Authorizes the expenditure and temporary transfer of reserve funds for the expenses related to the storm commonly known as Sandy; authorizes such transfers for both capital costs and operating costs; provides a timetable for reimbursement of funds transferred for operating costs.
TITLE OF BILL: An act authorizing the expenditure and temporary transfer of reserve funds for expenses related to the storm commonly known as Sandy
The bill allows local governments and school districts impacted by the storm commonly known as Sandy to expend and temporarily transfer reserve funds for Sandy-related expenses, notwithstanding certain restrictions contained in sections of the General Municipal Law and Education Law.
SUMMARY OF PROVISIONS:
Section one of the bill would authorize local governments and school districts to expend moneys from capital reserve funds for capital costs attributable to the storm commonly known as Sandy, without the referendum requirements that would otherwise apply. Section two of the bill would authorize local governments and school districts to temporarily transfer moneys from any reserve fund to pay for operating, costs attributable to Sandy. The moneys that are transferred must be reimbursed from the fund into which they were transferred back into the reserve fund over a period of not more than five years. At least twenty percent of the moneys must be reimbursed each year, with interest.
It has been projected that the costs for damages from Storm Sandy could exceed S18 billion for New York State. Infrastructure, including highways, airports, seaports and sewer and water systems, was severely impacted. While much of the cost ultimately may be covered by insurance or federal assistance, the affected municipalities need additional flexibility in advancing funds for the payment of these costs prior to reimbursement or covering those costs that ultimately are not reimbursed.
This bill would help provide that flexibility by allowing local governments and school district to expend moneys from their capital reserve, fund without the need to comply with referendum requirements.. The public benefit in facilitating prompt access to these moneys for their intended purposes, in response to the emergency conditions caused by Sandy, justifies this one-time exception to the usual referendum requirements. Similarly, the bill would allow local governments and school districts to readily access capital and other reserve fund moneys to be temporarily advanced to cover operating costs attributable to Sandy, notwithstanding that these reserve fund moneys are statutorily restricted for specified uses. To ensure that the lending reserve fund is made whole so that the moneys advanced ultimately will be used for the originally intended purpose; the local
government or school district must reimburse the reserve fund, with interest, over a period of not more than five years.
The Comptroller urges passage of this legislation.
STATE OF NEW YORK ________________________________________________________________________ 4726 2013-2014 Regular Sessions IN SENATE April 19, 2013 ___________Introduced by COMMITTEE ON RULES -- (at request of the State Comp- troller) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT authorizing the expenditure and temporary transfer of reserve funds for expenses related to the storm commonly known as Sandy THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Notwithstanding any provision of section 6-c or 6-g of the general municipal law or section 3651 of the education law to the contrary, the governing board of a town, village, county, city, water improvement district, sewer improvement district, fire district or school district, by resolution which shall not be subject to referendum requirements, may authorize expenditures from capital reserve funds for capital costs attributable to the storm commonly known as Sandy. S 2. Notwithstanding any provision of the general municipal law, the town law or the education law to the contrary, the governing board of a town, village, county, city, water improvement district, sewer improve- ment district, fire district or school district, by resolution which shall not be subject to referendum requirements, if any, may authorize the temporary transfer of moneys from reserve funds to pay for operating costs attributable to the storm commonly known as Sandy, provided, that the reserve fund from which the funds were temporarily transferred shall be reimbursed from the fund to which the transfer was made over a period of not more than five fiscal years, starting with the fiscal year following the transfer. At least twenty percent of the moneys temporar- ily transferred shall be reimbursed each fiscal year. Such reimburse- ment shall include an additional amount reasonably estimated to be the amount that would have been earned on the investment of the transferred moneys had they been retained in the capital reserve fund. S 3. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05510-01-3