Circling back...

Bonding

Bond Basics for Towns, Villages and Cities in New York State

Page 14...

"Proceeds of a borrowing pursuant to a bond resolution may never be legally used for any other purpose than that described in the bond resolution. Once borrowed, no reallocation to some other purpose is permissible; the only permissible use of such borrowed proceeds, if not used for the project as described, is to pay down debt service on the debt obligation under which the money was borrowed."

ALSO:

New York Consolidated Laws, Local Finance Law - LFN § 165.00 Deposit and use of proceeds from sale of bonds, bond anticipation notes, capital notes, urban renewal notes or budget notes

a. The proceeds, inclusive of premiums, from the sale of bonds, bond anticipation notes, capital notes, urban renewal notes or budget notes shall be deposited and secured in a special account in the manner provided by section ten of the general municipal law , shall not be commingled with other funds of the issuer, and shall be expended only for the object or purpose for which such obligations were issued.

Case in point...

Sept. 8, 2021 - RESOLVED, the Town of New Hartford Town Board does hereby accept to approve the BAN for $2,451,122.00. All five members vote AYE

Among the bonds is included:

"property next to building (voting, senior center)"

Interesting to note that the land was to be used for the senior center which has now been closed!

No further specifics are included in the town board minutes regarding any of the bond resolutions including the property to be "acquired".

Sept. 15, 2021 - Legal notice in Observer Dispatch lists the $250,000 bonding as "acquisition of property adjacent to town hall" with permissive referendum




October 9, 2021 - Notice of Estoppel for the bonds is listed in the Observer Dispatch which thus allowed the supervisor to borrow the money.




November 10, 2021 - Town board meeting...just one month later...

MATTERS SUBMITTED BY TOWN SUPERVISOR

"A. Leasing the Ground next to Town Hall – buying it over a 10-year period – for entryway (separate) to the Senior Center – put a door and walkway – with option to buy – Paul will call for cost and talk about it at a later time with different options."

Fiscal Advisors - April 2022...

All Bond Anticipation Notes converted to serial bonds including the $250,000 for the land acquisition which was one of many listed as "new money" (That's an issue for another day!)

Town Board Meeting June 8, 2022...

"SUPERVISOR MISCIONE"

"A. Leasing the vacant property next to the Town of New Hartford Building for $1.00 with JUDD DEVELOPMENT GROUP LLC; Town Attorney Herbert Cully – draft lease, in terms of leasing the portion adjacent to the Town Building – looking for a resolution to go forward to finalize the lease, subject to permissive referendum – lease commencing approximately July 2022 – lease allows us to maintain that property – can terminate on 60 days’ notice – maintain it and beautify it - $1.00 a year lease/10 years."

Surprise!   All five members vote AYE!

In my humble opinion, there are a few explanations as to the above...

• The town board actually is buying one parcel and leasing a second parcel in the same area, but they just haven't gotten around to purchasing the parcel that was bonded for $250,000.


• The town board is borrowing money for a purchase they don't really intend to pursue, but they need money to cover up town financial problems.


• The town board needs money to cover the cost of a non-bondable expense so they knowingly misrepresented what the money was intended to be used for and instead substituted a resolution for a "bondable" item to cover the expense of a "non-bondable" item.
  
  FYI, according to Local Finance Law, a municipality can only bond for an expense if the NYS Local Finance Law lists a Period of Probable Usefulness (PPU) for said purpose. Not every expense is bondable!

Hey, who would know, right???

(Only someone who knows and respects the Rule of Law!!)

The amazing part is that every single town board member voted 'AYE' and not one of them has the chutzpah to ask questions or say something which makes them all a part of whatever is going on!


It's either total incompetence or self-appointed dictators who chose to stick their middle finger up to the law and town residents while saying...F*uck You!

We Are Ready For the Wind of Change...