant to section nine hundred
11 seventy-one-e of this article.
12 § 971-c. Administration. (a) The task force shall be comprised of nine
13 voting members to be appointed as follows: four members shall be
14 appointed by the governor, including one who shall serve as chairperson
15 of the task force, one member shall be appointed by the temporary presi-
16 dent of the senate, one member shall be appointed by the speaker of the
17 assembly, one member shall be appointed by the state comptroller, one
18 member shall be appointed by the county executive of Rockland and one
19 member shall be appointed by the chairperson of the Rockland county
20 legislature.
21 (b) No member shall be an elected official while serving on the task
22 force. If a member of the task force becomes an elected official after
23 their appointment, such member shall immediately resign.
24 (c) Vacancies in the appointed positions on the task force shall be
25 filled in the same manner as the original appointments were made.
26 (d) Members of the task force shall serve without compensation but
27 shall be allowed to be reimbursed by the county for their actual and
28 necessary expenses incurred in the performance of their duties provided,
29 however, that such members are not, at the same time such expenses are
30 incurred, public employees otherwise entitled to such reimbursement.
31 (e) The task force shall hold their first meeting within thirty days
32 after all appointments are filled.
33 (f) A majority of the members of the task force shall constitute a
34 quorum in order to carry out its functions. Action may be taken on the
35 approval of reports and recommendations with a majority of members pres-
36 ent voting in the affirmative.
37 § 971-d. Functions. (a) The task force shall perform the following
38 functions:
39 (i) Require the chief executive officer to submit the county's tenta-
40 tive or preliminary budget to the task force no later than thirty days
41 before the budget is to be adopted, for review and recommendations.
42 (ii) Require the chief executive officer to annually prepare and
43 submit a balanced multi-year financial plan no later than thirty days
44 before the budget is to be adopted, for review and recommendations.
45 (iii) Require the county to prepare quarterly budget reports and
46 submit such reports to the county legislature, the state director of the
47 budget, the state comptroller, the chair of the assembly ways and means
48 committee, the chair of the senate finance committee and the task force.
49 (iv) Review the county operations and organizational structure and
50 make recommendations that will result in efficiencies and savings.
51 (v) Review the current revenue sharing arrangement between the county,
52 towns and villages as described in section twelve hundred sixty-two-l of
53 the tax law and make recommendations based on the financial condition of
54 all affected municipalities, the level of services provided by each
55 municipality, revenue sharing arrangements in comparable communities and
56 current and past agreements on the cost sharing of services.
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1 (vi) Review the operations and services of the county owned Summit
2 Park nursing home and make recommendations for a long term plan that is
3 sustainable.
4 (vii) Require the county to prepare a report detailing the amount and
5 cause of the accumulated deficit and submit such report to the task
6 force.
7 (viii) Require the county to submit the annual audit report for the
8 last completed fiscal year as soon as it is available.
9 (ix) Prohibit the county from issuing bonds for the purpose of liqui-
10 dating its deficit until the task force has verified the existence and
11 amount of the deficit.
12 (x) Prepare an annual progress report on the county's finances, oper-
13 ations and the need for additional state intervention and submit such
14 report to the state director of the budget, the state comptroller, the
15 chair of the assembly ways and means committee and the chair of the
16 senate finance committee no later than December thirty-first of each
17 year that the task force is in operation.
18 (b) All recommendations submitted to the county by the task force
19 shall be deemed effective unless the county executive and county legis-
20 lature enact a local law within fourteen days after receiving such
21 recommendations for each individual recommendation that it seeks to
22 reject and such local law is approved by two-thirds of the county legis-
23 lature.
24 (c) All reports and recommendations by the task force shall be made
25 public and accessible.
26 § 971-e. Deficit bond authorization. (a) The county is hereby author-
27 ized to issue bonds, subject to the provisions of this article, on or
28 before December thirty-first, two thousand thirteen, in an aggregate
29 principal amount not to exceed eighty million dollars (exclusive of the
30 costs and expenses incidental to the issuance of the bonds authorized to
31 be issued by this section) for the specific object or purpose of liqui-
32 dating the projected deficit in the general fund of Rockland county for
33 the fiscal year ended December thirty-first, two thousand twelve. In
34 anticipation of the issuance of such bonds, deficit notes are hereby
35 authorized to be issued.
36 (b) The period of probable usefulness shall be ten years, computed
37 from the date of such deficit bonds or from the date of the first defi-
38 cit notes, whichever date is earlier. Such deficit bonds and deficit
39 notes shall be general obligations of the county, to which the faith and
40 credit of the county is pledged, and the county shall make an annual
41 appropriation sufficient to pay the principal of and interest on such
42 obligations as the same shall become due.
