S T A T E   O F   N E W   Y O R K
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                                   6465
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               June 12, 2019
                                ___________
 
 Introduced  by  Sen. AMEDORE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to authorize the city of Amsterdam, in the county of  Montgomery,
   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 Amsterdam, in  the  county  of  Montgomery,  is
 hereby  authorized to issue serial bonds on or after March 1, 2019 in an
 aggregate principal amount not to exceed  eight  million  three  hundred
 thousand  dollars  ($8,300,000)  for  the  specific object or purpose of
 liquidating the cumulative deficits in the general fund, the transporta-
 tion fund, the sewer fund and recreation fund of such  city  accumulated
 during  fiscal  years  ending  June 30, 2008 through 2018, inclusive. In
 anticipation of the issuance of the bonds authorized  to  be  issued  by
 this  act,  the  issuance and sale of bond anticipation notes are hereby
 authorized.
   § 2. Notwithstanding any provision of this act to  the  contrary,  the
 city of Amsterdam shall not issue any bonds for the purpose of liquidat-
 ing the aforesaid cumulative deficits unless and until the amounts ther-
 eof  are  reviewed  and determined by the state comptroller. The city of
 Amsterdam 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  comptroller
 shall  perform such reviews as may be necessary to determine the amounts
 of such deficits and report the same to the chairs of the senate finance
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13334-01-9

 S. 6465                             2
 
 committee and the assembly ways and means committee, the mayor  and  the
 common  council  of  the city of Amsterdam. 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
 prevent the city of Amsterdam 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.
   If  bond  anticipation  notes are issued in an amount in excess of the
 deficits determined by the state  comptroller,  the  city  of  Amsterdam
 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 defi-
 cits as determined by the state comptroller.
   § 3. It is hereby  determined  that  the  financing  of  the  deficits
 hereinbefore  described  is a purpose of the city of Amsterdam 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 Amsterdam 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.
   § 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 and provided further, that such bond anticipation notes  need
 not be converted to bonds by the fifth anniversary of their issuance.
   §  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 Amsterdam  shall  prepare  a  quarterly  report  of
 summarized  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  Amsterdam,  the
 director  of  the 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 bonds and/or bond
 anticipation notes issued pursuant to  this  act  are  outstanding,  the
 mayor  of  the  city  of  Amsterdam 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

 S. 6465                             3
 
 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
 Amsterdam, 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 July 1, 2019 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 Amsterdam 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 Amster-
 dam no later than ten days before the last date on which the budget must
 be finally adopted.  Such recommendations shall be made  after  examina-
 tion  into  the  estimates  of  revenues and expenditures of the city of
 Amsterdam. The common council of the city of Amsterdam,  no  later  than
 five  days  prior  to  the adoption of the budget, shall review any such
 recommendations and may make adjustments to its proposed budget consist-
 ent with any recommendations made by the state comptroller.  Any  recom-
 mendations that the common council rejects shall be explained in writing
 to  the  state  comptroller.  The  action or inaction of the state comp-
 troller under this section shall not affect the legal  validity  of  the
 budget  of  the  city of Amsterdam nor to affect the powers or duties of
 the city of Amsterdam with respect to the local budget; provided, howev-
 er, that the city of Amsterdam 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  Amsterdam  or other officer or officers responsible for the prepara-
 tion of the tentative budget of the city  of  Amsterdam,  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 officer of the  city  of
 Amsterdam,  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 if
 and to the extent the city  of  Amsterdam  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 Amsterdam 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  Amsterdam  of  any  such proposed issuance or
 contract, provided, however, that the validity of any bond  anticipation

 S. 6465                             4
 
 note or bond issued to refinance a maturing bond anticipation note shall
 not  be  affected  by  any  failure  to  provide such notice in a timely
 manner. The state comptroller may require the submission by the city  of
 Amsterdam of such information as the state comptroller shall deem neces-
 sary to complete his or her review.
   § 6. To facilitate the marketing of the bonds and/or bond anticipation
 notes  authorized  to  be issued by this act, the city of Amsterdam 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
 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.
   §  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.
   § 8. This act shall take effect immediately.