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A10131 Summary:

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A10131 Floor Votes:

A10131 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10131
 
                   IN ASSEMBLY
 
                                      June 16, 2014
                                       ___________
 
        Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Corwin) --
          read once and referred to the Committee on Ways and Means
 
        AN ACT to authorize the city of Lockport, in the county of  Niagara,  to
          finance a certain deficit by the issuance of bonds
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 

     1    Section 1. The city of Lockport, in the county of Niagara,  is  hereby
     2  authorized  to  issue  serial bonds on or before December 31, 2014 in an
     3  aggregate principal amount not to  exceed  five  million  three  hundred
     4  fifty  thousand  dollars ($5,350,000) for the specific object or purpose
     5  of liquidating the deficits in the general fund,  the  water  fund,  the
     6  refuse fund and the sewer fund of such city for the fiscal years January
     7  1,  2011 through December 31, 2011, January 1, 2012 through December 31,
     8  2012 and January 1, 2013 through December 31, 2013.  In anticipation  of
     9  the issuance of the bonds authorized to be issued by this act, the issu-
    10  ance and sale of bond anticipation notes are hereby authorized.
    11    §  2.  Notwithstanding  any provision of this act to the contrary, the
    12  city of Lockport shall not issue any bonds for the purpose of  liquidat-

    13  ing  the  projected  deficits  unless  and until the amounts thereof are
    14  reviewed and determined by the state comptroller. The city  of  Lockport
    15  shall  prepare  a report detailing the amount and cause of such deficits
    16  and submit such report together with the city's independent audit report
    17  for its last completed fiscal year, if any such audit report has been or
    18  is to be prepared, and such other information as the  state  comptroller
    19  may  deem  necessary, to the state comptroller, as well as the chairs of
    20  the senate finance committee and the assembly ways and means  committee,
    21  at least thirty days prior to the issuance of any bonds pursuant to this
    22  act.  Within  thirty  days  after receiving such report, the state comp-
    23  troller shall perform such reviews as may be necessary to determine  the
    24  amount  of such deficits and report the same to the chairs of the senate

    25  finance committee and the assembly ways and means committee,  the  mayor
    26  and the common council of the city of Lockport.  Bonds to liquidate each
    27  such  deficit shall not be issued in an amount exceeding such deficit as
    28  determined by the state comptroller. Nothing provided in this act  shall
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15624-01-4
        A. 10131                            2
 
     1  prevent  the  city of Lockport from authorizing the issuance of bonds or
     2  bond anticipation notes, and issuing bond anticipation notes,  prior  to
     3  the  determination  of the state comptroller of the amount of such defi-
     4  cits.  In  the  event bond anticipation notes are issued in an amount in

     5  excess of the amounts determined by the state comptroller, the  city  of
     6  Lockport shall redeem from funds other than the proceeds of the bonds or
     7  bond  anticipation  notes, such bond anticipation notes in the amount by
     8  which the amount of bond anticipation notes exceeds the amount  of  such
     9  deficits as determined by the state comptroller.
    10    §  3.  It  is  hereby  determined  that  the financing of the deficits
    11  hereinbefore described is a purpose of the city of  Lockport  for  which
    12  indebtedness may be incurred, the period of probable usefulness of which
    13  is  hereby  determined  to  be ten years, computed from the date of such
    14  bonds or from the date of the first bond  anticipation  note  issued  in
    15  anticipation  of the sale of such bonds, whichever date is earlier. Such
    16  bonds and/or bond anticipation notes shall be general obligations of the

    17  city of Lockport to which the faith and credit of the city  is  pledged,
    18  and  the  city  shall make an annual appropriation sufficient to pay the
    19  principal of and interest on such obligations as the same  shall  become
    20  due.
    21    §  4.  Except  as  provided  in  this act, the provisions of the local
    22  finance law shall be applicable to the authorization, sale and  issuance
    23  of the bonds and bond anticipation notes authorized to be issued by this
    24  act  provided,  however,  that no resolution authorizing the issuance of
    25  such bonds or notes shall be subject to either mandatory  or  permissive
    26  referendum.
    27    §  5.  (a) For each fiscal year occurring during the time bonds and/or
    28  bond anticipation notes issued pursuant to this act are outstanding, the
    29  mayor of the city of Lockport shall prepare a quarterly report of summa-

    30  rized budget data depicting overall trends of actual revenues and budget
    31  expenditures for the entire budget rather than  individual  line  items.
    32  Such  budgetary  reports  shall  compare revenue estimates and appropri-
    33  ations as set forth in such budget with the actual revenues and expendi-
    34  tures made to date. All such quarterly budgetary reports shall be accom-
    35  panied by recommendations of the mayor setting forth any remedial action
    36  necessary or  desirable  to  resolve  any  unfavorable  budget  variance
    37  including  the  over-estimation  of revenues and the under-estimation of
    38  expenditures. Each such quarterly budgetary report  shall  be  completed
    39  within  thirty days after the end of each quarter and shall be submitted
    40  to each member of the common council of the city of Lockport, the direc-
    41  tor of the division of the budget, the state comptroller, and the chairs

    42  of the senate finance committee and the assembly ways and means  commit-
    43  tee.
    44    (b)  For  each fiscal year occurring during the time bonds and/or bond
    45  anticipation notes issued pursuant to  this  act  are  outstanding,  the
    46  mayor  of  the  city  of  Lockport  shall also prepare a quarterly trial
    47  balance of general and special fund ledger accounts. Each such quarterly
    48  trial balance shall be prepared in accordance  with  generally  accepted
    49  accounting  principles.  Each  such  quarterly  trial  balance  shall be
    50  completed within thirty days after the end of each quarterly period  and
    51  shall  be  submitted to each member of the common council of the city of
    52  Lockport, the director of the division of the budget,  the  state  comp-
    53  troller, and the chairs of the senate finance committee and the assembly
    54  ways and means committee.

