senate Bill S7874

Authorizes the city of Lockport, in the county of Niagara, to finance a certain deficit by the issuance of bonds

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 16 / Jun / 2014
    • REFERRED TO RULES
  • 18 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1552
  • 20 / Jun / 2014
    • SUBSTITUTED BY A10131

Summary

Authorizes the city of Lockport, in the county of Niagara, to finance a certain deficit by the issuance of bonds.

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Bill Details

See Assembly Version of this Bill:
A10131
Versions:
S7874
Legislative Cycle:
2013-2014
Law Section:
Niagara County

Sponsor Memo

BILL NUMBER:S7874

TITLE OF BILL: An act to authorize the city of Lockport, in the
county of Niagara, to finance a certain deficit by the issuance of
bonds

PURPOSE: The purpose of this bill is to allow the City of Lockport, in
Niagara County, to finance their City fiscal years 2011 through 2013
deficit of $5.35 million over ten years.

SUMMARY OF PROVISIONS: Section 1: Authorizes the City of Lockport to
issue $5.0 million in bonds to liquidate the deficit in the general
fund, water fund, sewer fund and refuse fund for the fiscal years
commencing in 2011 and ending in 2013.

Section 2: Requires that the State Comptroller determine the deficit
before the issuance of bonds. This section also directs the City of
Lockport to submit a report detailing the amount and cause of the
deficit, the City's independent audit report and other information the
Comptroller may find necessary.

Section 3: Makes the probable useful life of the bonds ten years,
computed from the date of such bonds or from the date of the first
bond anticipation note issued in anticipation of the sale of such
bonds, whichever date is earlier.

Section 4: Makes the sale and issuance of deficit financing bonds
subject to the State Local Finance Law and indicates that these bonds
will not be subject to either mandatory or permissive referendum.

Section 5: (a) Requires the preparation by the City Mayor of quarterly
reports of expenditure and revenues which must be submitted to each
member of the City Council, the Director of the NYS Division of the
Budget, the State Comptroller, and the Chairs of the Senate Finance
Committee and the Assembly Ways and Means Committee.

(b) For each fiscal year occurring during the time of which bonds
and/or bond anticipation notes issued pursuant to this act are
outstanding, the Mayor of the City of Lockport shall also prepare a
quarterly trial balance of general and special fund ledger accounts.

(c) Beginning January 1, 2015 and for each fiscal year thereafter
during which said debt remains outstanding, the City Mayor or officer
responsible for the preparation of the tentative budget shall submit
the tentative budget for the next succeeding fiscal year to the State
Comptroller no later than thirty days before the last date on which
the budget must be finally adopted.

(d) Within 90 days of the issuance of any debt pursuant to this act
and for each fiscal year thereafter during which said debt remains
outstanding, the Mayor of the City of Lockport or officer in charge of
drafting budget, within 30 days after the final adoption of the budget
for the next succeeding fiscal year, shall prepare a 3-year financial
plan covering the next succeeding fiscal year and the 2 fiscal years
thereafter that includes all provisions that are required by
subdivision 10 of section 54 of the State Finance law. Copies of the
plan should be sent to the Mayor and Chief Fiscal Officer of the City


of Lockport, the NYS Director of the Division of the Budget, the State
Comptroller, the Chairs of the Assembly Ways and Means Committee and
the Senate Finance Committee.

Section 6, 7, & 8: These sections authorize sale of the deficit
financing bonds, states that judgments against one section of this act
will not invalidate the other sections and makes the enactment date
immediate.

JUSTIFICATION: The City of Lockport has requested this special
legislation. Current State law does not allow the City of Lockport to
liquidate its deficit. This type of financing has traditionally been
authorized by the legislature for individual municipalities. The
oversight provisions included in this bill will enable the City of
Lockport to avoid future fiscal and budgetary problems.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: None to the State.