43 (c) No deficit bonds may be issued until the task force reviews and
44 confirms the existence of the deficits described in subdivision (a) of
45 this section. The task force shall certify that the amount of the defi-
46 cit is no less than the amount set forth in subdivision (a) of this
47 section.
48 (d) Deficit bonds may not be issued in an amount exceeding the amount
49 set forth in subdivision (a) of this section. If the county issues defi-
50 cit notes prior to a determination by the task force pursuant to subdi-
51 vision (c) of this section in an amount in excess of the amount set
52 forth in subdivision (a) of this section, the county shall, from funds
53 other than proceeds of bonds or bond anticipation notes, either redeem
54 such deficit notes in the amount by which the amount of such deficit
55 notes exceeds the amount of such deficits as confirmed by the task force
56 or deposit a sum equal to the amount by which such deficit notes exceed
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1 the amount of such deficits as confirmed by the task force into the
2 special debt service fund.
3 (e) To facilitate the marketing of deficit bonds, any bonds issued to
4 refund such deficit bonds, and any other bonds to be issued on or before
5 December thirty-first, two thousand thirteen, the county may, notwith-
6 standing any limitation on the private sales of bonds provided by law
7 and subject to the approval of the state comptroller of the terms and
8 conditions of such sales: (i) arrange for the underwriting of such bonds
9 at private sale through negotiated fees or by sale of such bonds to an
10 underwriter; or (ii) arrange for the private sale of such bonds through
11 negotiated agreement, with compensation for such sales to be provided by
12 negotiated agreement and/or negotiated fee, if required. The cost of
13 such underwriting or private placement shall be deemed to be a prelimi-
14 nary cost for purposes of section 11.00 of the local finance law.
15 (f) Except as provided in this article, all proceedings in connection
16 with the issuance of such deficit bonds or deficit notes shall be had
17 and taken in accordance with the provisions of the local finance law,
18 provided, however, that any resolution or resolutions authorizing the
19 issuance of such bonds or bond anticipation notes shall not be subject
20 to (i) any mandatory or permissive referendum, (ii) the provisions of
21 section 107.00 of the local finance law with respect to any requirements
22 for a down payment, and (iii) the provisions of section 10.10 of the
23 local finance law.
24 (g) The county legislature, upon the issuance of any deficit bonds or
25 deficit notes shall establish and thereafter maintain a special debt
26 service fund with the state comptroller for the purpose of paying the
27 special debt service due or becoming due in subsequent fiscal years.
28 (i) The special debt service fund shall be discontinued upon the
29 repayment of all debt issued pursuant to this article, and any balance
30 remaining in the special debt service fund at that time shall be paid by
31 the state comptroller to the county executive for use by the county.
32 (ii) The state comptroller shall deposit and pay into the special debt
33 service fund any portion of state aid as the state comptroller deter-
34 mines necessary to ensure sufficient moneys are available to make sched-
35 uled special debt service payments from the special debt service fund
36 over the succeeding twelve month period taking account of the county's
37 receipt of county taxes and state aid during such twelve month period
38 and the availability of other amounts appropriated or set aside by the
39 county to make such payments. Thereafter, the state comptroller shall,
40 as soon as practicable, pay over the remainder of any such state aid to
41 the county executive for use by the county in the manner provided by
42 law.
43 (iii) Not later than the first day of each fiscal year beginning after
44 issuance of any deficit bonds or deficit notes, the county executive
45 shall certify to the state comptroller the percentage obtained by divid-
46 ing the balance obtained by subtracting the amount of the appropriation
47 for such year for a reserve for uncollected taxes from the total amount
48 of county taxes levied and assessed for such year, into the total appro-
49 priation in the budget of such year for special debt service, and the
50 percentage so certified shall constitute the debt service percentage
51 for such fiscal year. Immediately upon receipt of any payment during
52 such fiscal year of or on account of any county taxes, the county, its
53 collecting officer and any agent receiving the same shall remit such
54 payment to the state comptroller. Of each sum so received, the state
55 comptroller shall deposit and pay into the special debt service fund
56 the portion thereof equal to the debt service percentage of the total
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1 sum, and shall deposit and pay into the fund such additional amounts as
2 the state comptroller determines necessary to ensure sufficient moneys
3 are available to make scheduled special debt service payments from the
4 special debt service fund over the succeeding twelve month period taking
5 account of the timing of the county's receipt of county taxes and state
6 aid during such twelve month period and the availability of other
7 amounts appropriated or set aside by the county to make such payments.
