July 18, 2014
Town of Brutus
Town Board Special Meeting
The Town Board of the Town of Brutus held a Special Meeting on July 18, 2014 in the Town Municipal Building, 9021 N. Seneca Street, Weedsport, NY 13166.
Present were: Supervisor James Hotaling and Councilors Amy Chirco and Stephen McLoud.
Supervisor Hotaling called the meeting to order at 4:00 p.m. and dispensed with the Pledge of Allegiance. Supervisor Hotaling requested the meeting on July 16th and all members of the Town Board were notified of the meeting and provided with information on the purpose of the meeting. Notification of the meeting was posted at the front and back door of Town Municipal Office on July 16, 2014. The Citizen was also notified of the meeting date.
Water District #9
Supervisor Hotaling stated that he met* the Town had received approval from the New York State Comptroller's Office for Water District #9. The Deputy Town Clerk read the following proposed resolution for the Board to review:
FINAL ORDER OF THE TOWN BOARD
TOWN OF BRUTUS
ESTABLISHING WATER DISTRICT #9
In the Matter of The Establishment of Water District #9
In the Town of Brutus, County of Cayuga, New York
A Resolution having been duly adopted by the Town Board of the Town of Brutus on the 8th day of May, 2014, establishing Water District #9 in the Town of Brutus subject to a permissive referendum, and as a result of great public support there was certification thereafter that no petition for referendum was filed, and an Order having been duly adopted by the Town Board on May 8, 2014 reciting the description of the boundaries of the proposed District, the maximum amount proposed to be expended for the improvement, the proposed method of financing to be employed, the fact that a plan, map and report describing the same are on file in the Town Clerk's Office for public inspection, and it having been duly resolved and determined following such hearings that the Notice of Hearing was published and posted as required by law and otherwise sufficient, that all the property and property owners within the proposed District were benefited, that all property and property owners benefited were included within the limits of the proposed District, and that it was in public interest to grant in whole the relief sought, and it having been then and there further duly resolved that the establishment of such District as proposed be approved, subject to permissive referendum in the manner provided in Article 7 of the Town Law, and a Certificate of the Town Clerk having been filed pursuant to Subdivision 4 of Section 209-e of the Town Law, certifying that no petition was filed requesting such a referendum, and the permission of the State Comptroller being granted on July 16, 2014, and
WHEREAS, the Town Board did determine that proposed Water District #9 be approved and established and the Town having thereafter certifying that no petition was filed requesting a referendum, and
WHEREAS, the total annual cost to the typical property is not anticipated to exceed the sum of $997.17 per annum for each residential unit, and
WHEREAS, the New York State Comptroller's maximum threshold for special improvement (water) districts for 2014 is $805.00 per annum for each residential unit; it is hereby
ORDERED that the following improvements in said District be constructed upon the required funds being made available or provided for as follows: construction and installation of a water distribution system within the area of the District with the installation of water lines and laterals will be installed at various hookup locations within the District, and is shown on the plans, reports and maps filed with the Town Clerk, and that the water system will be hooked up to and water obtained from an existing line owned and operated by the Cayuga County Water and Sewer Authority with said connection to be at a location in the Town of Brutus; and it is further
ORDERED that the proposed improvements, including costs of rights of way, construction costs, legal fees and other expenses shall be financed as follows: the maximum cost to be expended for such improvements in the Water District #9 is $960,000.00; and it is further
ORDERED that the Project known as Water District #9 in the Town of Brutus is established; and it is further
ORDERED that the Town Clerk of the Town of Brutus is hereby authorized and directed to cause a certified copy of this Order to be duly recorded in the Office of the Clerk of the County of Cayuga in which the Town of Brutus is located within ten (10) days after the adoption of this Order; and it is further
ORDERED that the Town Clerk is hereby authorized and directed to file a certified copy of this Order in the Office of the State Department of Audit and Control, Albany, New York, within ten (10) days after the adoption of this Order.
Resolved by a first motion of Councilor Chirco and a second motion of Councilor Steve McLoud.
