September 30, 2014
Town of Brutus
Special Town Board Meeting
The Town Board of the Town of Brutus held a Special Meeting on September 30, 2014 at 5:00 PM in the Town Municipal Building, 9021 N. Seneca Street, Weedsport, NY 13166 to review the Tentative 2015 Town of Brutus and Fire Protection Budget and any other business that came before the Board.
Present were: Supervisor James A. Hotaling; Deputy Supervisor/Councilor Thomas Flynn; and Councilors Dave Miller, Steve McLoud (5:25 p.m.) and Amy Chirco. Also present was Pamela Kelley, Bookkeeper,
The Supervisor called the meeting to order at 5:10 p.m. and dispensed with the Pledge of Allegiance.
Water District #9
The Clerk was advised by the Town's bond counsel that the Bond Resolution for this district approved on July 18, 2014, needs to be re-approved because there were only 3 Board members at that meeting. Councilor Miller made a motion to approve the following resolution:
BOND RESOLUTION DATED SEPTEMBER 30, 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 #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
Thomas Flynn None
David Miller
Amy Chirco
James A. Hotaling
RES 155-14 VOTE: 4 ayes, 0 nays, 1 absent(McLoud). Carried.
2015 Budgets
The Clerk reviewed the changes that were made to the proposed 2015 Tentative Budgets for the Town and Fire Protection District with the Board and answered the questions posed. Discussions were held regarding health insurance, salaries for the councilors and the Fire Department budget. It was determined that the full amount of the Fire Department would be placed on the tax roll. Councilor Miller moved to approve the 2015 Tentative Budget for the Town of Brutus with the proposed changes which would now become the 2015 Preliminary Town Budget, second by Councilor Flynn.
RES 155-14 VOTE: 5 ayes, 0 nays. Carried.
Councilor Miller moved to approve the 2015 Tentative Budget for the Fire Protection District with the proposed changes which would now become the 2015 Preliminary Fire Protection District Budget, second by Councilor Flynn.
RES 156-14 VOTE: 5 ayes, 0 nay. Carried.
The Public Hearing for the 2015 Preliminary Town and Fire Protection District Budgets will be held on November 3, 2014 at 7:00 p.m.
There was no other business to come before the Board and upon motion by Councilor McLoud, second by Councilman Flynn and the meeting was closed at 6:31 p.m.
RES 157-14 VOTE: 5 ayes, 0 nays. Carried.
Respectfully submitted,
Mary Kae Brentlinger
Town Clerk
