Bill S6598B-2013

Legalizes and validates certain acts and proceedings of the village board of trustees of the village of Silver Springs, Wyoming county, in relation to the issuance of certain bond anticipation notes

Legalizes and validates certain acts and proceedings of the village board of trustees of the village of Silver Springs, Wyoming county, in relation to the issuance of certain bond anticipation notes.

Details

Actions

  • Sep 23, 2014: SIGNED CHAP.383
  • Sep 11, 2014: DELIVERED TO GOVERNOR
  • Jun 19, 2014: returned to senate
  • Jun 19, 2014: passed assembly
  • Jun 19, 2014: home rule request
  • Jun 19, 2014: ordered to third reading rules cal.603
  • Jun 19, 2014: substituted for a8980a
  • Jun 3, 2014: referred to local governments
  • Jun 3, 2014: DELIVERED TO ASSEMBLY
  • Jun 3, 2014: PASSED SENATE
  • Jun 3, 2014: HOME RULE REQUEST
  • May 6, 2014: AMENDED ON THIRD READING (T) 6598B
  • Apr 28, 2014: AMENDED ON THIRD READING (T) 6598A
  • Mar 20, 2014: ADVANCED TO THIRD READING
  • Mar 19, 2014: 2ND REPORT CAL.
  • Mar 18, 2014: 1ST REPORT CAL.314
  • Feb 11, 2014: REFERRED TO LOCAL GOVERNMENT

Calendars

Votes

Memo

BILL NUMBER:S6598B

TITLE OF BILL: An act in relation to authorizing the village board of trustees of the village of Silver Springs, county of Wyoming to issue certain bond anticipation notes

PURPOSE:

This bill would validate certain findings determinations with respect to bond anticipation notes issued by the village of Silver Springs, in the County of Wyoming, and to legalize and authorize the issuance of obligations of such notes.

SUMMARY OF PROVISIONS:

Section 1 provides the legislative findings regarding the Village Board of Trustees of the Village of Silver Springs and their actions in relation to the issuance of certain bond anticipation notes.

Section 2 provides that, notwithstanding the failure of the Board of Trustees to adopt the bond resolutions, and the other defects noted above all actions undertaken by the Village Board and the village officials to date with respect to the BANs are validated, ratified, and corrected. Further, Section 2 specifically authorizes the Village of Silver Springs to issue its serial bonds or bond anticipation notes in the following respective amounts: $120,000 for the Phase I electrical system financing; $150,000 for the Phase II electrical system financing, and $325,000 for the Phase III electrical system financing.

This authorization is subject to the following conditions:

(a) The Village Board of Trustees is required to adopt a bond resolution for each of the three projects, but such bond resolutions would not be subject to a permissive referendum as otherwise would be required by law.

(b) With respect to the BAN maturing on June 13, 2014 for the Phase I electrical system project, the Village would be authorized to issue one more renewal BAN maturing no later than June 13, 2015 and to issue its serial bonds to refinance such BANs no later than June 13, 2014. This authorization is intended to provide the Village with some flexibility as to the timing of the serial bonds to be issued for the project, in the event that the special legislation is enacted on a date that is too late to allow for the issuance of bonds prior to June 13, 2014.

(c) In the event that the corrective legislation had not been enacted prior to the April 2, 2014 maturity date of the outstanding BAN for the Phase III electrical system project and the Village either extends the maturity of the BAN, issues another renewal BAN, or pays off the BAN in full, the Village would nevertheless be authorized to issue bonds to refinance the extended, renewed, or redeemed BAN.

Section 3 provides that the bonds and bond anticipation notes, and renewals thereof, issued pursuant to this act must be issued in accordance with the provisions of the local finance law.

Section 4 provides that if any part of this act is adjudged by any court of competent jurisdiction to be invalid, such judgment shall be confined in its operation to the part directly involved in the controversy in which such judgment shall have been rendered and shall not affect, impair, or invalidate the remainder thereof.

Section 5 provides that this act shall take effect immediately.

JUSTIFICATION:

Necessity for Corrective Legislation: Under the State Local Finance Law, in order to authorize the insurance of bonds or bond anticipation notes for a capital project, the Village Board of Trustees is required to adopt a bond resolution. Among other things, the bond is required to include the following:

i. A description of the specific project that is to be financed by the bonds and a statement of the maximum amount of bonds and BANs authorized to be issued.

ii. A statement of the "period of probable usefulness" for the project being financed by the bonds. The period of probable usefulness is the maximum term over for which bonds or any bond anticipation notes can be issued for the project. The local finance law sets forth specific periods of probable usefulness for each type of the project for which a municipality can borrow.

iii. A determination of whether or not the bonds and/or BANs are to have a term of either greater than 5 years or less.

