LBD08077-03-6
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(i) "Financial plan" means the three-year financial plan required by
section nine of this act.
(j) "Fiscal year" means the fiscal year of the city.
(k) "Mayor" means the mayor of the city.
(l) "Outstanding", when used with respect to obligations of the city
as of any particular date, means all obligations of the city theretofore
issued and thereupon being issued except any obligation theretofore paid
and discharged or for the payment of the principal of and interest on
which money is held by or on behalf of the city, in trust solely and in
all events only for the purpose and sufficient to pay in full the prin-
cipal and redemption premium, if any, of and interest on such obli-
gations.
(m) "Special debt service" means, with respect to a fiscal year, the
amounts required for the timely payment of (i) all principal due or
becoming due and payable in said year with respect to any serial bonds,
tax anticipation notes, capital notes or budget notes of the city, and
all principal amortization for said year required by law with respect to
bond anticipation notes or other securities of the city, and not specif-
ically mentioned in paragraph (ii) of this subdivision, (ii) all inter-
est due or becoming due and payable in said year with respect to any
serial bonds, bond anticipation notes, tax anticipation notes, revenue
anticipation notes, capital notes, budget notes or other securities of
the city not specifically mentioned herein, and (iii) all sinking fund
contributions required in said year with respect to any sinking fund
bonds.
(n) "Special debt service fund" means the fund which is held by the
state comptroller and is described and provided for in section thirteen
of this act.
(o) "State aid" means all aid and incentives for municipalities pursu-
ant to section 54 of the state finance law, any successor type of aid
and any new aid appropriated by the state as local government assistance
for the benefit of the city.
(p) "State comptroller" means the comptroller of the state, pursuant
to their authority to supervise the accounts of any political subdivi-
sion of the state.
Unless the context specifically provides otherwise, any terms used in
this act such as revenues, expenditures or expenses shall be construed
as such term is construed under applicable accounting principles incor-
porated in the uniform system of accounts prescribed by the state comp-
troller.
§ 4. 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, 2026, in an aggregate principal amount not to
exceed seventeen million dollars ($17,000,000) (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 liquidat-
ing actual deficits in its general fund, water fund, sewer fund, and the
capital projects fund existing at the close of its 2024 fiscal year. In
anticipation of the issuance of such bonds, deficit notes are hereby
authorized to be issued.
§ 5. Period of probable usefulness established. It is hereby deter-
mined that the financing of the deficits described in section four of
this act is an object or purpose of the city for which indebtedness may
be incurred, the period of probable usefulness of which is hereby deter-
mined to be fifteen years, computed from the date of such deficit bonds
or from the date of the first deficit notes, whichever date is earlier.
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Such deficit bonds and deficit notes shall be general obligations of the
city, 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.
§ 6. Limit on amount of deficit bonds. Deficit bonds may not be issued
in an amount exceeding the amount of such deficits as certified by the
state comptroller. If the city issues deficit notes prior to a determi-
nation by the state comptroller pursuant to section six of this act in
an amount in excess of the amount of such deficits as confirmed by the
state comptroller, the city shall, from funds other than proceeds of
bonds or bond anticipation notes, either redeem such deficit notes in
the amount by which the amount of such deficit notes exceeds the amount
of such deficits as confirmed by the state comptroller or deposit a sum
equal to the amount by which such deficit notes exceed the amount of
such deficits as confirmed by the state comptroller into the special
debt service fund.
§ 7. Quarterly budget reports and trial balances. For each fiscal year
during the effective period of this act, the mayor shall monitor budgets
of the city and, for each budget, 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 reports shall compare revenue estimates and appropriations as set
forth in such budget with the actual revenues and expenditures made to
date. All quarterly reports shall be accompanied by a recommendation by
the city fiscal affairs officer setting forth any remedial action neces-
sary to resolve any unfavorable budget variance including the overesti-
mation of revenues and the underestimation of appropriations, and shall
be completed within thirty days of the end of each quarter. The mayor
shall also prepare, as part of such report, a quarterly trial balance of
general ledger accounts. The above quarterly budgetary reports and quar-
terly trial balances shall be prepared in accordance with applicable
accounting principles incorporated in the uniform system of accounts
prescribed by the state comptroller. These reports shall be submitted to
the city fiscal affairs officer, the mayor, the city council, the state
director of the budget, the state comptroller, the chair of the assembly
ways and means committee, and the chair of the senate finance committee.
