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History
- Referred to education
Companion bill
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Authorizes the Patchogue-Medford Union Free School District to establish a reserve fund to liquidate serial bonds
In Senate Committee · Education · Sponsor Brian X. Foley
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A10600
Title of bill
An act in relation to establishing a reserve fund to liquidate certain serial bonds issued to the Patchogue-Medford union free school district
Purpose
To authorize Patchogue-Medford Union Free School District to establish a reserve fund to liquidate serial bonds.
Summary of provisions
Section 1 authorizes the Patchogue-Medford Union Free School District to establish a reserve fund for the purpose of liquidating any serial bonds issued pursuant to chapter 109 of the law of 2006. Section 2 allows the Patchogue-Medford Union Free School District to transfer monies from the general fund of such school district to the reserve fund created by this act, provided that the amount transferred from the general fund shall not exceed the amount necessary to liquidate the serial bonds issued pursuant to chapter 109 of the laws of 2006. Section 3 is the effective date.
Justification
In June 2006, Governor Pataki signed Section 109 of the Laws of 2006 which allowed Patchogue-Medford Schools to issue bonds in order to finance a $6 million deficit. The District issued the bonds and has been faithfully paying them down since then. The bonds which were issued contain no provision for pre-payment. The current administration has led the District with prudent financial management and is in a posi- tion to liquidate the bonds by paying them off. Establishing a reserve fund would enable the District to pay off the bonds in a one-shot trans- action and take the debt service on these bonds out of the annual budg- et. This would allow more of the current resources to fund the day to day operations of the District while paying the bonds from savings. However, the terms of the bonds do not contain the mechanism, with which this can be achieved. This legislation would allow the District to legally establish a reserve fund.
Legislative history
New Bill.
Fiscal impact on the state
TED.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.