S 8218: Relates to calculation of interests costs for certain bonds issued to finance school rehabilitation or reconstruction costs for Rochester schools.

  
  STATE OF NEW YORK ________________________________________________________________________ 8218 2025-2026 Regular Sessions  IN SENATE May 22, 2025 ___________ Introduced by Sen. COONEY -- read twice and ordered printed, and when printed to be committed to the Committee on Education AN ACT to amend the education law and chapter 416 of the laws of 2007 establishing the city of Rochester and the board of education of the city school district of the city of Rochester school facilities modernization program act, in relation to certain bonds issued to finance school rehabilitation or reconstruction costs for Rochester schools The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Item (iv) of clause (a) of subparagraph 5 of paragraph e of 2 subdivision 6 of section 3602 of the education law, as amended by chap- 3 ter 533 of the laws of 2014, is amended to read as follows: 4 (iv) Notwithstanding the provisions of item (i) of this clause, where 5 such city or city school district has entered into an agreement with the 6 county of Monroe industrial development agency or the dormitory authori- 7 ty of the state of New York, for projects authorized pursuant to the 8 city of Rochester and the board of education of the city school district 9 of the city of Rochester school facilities modernization program act, to 10 finance [debt related to] school rehabilitation or reconstruction that 11 is subject to subparagraph three of this paragraph, the lesser of: (A) 12 the net interest cost, as defined by the commissioner, [that would have 13 been] applicable to each series of bonds or bond anticipation notes 14 issued by the county of Monroe industrial development agency [if the 15 project had been authorized to be financed and had been financed through 16 such entity, as certified to the commissioner by the executive director 17 of the county of Monroe industrial development agency] or the dormitory 18 authority of the state of New York for such purpose, without regard to 19 any refunding of such obligations; or (B) such net interest cost, as 20 defined by the commissioner, that would have been applicable to [bonds 21 or bond anticipation notes issued by the state of New York dormitory 22 authority if the project had been authorized to be financed and had been 23 financed through such entity, as certified to the commissioner by the 24 executive director of the state of New York dormitory authority shall be EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13189-01-5 
 S. 8218 2 1 the interest rate established for such city applicable to such debt] 2 each series of obligations originally issued to finance each phase of 3 project costs approved by the commissioner, by the Monroe industrial 4 development agency or the dormitory authority of the state of New York, 5 without regard to any refunding of such obligations, if the project had 6 been financed through such agency or the dormitory authority of the 7 state of New York, as certified to the commissioner by the executive 8 director of the Monroe industrial development agency or the executive 9 director of the dormitory authority of the state of New York, shall be 10 the interest rate established for such city applicable for purposes of 11 calculating the assumed amortization for such approved project costs 12 pursuant to clause (b) of subparagraph three of this paragraph. For 13 projects approved by the commissioner in any school year in which capi- 14 tal debt is incurred by either the dormitory authority of the state of 15 New York or the Monroe industrial development agency to refund debt 16 related to school renovation, rehabilitation or reconstruction of or on 17 behalf of the school district, where such school renovation, rehabili- 18 tation or reconstruction qualifies for apportionment pursuant to subpar- 19 agraph three of this paragraph, by the first day of September of the 20 current year, the chief fiscal officer of such city shall provide to the 21 commissioner an analysis, as prescribed by the commissioner, of the 22 actual average interest rate applied to all capital debt incurred to 23 finance or refund debt related to school renovation, rehabilitation or 24 reconstruction that qualifies for apportionment pursuant to subparagraph 25 three of this paragraph by either the dormitory authority of the state 26 of New York or the city of Monroe industrial development agency during 27 the base year and of the estimated average interest rate applied to all 28 capital debt incurred to finance or refund debt related to school reno- 29 vation, rehabilitation or reconstruction that is subject to subparagraph 30 three of this paragraph by either the dormitory authority of the state 31 of New York or the Monroe industrial development agency during the 32 current year. Such interest rates shall be expressed as a decimal to 33 five places rounded to the nearest eighth of one-one hundredth. The 34 interest rate established for such city applicable to projects first 35 approved in such year shall be tentatively established as the interest 36 rate computed pursuant to this clause for the current year, except that 37 all apportionments of aid payable during the current year based on such 38 estimated average interest rate shall be recalculated in the following 39 year and adjusted as appropriate based on the appropriate actual average 40 interest rate then established pursuant to this clause and shall be the 41 interest rate established for such city applicable for purposes of 42 calculating the assumed amortization for project costs approved during 43 the current year pursuant to clause (b) of subparagraph three of this 44 paragraph. 45 § 2. Section 16 of chapter 416 of the laws of 2007 establishing the 46 city of Rochester and the board of education of the city school district 47 of the city of Rochester school facilities modernization program act, is 48 amended by adding a new subdivision (c) to read as follows: 49 (c) In the event that refunding bonds are issued to refund bonds 50 issued to finance a project funded pursuant to this section, the refund- 51 ing savings amount shall be used only for funding of projects that are 52 eligible for an apportionment pursuant to subdivision 6 of section 3602 53 of the education law. 54 § 3. This act shall take effect immediately.