New York Senate Bill S07028

New York 2025-2026 Regular Session

• Introduced: 3/28/25
• Refer: 3/28/25
• Report Pass: 5/20/25
• Engrossed: 6/13/25
• Refer: 6/13/25
• Engrossed: 6/16/25
• Enrolled: 6/26/25
• Chaptered: 6/26/25
• Passed: 6/26/25

Caption

Authorizes the city of Little Falls, in the county of Herkimer, to issue serial bonds in an aggregate principal amount not to exceed three million four hundred thousand dollars for the purpose of liquidating deficits in its general, golf, and water funds; requires that the city of Little Falls prepare quarterly budget reports, quarterly trial balances and a three-year financial plan.

Summary

This bill, titled the “city of Little Falls fiscal recovery act,” authorizes the City of Little Falls in Herkimer County to issue up to $3.4 million in serial bonds, and related bond anticipation notes, to cover expected deficits in the city’s general, golf, and water funds for the fiscal year ending December 31, 2025. The authorization is limited to liquidating those deficits and may also be used to retire any remaining principal on outstanding budget, deficiency, or revenue anticipation notes tied to those shortfalls. Before any bonds may be issued, the state comptroller must review the city’s submitted deficit report and certify the existence and amount of the deficits. The city must provide its audit report and other requested information at least 30 days before issuance, and the comptroller must report findings to legislative fiscal committee chairs and city officials. The bill also sets a 10-year period of probable usefulness for the debt and makes the bonds general obligations of the city backed by its faith and credit.

Impact

The bill creates a special local law overriding the city’s ordinary borrowing authority by permitting deficit financing for specific funds and by imposing state oversight conditions under the Local Finance Law. It affects the City of Little Falls directly, along with the state comptroller, the Division of the Budget, and legislative fiscal committees, by requiring deficit certification, ongoing quarterly financial reporting, quarterly trial balances, and a three-year financial plan while the debt remains outstanding. It also authorizes bond anticipation notes and requires the city to redeem any excess notes from non-bond proceeds if the notes exceed the certified deficit amount.

Sentiment

The bill appears to have broad support in the Legislature. It was reported favorably from the Senate Local Government Committee, passed the Senate Rules Committee unanimously, and then passed both the Senate and Assembly with strong majorities. The voting pattern suggests general agreement that the city needed a structured fiscal recovery mechanism, paired with state oversight and reporting requirements.

Contention

There is little evidence of major opposition in the available record, but the bill’s safeguards indicate the main concern was fiscal accountability rather than the borrowing authority itself. The requirement for comptroller certification, limits on bond issuance to the verified deficit amount, and mandatory quarterly reporting suggest lawmakers wanted to prevent over-borrowing and ensure the city addressed underlying budget problems. Any potential contention would likely center on the use of long-term debt to cover operating deficits, especially in the golf and water funds, and on the state’s role in monitoring local finances.