NY S08367

Authorizes the City of Newburgh to issue up to $15 million in deficit bonds by December 31, 2011, to liquidate deficits in its general fund, special revenue fund, and capital projects fund existing at the close of fiscal year 2010, with a 15-year period of probable usefulness.

Requires the State Comptroller to review and certify the existence and amount of deficits before any deficit bonds may be issued, and establishes a special debt service fund held by the State Comptroller to ensure scheduled debt service payments are made.

Mandates quarterly budget reports and trial balances by the City Comptroller comparing revenues and expenditures, submission of proposed budgets to the State Comptroller 30 days before City Council adoption, and preparation of three-year financial plans identifying actions to achieve long-term fiscal stability.

Requires the City to remit all collected city taxes to the State Comptroller, which deposits a percentage equal to the debt service percentage into the special debt service fund, with remainder paid to the city.

Permits private sale of deficit bonds and refunding bonds through December 31, 2012, without mandatory referendum or certain Local Finance Law requirements; allows State Comptroller or bondholders holding 25% or more of aggregate principal to enforce compliance through court action.

Repeals all provisions on the 15th anniversary of the first issuance of deficit bonds or deficit notes.