Bill S6947-2013

Legalizes and validates certain bond anticipation notes issued by the village of Whitehall

Legalizes and validates certain bond anticipation notes issued by the village of Whitehall.

Details

Actions

  • 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.472
  • Jun 19, 2014: substituted for a9319
  • Jun 10, 2014: referred to local governments
  • Jun 10, 2014: DELIVERED TO ASSEMBLY
  • Jun 10, 2014: PASSED SENATE
  • Jun 10, 2014: HOME RULE REQUEST
  • May 19, 2014: ADVANCED TO THIRD READING
  • May 14, 2014: 2ND REPORT CAL.
  • May 13, 2014: 1ST REPORT CAL.743
  • Apr 7, 2014: REFERRED TO LOCAL GOVERNMENT

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Local Government - May 13, 2014
Ayes (8): Martins, Boyle, Marchione, Ritchie, Valesky, Gipson, Latimer, O'Brien
Ayes W/R (1): Ball

Memo

BILL NUMBER:S6947

TITLE OF BILL: An act making certain findings and determinations with respect to bond anticipation notes and serial bonds issued by the village of Whitehall, in the town of Whitehall and county of Washington, and validating and legalizing such notes and bonds

PURPOSE:

This bill validates and legalizes the bond anticipation notes and renewals thereof and the serial bonds issued by the village to finance certain improvements to its sewer system and water system.

SUMMARY OF PROVISIONS:

Pursuant to a bond resolution dated April 5, 2001, as amended by a bond resolution dated April 7, 2005, the village board of trustees authorized the issuance of serial bonds of the village, and bond anticipation notes in anticipation of the sale of such bonds, to finance the construction of certain improvements to the village's sewer system in order to bring it into compliance with a stipulation agreement between the village and the New York State Department of Environmental Conservation. Pursuant to bond resolutions dated January 25, 2005, January 26, 2006, July 6, 2006 and November 6, 2006, the village board of trustees authorized the issuance of serial bonds of the village, and bond anticipation notes in anticipation of the sale of such bonds, to finance the construction of certain improvements to the village's water system in order to bring it into compliance with a stipulation agreement between the village and the New York State Department of Health. Pursuant to said bond resolutions, the village issued several bond anticipation notes and renewals thereof to finance said sewer system improvements and water system improvements. The village has since issued serial bonds to the New York State Environmental Facilities Corporation to provide long-term financing for said sewer system improvements and water system improvements. One of the principal payments on a bond anticipation note issued to finance said water system improvements, however, was made from the proceeds of a bond anticipation note issued to finance said sewer system improvements, and as such was not in compliance with the local finance law which requires that the proceeds of obligations authorized pursuant to a bond resolution be expended only for the object or purpose for which such obligations were issued. Further, such principal payment was not made by the village from an annual appropriation as required by the local finance law.

JUSTIFICATION:

This legislation will allow the village to proceed with short-term financing for further improvements to its sewer system through the New York State Environmental Facilities Corporation.

LEGISLATIVE HISTORY:

New bill.

