Authorizes the city of Lockport, in the county of Niagara, to finance a certain deficit by the issuance of bonds

Summary of provisions

Section 1: Authorizes the City of Lockport to issue $5.0 million in bonds to liquidate the deficit in the general fund, water fund, sewer fund and refuse fund for the fiscal years commencing in 2011 and ending in 2013.

Section 2: Requires that the State Comptroller determine the deficit before the issuance of bonds. This section also directs the City of Lockport to submit a report detailing the amount and cause of the deficit, the City's independent audit report and other information the Comptroller may find necessary.

Section 3: Makes the probable useful life of the bonds ten years, computed from the date of such bonds or from the date of the first bond anticipation note issued in anticipation of the sale of such bonds, whichever date is earlier.

Section 4: Makes the sale and issuance of deficit financing bonds subject to the State Local Finance Law and indicates that these bonds will not be subject to either mandatory or permissive referendum.

Section 5: (a) Requires the preparation by the City Mayor of quarterly reports of expenditure and revenues which must be submitted to each member of the City Council, the Director of the NYS Division of the Budget, the State Comptroller, and the Chairs of the Senate Finance Committee and the Assembly Ways and Means Committee.

(b) For each fiscal year occurring during the time of which bonds and/or bond anticipation notes issued pursuant to this act are outstanding, the Mayor of the City of Lockport shall also prepare a quarterly trial balance of general and special fund ledger accounts.

(c) Beginning January 1, 2015 and for each fiscal year thereafter during which said debt remains outstanding, the City Mayor or officer responsible for the preparation of the tentative budget shall submit the tentative budget for the next succeeding fiscal year to the State Comptroller no later than thirty days before the last date on which the budget must be finally adopted.

(d) Within 90 days of the issuance of any debt pursuant to this act and for each fiscal year thereafter during which said debt remains outstanding, the Mayor of the City of Lockport or officer in charge of drafting budget, within 30 days after the final adoption of the budget for the next succeeding fiscal year, shall prepare a 3-year financial plan covering the next succeeding fiscal year and the 2 fiscal years thereafter that includes all provisions that are required by subdivision 10 of section 54 of the State Finance law. Copies of the plan should be sent to the Mayor and Chief Fiscal Officer of the City

of Lockport, the NYS Director of the Division of the Budget, the State Comptroller, the Chairs of the Assembly Ways and Means Committee and the Senate Finance Committee.

Section 6, 7, & 8: These sections authorize sale of the deficit financing bonds, states that judgments against one section of this act will not invalidate the other sections and makes the enactment date immediate.

Justification

The City of Lockport has requested this special legislation. Current State law does not allow the City of Lockport to liquidate its deficit. This type of financing has traditionally been authorized by the legislature for individual municipalities. The oversight provisions included in this bill will enable the City of Lockport to avoid future fiscal and budgetary problems.

Legislative history

This is a new bill.

Fiscal implications

None to the State.

Effective date

This act shall take effect immediately.