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
________________________________________________________________________

                                  7874

                            I N  S E N A T E

                              June 16, 2014
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

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:

  Section 1. The city of Lockport, in the county of Niagara,  is  hereby
authorized  to  issue  serial bonds on or before December 31, 2014 in an
aggregate principal amount not to  exceed  five  million  three  hundred
fifty  thousand  dollars ($5,350,000) for the specific object or purpose
of liquidating the deficits in the general fund,  the  water  fund,  the
refuse fund and the sewer fund of such city for the fiscal years January
1,  2011 through December 31, 2011, January 1, 2012 through December 31,
2012 and January 1, 2013 through December 31, 2013.  In anticipation  of
the issuance of the bonds authorized to be issued by this act, the issu-
ance and sale of bond anticipation notes are hereby authorized.
  S  2.  Notwithstanding  any provision of this act to the contrary, the
city of Lockport shall not issue any bonds for the purpose of  liquidat-
ing  the  projected  deficits  unless  and until the amounts thereof are
reviewed and determined by the state comptroller. The city  of  Lockport
shall  prepare  a report detailing the amount and cause of such deficits
and submit such report together with the city's independent audit report
for its last completed fiscal year, if any such audit report has been or
is to be prepared, and such other information as the  state  comptroller
may  deem  necessary, to the state comptroller, as well as the chairs of
the senate finance committee and the assembly ways and means  committee,
at least thirty days prior to the issuance of any bonds pursuant to this
act.  Within  thirty  days  after receiving such report, the state comp-
troller shall perform such reviews as may be necessary to determine  the
amount  of such deficits and report the same to the chairs of the senate
finance committee and the assembly ways and means committee,  the  mayor
and the common council of the city of Lockport.  Bonds to liquidate each
such  deficit shall not be issued in an amount exceeding such deficit as
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

S. 7874                             2

prevent  the  city of Lockport from authorizing the issuance of bonds or
bond anticipation notes, and issuing bond anticipation notes,  prior  to
the  determination  of the state comptroller of the amount of such defi-
cits.  In  the  event bond anticipation notes are issued in an amount in
excess of the amounts determined by the state comptroller, the  city  of
Lockport shall redeem from funds other than the proceeds of the bonds or
bond  anticipation  notes, such bond anticipation notes in the amount by
which the amount of bond anticipation notes exceeds the amount  of  such
deficits as determined by the state comptroller.
  S  3.  It  is  hereby  determined  that  the financing of the deficits
hereinbefore described is a purpose of the city of  Lockport  for  which
indebtedness may be incurred, the period of probable usefulness of which
is  hereby  determined  to  be ten years, computed from the date of such
bonds or from the date of the first bond  anticipation  note  issued  in
anticipation  of the sale of such bonds, whichever date is earlier. Such
bonds and/or bond anticipation notes shall be general obligations of the
city of Lockport to which the faith and credit of the city  is  pledged,
and  the  city  shall make an annual appropriation sufficient to pay the
principal of and interest on such obligations as the same  shall  become
due.
  S  4.  Except  as  provided  in  this act, the provisions of the local
finance law shall be applicable to the authorization, sale and  issuance
of the bonds and bond anticipation notes authorized to be issued by this
act  provided,  however,  that no resolution authorizing the issuance of
such bonds or notes shall be subject to either mandatory  or  permissive
referendum.
  S  5.  (a) For each fiscal year occurring during the time bonds and/or
bond anticipation notes issued pursuant to this act are outstanding, the
mayor of the city of Lockport shall prepare a quarterly report of summa-
rized budget data depicting overall trends of actual revenues and budget
expenditures for the entire budget rather than  individual  line  items.
Such  budgetary  reports  shall  compare revenue estimates and appropri-
ations as set forth in such budget with the actual revenues and expendi-
tures made to date. All such quarterly budgetary reports shall be accom-
panied by recommendations of the mayor setting forth any remedial action
necessary or  desirable  to  resolve  any  unfavorable  budget  variance
including  the  over-estimation  of revenues and the under-estimation of
expenditures. Each such quarterly budgetary report  shall  be  completed
within  thirty days after the end of each quarter and shall be submitted
to each member of the common council of the city of Lockport, the direc-
tor of the division of the budget, the state comptroller, and the chairs
of the senate finance committee and the assembly ways and means  commit-
tee.
  (b)  For  each fiscal year occurring during the time bonds and/or bond
anticipation notes issued pursuant to  this  act  are  outstanding,  the
mayor  of  the  city  of  Lockport  shall also prepare a quarterly trial
balance of general and special fund ledger accounts. Each such quarterly
trial balance shall be prepared in accordance  with  generally  accepted
accounting  principles.  Each  such  quarterly  trial  balance  shall be
completed within thirty days after the end of each quarterly period  and
shall  be  submitted to each member of the common council of the city of
Lockport, the director of the division of the budget,  the  state  comp-
troller, and the chairs of the senate finance committee and the assembly
ways and means committee.
  (c)  For the fiscal year beginning January 1, 2015 and for each fiscal
year thereafter during which such debt or any debt  incurred  to  refund

