Bill > S08413

This bill establishes a state loan to help the city of Dunkirk address its severe fiscal difficulties, specifically to refinance a $12.7 million revenue anticipation note due on July 24, 2025. The legislation recognizes that Dunkirk is experiencing significant financial challenges, including accumulated deficits and loss of credit ratings, which could negatively impact the city's ability to borrow money. The state will provide a loan of up to $13.7 million, which the city must repay over 15 years at a 7.5% annual interest rate. The city must obtain the loan through a formal process involving a written attestation from the mayor explaining its inability to secure sufficient funds through other means. The state can recover loan payments by reducing other state aid payments to the city, and the loan will be backed by the full faith and credit of Dunkirk. Additionally, the bill requires the city to comply with certain fiscal recovery act requirements and provides the city with the option to prepay the loan with proper notice. The loan is designed as a last-resort measure to prevent a potential municipal default and help stabilize Dunkirk's financial situation.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S8413