Bill > A08870

This bill establishes a state loan to the city of Dunkirk to help address its severe fiscal difficulties, specifically to refinance a $12.7 million revenue anticipation note due on July 24, 2025. The legislation provides that the state will loan up to $13.7 million to Dunkirk, with the loan to be repaid over 15 years at a 7.5% interest rate. The city will be required to make annual payments, and the state can recover these payments by reducing other state aid to the city. The bill recognizes that Dunkirk has been experiencing significant financial challenges, including expenditure overruns, accumulated deficits, and loss of investor confidence, as demonstrated by credit rating agencies withdrawing the city's ratings. To receive the loan, the mayor must provide a signed attestation by July 9, 2025, confirming that the city has made good faith efforts to secure funding through other means but cannot fully cover the note's principal and interest. The loan is intended as a last resort to prevent a potential municipal default and is backed by the full faith and credit of the city. Additionally, the bill requires Dunkirk to comply with certain requirements of the previously passed Dunkirk Fiscal Recovery Act and provides the city with the option to prepay the loan at any time with proper notice.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A8870