Senate Bill S10129A

2025-2026 Legislative Session

Extends the authorization of the city of Dunkirk to issue bonds and requires such city to adhere to all collective bargaining agreements entered into

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Current Bill Status - In Senate Committee Cities 2 Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 12, 2026	print number 10129a
May 12, 2026	amend (t) and recommit to cities 2
Apr 30, 2026	referred to cities 2

Bill Amendments

Original

A (Active)

2025-S10129 - Details

See Assembly Version of this Bill:: A11232
Current Committee:: Senate Cities 2
Law Section:: Local Finance
Laws Affected:: Amd Part DD §§3, 11, 2 & 17, add §15-a, Chap 56 of 2024
Versions Introduced in 2023-2024 Legislative Session:: S8941, A9589

2025-S10129 - Summary

Extends the authorization of the city of Dunkirk to issue bonds under the city of Dunkirk fiscal recovery act until 2026; requires the city of Dunkirk to adhere to all collective bargaining agreements entered into; directs the city to adopt a local law approving the city of Dunkirk fiscal recovery act; provides that if the city treasurer position is no longer active, the mayor of the city of Dunkirk shall handle the requirements of the former city treasurer.

2025-S10129 - Sponsor Memo

                                 
BILL NUMBER: S10129

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act relating to the city of Dunkirk fiscal recovery act; to repeal
the city of Dunkirk fiscal recovery act; and providing for the repeal of
such provisions upon expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would enact the "city of Dunkirk fiscal recovery act"; repeal-
er.

 
SUMMARY OF PROVISIONS:

Section 1 Part DD of chapter 56 of the laws of 2024 relating to the city
of Dunkirk fiscal recovery act, is REPEALED.

Section 2 of the bill would set forth the short title of the act as the
City of Dunkirk Fiscal Recovery Act ("DFRA").

Section 3 of the bill would set forth definitions for the DFRA.

Section 4 of the bill would authorize the City to issue bonds on or
before December 31, 2026 in an aggregate principal amount not to exceed
$17,000,-000, for the purpose of liquidating actual deficits in its
General Fund, Water Fund, Sewer Fund, and Capital Projects Fund existing
at the close of its 2024 fiscal year.

Section 5 of the bill would provide that the financing of the deficits
described in section 4 of the bill is a purpose of the City for which
indebtedness may be incurred, the period of probable usefulness of which
would be fixed at 15 years.

Section 6 of the bill would provide that no deficit bonds may be issued
unless and until the State Comptroller has first reviewed and confirmed
the existence of the deficits described in section 4 of the bill and
certified the amount of such deficits. deficit bonds may not be issued
in an amount exceeding the amount of the deficits certified by the State
Comptroller pursuant to section 6 of the bill. Any amount of deficit
notes issued in excess of the certified deficit amount would need to be
either redeemed or deposited in the Special Debt Service Fund.

Section 7 of the bill would require the mayor to prepare quarterly
reports comparing budgeted revenues and expenditures to actual revenues
and expenditures, along with a trial balance of general ledger accounts.
Each report would also include actions recommended by the City Fiscal
Affairs Officer to resolve any unfavorable budget variance.  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.

Section 8 of the bill would require the city fiscal affairs officer to
submit the proposed budget for the next succeeding fiscal year to the
State Comptroller to examine the City's proposed budget and make recom-
mendations thereon to the city prior to the adoption of the budget. The

City Council would be required to adjust the proposed budget consistent
with any such recommendations.

Section 9 of the bill would require the City Fiscal Affairs Officer to
prepare, along with the proposed budget, a 3-year financial plan cover-
ing the next succeeding fiscal year and the two fiscal years thereafter,
which would at a minimum contain: projected employment levels; projected
annual expenditures; reserve fund amounts; estimated annual revenues;
and the proposed use of onetime revenue sources. In addition, the finan-
cial plan would identify actions necessary to achieve and maintain long-
term fiscal stability, including, but not limited to, improved manage-
ment practices, initiatives to minimize or reduce operating expenses,
and potential shared services agreements with other municipalities. The
City Fiscal Affairs Officer would be required to update the financial
plan consistent with the adopted budget and quarterly budget reports.