    55    (c)  For the fiscal year beginning January 1, 2015 and for each fiscal
    56  year thereafter during which such debt or any debt  incurred  to  refund
        A. 10131                            3
 
     1  such  debt  is  outstanding,  the mayor of the city of Lockport or other
     2  officer or officers responsible for the  preparation  of  the  tentative
     3  budget  shall submit the tentative budget for the next succeeding fiscal
     4  year  to the state comptroller no later than thirty days before the last
     5  date on which the budget must be finally adopted. The state  comptroller
     6  shall  examine  such  proposed  budget  and make such recommendations as
     7  deemed appropriate thereon to the common council of the city of Lockport
     8  no later than ten days before the last date on which the budget must  be
     9  finally  adopted.  Such  recommendations shall be made after examination

    10  into the estimates of revenues and expenditures of the city of Lockport.
    11  The common council of the city of Lockport,  no  later  than  five  days
    12  prior  to  the adoption of the budget, shall review any such recommenda-
    13  tions and may make adjustments to its proposed  budget  consistent  with
    14  any  recommendations  made by the state comptroller. Any recommendations
    15  that the common council rejects shall be explained  in  writing  to  the
    16  state comptroller. The action or inaction of the state comptroller under
    17  this  section shall not be construed to affect the legal validity of the
    18  budget of the city of Lockport nor to affect the powers or duties of the
    19  city of Lockport with respect to the local  budget;  provided,  however,
    20  that  the city of Lockport may not issue bonds for any object or purpose
    21  unless and until adjustments to its proposed budget, consistent with any

    22  recommendations made by the state comptroller, are  made,  or  any  such
    23  recommendations  that are rejected have been explained in writing to the
    24  state comptroller.
    25    (d) Within ninety days of the issuance of any debt  pursuant  to  this
    26  act  and  for  each fiscal year thereafter during which such debt or any
    27  debt incurred to refund such debt is outstanding, the mayor of the  city
    28  of Lockport or other officer or officers responsible for the preparation
    29  of  the  tentative  budget  of  the city of Lockport, within thirty days
    30  after the final adoption of the budget for the  next  succeeding  fiscal
    31  year,  shall  prepare  a  three-year  financial  plan  covering the next
    32  succeeding fiscal year and the two fiscal years thereafter.  The  finan-
    33  cial  plan  shall,  at a minimum, contain the information required to be
    34  provided in a three-year financial plan as prescribed by subdivision  10

    35  of  section  54  of the state finance law.  Copies of the financial plan
    36  shall be provided to the mayor and chief fiscal officers of the city  of
    37  Lockport,  the  director of the budget, the state comptroller, the chair
    38  of the assembly ways and means committee and the  chair  of  the  senate
    39  finance  committee.   This financial plan requirement shall not apply to
    40  the extent the city of Lockport is subject  to  a  different  multi-year
    41  financial plan requirement under state law.
    42    (e)  For  each fiscal year occurring during the time bonds and/or bond
    43  anticipation notes issued pursuant to  this  act  are  outstanding,  the
    44  chief  fiscal  officer  of  the  city of Lockport shall notify the state
    45  comptroller at least fifteen days prior to the issuance of any bonds  or
    46  notes  or  entering into any installment purchase contract and the state

    47  comptroller may review and make recommendations regarding  the  afforda-
    48  bility  to  the  city  of  Lockport  of  any  such  proposed issuance or
    49  contract.  The state comptroller may require the submission by the  city
    50  of  Lockport  of  such  information  as the state comptroller shall deem
    51  necessary to complete his or her review.
    52    § 6. To facilitate the marketing of the bonds and/or bond anticipation
    53  notes authorized to be issued by this act, the  city  of  Lockport  may,
    54  notwithstanding  any limitations on the private sales of bonds otherwise
    55  provided by law, and subject to approval by the state comptroller of the
    56  terms and conditions of such sales,  arrange  for  the  underwriting  or
        A. 10131                            4
 
     1  other  sale  of its bonds and/or bond anticipation notes at private sale

     2  upon negotiated terms and conditions which may include reasonable under-
     3  writing or placement fees or discounts. The costs of  such  underwriting
     4  or  sale shall be deemed preliminary costs for purposes of section 11.00
     5  of the local finance law.
     6    § 7. If any clause, sentence, paragraph, section or part of  this  act
     7  shall  be adjudged by any court of competent jurisdiction to be invalid,
     8  such judgment shall not affect,  impair,  or  invalidate  the  remainder
     9  thereof, but shall be confined in its operation to the clause, sentence,
    10  paragraph, section, or part thereof directly involved in the controversy
    11  in which such judgment shall have been rendered.
    12    § 8. This act shall take effect immediately.