§ 8. Budget review by state comptroller. During the effective period
of this act, the city fiscal affairs officer shall submit the proposed
budget for the next succeeding fiscal year to the state comptroller no
later than thirty days before the date scheduled for the city council's
vote on the adoption of the final budget or the last date on which the
budget may be finally adopted, whichever is sooner. The state comp-
troller shall examine such proposed budget and make such recommendations
as deemed appropriate thereon to the city prior to the adoption of the
budget, but no later than ten days before the date scheduled for the
city council's vote on the adoption of the final budget or the last date
on which the budget must be adopted, whichever is sooner. Such recommen-
dations shall be made after examination into the estimates of revenues
and expenditures of the city. The city council, no later than five days
prior to the adoption of the budget, shall review any such recommenda-
tions and make adjustments to the proposed budget consistent with any
recommendations made by the state comptroller.
§ 9. Multiyear financial plans. During the effective period of this
act, the city fiscal affairs officer shall prepare, along with the
proposed budget for the next succeeding fiscal year, a three-year finan-
cial plan covering the next succeeding fiscal year and the two fiscal
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years thereafter. The financial plan shall, at a minimum, contain
projected employment levels, projected annual expenditures for personal
service, fringe benefits, non-personal services and debt service; appro-
priate reserve fund amounts; estimated annual revenues including projec-
tion of property tax rates, the value of the taxable real property and
resulting tax levy, annual growth in sales tax and non-property tax
revenues; and the proposed use of one-time revenue sources. The finan-
cial plan shall also identify actions necessary to achieve and maintain
long-term fiscal stability, including, but not limited to, improved
management practices, initiatives to minimize or reduce operating
expenses, and potential shared services agreements with other munici-
palities. Within thirty days following the adoption by the city council
of the budget for the next succeeding fiscal year and upon the
completion of each quarterly budget report pursuant to section eight of
this act, the city fiscal affairs officer shall update the financial
plan consistent with such adopted budget or such quarterly budget
report. Copies of the financial plan and any update shall be provided to
the mayor, the city council, the state director of the budget, the state
comptroller, the chair of the assembly ways and means committee, and the
chair of the senate finance committee.
§ 10. State comptroller to comment on further debt issuance. During
the effective period of this act, the mayor shall notify the state comp-
troller 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 any such proposed issuance or contract.
§ 11. Private sale of bonds authorized. To facilitate the marketing of
(a) deficit bonds, (b) any bonds issued to refund such deficit bonds,
and (c) any other bonds to be issued on or before December 31, 2026, the
city may, notwithstanding any limitation on the private sales of bonds
provided by law and subject to the approval of the state comptroller of
the terms and conditions of such sales:
(i) arrange for the underwriting of such bonds at private sale through
negotiated fees or by sale of such bonds to an underwriter; or
(ii) arrange for the private sale of such bonds through negotiated
agreement, with compensation for such sales to be provided by negotiated
agreement and/or negotiated fee, if required.
The cost of such underwriting or private placement shall be deemed to
be a preliminary cost for purposes of section 11.00 of the local finance
law.
§ 12. Exceptions to the local finance law. Except as provided in this
act, all proceedings in connection with the issuance of such deficit
bonds or deficit notes shall be had and taken in accordance with the
provisions of the local finance law, provided, however, that any resol-
ution or resolutions authorizing the issuance of such bonds or bond
anticipation notes shall not be subject to (a) any mandatory or permis-
sive referendum, (b) the provisions of section 107.00 of the local
finance law with respect to any requirements for a down payment and (c)
the provisions of section 10.10 of the local finance law.
