S T A T E O F N E W Y O R K
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5362
2009-2010 Regular Sessions
I N S E N A T E
April 27, 2009
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Introduced by Sen. VOLKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to authorize the funding of the sanitary sewer system in the
hamlet of Hemlock in the town of Livonia
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings. It is hereby found and determined
that the town board of the town of Livonia, in the county of Livingston,
(i) by a resolution adopted on September 4, 1997 pursuant to section
209-d of the town law, established the Hemlock sewer district at the
maximum cost not to exceed $2,305,700, (ii) by resolution adopted on
January 20, 2005 pursuant to section 202-b of the town law, authorized
additional facilities to be included in the Hemlock sewer district, at
an additional cost of up to $100,000, and (iii) by a bond resolution
adopted on March 21, 2002, as supplemented and amended by a supplemental
bond resolution adopted on January 20, 2005 authorized the issuance of
serial bonds not to exceed the sum of $2,305,700 for the purpose of
financing the sanitary sewer improvements to be included in the Hemlock
sewer district.
It is also hereby found and determined that the town issued its serial
bonds under the aforesaid bond resolutions and bond anticipation notes
in anticipation of the issuance of such serial bonds as follows:
(a) A bond anticipation note dated July 15, 2002 in the amount of
$500,000. Such bond anticipation note was renewed by the issuance of a
renewal bond anticipation note dated July 17, 2003 in the amount of
$500,000. Said renewal bond anticipation note was again renewed by the
issuance of a renewal bond anticipation note dated July 16, 2004 in the
amount of $500,000. Thereafter, on June 15, 2005, the town issued its
$100,000 Public Improvement (Serial) Bonds, Series 2005, for the purpose
of refinancing $100,000 principal amount of said outstanding bond antic-
ipation note and the balance of said bond anticipation note was again
renewed by the issuance of a renewal bond anticipation note dated July
19, 2005 in the amount of $400,000. Thereafter on June 18, 2006 said
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11551-01-9
S. 5362 2
renewal bond anticipation note was retired in full through the applica-
tion of grant moneys received by the town for such purpose.
(b) A bond anticipation note dated November 8, 2002 in the amount of
$450,000. Said bond anticipation note was renewed by the issuance of a
renewal bond anticipation note on November 7, 2003 in the amount of
$450,000. Said renewal bond anticipation note was again renewed by the
issuance of a renewal bond anticipation note dated November 10, 2004 in
the amount of $450,000. Thereafter, a principal payment of $15,000 was
made on said renewal bond anticipation note and said note was again
renewed by the issuance of a renewal bond anticipation note dated Novem-
ber 16, 2005 in the amount of $435,000. Thereafter, a principal payment
of $22,500 was made on said renewal bond anticipation note and said note
was again renewed by the issuance of a renewal bond anticipation note
dated November 14, 2006. Thereafter, a principal payment of $4,100 was
made on said renewal bond anticipation note and said note was again
renewed by the issuance of a renewal bond anticipation note dated Novem-
ber 13, 2007. Thereafter, a principal payment of $11,000 was made on
said renewal bond anticipation note and said note was again renewed by
the issuance of a renewal bond anticipation note dated November 13,
2008.
(c) A bond anticipation note dated July 17, 2003 in the amount of
$700,000. Said bond anticipation note was renewed by the issuance of a
renewal bond anticipation note on July 16, 2004 in the amount of
$700,000. Thereafter, pursuant to a resolution of the town board adopted
on July 1, 2005, the town advanced moneys from the town's general fund
to make a principal payment of $140,000 on said renewal bond antic-
ipation note, which resolution provided that such advance was to be
reimbursed out of the proceeds of serial bonds to be subsequently issued
by the town, and said note was again renewed by the issuance of a
renewal bond anticipation note dated July 19, 2005 in the amount of
$560,000. Thereafter, said renewal bond anticipation note was retired in
full on June 19, 2006 by the payment of $560,000 out of grant moneys
received by the town from the federal and state governments that were
intended to be applied to pay costs of improvements included in the
Hemlock sewer district.