The Local Finance Law also requires that if the term of the borrowing is to be greater than five years, the bond resolution be subject to a "permissive referendum". If a bond resolution is subject to a permissive referendum, then a notice thereof must be published once in the Village's official newspaper for legal publication purposes not later than 10 days after adoption of the resolution. Following such publication, if a petition is submitted to the Village Clerk within 30 days after the date of the adoption of the resolution signed by at least 20% of the qualified voters in the Village requesting that a referendum be held on the bond resolution, then the Village must then hold such referendum. A bond resolution that is subject to a permissive referendum does not become effective until 30 days after the date of adoption, if such a petition was filed.

This bill provides that, notwithstanding the failure of the Board of Trustees to adopt the bond resolutions and the other defects noted above, all actions undertaken by the Village Board and the village officials to date with respect to the BANs are validated, ratified, and corrected.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6598--B Cal. No. 314 IN SENATE February 11, 2014 ___________
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading -- again amended and ordered reprinted, retaining its place in the order of third reading AN ACT in relation to authorizing the village board of trustees of the village of Silver Springs, county of Wyoming to issue certain bond anticipation notes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative findings. (a) It is hereby found and determined that the village board of trustees of the village of Silver Springs, county of Wyoming undertook the following described actions in relation to the issuance of certain bond anticipation notes of said village. (1) Pursuant to a resolution adopted by said village board of trustees on May 4, 2009 and a certificate of the village clerk dated June 15, 2009, said village issued its bond anticipation note, dated June 15, 2009, in the principal amount of $400,000, maturing on June 15, 2010 to finance the cost of the object or purpose consisting of Phase I of certain reconstruction and rehabilitation of said village's electrical system. Thereafter, pursuant to a resolution adopted by said village board of trustees on June 7, 2010 and a certificate of the village clerk of said village dated June 15, 2010, a principal payment of $80,000 was made on said renewal bond anticipation note and said note was renewed by the issuance of a renewal bond anticipation note, dated June 15, 2010, in the principal amount of $320,000, maturing on June 15, 2011. There- after, pursuant to a resolution adopted by said village board of trus- tees on June 6, 2011 and a certificate of the village clerk of said village dated June 15, 2011, a principal payment of $80,000 was made on said renewal bond anticipation note and said note was again renewed by the issuance of a renewal bond anticipation note, dated June 15, 2011, in the principal amount of $240,000, maturing on June 15, 2012. There- after, pursuant to a resolution adopted by said village board of trus- tees on June 5, 2012 said bond anticipation note was again renewed by the issuance of a renewal bond anticipation note dated June 15, 2012, in the principal amount of $240,000, maturing on June 14, 2013. Thereafter,
pursuant to a resolution adopted by said village board of trustees on June 4, 2013 and a certificate of the village clerk of said village dated June 14, 2013, a principal payment of $60,000 was made on said renewal bond anticipation note and said note was again renewed by the issuance of a renewal bond anticipation note, dated June 14, 2013, in the principal amount of $180,000, maturing on June 13, 2014. (2) Pursuant to a resolution adopted by said village board of trustees on February 7, 2011 and a certificate of the village clerk of said village dated April 1, 2011, said village issued its bond anticipation note, dated April 1, 2011, in the principal amount of $190,000, maturing on April 2, 2012 to finance the cost of the object or purpose consisting of Phase II of certain reconstruction and rehabilitation of said village's electrical system. Thereafter, pursuant to a resolution adopted by said village board of trustees on March 22, 2012, said bond anticipation note was renewed by the issuance of a renewal bond antic- ipation note dated April 2, 2012, in the principal amount of $190,000, maturing on April 2, 2013 which matured one day later than required by law. Thereafter, pursuant to a resolution adopted by said village board of trustees on March 11, 2013 and a certificate of the village clerk of said village dated April 2, 2013, a principal payment of $22,000 was made on said renewal bond anticipation note and said note was again renewed by the issuance of a renewal bond anticipation note, dated April 2, 2013, in the principal amount of $168,000, maturing on April 2, 2014. (3) Pursuant to a resolution adopted by said village board of trustees on March 22, 2012 and a certificate of the village clerk of said village dated April 2, 2012, said village issued its bond anticipation note, dated