§ 13. Special debt service fund. (a) Upon the issuance of any deficit
bonds or deficit notes, the city council shall establish and thereafter
maintain a special debt service fund with the state comptroller for the
purpose of paying the special debt service due or becoming due in subse-
quent fiscal years. Such special debt service fund shall be discontinued
upon the expiration of the effectiveness of this act, and any balance
remaining in the special debt service fund at that time shall be paid by
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the state comptroller to the mayor for use by the city in the manner
provided by law.
(b) The state comptroller shall deposit and pay into the special debt
service fund any portion of state aid as the state comptroller deter-
mines necessary to ensure sufficient moneys are available to make sched-
uled special debt service payments from the special debt service fund
over the succeeding twelve month period taking account of the city's
receipt of city taxes and state aid during such twelve month period and
the availability of other amounts appropriated or set aside by the city
to make such payments. Thereafter, the state comptroller shall, as soon
as practicable, pay over the remainder of any such state aid to the
mayor for use by the city in the manner provided by law.
(c) Not later than the first day of each fiscal year beginning after
issuance of any deficit bonds or deficit notes, the mayor shall certify
to the state comptroller the percentage obtained by dividing the balance
obtained by subtracting the amount of the appropriation for such year
for a reserve for uncollected taxes from the total amount of city taxes
levied and assessed for such year, into the total appropriation in the
budget of such year for special debt service, and the percentage so
certified shall constitute the debt service percentage for such fiscal
year. Immediately upon receipt of any payment during such fiscal year of
or on account of any city taxes, the city, its collecting officer and
any agent receiving the same shall remit such payment to the state comp-
troller. Of each sum so received, the state comptroller shall deposit
and pay into the special debt service fund the portion thereof equal to
the debt service percentage of the total sum, and shall deposit and pay
into the fund such additional amounts as the state comptroller deter-
mines necessary to ensure sufficient moneys are available to make sched-
uled special debt service payments from the special debt service fund
over the succeeding twelve month period taking account of the timing of
the city's receipt of city taxes and state aid during such twelve month
period and the availability of other amounts appropriated or set aside
by the city to make such payments. Thereafter, the state comptroller
shall, as soon as practicable, pay over the remainder of such sum to the
mayor for use by the city in the manner provided by law.
(d) The moneys in the special debt service fund shall be invested in
the manner provided by section 11 of the general municipal law,
provided, however, that the investments shall be made for and on behalf
of the city by the state comptroller upon instructions from the chief
fiscal officer of the city which shall be consistent with the city's
investment policy adopted pursuant to section 39 of the general munici-
pal law.
(e) The state comptroller shall from time to time during each fiscal
year withdraw from the special debt service fund all amounts required
for the payment as the same becomes due of all special debt service of
such fiscal year and cause the amounts so withdrawn to be applied to
such payments as and when due.
(f) The special debt service fund and all monies or securities therein
or payable thereto in accordance with this section is hereby declared to
be city property devoted to essential governmental purposes and accord-
ingly, shall not be applied to any purpose other than as provided herein
and shall not be subject to any order, judgment, lien, execution,
attachment, setoff or counterclaim by any creditor of the city other
than a creditor for whose benefit such fund is established and main-
tained and entitled thereto under and pursuant to this act.
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§ 14. Agreement with the state. (a) The state does hereby pledge to
and agree with the holders of any bonds, notes or other obligations
issued by the city during the effective period of this act and secured
by such a pledge that the state will not limit, alter or impair the
rights hereby vested in the city to fulfill the terms of any agreements
made with such holders pursuant to this act, or in any way impair the
rights and remedies of such holders or the security for such bonds,
notes or other obligations until such bonds, notes or other obligations
together with the interest thereon and all costs and expenses in
connection with any action or proceeding by or on behalf of such hold-
ers, are fully paid and discharged. The city is authorized to include
this pledge and agreement of the state in any agreement with the holders
of such bonds, notes or other obligations. Nothing contained in this act
shall be deemed to (i) obligate the state to make any payments or impose
any taxes to satisfy the debt service obligations of the city, (ii)
restrict any right of the state to amend, modify, repeal or otherwise
alter (A) section 54 of the state finance law or any other provision
relating to state aid, or (B) statutes imposing or relating to taxes or
fees, or appropriations relating thereto, or (iii) create a debt of the
state within the meaning of any constitutional or statutory provisions.