Section 10 of the bill would require the mayor to notify the State Comp-
troller at least 15 days prior to the issuance of any bonds or notes or
entering into any installment purchase contract, and the State Comp-
troller may review arid make recommendations regarding the affordability
to the City of any such proposed issuance or contract.

Section 11 of the bill would authorize the private sale of deficit
bonds, any refunding of such deficit bonds, and any other bonds issued
by the City on or before December 31, 2026, subject to the approval of
the State Comptroller of the terms and conditions of such sales.

Section 12 of the bill would require all proceedings in connection with
the issuance of such deficit bonds or deficit notes to be taken in
accordance with the provisions of the Local Finance Law ("LFL");
provided, however, that the City's bond resolutions would not be subject
to (i) any mandatory or permissive referendum, (ii) LFL 107.00 with
respect to any requirements for a down payment, and (iii) the provisions
applicable to municipalities authorized to incur debt to liquidate oper-
ating deficits under LFL 10.10.

Section 13 of the bill would require the City, upon the issuance of any
deficit bonds or deficit notes, to establish a Special Debt Service Fund
with the State Comptroller for the purpose of paying City debt service
due or becoming due in subsequent fiscal years. The State Comptroller
would be authorized to deposit State aid payable to the City and a
portion of the City's property tax collections in the Special Debt
Service Fund as necessary to ensure sufficient moneys are available to
make scheduled debt service payments over the succeeding twelve-month
period after accounting for the City's receipt of taxes and State aid
during such period. As soon as practicable thereafter, the State Comp-
troller would be required to pay over to the City any remaining amounts
of State aid and City property taxes that are not needed to reserve for
debt service.

Section 14 of the bill would set forth the State's pledge to the holders
of any bonds, notes or other obligations issued by the City during the
effective period of the DFRA that the State will not limit, alter or
impair the rights vested in the City to fulfill the terms of any agree-
ments made with bondholders pursuant to the DFRA, and would clarify that
nothing contained in the DFRA would obligate the state to make any
payments or impose any taxes to satisfy the debt service obligations of
the City or restrict any right of the State to amend, modify, repeal or
otherwise alter LFL 54 or any other provision relating to state aid,
taxes or fees.

Section 15 of the bill would set forth the rights of bondholders and the
State Comptroller to commence an action in Chautauqua County Supreme
Court if the City fails to comply with any provision of this bill.

Section 16 of the bill would be subject to the provisions of the Dunkirk
city charter and any collective bargaining agreement entered into by the
city of Dunkirk.

Section 17 of the bill would require the local legislative body of the
city of Dunkirk to be authorized and empowered to ratify and approve by
local law the provisions of this act.

Section 18 Severability clause.

Section 19 of the bill would take effect immediately, and the DFRA would
remain in effect for a 15-year period following the first issuance of
deficit bonds or deficit notes pursuant to the DFRA. When upon such date
the provisions of this act shall be deemed repealed; provided, however,
that:

-this act shall take effect only upon enactment of a local law of the
city of Dunkirk as described in section 18 of this act.

-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 date.

-the city of Dunkirk shall notify the legislative bill drafting commis-
sion upon enactment of such local law as described in section 17 of this
act in order that the commission maintains an accrate and timely effec-
tive date.

 
JUSTIFICATION:

The fiscal health of the City of Dunkirk has significantly worsened in
recent years following the closure of the NRG electric generation plant,
which had served as a major source of local revenue. The loss of this
revenue stream has created a substantial and ongoing imbalance between
the City's revenues and expenditures, resulting in persistent deficits
and increasing fiscal stress.

The comprehensive measures outlined in this Act are essential to restor-
ing the City's financial stability and strengthening its capacity to
attract and maintain bond investments. The legislation establishes
stricter budget controls, enhances State oversight of municipal
finances, and creates a State-managed debt service fund to ensure timely
payments to bondholders. It also authorizes temporary deficit financing
to preserve essential City services during the recovery period and to
support a sustainable path toward long-term fiscal stability.