April 2, 2012, in the principal amount of $353,515, maturing on April 2, 2013 to finance the cost of the object or purpose consisting of Phase III of certain reconstruction and rehabilitation of said village's electrical system. Thereafter, pursuant to a resolution adopted by said village board of trustees on March 11, 2013 and a certificate of the village clerk of said village dated April 2, 2013, a principal payment of $1,515 which payment was optional and may be ignored was made on said renewal bond anticipation note and said note was again renewed by the issuance of a renewal bond anticipation note dated April 2, 2013, in the principal amount of $352,000, maturing on April 2, 2014. (b) It is hereby further found and determined that the bond antic- ipation notes and renewal bond anticipation notes described in subdivi- sion (a) of this section were not issued in compliance with the applica- tion provisions of the local finance law, in that: (1) the village board of trustees of the village of Silver Springs in each case had not, prior to the issuance of such bond anticipation notes, adopted a bond resol- ution in accordance with sections 31.00 and 32.00 of the local finance law, which was subject to a permissive referendum in accordance with paragraph a of section 36.00 of the local finance law, for the purpose of authorizing the issuance of bonds of said village in anticipation of which such bond anticipation notes were issued; (2) in the case of the renewal bond anticipation note dated June 15, 2012, described in para- graph one of subdivision (a) of this section, a principal portion of such note was not redeemed; and (3) in the case of the renewal bond anticipation note dated June 14, 2013, described in paragraph one of subdivision (a) of this section, the term of said note will extend more than five years beyond the date of issuance of the applicable original bond anticipation note dated June 15, 2009 by the time this act takes effect.
S 2. Notwithstanding the defects describe in section one of this act, the bond anticipation notes and renewals thereof issued by the village of Silver Springs, as described in section one of this act, and all resolutions, acts and proceedings heretofore adopted or taken by the board of trustees in relation thereto, are hereby validated, ratified and confirmed. Subject to the adoption by the village board of trustees of the village of Silver Springs of one or more bond resolutions in accordance with sections 31.00 and 32.00 of the local finance law, such village is hereby authorized to hereinafter issue: (a) bonds or renewal bond anticipation notes in the aggregate princi- pal amount of $120,000 for the purpose of refinancing the outstanding bond anticipation notes issued for the object or purpose described in paragraph one of subdivision (a) of section one of this act; (b) bonds or renewal bond anticipation notes in the aggregate princi- pal amount of $150,000 for the purpose of refinancing the outstanding bond anticipation notes issued for the object or purpose described in paragraph two of subdivision (a) of section one of this act; (c) bonds or renewal bond anticipation notes in the aggregate princi- pal amount of $325,000 for the purpose of refinancing the outstanding bond anticipation notes issued for the object or purpose described in paragraph three of subdivision (a) of section one of this act; provided, however, that: (1) each such bond resolution shall not be subject to a permissive referendum in accordance with paragraph a of section 36.00 of the local finance law; (2) notwithstanding the provisions of paragraph b of section 23.00 and paragraph b of section 21.00 of local finance law, said village may issue one additional renewal bond anticipation note maturing not later than June 13, 2015 for the objects or purposes described in paragraph one of subdivision (a) of section one of this act, and may provide for the first installment payment on the bonds issued for such objects or purposes to be made on any date on or before June 13, 2015; and (3) in the event that the renewal bond anticipation note, dated June 13, 2014, described in paragraph one of subdivision (a) of section one of this act has, prior to the effective date of this act, been amended to extend the maturity date thereof, been renewed by another renewal bond anticipation note, or been redeemed in full, said village, follow- ing enactment of this act, shall have the authority, notwithstanding any such extension, renewal or redemption, to issue the bonds or renewal bond anticipation notes described in paragraph three of subdivision (b) of section one of this act for the purpose of refinancing such extended or renewed bond anticipation notes or for the purpose of reborrowing the principal amount of such redeemed bond anticipation notes up to the maximum principal amount set forth in such paragraph. S 3. Except as otherwise set forth in this act, the bonds and bond anticipation notes, and renewals thereof, issued pursuant to this act shall be issued in accordance with the provisions of the local finance law. 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, 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.

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