8 Thereafter, the state comptroller shall, as soon as practicable, pay
9 over the remainder of such sum to the county executive for use by the
10 county in the manner provided by law.
11 (iv) The county executive shall deposit in the special debt service
12 fund all monies collected through the sales tax surcharge provided by
13 section twelve hundred ten of the tax law. The county shall deposit
14 revenues generated from such sales tax surcharge on a quarterly basis.
15 (v) The state comptroller shall from time to time during each fiscal
16 year withdraw from the special debt service fund all amounts required
17 for the payment as the same becomes due of all special debt service of
18 such fiscal year and cause the amounts so withdrawn to be applied to
19 such payments as and when due.
20 (vi) The special debt service fund and all monies or securities there-
21 in or payable thereto in accordance with this section is hereby declared
22 to be county property devoted to essential governmental purposes and
23 accordingly, shall not be applied to any purpose other than as provided
24 herein and shall not be subject to any order, judgement, lien,
25 execution, attachment, setoff or counterclaim by any creditor of the
26 county other than a creditor for whose benefit such fund is established
27 and maintained and entitled thereto under and pursuant to this article.
28 (vii) The agreement with the state is as follows:
29 (1) The state does hereby pledge to and agree with the holders of any
30 bonds, notes or other obligations issued by the county during the
31 effective period of this article and secured by such a pledge that the
32 state will not limit, alter or impair the rights hereby vested in the
33 county to fulfill the terms of any agreements made with such holders
34 pursuant to this article, or in any way impair the rights and remedies
35 of such holders or the security for such bonds, notes or other obli-
36 gations until such bonds, notes or other obligations together with the
37 interest thereon and all costs and expenses in connection with any
38 action or proceeding by or on behalf of such holders, are fully paid and
39 discharged. The county is authorized to include this pledge and agree-
40 ment of the state in any agreement with the holders of such bonds, notes
41 or other obligations. Nothing contained in this article shall be deemed
42 to:
43 (A) Obligate the state to make any payments or impose any taxes to
44 satisfy the debt service obligations of the county,
45 (B) Restrict any right of the state to amend, modify, repeal or other-
46 wise alter (I) section fifty-four of the state finance law or any other
47 provision relating to state aid, or (II) statutes imposing or relating
48 to taxes or fees, or appropriations relating thereto, or
49 (C) Create a debt of the state within the meaning of any constitu-
50 tional or statutory provisions. The county shall not include in any
51 resolution, contract or agreement with holders of such bonds, notes or
52 other obligations any provision which provides that an event of default
53 occurs as a result of the state exercising its rights described in
54 clause (B) of this subparagraph.
55 (2) Any provision with respect to state aid shall be deemed executory
56 only to the extent of moneys available, and no liability shall be
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1 incurred by the state beyond the moneys available for that purpose, and
2 any such payment by the state comptroller of state aid shall be subject
3 to annual appropriation of state aid by the state legislature.
4 (h) In the event that the county shall fail to comply with any
5 provision of this section, and such non-compliance shall continue for a
6 period of thirty days, the state comptroller acting alone, or a duly
7 appointed representative of the holders of at least twenty-five per
8 centum in aggregate principal amount of (i) any series of deficit bonds
9 or deficit notes, (ii) any series of bonds issued to refund such deficit
10 bonds or deficit notes, or (iii) any other series of notes or bonds
11 issued by the county during the effective period of this article, by
12 instrument or instruments filed in the office of the clerk of Rockland
13 county and proved or acknowledged in the same manner as a deed to be
14 recorded, may bring an action or commence a proceeding in accordance
15 with the civil practice law and rules to require the county to carry out
16 any of its obligations under this article or enjoin any acts or things
17 which may be unlawful or in violation of the obligations imposed on the
18 county under this article. In addition, the duly appointed represen-
19 tative of the bondholders of any such series of notes or bonds may bring
20 an action or commence a proceeding in accordance with the civil practice
21 law and rules to enforce the rights of the holders of such series of
22 notes or bonds. The supreme court in the county of Rockland shall have
23 jurisdiction of any action or proceeding by the state comptroller or the
24 representative of such bondholders.
25 (i) The provisions of this section shall be in full effect until the
26 full repayment of all debt associated with the issuance of deficiency
27 bonds authorized by this section.
