senate Bill S4938A

Signed by Governor

Authorizes the city of Newburgh to issue deficit bonds and notes until December 31, 2012 pursuant to the city of Newburgh fiscal recovery act

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
view actions

actions

  • 02 / May / 2011
    • REFERRED TO LOCAL GOVERNMENT
  • 23 / May / 2011
    • AMEND AND RECOMMIT TO LOCAL GOVERNMENT
  • 23 / May / 2011
    • PRINT NUMBER 4938A
  • 06 / Jun / 2011
    • 1ST REPORT CAL.992
  • 07 / Jun / 2011
    • 2ND REPORT CAL.
  • 13 / Jun / 2011
    • ADVANCED TO THIRD READING
  • 14 / Jun / 2011
    • HOME RULE REQUEST
  • 14 / Jun / 2011
    • PASSED SENATE
  • 14 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 14 / Jun / 2011
    • REFERRED TO CITIES
  • 20 / Jun / 2011
    • SUBSTITUTED FOR A7442A
  • 20 / Jun / 2011
    • ORDERED TO THIRD READING RULES CAL.485
  • 20 / Jun / 2011
    • HOME RULE REQUEST
  • 20 / Jun / 2011
    • PASSED ASSEMBLY
  • 20 / Jun / 2011
    • RETURNED TO SENATE
  • 22 / Jul / 2011
    • DELIVERED TO GOVERNOR
  • 03 / Aug / 2011
    • SIGNED CHAP.350

Summary

Authorizes the city of Newburgh to issue deficit bonds and notes until December 31, 2012 pursuant to the city of Newburgh fiscal recovery act.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A7442A
Versions:
S4938
S4938A
Legislative Cycle:
2011-2012
Law Section:
Newburgh, City of
Laws Affected:
Amd ยง5, Chap 223 of 2010

Sponsor Memo

BILL NUMBER:S4938A

TITLE OF BILL:
An act
to amend the city of Newburgh fiscal recovery act, in relation to
extending the final authorized date of issuance of deficit bonds and
notes by such city

PURPOSE:
The purpose of this bill is to provide that the City of Newburgh (the
"City") may provide interim financing to liquidate its projected
deficits over a one year period by issuing bond anticipation notes
until such liquidation is permanently financed by the issuance of
bonds on or before December 31, 2012.

SUMMARY OF PROVISIONS:
This bill, which would be effective immediately upon enactment, would
amend Section 5 of Chapter 223 of the Laws of 2010 in order to provide
that the City is authorized to issue bonds on or before December 31,
2012, rather than December 31, 2011, for the purpose of
liquidating certain deficits. This change in date would permit the
City to finance such deficits on an interim basis through the
issuance of bond anticipation notes maturing no later than December
31, 2012, in accordance with applicable provisions of the Local
Finance Law.

EXISTING LAW:
Chapter 223 of the Laws of 2010 authorized the City to issue bonds on
or before December 32, 2011, in an aggregate principal amount not
to exceed fifteen million dollars ($15,000,000) (exclusive of the
costs and expenses incidental to the issuance of the bonds authorized
to be issued by such chapter) for the specific object or purpose
of liquidating actual deficits in the City's general fund, special
revenue fund, and capital projects fund existing at the close of the
City's 2010 fiscal year. In anticipation of the issuance of such
bonds, bond anticipation notes are authorized to be issued, however
such notes have to mature no later than December 31, 2011.

JUSTIFICATION:
The City's financial advisor has advised that the cost of financing
liquidation of such deficits can be minimized if the City can issue
bond anticipation notes during the first five year period starting
with the initial borrowing on August 30, 2010, since interest rates on
such notes are significantly less than bonds. The total savings to
the City if bond anticipation notes can be issued in 2012, rather
than bonds, is currently estimated to be approximately $200,000 for
the 2012 fiscal year.

The City issued $12,000,000 bond anticipation notes on August 30, 2010
to provide interim financing pursuant to Chapter 223 of the Laws
of 2010. Once the City's audited financial statements for the 2010
fiscal year are complete, the City will submit its required report on
the deficits together with such financial statements to the State
Comptroller so he can verify the amount of such deficits. It may be
necessary to borrow up to $3,000,000 in addition to the previous
$12,000,000 to finance the entire authorized amount, therefore any


achievable savings on interim financing will help the City finance
such deficits in the most cost-effective manner.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4938--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced  by  Sen.  LARKIN -- read twice and ordered printed, and when
  printed to be committed  to  the  Committee  on  Local  Government  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT to amend the city of Newburgh fiscal recovery act, in relation to
  extending the final authorized date of issuance of deficit  bonds  and
  notes by such city

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 5 of chapter 223 of the laws of 2010,  constituting
the city of Newburgh fiscal recovery act, is amended to read as follows:
  S 5. Deficit bond and deficit note issuance authorization. The city is
hereby authorized to issue bonds, subject to the provisions of this act,
on  or before December 31, [2011] 2012, in an aggregate principal amount
not to exceed fifteen million dollars ($15,000,000)  (exclusive  of  the
costs and expenses incidental to the issuance of the bonds authorized to
be  issued by this section) for the specific object or purpose of liqui-
dating actual deficits in its general fund, the  special  revenue  fund,
and  the  capital projects fund existing at the close of its 2010 fiscal
year. In anticipation of the issuance of such bonds, deficit  notes  are
hereby authorized to be issued.
  S  2. This act shall take effect immediately, provided that the amend-
ments to the city of Newburgh fiscal recovery act, made by  section  one
of this act, shall not affect the expiration and repeal of such act, and
shall expire and be deemed repealed therewith.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
S                                                          LBD11048-02-1

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.