VOTE: James Hotaling, Supervisor Aye
Thomas Flynn, Deputy Supervisor/Councilor Absent
Dave Miller, Councilor Absent
Amy Chirco, Councilor Aye
Steve McLoud, Councilor Aye
RES 123-14 VOTE: 3 ayes, 0 nays, 2 absent. Carried.
The Town Board also reviewed and subsequently approved the following:
BOND RESOLUTION
At a meeting of the Town Board of the Town of Brutus, in the County of Cayuga, in the State of New York on the 18th day of July, 2014:
PRESENT: James Hotaling, Supervisor
Amy Chirco, Councilor
Steve McLoud, Councilor
ABSENT: Dave Miller, Councilor
Steve McLoud, Councilor*
Thomas Flynn, Councilor
Councilor McLoud presented the following resolution and moved that it be adopted:
BOND RESOLUTION DATED JULY 18, 2014 OF THE TOWN BOARD OF THE TOWN OF BRUTUS AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $960,000 AGGREGATE PRINCIPAL AMOUNT OF SERIAL GENERAL OBLIGATION BONDS TO FINANCE THE CONSTRUCTION AND INSTALLATION OF A WATER DISTRIBUTION SYSTEM FOR WATER DISTRICT NO. 9 AT AN ESTIMATED MAXIMUM COST OF $960,000, LEVY OF TAX IN ANNUAL INSTALLMENTS IN PAYMENT THEREOF, THE EXPENDITURE OF SUCH SUM FOR SUCH PURPOSE, AND DETERMINING OTHER MATTERS IN CONNECTION THEREWITH.
WHEREAS, the Town Board of the Town of Brutus (the "Town") by resolution duly adopted on May 8, 2014 approved the creation of Water District No. 9; and
WHEREAS, the Town received a notice from the New York State Department of Audit and Control, Albany, New York (the "Comptroller"), dated July 15, 2014, stating that the Comptroller had approved the formation of Water District No. 9; and
WHEREAS, the Town Board has issued a negative declaration determining that the improvements to be undertaken in furtherance of the purpose to be financed pursuant to this Resolution will not have a significant effect on the environment;
NOW THEREFORE BE IT RESOLVED, by the Town Board of the Town (by favorable vote of not less than two-thirds of all the members of the Board) as follows:
Section 1. The Town is hereby authorized to issue its serial general obligation bonds (the "Bonds") in the aggregate principal amount of not to exceed $960,000 pursuant to the Local Finance Law of New York, in order to finance the class of objects or purposes described herein.
Section 2. The class of objects or purposes (herein referred to as "Purpose") to be financed pursuant to this Resolution is the construction and installation of a water distribution system for Water District No. 9, including rights in land and the acquisition of equipment, machinery and/or apparatus.
Section 3. It is hereby determined and declared that (a) the maximum cost of the Purpose, as estimated by the Town Board, is $960,000, (b) the Town Board has previously authorized the expenditure of $960,000 to be applied to the payment of the cost of the Purpose and (c) the Town plans to finance the cost of the Purpose entirely from funds raised by the issuance of the Bonds and bond anticipation notes hereinafter referred to and a grant received from United States Department of Agriculture, Rural Development.
Section 4. It is hereby determined that the Purpose is one of the class of objects or purposes described in Paragraph 1 of Section 11.00 of the Local Finance Law, and that the period of probable usefulness of the Purpose is forty (40) years. The proposed maturity of the Bonds authorized herein will be in excess of five (5) years but will not exceed the period of probable usefulness of the Purpose.
Section 5. Current funds are not required to be provided prior to the issuance of the bonds authorized by this Resolution or any notes issued in anticipation of such bonds as the project consists of the acquisition, construction, reconstruction or equipment of or additions to facilities for the distribution of water.
Section 6. Subject to the provisions of the Local Finance Law, the power to authorize the issuance of and to sell bond anticipation notes in anticipation of the sale of the Bonds, including renewals of such notes, is hereby delegated to the Supervisor of the Town, the chief fiscal officer. Such notes shall be of such terms, form and contents, and shall be sold in such manner, as may be prescribed by said Supervisor of the Town, consistent with the provisions of the Local Finance Law and this Resolution.
