S T A T E   O F   N E W   Y O R K
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                                  7568

                            I N  S E N A T E

                             April 22, 2010
                               ___________

Introduced  by  Sen.  LARKIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

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

S. 7568                             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

S. 7568                             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

S. 7568                             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.