Because the original act no longer provides sufficient clarity or statu-
tory direction, this bill repeals and replaces that prior legislation
while maintaining its core structure and intent. The updated bill
includes two critical clarifications necessary for effective municipal
governance. First, it explicitly affirms that the City of Dunkirk is
required under State law to comply with all collective bargaining agree-
ments it has entered into. This clarification is warranted due to
concerns that certain negotiated agreements have not been fully imple-
mented, creating operational uncertainty and undermining labor stabili-
ty. Restating this obligation in statute reinforces the City's duty to
honor its contractual commitments and ensures alignment with State labor
law.

Second, the bill requires that any this act receives the support of a
simple majority of the City's legislative body before being advanced at
the State level. This requirement strengthens principles of home rule,
ensures that local elected officials have formally expressed their
consent, and prevents procedural disputes regarding local authorization.

By repealing the original act and replacing it with this clarified and
strengthened version, the legislation provides the necessary fiscal
tools, legal clarity, and governance safeguards to support the City of
Dunkirk's financial recovery and long-term stability.

 
FISCAL IMPLICATIONS:

The State Comptroller's administrative responsibilities under this Act
could be accomplished within existing resources. By authorizing the City
to issue deficit bonds, this bill would help the City to restore its
fund balance while also maintaining adequate essential services.  The
bill's enhanced fiscal oversight of the City and Special Debt Service
Fund would improve the City's ability to market future bond and note
issues at a lower cost. Any fiscal impact on the State would be negligi-
ble.

2025-S10129 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10129
 
                             I N  S E N A T E
 
                              April 30, 2026
                                ___________
 
 Introduced  by Sen. BORRELLO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities 2
 
 AN ACT relating to the city of Dunkirk fiscal recovery  act;  to  repeal
   the  city of Dunkirk fiscal recovery act; and providing for the repeal
   of such provisions upon expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Part DD of chapter 56 of the laws of 2024 relating to the
 city of Dunkirk fiscal recovery act, is REPEALED.
   § 2. Short title. This act shall be known and  may  be  cited  as  the
 "city of Dunkirk fiscal recovery act".
   §  3.  Definitions. As used in this act, the following words and terms
 shall have the following meanings respectively, unless  the  text  shall
 indicate another or different meaning or intent:
   (a)  "Budget" means a current operating budget of the city prepared or
 adopted pursuant to general, special or  local  law,  being  the  annual
 budget  and estimate of expenditures to be made during a fiscal year for
 the general support and current expenses of the government of  the  city
 to  be  paid  from taxes or assessments or other current revenues of the
 city for such year.
   (b) "City" means the city of Dunkirk, in the county of Chautauqua.
   (c) "City council" means the city council of the city.
   (d) "City fiscal affairs officer" means the city fiscal affairs  offi-
 cer of the city.
   (e)  "City taxes" means and includes all taxes on real property levied
 and assessed by the city, based on valuation thereof and shall not  mean
 any rent, rate, fee, special assessment or other charge based on benefit
 or use.
   (f)  "Collecting  officer"  means the officer empowered to collect and
 receive city taxes.
   (g) "Deficit bonds" means the bonds authorized to be issued by section
 four of this act.
   (h) "Deficit notes" means bond anticipation  notes  issued  in  antic-
 ipation of the issuance of deficit bonds.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08077-03-6
 S. 10129                            2
 
   (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.
 S. 10129                            3
 
 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
 S. 10129                            4
 
 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
 S. 10129                            5
 
 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.
 S. 10129                            6
 
   § 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.
 S. 10129                            7

   § 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.

2025-S10129A (ACTIVE) - Details

See Assembly Version of this Bill:: A11232
Current Committee:: Senate Cities 2
Law Section:: Local Finance
Laws Affected:: Amd Part DD §§3, 11, 2 & 17, add §15-a, Chap 56 of 2024
Versions Introduced in 2023-2024 Legislative Session:: S8941, A9589

2025-S10129A (ACTIVE) - Summary

2025-S10129A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S10129A

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend part DD of chapter 56 of the laws of 2024 relating to
the city of Dunkirk fiscal recovery act, in relation to extending the
authorization of the city of Dunkirk to issue bonds and requiring the
city of Dunkirk to adhere to all collective bargaining agreements
entered into

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would enact the "city of Dunkirk fiscal recovery act"; repeal-
er.

