senate Bill S4938A

Signed By Governor
2011-2012 Legislative Session

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

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Archive: Last Bill Status - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 03, 2011 signed chap.350
Jul 22, 2011 delivered to governor
Jun 20, 2011 returned to senate
passed assembly
home rule request
ordered to third reading rules cal.485
substituted for a7442a
Jun 14, 2011 referred to cities
delivered to assembly
passed senate
home rule request
Jun 13, 2011 advanced to third reading
Jun 07, 2011 2nd report cal.
Jun 06, 2011 1st report cal.992
May 23, 2011 print number 4938a
amend and recommit to local government
May 02, 2011 referred to local government

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

S4938 - Bill Details

See Assembly Version of this Bill:
A7442A
Law Section:
Newburgh, City of
Laws Affected:
Amd §5, Chap 223 of 2010

S4938 - Bill Texts

view 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.

view sponsor memo
BILL NUMBER:S4938

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 five year period by issuing bond anticipation notes
until such liquidation is permanently financed by the issuance of
bonds on or before August 30, 2015.

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
August 30, 2015, 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 August 30,
2015 which is the fifth anniversary of the first borrowing for such
purpose, 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 31, 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 bon"owing 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 233 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.

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

                                  4938

                       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

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] AUGUST 30, 2015, in an aggregate prin-
cipal amount not to exceed fifteen million dollars ($15,000,000) (exclu-
sive 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 liquidating 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.
                                                           LBD11048-01-1

S4938A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A7442A
Law Section:
Newburgh, City of
Laws Affected:
Amd §5, Chap 223 of 2010

S4938A (ACTIVE) - Bill Texts

view 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.

view 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 full text
download pdf
                    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

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