S. 7874                             3

such  debt  is  outstanding,  the mayor of the city of Lockport or other
officer or officers responsible for the  preparation  of  the  tentative
budget  shall submit the tentative budget for the next succeeding fiscal
year  to the state comptroller no later than thirty days before the last
date on which the budget must be finally adopted. The state  comptroller
shall  examine  such  proposed  budget  and make such recommendations as
deemed appropriate thereon to the common council of the city of Lockport
no later than ten days before the last date on which the budget must  be
finally  adopted.  Such  recommendations shall be made after examination
into the estimates of revenues and expenditures of the city of Lockport.
The common council of the city of Lockport,  no  later  than  five  days
prior  to  the adoption of the budget, shall review any such recommenda-
tions and may make adjustments to its proposed  budget  consistent  with
any  recommendations  made by the state comptroller. Any recommendations
that the common council rejects shall be explained  in  writing  to  the
state comptroller. The action or inaction of the state comptroller under
this  section shall not be construed to affect the legal validity of the
budget of the city of Lockport nor to affect the powers or duties of the
city of Lockport with respect to the local  budget;  provided,  however,
that  the city of Lockport may not issue bonds for any object or purpose
unless and until adjustments to its proposed budget, consistent with any
recommendations made by the state comptroller, are  made,  or  any  such
recommendations  that are rejected have been explained in writing to the
state comptroller.
  (d) Within ninety days of the issuance of any debt  pursuant  to  this
act  and  for  each fiscal year thereafter during which such debt or any
debt incurred to refund such debt is outstanding, the mayor of the  city
of Lockport or other officer or officers responsible for the preparation
of  the  tentative  budget  of  the city of Lockport, within thirty days
after the final adoption of the budget for the  next  succeeding  fiscal
year,  shall  prepare  a  three-year  financial  plan  covering the next
succeeding fiscal year and the two fiscal years thereafter.  The  finan-
cial  plan  shall,  at a minimum, contain the information required to be
provided in a three-year financial plan as prescribed by subdivision  10
of  section  54  of the state finance law.  Copies of the financial plan
shall be provided to the mayor and chief fiscal officers of the city  of
Lockport,  the  director of the budget, the state comptroller, the chair
of the assembly ways and means committee and the  chair  of  the  senate
finance  committee.   This financial plan requirement shall not apply to
the extent the city of Lockport is subject  to  a  different  multi-year
financial plan requirement under state law.
  (e)  For  each fiscal year occurring during the time bonds and/or bond
anticipation notes issued pursuant to  this  act  are  outstanding,  the
chief  fiscal  officer  of  the  city of Lockport shall notify the state
comptroller at least fifteen days prior to the issuance of any bonds  or
notes  or  entering into any installment purchase contract and the state
comptroller may review and make recommendations regarding  the  afforda-
bility  to  the  city  of  Lockport  of  any  such  proposed issuance or
contract.  The state comptroller may require the submission by the  city
of  Lockport  of  such  information  as the state comptroller shall deem
necessary to complete his or her review.
  S 6. To facilitate the marketing of the bonds and/or bond anticipation
notes authorized to be issued by this act, the  city  of  Lockport  may,
notwithstanding  any limitations on the private sales of bonds otherwise
provided by law, and subject to approval by the state comptroller of the
terms and conditions of such sales,  arrange  for  the  underwriting  or

S. 7874                             4

other  sale  of its bonds and/or bond anticipation notes at private sale
upon negotiated terms and conditions which may include reasonable under-
writing or placement fees or discounts. The costs of  such  underwriting
or  sale shall be deemed preliminary costs for purposes of section 11.00
of the local finance law.
  S 7. If any clause, sentence, paragraph, section or part of  this  act
shall  be adjudged by any court of competent jurisdiction to be invalid,
such judgment shall not affect,  impair,  or  invalidate  the  remainder
thereof, but shall be confined in its operation to the clause, sentence,
paragraph, section, or part thereof directly involved in the controversy
in which such judgment shall have been rendered.
  S 8. This act shall take effect immediately.

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