 
SUMMARY OF PROVISIONS:

Section 1 Part DD of chapter 56 of the laws of 2024 relating to the city
of Dunkirk fiscal recovery act, is REPEALED.

Section 2 of the bill would set forth the short title of the act as the

City of Dunkirk Fiscal Recovery Act ("DFRA").

Section 3 of the bill would set forth definitions for the DFRA.

Section 4 of the bill would authorize the City to issue bonds on or
before December 31, 2026 in an aggregate principal amount not to exceed
$17,000,000, for the purpose of liquidating actual deficits in its
General Fund, Water Fund, Sewer Fund, and Capital Projects Fund existing
at the close of its 2024 fiscal year.

Section 5 of the bill would provide that the financing of the deficits
described in section 4 of the bill is a purpose of the City for which
indebtedness may be incurred, the period of probable usefulness of which
would be fixed at 15 years.

Section 6 of the bill would provide that no deficit bonds may be issued
unless and until the State Comptroller has first reviewed and confirmed
the existence of the deficits described in section 4 of the bill and
certified the amount of such deficits. deficit bonds may not be issued
in an amount exceeding the amount of the deficits certified by the State
Comptroller pursuant to section 6 of the bill. Any amount of deficit
notes issued in excess of the certified deficit amount would need to be
either redeemed or deposited in the Special Debt Service Fund.

Section 7 of the bill would require the mayor to prepare quarterly
reports comparing budgeted revenues and expenditures to actual revenues
and expenditures, along with a trial balance of general ledger accounts.
Each report would also include actions recommended by the City Fiscal
Affairs Officer to resolve any unfavorable budget variance.  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.

Section 8 of the bill would require the city fiscal affairs officer to
submit the proposed budget for the next succeeding fiscal year to the
State Comptroller to examine the City's proposed budget and make recom-
mendations thereon to the city prior to the adoption of the budget. The
City Council would be required to adjust the proposed budget consistent
with any such recommendations.

Section 9 of the bill would require the City Fiscal Affairs Officer to
prepare, along with the proposed budget, a 3-year financial plan cover-
ing the next succeeding fiscal year and the two fiscal years thereafter,
which would at a minimum contain: projected employment levels; projected
annual expenditures; reserve fund amounts; estimated annual revenues;
and the proposed use of onetime revenue sources. In addition, the finan-
cial plan would identify actions necessary to achieve and maintain long-
term fiscal stability, including, but not limited to, improved manage-
ment practices, initiatives to minimize or reduce operating expenses,
and potential shared services agreements with other municipalities. The
City Fiscal Affairs Officer would be required to update the financial
plan consistent with the adopted budget and quarterly budget reports.

Section 10 of the bill would require the mayor to notify the State Comp-
troller at least 15 days prior to the issuance of any bonds or notes or
entering into any installment purchase contract, and the State Comp-
troller may review arid make recommendations regarding the affordability
to the City of any such proposed issuance or contract.

Section 11 of the bill would authorize the private sale of deficit
bonds, any refunding of such deficit bonds, and any other bonds issued
by the City on or before December 31, 2026, subject to the approval of
the State Comptroller of the terms and conditions of such sales.

Section 12 of the bill would require all proceedings in connection with
the issuance of such deficit bonds or deficit notes to be taken in
accordance with the provisions of the Local Finance Law ("LFL");
provided, however, that the City's bond resolutions would not be subject
to (i) any mandatory or permissive referendum, (ii) LFL § 107.00 with
respect to any requirements for a down payment, and (iii) the provisions
applicable to municipalities authorized to incur debt to liquidate oper-
ating deficits under LFL § 10.10.

Section 13 of the bill would require the City, upon the issuance of any
deficit bonds or deficit notes, to establish a Special Debt Service Fund
with the State Comptroller for the purpose of paying City debt service
due or becoming due in subsequent fiscal years. The State Comptroller
would be authorized to deposit State aid payable to the City and a
portion of the City's property tax collections in the Special Debt
Service Fund as necessary to ensure sufficient moneys are available to
make scheduled debt service payments over the succeeding twelve-month
period after accounting for the City's receipt of taxes and State aid
during such period. As soon as practicable thereafter, the State Comp-
troller would be required to pay over to the City any remaining amounts
of State aid and City property taxes that are not needed to reserve for
debt service.

