Authorizes the village of Herkimer to finance a litigation settlement regarding amounts owed to the county of Herkimer for workers' compensation costs, by the issuance of serial bonds and/or anticipation notes.
Ayes (61): Adams, Addabbo, Alesi, Avella, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Duane, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Huntley, Johnson, Kennedy, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
Nays (1): Ball
TITLE OF BILL: An act to authorize the Village of Herkimer to finance a litigation settlement by the issuance of serial bonds and/or anticipation notes
PURPOSE: To allow the Village of Herkimer to bond for a period of ten years in order to pay a $1.6 million debt to the County of Herkimer.
SUMMARY OF PROVISIONS: Section one - authorizes the Village of Herkimer to issue serial bonds, subject to the provisions of section 10.10 of the Local Finance Law. The aggregate principal amount shall not exceed $1.6 million for the specific purpose of settling amounts owed to the County of Herkimer.
Section two - authorizes the period of probable usefulness to be fifteen (15) years.
Section three - authorizes the village board of the Village of Herkimer to levy a tax to be collected in annual installments and to adopt a bond resolution authorizing the issuance of serial bonds pursuant to this act.
Section four - confines any judgment of invalidity rendered by any court of competent jurisdiction in its operation to the specific clause of this act.
Section five - provides effective date.
JUSTIFICATION: This bill comes at the request of the village board of the Village of Herkimer. In a recent State supreme court decision, the Village of Herkimer owes the County of Herkimer $1.6 million for workers compensation costs. The Village does not have sufficient funds to satisfy the judgment and needs special authorization to issue serial bonds in order to settle the pending litigation.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5459 2011-2012 Regular Sessions IN SENATE May 24, 2011 ___________Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to authorize the Village of Herkimer to finance a litigation settlement by the issuance of serial bonds and/or anticipation notes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The Village of Herkimer, in the county of Herkimer, is hereby authorized to issue serial bonds, subject to the provisions of section 10.10 of the local finance law, on or before June 30, 2012, in an aggregate principal amount not to exceed one million six hundred thousand dollars ($1,600,000) for the specific object or purpose of settling pending litigation regarding amounts owed to the county for workers' compensation costs. In anticipation of the issuance and sale of such serial bonds, bond anticipation notes are hereby authorized to be issued. S 2. Notwithstanding the provisions of any other law, general, special or local, to the contrary, including section 11.00 of the local finance law, the specific object or purpose referred to in section one of this act is hereby declared to be a public purpose which the Village of Herkimer is hereby authorized to accomplish and the period of probable usefulness thereof is hereby authorized to be fifteen years. S 3. Notwithstanding the provisions of any other law, general, special or local, the Village Board of the Village of Herkimer is hereby author- ized to levy a tax to be collected in annual installments sufficient to pay the principal of and interest on said bonds and bond anticipation notes and to adopt a bond resolution authorizing the serial bonds authorized to be issued pursuant to this act. S 4. If any clause, sentence, subdivision, paragraph, section or part of this act be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause,EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11810-01-1 S. 5459 2
sentence, subdivision, paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. S 5. This act shall take effect immediately.