S T A T E O F N E W Y O R K
________________________________________________________________________
10879
I N A S S E M B L Y
April 27, 2010
___________
Introduced by M. of A. SKARTADOS -- read once and referred to the
Committee on Cities
AN ACT to authorize the city of Newburgh, in the county of Orange, 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 Newburgh, in the county of Orange, is hereby
authorized to issue serial bonds on or before December 31, 2011 in an
aggregate principal amount not to exceed ten million dollars
($10,000,000) for the specific object or purpose of liquidating the
accumulated deficits in the general fund, the special revenue fund and
the capital projects funds of such city for the fiscal year ending
December 31, 2010. In anticipation of the issuance of the bonds author-
ized to be issued by this act, the issuance and sale of bond antic-
ipation notes are hereby authorized.
S 2. Notwithstanding any provision of this act to the contrary, the
city of Newburgh shall not issue any bonds for the purpose of liquidat-
ing the projected deficits unless and until the existence of the defi-
cits and the amounts thereof are reviewed and determined by the state
comptroller. The city of Newburgh 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 amount of such deficits and report
the same to the chairs of the senate finance committee and the assembly
ways and means committee, the city manager and the city council of the
city of Newburgh. 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16797-02-0
A. 10879 2
Newburgh 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 deficits. In the event
bond anticipation notes are issued in an amount in excess of the amounts
determined by the state comptroller, the city of Newburgh 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 deter-
mined by the state comptroller.
S 3. It is hereby determined that the financing of the deficits
described in this act is a purpose of the city of Newburgh 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 Newburgh to which the faith and credit of such 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 otherwise 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
city manager of the city of Newburgh 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 appro-
priations as set forth in such budget with the actual revenues and
expenditures made to date. All such quarterly budgetary reports shall be
accompanied by recommendations of the city manager setting forth any
remedial action necessary or desirable to resolve any unfavorable budget
variance including the over-estimation of revenues and the under-estima-
tion 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 city council of the city of Newburgh,
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 city
manager of the city of Newburgh 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 city council of the city of
Newburgh, 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, 2011 and for each fiscal
year thereafter during which such debt or any debt incurred to refund
A. 10879 3
such debt is outstanding, the chief executive officer 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 city council of the city of Newburgh 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 Newburgh. The city
council of the city of Newburgh, 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 consistent with any recommenda-
tions made by the state comptroller. Any recommendations that such city
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 Newburgh nor to affect the powers or duties of such city with respect
to the local budget; provided, however, that the city of Newburgh 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 chief executive
officer or other officer or officers responsible for the preparation of
the tentative budget of the city of Newburgh, 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 financial 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 chief executive and chief fiscal officers of the city of
Newburgh, 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 Newburgh 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 Newburgh 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 Newburgh of any such proposed issuance or
contract. The state comptroller may require the submission by the city
of Newburgh 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 Newburgh 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
A. 10879 4
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.