Section 7. The power to further authorize the issuance of the Bonds and bond anticipation notes and to prescribe the terms, form and contents of the Bonds and bond anticipation notes, including the consolidation with other issues, subject to the provisions of this Resolution and the Local Finance Law, and to sell and deliver the Bonds and bond anticipation notes, is hereby delegated to the Supervisor of the Town. The Supervisor of the Town is hereby authorized to sign and the Town Clerk is hereby authorized to attest any Bonds and bond anticipation notes issued pursuant to this Resolution, and to affix to such Bonds and bond anticipation notes the corporate seal of the Town.
Section 8. The faith and credit of the Town of Brutus, New York, are hereby irrevocably pledged for the payment of the principal of and interest on such Bonds and bond anticipation notes as the same respectively become due and payable. An annual appropriation shall be made in each year sufficient to pay the principal of and interest on such obligations becoming due and payable in such year, to the extent the necessary funds are not provided from other sources. There shall be levied annually on all taxable real property in the Town, a tax sufficient to pay the principal of and interest on such obligations as the same become due and payable, to the extent the necessary funds are not provided from other sources.
Section 9. The Purpose is authorized by article twelve of the Town Law and cost thereof is to be assessed upon benefited real property, and, therefore, pursuant to paragraph b(2) of Section 35 of the Local Finance Law is not subject to a permissive referendum.
Section 10. The Town Supervisor is further authorized to take such actions and execute such documents as may be necessary to ensure the continued status of the interest on the bonds authorized by this Resolution, and any notes issued in anticipation thereof, as excludable from gross income for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the "Code") and to designate the bonds authorized by this Resolution, and any notes issued in anticipation thereof, as "qualified tax-exempt obligations" in accordance with Section 265(b)(3) of the Code.
Section 11. Pending the sale of bonds herein authorized, the temporary use of funds from the Town's general fund, pursuant to the provisions of Section 165.10 of the New York Local Finance Law, is hereby authorized. The Town reasonably expects to reimburse itself from the proceeds of bonds or notes herein authorized for expenditures made for the purpose to be financed by this Resolution prior to the issuance of such bonds or notes, and this Resolution is intended to constitute a declaration of official intent to reimburse for the purposes of U.S. Treasury § 1.150-2.
Section 12. The Town has issued a negative declaration under the State Environmental Quality Review Act determining that the water system improvements to Water District No. 9 will not have a significant effect on the environment. *
Section 13. This Resolution shall be published in full by the Town Clerk together with a notice in substantially the form prescribed by Section 81.00 of said Local Finance Law, and such publication shall be in each official newspaper of the Town. The validity of the Bonds or of any bond anticipation notes issued in anticipation of the sale of the Bonds may be contested only if such obligations are authorized for an object or purpose for which the Town is not authorized to expend money, or the provisions of law which should be complied with at the date of publication of this Resolution are not substantially complied with, and an action, suit or proceeding contesting such validity is commenced within twenty (20) days after the date of such publication; or if said obligations are authorized in violation of the provisions of the Constitution.
Section 14. The firm Hiscock & Barclay, LLP is hereby appointed Bond Counsel of the Town in connection with the bonds and notes herein authorized.
Section 15. This Resolution shall take effect immediately.
The Motion having been duly seconded by Councilor Chirco, it was adopted and the following votes were cast:
AYES NAYS
Amy Chirco, Councilor None
Steve McLoud, Councilor
James Hotaling, Supervisor
RES 124-14 VOTE: 3 ayes, 0 nays, 2 absent. Carried.
There was no other business to come before the Board and Councilor Chirco moved to adjourn the meeting at 4:10 p.m., seconded by Councilor McLoud.
RES 125-14 VOTE: 3 ayes, 0 nays, 2 absent. Carried.
Respectfully submitted,
Vicki Hickey
Deputy Town Clerk
*Corrections were made to the meeting minutes at the August 19th meeting to reflect to grammatical errors and the listing of Councilor McLoud twice on page 3.