Section 14 of the bill would set forth the State's pledge to the holders
of any bonds, notes or other obligations issued by the City during the
effective period of the DFRA that the State will not limit, alter or
impair the rights vested in the City to fulfill the terms of any agree-
ments made with bondholders pursuant to the DFRA, and would clarify that
nothing contained in the DFRA would obligate the state to make any
payments or impose any taxes to satisfy the debt service obligations of
the City or restrict any right of the State to amend, modify, repeal or
otherwise alter LFL § 54 or any other provision relating to state aid,
taxes or fees.

Section 15 of the bill would set forth the rights of bondholders and the
State Comptroller to commence an action in Chautauqua County Supreme
Court if the City fails to comply with any provision of this bill.

Section 16 of the bill would be subject to the provisions of the Dunkirk
city charter and any collective bargaining agreement entered into by the
city of Dunkirk.

Section 17 of the bill would require the local legislative body of the
city of Dunkirk to be authorized and empowered to ratify and approve by
local law the provisions of this act.

Section 18 Severability clause.

Section 19 of the bill would take effect immediately, and the DFRA would
remain in effect for a 15-year period following the first issuance of
deficit bonds or deficit notes pursuant to the DFRA. When upon such date
the provisions of this act shall be deemed repealed; provided, however,
that:

-this act shall take effect only upon enactment of a local law of the
city of Dunkirk as described in section 18 of this act.

-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 date.

-the city of Dunkirk shall notify the legislative bill drafting commis-
sion upon enactment of such local law as described in section 17 of this
act in order that the commission maintains an accrate and timely effec-
tive date.

 
JUSTIFICATION:

The fiscal health of the City of Dunkirk has significantly worsened in
recent years following the closure of the NRG electric generation plant,
which had served as a major source of local revenue. The loss of this
revenue stream has created a substantial and ongoing imbalance between
the City's revenues and expenditures, resulting in persistent deficits
and increasing fiscal stress.

The comprehensive measures outlined in this Act are essential to restor-
ing the City's financial stability and strengthening its capacity to
attract and maintain bond investments. The legislation establishes
stricter budget controls, enhances State oversight of municipal
finances, and creates a State-managed debt service fund to ensure timely
payments to bondholders. It also authorizes temporary deficit financing
to preserve essential City services during the recovery period and to
support a sustainable path toward long-term fiscal stability.

Because the original act no longer provides sufficient clarity or statu-
tory direction, this bill repeals and replaces that prior legislation
while maintaining its core structure and intent. The updated bill
includes two critical clarifications necessary for effective municipal
governance. First, it explicitly affirms that the City of Dunkirk is
required under State law to comply with all collective bargaining agree-
ments it has entered into. This clarification is warranted due to
concerns that certain negotiated agreements have not been fully imple-
mented, creating operational uncertainty and undermining labor stabili-
ty. Restating this obligation in statute reinforces the City's duty to
honor its contractual commitments and ensures alignment with State labor
law.

Second, the bill requires that any this act receives the support of a
simple majority of the City's legislative body before being advanced at
the State level. This requirement strengthens principles of home rule,
ensures that local elected officials have formally expressed their
consent, and prevents procedural disputes regarding local authorization.

By repealing the original act and replacing it with this clarified and
strengthened version, the legislation provides the necessary fiscal
tools, legal clarity, and governance safeguards to support the City of
Dunkirk's financial recovery and long-term stability.

 
FISCAL IMPLICATIONS:

The State Comptroller's administrative responsibilities under this Act
could be accomplished within existing resources. By authorizing the City
to issue deficit bonds, this bill would help the City to restore its
fund balance while also maintaining adequate essential services.  The
bill's enhanced fiscal oversight of the City and Special Debt Service
Fund would improve the City's ability to market future bond and note
issues at a lower cost. Any fiscal impact on the State would be negligi-
ble.