The city shall not include in any resolution, contract or agreement with
holders of such bonds, notes or other obligations any provision which
provides that an event of default occurs as a result of the state exer-
cising its rights described in paragraph (ii) of this subdivision.
(b) Any provision with respect to state aid shall be deemed executory
only to the extent of moneys available, and no liability shall be
incurred by the state beyond the moneys available for that purpose, and
any such payment by the state comptroller of state aid shall be subject
to annual appropriation of state aid by the state legislature.
§ 15. Rights of the state comptroller and bondholders. (a) In the
event that the city shall fail to comply with any provision of this act,
and such non-compliance shall continue for a period of 30 days, (i) the
state comptroller acting alone, or (ii) a duly appointed representative
of the holders of at least 25 per centum in aggregate principal amount
of (A) any series of deficit bonds or deficit notes, (B) any series of
bonds issued to refund such deficit bonds or deficit notes, or (C) any
other series of notes or bonds issued by the city during the effective
period of this act, by instrument or instruments filed in the office of
the clerk of Chautauqua county and proved or acknowledged in the same
manner as a deed to be recorded, may bring an action or commence a
proceeding in accordance with the civil practice law and rules to (1)
require the city to carry out any of its obligations under this act or
(2) enjoin any acts or things which may be unlawful or in violation of
the obligations imposed on the city under this act. In addition, the
duly appointed representative of the bondholders of any such series of
notes or bonds may bring an action or commence a proceeding in accord-
ance with the civil practice law and rules to enforce the rights of the
holders of such series of notes or bonds.
(b) The supreme court in the county of Chautauqua shall have jurisdic-
tion of any action or proceeding by the state comptroller or the repre-
sentative of such bondholders.
§ 16. Applicability to city charter and collective bargaining agree-
ments. This act shall be subject to the provisions of the Dunkirk city
charter and any collective bargaining agreement entered into by the city
of Dunkirk.
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§ 17. Local law required. The local legislative body of the city of
Dunkirk is hereby authorized and empowered to ratify and approve by
local law the provisions of this act.
§ 18. Severability clause. If any clause, sentence, paragraph, section
or part of this act shall be adjudged by any court of competent juris-
diction to be invalid, such judgment shall not affect, impair or invali-
date the remainder thereof, but shall be confined in its operation to
the clause, sentence, paragraph, section or part involved in the contro-
versy in which such judgment shall have been rendered. The provisions of
this act shall be liberally construed to assist the effectuation of the
public purposes furthered hereby.
§ 19. This act shall take effect immediately; and shall remain in full
force and effect until the fifteenth anniversary of the date of first
issuance of deficit bonds or deficit notes pursuant to this act, when
upon such date the provisions of this act shall be deemed repealed;
provided, however, that:
(a) this act shall take effect only upon enactment of a local law of
the city of Dunkirk as described in section eighteen of this act;
(b) the state comptroller shall notify the legislative bill drafting
commission upon the occurrence of this act in order that the commission
may maintain an accurate and timely effective data base of the official
text of the laws of the state of New York in furtherance of effectuating
the provisions of section 44 of the legislative law and section 70-b of
the public officers law; and
(c) the city of Dunkirk shall notify the legislative bill drafting
commission upon enactment of such local law as described in section
seventeen of this act in order that the commission may maintain an accu-
rate and timely effective data base of the official text of the laws of
the state of New York in furtherance of effectuating the provisions of
section 44 of the legislative law and section 70-b of the public offi-
cers law.