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S06910 Summary:

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S06910 Floor Votes:

S06910 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6910
 
                    IN SENATE
 
                                     March 28, 2014
                                       ___________
 
        Introduced  by  Sen. TKACZYK -- read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government
 
        AN ACT to legalize, validate, ratify and confirm certain  actions  taken
          by  the  town of Cairo, Greene county, New York, with respect to obli-
          gations heretofore issued, and authorizing the issuance of obligations
          of said town with respect thereto
 

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Legislative  findings.  It is hereby found and determined
     2  that:  (i) the town of Cairo, Greene county, New  York,  has  heretofore
     3  duly  adopted  bond  resolutions  authorizing  the aggregate issuance of
     4  $2,915,000 serial bonds to finance the  upgrade  and  expansion  to  the
     5  town's  wastewater  treatment  plant,  construction of a force main, and
     6  additional improvements to its sewer system; (ii) pursuant to such  bond
     7  resolutions,  said town issued a bond anticipation note in the principal
     8  amount of $750,000 on December 24, 2008 and renewals of said bond antic-
     9  ipation note on December 24, 2009 and December 23, 2010 and made a prin-
    10  cipal payment of $29,285 on said bond anticipation note on December  23,

    11  2010;  (iii)  pursuant to such bond resolutions, said town also obtained
    12  short term financing through the New York state environmental facilities
    13  corporation ("EFC") on September  29,  2011  in  the  maximum  aggregate
    14  amount  of  $2,885,715.00,  which  refinanced  the outstanding principal
    15  balance of said bond anticipation note of $720,715; (iv)  the  town  did
    16  not  make the minimum principal payments on the EFC short term financing
    17  bond anticipation notes of $19,300 for 2011 and $20,000 for  2012  until
    18  December 2013; (v) section 21.00 of the local finance law states that no
    19  annual  installment  of  bonds  or bond anticipation notes shall be more
    20  than fifty per centum of the smallest prior installment, except that the
    21  municipality may determine to provide for substantially level or declin-
    22  ing annual debt service, and section 23.00  of  the  local  finance  law

    23  states that notes or the renewals thereof shall not extend more than two
    24  years  beyond  the original date of issue unless a portion of such notes
    25  or the renewals thereof shall be redeemed from a source other  than  the
    26  proceeds of bonds  within two years from such original date of issue and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14271-01-4
        S. 6910                             2
 
     1  unless  a  further  portion  thereof  shall  be so redeemed prior to the
     2  termination of each twelve  months'  period  succeeding  the  date  such
     3  original  portion  was  so  redeemed;  and (vi) the timing of the town's
     4  payments  on  the EFC note render it incapable of amortizing a long-term

     5  conversion of the short-term EFC financing to comply with the  aforesaid
     6  amortization  requirements  of  sections  21.00  and  23.00 of the local
     7  finance law.
     8    § 2. Notwithstanding the defects described in section one of this act,
     9  the bond anticipation notes and any renewals thereof issued by the  town
    10  of  Cairo  as described in section one of this act, and all resolutions,
    11  acts and proceedings heretofore adopted or taken by the town  board  and
    12  the  supervisor  of said town in relation thereto, are hereby validated,
    13  ratified and confirmed and any principal payment made by  such  town  in
    14  2013  on  the bond anticipation note shall be deemed to be in compliance
    15  with the amortization requirements of sections 21.00, 23.00, and  169.00
    16  of the local finance law.
    17    §  3.  Except  as  otherwise set forth in this act, the bonds and bond

    18  anticipation notes, and renewals thereof, issued pursuant  to  this  act
    19  shall  be  issued in accordance with the provisions of the local finance
    20  law.
    21    § 4. If any clause, sentence, subdivision, paragraph or part  of  this
    22  act  be  adjudged  by any court of competent jurisdiction to be invalid,
    23  such judgment shall not affect, impair or invalidate the remainder ther-
    24  eof, but shall be confined in its operation  to  the  clause,  sentence,
    25  subdivision, paragraph, section or part thereof directly involved in the
    26  controversy in which such judgment shall have been rendered.
    27    § 5. This act shall take effect immediately.