2025-S10129A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10129--A
 
                             I N  S E N A T E
 
                              April 30, 2026
                                ___________
 
 Introduced  by Sen. BORRELLO -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Cities  2  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend part DD of chapter 56 of the laws of 2024 relating to
   the city of Dunkirk fiscal recovery act, in relation to extending  the
   authorization  of the city of Dunkirk to issue bonds and requiring the
   city of Dunkirk to adhere  to  all  collective  bargaining  agreements
   entered into
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Sections 3 and 11 of part DD of chapter 56 of the  laws  of
 2024 relating to the city of Dunkirk fiscal recovery act, are amended to
 read as follows:
   § 3. 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, [2025] 2026, in an aggregate principal amount
 not  to  exceed  eighteen  million   five   hundred   thousand   dollars
 ($18,500,000)  (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 liquidating 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.
   § 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,  [2025]
 2026,  the city may, notwithstanding any limitation on the private sales
 of bonds provided by law and subject to the approval of the state  comp-
 troller of the terms and conditions of such sales:
   (1) arrange for the underwriting of such bonds at private sale through
 negotiated fees or by sale of such bonds to an underwriter; or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08077-04-6
 S. 10129--A                         2

 
   (2)  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.
   § 2. Subdivision (c) of section 2 of part DD of chapter 56 of the laws
 of 2024 relating to the city of Dunkirk fiscal recovery act, is  amended
 to read as follows:
   (c)  "City  treasurer"  means the treasurer of the city.  IN THE EVENT
 THE CITY CONSOLIDATES THE OFFICE OF CITY  TREASURER  WITH  ANOTHER  CITY
 POSITION, OR THE CITY CREATES A NEW POSITION TO HANDLE THE DUTIES OF THE
 CITY  TREASURER, OR THE CITY ELIMINATES THE CITY TREASURER POSITION FROM
 THE CITY CHARTER, THE REQUIRED ACTS OF THE CITY  TREASURER  PURSUANT  TO
 THIS ACT SHALL BE FULFILLED BY THE OFFICE OF THE MAYOR.
   § 3. Part DD of chapter 56 of the laws of 2024 relating to the city of
 Dunkirk  fiscal recovery act, is amended by adding two new sections 15-a
 and 15-b to read as follows:
   § 15-A. COLLECTIVE BARGAINING AGREEMENTS.  THE CITY SHALL NOT TAKE ANY
 ACTION TO VIOLATE ANY COLLECTIVE BARGAINING AGREEMENT BETWEEN  THE  CITY
 AND ITS EMPLOYEES. IN ITS OVERSIGHT OF THE CITY'S FINANCES, IF THE STATE
 COMPTROLLER  BECOMES  AWARE  OF ANY ALLEGED VIOLATION OF SUCH COLLECTIVE
 BARGAINING AGREEMENT, IT SHALL REFER SUCH MATTERS TO THE PUBLIC  EMPLOY-
 MENT RELATIONS BOARD.
   §  15-B. 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.
   §  4. Section 17 of part DD of chapter 56 of the laws of 2024 relating
 to the city of Dunkirk fiscal  recovery  act,  is  amended  to  read  as
 follows:
   § 17. 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; and
 provided, however, that the state comptroller shall notify the  legisla-
 tive  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 furth-
 erance  of  effectuating the provisions of section 44 of the legislative
 law and section 70-b of the public officers law; AND PROVIDED,  FURTHER,
 THE  CITY  OF DUNKIRK SHALL NOTIFY THE LEGISLATIVE BILL DRAFTING COMMIS-
 SION UPON ENACTMENT OF SUCH LOCAL LAW AS DESCRIBED IN SECTION  FIFTEEN-B
 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.
   §  5. This act shall take effect immediately; provided that the amend-
 ments to part DD of chapter 56 of the laws of  2024  made  by  this  act
 shall  not  affect  the repeal of such part and shall be deemed repealed
 therewith.

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Senate Bill S10129A

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Sponsored By

George M. Borrello

Current Bill Status - In Senate Committee Cities 2 Committee

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2025-S10129 - Details

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2025-S10129A (ACTIVE) - Sponsor Memo

2025-S10129A (ACTIVE) - Bill Text download pdf

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