Authorizes the financing of and providing for a period of probable usefulness to the pre-payment of certain service contract obligations

1 Co-sponsor

• Rich Funke

Title of bill

An act authorizing the financing of and providing for a period of probable usefulness to the pre-payment of certain service contract obligations

Purpose

Authorizes Monroe County to finance, by the issuance of bonds of the county, the pre-payment of the certain service contract obligations in amounts sufficient to redeem bonds issued by certain local development corporations (LDC).

Summary of specific provisions

Section 1. Authorizes the issuance of bonds of the county to pre-pay service contract obligations in amounts sufficient to redeem the bonds of the following LDCs:

*Monroe Newpower Corporation *Monroe Security and Safety Systems Local Development Corporation *Upstate Telecommunications Corporation

Section 2. Provides that the financing of service contract obligations shall be considered a specific object or purpose of the County.

Section 3. Provides that the probable usefulness for the financing of a service contract obligation shall be twenty years.

Section 4. Provides that the bonds may be sold at public sale in accordance with Title 4 of the local finance law.

Section 5. Effective date.

Justification

Monroe County has requested legislation authorizing the County to issue bonds, the proceeds of which would be used to purchase the Service Contracts that are the framework for the contractual relationships between the County and three LDCs. The purchase would also include the physical assets of each LDC.

The three LDCs, Upstate Telecommunications Corp. (UTC), Monroe Security &P Safety Systems Local Development Corporation (M3S), and Monroe Newpower Corporation (MNP) were incorporated with the approval of the County to provide services and assets that would be customarily provided directly by the government entity. Those services included the management and acquisition of information technology services, safety and security systems, and energy supply services.

The County estimates that there will be savings going forward of $12 million gross (net present value of $9.5 million) from reduced interest and administrative costs from the termination of the agreements with the LDCs.

The County has requested this legislation in order to provide savings to the taxpayers of Monroe County and to provide the above services in a more transparent manner.

Legislative history

New bill.

Fiscal implications

None to the State.

Effective date

Immediate.