BILL NUMBER:A9817

TITLE OF BILL:
An act
to amend chapter 282 of the laws of 2008, relating to authorizing the
town of East Hampton, county of Suffolk to issue certain serial bonds,
in relation to permitting the issuance of such serial bonds to liquidate
a deficit for the year 2009, increasing the aggregate principal amount
for such serial bonds for 2007, 2008 and 2009; and extending the
provisions thereof

PURPOSE OR GENERAL IDEA OF BILL: This legislation
would authorize and
extend the provisions of the Town of East Hampton, County of Suffolk,
to issue certain serial bonds.

SUMMARY OF SPECIFIC PROVISIONS: Section 1 of Chapter
282 of the Laws
of 2008, relating to authorizing the Town of East Hampton, County of
Suffolk to issue certain serial bonds, as amended by Chapter 190 of
the Laws of 2009, is amended to authorize the Town to issue serial
bonds on or before December 31, 2011, in an aggregate principal amount
not to exceed $30,000,000 for the specific purpose of liquidating
actual general fund deficits for fiscal years ending December 31,
2007, December 31, 2008, and December 31, 2010. It further provides
that in anticipation of the issuance and sale of such serial bonds,
              

bond anticipation notes are authorized to be issued.

JUSTIFICATION: The Town of East Hampton has issued
debt in the form
of Bond Anticipation Notes in the amount of $15,000,000 pursuant to
provisions established by Chapter 282 of the Laws of 2008 (extended
by Chapter 190 of the Laws of 2009). However, an audit conducted by
the State Comptroller's Office identified a number of problems with
the Town's 2009 budget which could present a significant shortfall,
coupled with other emerging issues that could have a serious negative
impact on the Town's general fund deficit. As a result, the Town of
East Hampton is currently seeking to authorize an additional
$15,000,000 in serial bonds.

This legislation authorizes the Town to issue serial bonds on
or before December 31, 2011 in an aggregate principal amount to
not to exceed $30,000,000 for the specific object or purpose of
liquidating actual deficits in its general fund at the close of
the fiscal years endings December 31, 2007, December 31, 2008 and
December 31, 2009.

This legislation is necessary to address the worse than anticipated
condition of the Town of East Hampton's finances and operating fund
deficits. In
addition, the Town will be taking a number of significant actions to
ensure the events of the last four years do not reoccur.

PRIOR LEGISLATIVE HISTORY: New Legislation, 2010.

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: This act shall take effect immediately.