(d) On September 29, 2005 the town issued its E.F.C. Clean Water Stat-
utory Installment Bonds - 2005 in the principal amount of $618,616 for
the intended purposes of (i) refunding in full the aforementioned
$100,000 Public Improvement (Serial) Bonds, Series 2005 and (ii) refi-
nancing $518,616 principal amount of the aforementioned $560,000 renewal
bond anticipation note dated July 19, 2005. Thereafter, such $518,616
was not so applied to refinance such bond anticipation note dated July
19, 2005 but rather was used to pay a portion of the costs of improve-
ments included in the Hemlock sewer district.
It is also hereby found and determined that the total costs of under-
taking the improvements included in the Hemlock sewer district that were
paid by the town board of the town were $2,882,000, which amount is in
excess of the maximum cost of the said water district authorized by the
aforementioned resolution adopted on September 4, 1997.
The legislature further finds and determines that the expenditure by
the town on the improvements included in the Hemlock sewer district of
an amount in excess of the $2,305,700 maximum cost authorized by the
aforesaid resolution adopted on September 4, 1997 was in violation of
the provisions of the town law, in that the town board did not, as
required by section 209-h of the town law, conduct a public hearing in
the manner described in article 12 of the town law, obtain the approval
S. 5362 3
of such increase in maximum cost by an order of the comptroller of the
state of New York as required by section 209-f of the town law, and
adopt an order determining that it is in the public interest to author-
ize the increase of such maximum cost, subject to a permissive referen-
dum in the manner required by subdivision d of section 209-e of the town
law.
The legislature further finds and determines that said bond antic-
ipation notes, renewal bond anticipation notes, and statutory install-
ment bonds were issued in violation of the provisions of the local
finance law including the provisions of paragraph d of section 23.00 of
the local finance law which requires that a portion of any bond antic-
ipation note be redeemed from a source other than the proceeds of bonds
within two years of the original date of issue of a bond anticipation
note and that a further portion thereof be redeemed prior to the termi-
nation of each twelve month period succeeding the date on which the
original portion was so redeemed. The legislature also finds and deter-
mines that certain of such bond anticipation notes were issued in
violation of paragraph b of section 23.00 of the local finance law in
that such bond anticipation notes were issued for a period in excess of
one year.
S 2. Notwithstanding the defects described in section one of this act,
all actions and proceedings undertaken by the town of Livonia, Living-
ston county, in connection with the proceedings undertaken by the town
board under article 12-A of the town law to authorize the establishment
of Hemlock sewer district and the payment of costs of the improvements
included within the Hemlock sewer district in excess of the maximum cost
approved by the town board by the resolution dated September 2, 1997 and
all actions and proceedings undertaken by the town of Livonia, Living-
ston county, in connection with the adoption of the serial bond resol-
ution dated March 21, 2002 authorizing the issuance of serial bonds not
to exceed the sum of $2,305,700 for purposes of financing the sanitary
sewer improvements included within the Hemlock sewer district and all
actions and proceedings in connection with the issuance of bond antic-
ipation notes pursuant thereto as described in section one of this act
are hereby legalized, validated, ratified and confirmed. Further,
notwithstanding the defects as described in section one of this act in
connection with the issuance of said obligations, the town of Livonia is
hereby authorized to issue renewal bond anticipation notes and/or serial
bonds in an amount not to exceed the sum of $576,000 for the purpose of
financing the sewer improvements described herein, including, without
limitation, the issuance of serial bonds for the purpose of reborrowing
the $140,000 principal payment made on the renewal bond anticipation
note dated July 15, 2004 from the town's general fund pursuant to the
resolution of the town board, dated July 1, 2005, described in section
one of this act.
S 3. Except as otherwise provided in this act, the bonds and bond
anticipation notes issued pursuant to this act shall be issued in
accordance with the provisions of the local finance law.
S 4. If any clause, sentence, subdivision, paragraph or part of this
act be judged by any court of competent jurisdiction to be invalid, such
judgment shall not affect, impair or invalidate the remainder thereof,
but shall be confined in its operation to the clause, sentence, subdivi-
sion, paragraph, section or part thereof directly involved in the
controversy in which such judgment shall have been rendered.
S 5. This act shall take effect immediately.