This bill has been amended

Bill S7241-2013

Relates to the issuance of bonds and notes of the upper Mohawk valley regional water finance authority and amends the aggregate limitation

Relates to the issuances of bonds and notes of the upper Mohawk valley regional water finance authority and amends the maximum aggregate principal amount limitation from one hundred million dollars to one hundred fifty million dollars.

Details

Actions

  • Jun 2, 2014: ADVANCED TO THIRD READING
  • May 29, 2014: 2ND REPORT CAL.
  • May 28, 2014: 1ST REPORT CAL.981
  • May 7, 2014: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Votes

VOTE: COMMITTEE VOTE: - Corporations, Authorities and Commissions - May 28, 2014
Ayes (6): Ranzenhofer, Flanagan, Larkin, Martins, Perkins, Squadron

Memo

BILL NUMBER:S7241

TITLE OF BILL: An act to amend the public authorities law, in relation to the issuance of bonds and notes of the upper Mohawk valley regional water finance authority and to amend the maximum aggregate principal amount limitation

PURPOSE: The purpose of this legislation is to increase the aggregate principal amount of bonds, notes or other obligations of the Mohawk valley regional water finance authority to $150,000,000.

SUMMARY OF PROVISIONS: Amends subdivision 1 of section 1226-1 of the public authorities law increasing the aggregate principal amount of bonds, notes or other outstanding obligations by the Mohawk valley regional water finance authority to $150,000,000.

Establishes that any notes or obligations issued to finance water facilities which have been determined necessary to service manufacturing facilities constructed or to be constructed in the service area after January 1, 2014, shall be excluded from the calculation of outstanding principal amount, provided that such bonds, notes or other obligations shall require state comptroller approval.

JUSTIFICATION: The Mohawk Valley Regional Water Finance Authority was created under section 1226 of the Public Authorities Law in 1994. The original legislation establishing the Authority set their aggregate principal bonding limit at $100,000,000.

This legislation has been requested by the Authority in order to continue to fund ongoing and future capital needs. The bill would provide that no bonds, notes or other obligations could be issued if their issuance would cause the aggregate principal amount of such bonds, notes or obligations outstanding to exceed $150,000,000.

In addition, this increase will allow the Authority to finance or refinance water facilities to service manufacturing facilities, such as Utica Nanotech, while providing the safeguard that the bonds would require State Comptroller approval prior to issuance.

LEGISLATIVE HISTORY: New.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediate.


Text

STATE OF NEW YORK ________________________________________________________________________ 7241 IN SENATE May 7, 2014 ___________
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, in relation to the issuance of bonds and notes of the upper Mohawk valley regional water finance authority and to amend the maximum aggregate principal amount limita- tion THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 1226-l of the public authorities law, as added by chapter 647 of the laws of 1994, is amended to read as follows: 1. The authority shall have the power and is hereby authorized from time to time to issue bonds, notes or other obligations to pay the cost of any project or for any other corporate purpose, including the estab- lishment of reserves to secure the bonds, the payment of principal of, premium, if any, and interest on the bonds and the payment of incidental expenses in connection therewith. [The] NO BONDS, NOTES OR OTHER OBLI- GATIONS SHALL BE ISSUED IF SUCH ISSUANCE WOULD CAUSE THE aggregate prin- cipal amount of such bonds, notes or other obligations [shall not] OUTSTANDING TO exceed one hundred FIFTY million dollars ([$100,000,000] $150,000,000), excluding bonds, notes or other obligations issued to refund or otherwise repay bonds, notes or other obligations theretofore issued for such purposes[; provided, however, that upon any such refund- ing or repayment the total aggregate principal amount of outstanding bonds, notes or other obligations may be greater than one hundred million dollars ($100,000,000) only if the present value of the aggre- gate debt service of the refunding or repayment bonds, notes or other obligations to be issued shall not exceed the present value of the aggregate debt service of the bonds, notes or other obligations so to be refunded or repaid. For purposes hereof, the present values of the aggregate debt service of the refunding or repayment bonds, notes or other obligations and of the aggregate debt service of the bonds, notes or other obligations so refunded or repaid, shall be calculated by
utilizing the effective interest rate of the refunding or repayment bonds, notes or other obligations, which shall be that rate arrived at by doubling the semi-annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the refunding or repayment bonds, notes or other obligations from the payment dates ther- eof to the date of issue of the refunding or repayment bonds, notes or other obligations and to the price bid including estimated accrued interest or proceeds received by the authority including estimated accrued interest from the sale thereof]
. ANY BONDS, NOTES OR OTHER OBLI- GATIONS ISSUED TO FINANCE OR REFINANCE WATER FACILITIES WHICH HAVE BEEN DETERMINED BY THE WATER BOARD TO BE REASONABLY NECESSARY TO SERVICE MANUFACTURING FACILITIES CONSTRUCTED OR TO BE CONSTRUCTED IN THE SERVICE AREA AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, SHALL ALSO BE EXCLUDED FROM THE CALCULATION OF OUTSTANDING PRINCIPAL AMOUNT; PROVIDED THAT SUCH BONDS, NOTES OR OTHER OBLIGATIONS SHALL REQUIRE STATE COMPTROLLER APPROVAL PRIOR TO ISSUANCE. The authority shall have power and is hereby authorized to enter into such agreements and perform such acts as may be required under any applicable federal legislation to secure a federal guarantee of any bonds. S 2. This act shall take effect immediately.

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