LOCAL FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6947 IN SENATE April 7, 2014 ___________
Introduced by Sen. LITTLE -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT making certain findings and determinations with respect to bond anticipation notes and serial bonds issued by the village of White- hall, in the town of Whitehall and county of Washington, and validat- ing and legalizing such notes and bonds THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative findings. It is hereby found and determined that pursuant to a bond resolution dated April 5, 2001, as amended by a bond resolution dated April 7, 2005, the board of trustees of the village of Whitehall, in the town of Whitehall and county of Washington, authorized the issuance of serial bonds of the village in an aggregate principal amount not to exceed $2,772,792, and bond anticipation notes in anticipation of the sale of such bonds, to finance the construction of certain improvements to such village's sewer system in order to bring it into compliance with a stipulation agreement between the village and the department of environmental conservation; that in order to finance the cost of the capital improvements authorized by said bond resolution, as so amended: (i) on November 3, 2000, the village issued a bond antic- ipation note in the principal amount of $450,000, maturing on November 2, 2001; (ii) on November 2, 2001, the village issued a bond antic- ipation note in the principal amount of $450,000, maturing on November 1, 2002, to renew in full the bond anticipation note maturing on Novem- ber 2, 2001; (iii) on June 6, 2002, the village issued a bond antic- ipation note in the principal amount of $1,970,234, maturing on June 6, 2005, to refinance the balance of the bond anticipation note maturing on November 1, 2002 and to finance additional costs of said capital improvements; (iv) on November 1, 2002, the village made a principal payment of $11,100 on the bond anticipation note maturing on June 6, 2005; (v) on November 4, 2003, the village made a principal payment of $11,200 on the bond anticipation note maturing on June 6, 2005; (vi) on November 4, 2004, the village made a principal payment of $11,300 on the bond anticipation note maturing on June 6, 2005; and (vii) on June 2,
2005, the village issued serial bonds in the aggregate principal amount of $1,155,748, maturing on November 1, in the years 2005 through 2034, to refinance the balance of the bond anticipation note maturing on June 6, 2005; that pursuant to bond resolutions dated January 25, 2005, Janu- ary 26, 2006, July 6, 2006 and November 6, 2006, the board of trustees of such village authorized the issuance of serial bonds of the village in an aggregate principal amount not to exceed $9,997,000, and bond anticipation notes in anticipation of the sale of such bonds, to finance the construction of certain improvements to the village's water system in order to bring it into compliance with a stipulation agreement between such village and the department of health; that in order to finance the cost of the capital improvements authorized by said bond resolutions: (a) on February 24, 2005, the village issued a bond antic- ipation note in the principal amount of $200,000, maturing on February 23, 2006; (b) on February 23, 2006, the village issued a bond antic- ipation note in the principal amount of $300,000, maturing on February 22, 2007, to renew in full the bond anticipation note maturing on Febru- ary 23, 2006 and to finance additional costs of said capital improve- ments; (c) on May 17, 2006, the village issued a bond anticipation note in the principal amount of $100,000, maturing on May 16, 2007; (d) on August 10, 2006, the village issued a bond anticipation note in the principal amount of $500,000, maturing on August 9, 2007; (e) on Decem- ber 7, 2006, the village issued a bond anticipation note in the princi- pal amount of $1,500,000, maturing on December 6, 2007; (f) on February 22, 2007, the village made a principal payment of $5,000 on the bond anticipation note maturing on such date and issued a bond anticipation note in the principal amount of $295,000, maturing on February 21, 2008, to renew the balance of such note; (g) on May 16, 2007, the village issued a bond anticipation note in the principal amount of $100,000, maturing on May 15, 2008, to renew in full the bond anticipation note maturing on May 16, 2007; (h) on June 28, 2007, the village issued a bond anticipation note in the amount of $7,462,287, maturing on June 28, 2010, to refinance the balance of the bond anticipation notes maturing on August 9, 2007, December 6, 2007, February 21, 2008 and May 15, 2008 and to finance additional costs of said capital improvements; (i) on February 21, 2008, the village made a principal payment of $7,500 on the bond anticipation note maturing on June 28, 2010; (j) on February 20, 2009, the village made a principal payment of $10,500 on the bond antic- ipation note maturing on June 28, 2010; (k) on February 18, 2010, the village made a principal payment of $10,500 on the bond anticipation note maturing on June 28, 2010; (l) on June 25, 2010, the village made a principal payment of $210,402 on the bond anticipation note maturing on June 28, 2010; (m) on July 13, 2010, pursuant to chapter 170 of the laws of 2010, the bond anticipation notes and renewals thereof previously issued by the village to finance the cost of said capital improvements and authorized the village to issue bonds or bond anticipation renewal notes in the aggregate principal amount of $7,768,500 to finance the cost of said capital improvements; and (n) on September 28, 2010, the village issued serial bonds in the form of a statutory installment bond in the principal amount of $7,753,098, maturing on February 18, 2040, to refinance the balance of the bond anticipation note maturing on June 28, 2010 and to finance additional costs of said capital improvements; that the principal payment of $210,402 made on June 25, 2010 on the bond anticipation note maturing on June 28, 2010, issued to finance the construction of said water system improvements, was made from the proceeds of the bond anticipation note maturing on June 6, 2005, issued
to finance the construction of said sewer system improvements; that said principal payment was not in compliance with the applicable provisions of the local finance law because the proceeds of obligations authorized pursuant to a bond resolution are required by the provisions of sections 32.00, 165.00 and 169.00 of the local finance law to be expended only for the object or purpose for which such obligations were issued; that, further, said principal payment was not in compliance with the applica- ble provisions of the local finance law because it was made from the proceeds of said bond anticipation note and not from a source other than the proceeds of said bond anticipation note as required by the provisions of sections 21.00, 23.00 and 169.00 of the local finance law. S 2. Notwithstanding the defects described in section one of this act, the bond anticipation notes and renewals thereof and the serial bonds issued by the village of Whitehall, as described in section one of this act, and all resolutions, acts and proceedings adopted or taken by the board of trustees and the treasurer of such village in relation thereto, are hereby validated, ratified and confirmed. S 3. If any clause, sentence, subdivision, paragraph, section or part of this act be adjudged by any court of competent jurisdiction to be invalid, and after exhaustion of all further judicial review, the judg- ment 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 of this act directly involved in the contro- versy in which the judgment shall have been rendered. S 4. This act shall take effect immediately.

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