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

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.