Legalizes, validates, ratifies and confirms certain actions taken by the village of Black River, Jefferson County with respect to refunding its low interest loans

BILL NUMBER:S2781 REVISED 02/03/11

Title of bill

An act to legalize, validate, ratify and confirm certain actions taken by the village of Black River, in the county of Jefferson, with respect to refunding its low interest loans through the United States department of agriculture and the New York state environmental facilities corporation

Purpose

This bill will correct an error made by the village of Black River when they exceeded their maximum bond authorization on their United States Department of Agriculture (USDA) and their New York State Environmental Facilities Corporation (EFC) bonds used in financing their capital project for improvement of facilities of the village wastewater collection and treatment system.

Summary of provisions

Section 1. Outlines the history of the USDA and EFC capital bonds the village of Black River issued to fund their village wastewater collection and treatment system.

Section 2. Provides explanation for the village of Black River exceeding its maximum project authorization and outlines their payment history.

Section 3. Provides the amounts are legalized, validated, and ratified despite the village of Black River exceeding their maximum bond authorization.

Section 4. Provides forgiveness of the underpayments outlined in section 2.

Section 5. Provides that these bonds shall be deemed to have been issued in accordance with provisions of the local finance law.

Section 6. Provides standard protections in the event that a court invalidates any part of this act it does not invalidate the entire act.

Section 7. This act shall take effect immediately.

Justification

On March 7, 2005 the Village of Black River in Jefferson County duly adopted a bond resolution authorizing the issuance of a $5 million maximum serial bond in anticipation of financing the costs of a capital improvement project for the improvement of the facilities of the village wastewater collection and treatment system. The village at that time accidentally bonded in excess of their limit when they obtained Phase I and Phase II of the funding through both the USDA and EFC. Though the village owed the full $1.27 million in 2008, they did make regular principal payments until the entire amount was refunded to the EFC in year 2010, bringing them under the bond limit.

This bill is critical to the village of Black River which is unable to afford the project without these bond notes. When enacted, this bill

assures the bond notes are issued in accordance with the provisions of the local finance law.

Legislative history

New Bill.

Fiscal implications

None to the state. Significant cost savings will be realized by the village of Black River.

Effective date

This act shall take effect immediately.