28 § 971-f. Comptroller oversight. Upon the expiration of the task force,
29 the county is required to:
30 (a) For each fiscal year after the expiration of the task force, the
31 county executive shall monitor budgets of the county and, for each budg-
32 et, prepare a quarterly report of summarized budget data depicting over-
33 all trends of actual revenues and budget expenditures for the entire
34 budget rather than individual line items. Such reports shall compare
35 revenue estimates and appropriations as set forth in such budget with
36 the actual revenues and expenditures made to date. All quarterly reports
37 shall be accompanied by a recommendation by the county executive setting
38 forth any remedial action necessary to resolve any unfavorable budget
39 variance including the overestimation of revenues and the underesti-
40 mation of appropriations, and shall be completed within thirty days of
41 the end of each quarter. The county executive shall also prepare, as
42 part of such report, a quarterly trial balance of general ledger
43 accounts. The above quarterly budgetary reports and quarterly trial
44 balances shall be prepared in accordance with applicable accounting
45 principles incorporated in the uniform system of accounts prescribed by
46 the state comptroller. These reports shall be submitted to the county
47 legislature, the state director of the budget, the state comptroller,
48 the chair of the assembly ways and means committee, and the chair of the
49 senate finance committee.
50 (b) For each fiscal year after the expiration of the task force, the
51 county executive shall submit the proposed budget for the next succeed-
52 ing fiscal year to the state comptroller no later than thirty days
53 before the date scheduled for the county legislature's vote on the
54 adoption of the final budget or the last date on which the budget may be
55 finally adopted, whichever is sooner. The state comptroller shall exam-
56 ine such proposed budget and make such recommendations as deemed appro-
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1 priate thereon to the county prior to the adoption of the budget, but no
2 later than ten days before the date scheduled for the county legisla-
3 ture's vote on the adoption of the final budget or the last date on
4 which the budget must be adopted, whichever is sooner. The county legis-
5 lature, no later than five days prior to the adoption of the budget,
6 shall review any such recommendations and make adjustments to the
7 proposed budget consistent with any recommendations made by the state
8 comptroller.
9 (c) For each fiscal year after the expiration of the task force, the
10 county executive shall prepare, along with the proposed budget for the
11 next succeeding fiscal year, a three-year financial plan covering the
12 next succeeding fiscal year and the two fiscal years thereafter. The
13 financial plan shall, at a minimum, contain projected employment levels,
14 projected annual expenditures for personal service, fringe benefits,
15 non-personal services and debit service; appropriate reserve fund
16 amounts; estimated annual revenues including projection of property tax
17 rates, the value of the taxable real property and resulting tax levy,
18 annual growth in sales tax and non-property tax revenues; and the
19 proposed use of one-time revenue sources. The financial plan shall also
20 identify actions necessary to achieve and maintain long-term fiscal
21 stability, including, but not limited to, improved management practices,
22 initiatives to minimize or reduce operating expenses, potential shared
23 services agreements with other municipalities and other budgetary
24 actions that reduce the accumulated deficit. Within thirty days follow-
25 ing the adoption by the county legislature of the budget for the next
26 succeeding fiscal year and upon the completion of each quarterly budget
27 report pursuant to section nine hundred seventy-one-f of this article,
28 the county executive shall update the financial plan consistent with
29 such adopted budget or such quarterly budget report. Copies of the
30 financial plan and any update shall be provided to the county legisla-
31 ture, the state director of the budget, the state comptroller, the chair
32 of the assembly ways and means committee, and the chair of the senate
33 finance committee.
34 (d) For each fiscal year after the expiration of the task force, the
35 chief fiscal officer shall notify the state comptroller at least fifteen
36 days prior to the issuance of any bonds or notes or entering into any
37 installment purchase contract, and the state comptroller may review and
38 make recommendations regarding the affordability to the county of any
39 such proposed issuance or contract.
40 § 971-g. Termination. The provisions of this article shall expire
41 after full repayment of all debt associated with the issuance of deficit
42 bonds authorized by this article.
43 § 971-h. Construction. (a) The provisions of this article shall be
44 liberally construed to assist the effectuation of the public purposes
45 furthered hereby.
46 (b) If any clause, sentence, paragraph, section or part of this arti-
47 cle shall be adjudged by any court of competent jurisdiction to be
48 invalid, such judgment shall not affect, impair or invalidate the
49 remainder thereof, but shall be confined in its operation to the clause,
50 sentence, paragraph, section or part involved in the controversy in
51 which such judgment shall have been rendered.
52 § 2. This act shall take effect immediately and shall expire and be
53 deemed repealed when repayment of all debt associated with the issuance
54 of deficit bonds authorized by section one of this act shall be
55 complete. The chairperson of the Rockland county deficit reduction task
56 force shall notify the legislative bill drafting commission of the date
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1 of the termination of such task force in order that the commission may
2 maintain an accurate and timely effective database of the official text
3 of the laws of the state of New York in furtherance of effecting the
4 provisions of section 44 of the legislative law and section 70-b of the
5 public officers law.
