Cortland Common Council Agenda: April 16th, 2024

(Photo provided by Kevin L. Smith of The Cortland Voice).

Here is the agenda for Tuesday’s (April 16th, 2024) Cortland Common Council meeting. The meeting will take place at City Hall (25 Cortland Street, Cortland NY 13045) at 6pm. According to the City of Cortland website, the meeting will also be live streamed Via Zoom video.

Here is the Zoom Meeting ID: 923 566 4700

Agenda

Public Hearings

Public Heating #1 - Relating to the Proposed Fiscal Year 2024 Community Development Block Grant Program and Upcoming Funding Round to Allow the Public an Opportunity to Participate in the Grant Process

The City of Cortland intends to submit an application or applications under the NYS Small Cities Community Development Block Grant Program (CDBG) for the 2024 fiscal year. This public hearing is held prior to submission of any application or applications to provide information to the public about the CDBG Program and an opportunity to participate in the grant process

Call to Order

  • Roll Call
  • Salute to the Flag
  • Moment of silence/reflection
  • Privilege of the floor
  • Motions to receive & file
  • Mayor’s report
  • Ward Reports
  • Approval of Minutes

Supporting Documents

Supporting Documents #1

Resolutions

Agenda Item #1 - Authorize Mortgage Subordination & Agreement

WHEREAS, the City of Cortland (the “City) provided assistance to an income-eligible owner of an owner- occupied property (the “Owner”) for the rehabilitation of the Owner’s property under the City’s 2018 Community Development Owner-Occupied Housing Rehabilitation Program, which was provided as a deferred payment loan; AND

WHEREAS, said Owner gave a mortgage to the City in the amount of the assistance provided for the rehabilitation of the subject property; AND

WHEREAS, said resident has secured financing from Paragon Home Loans, Inc. to pay-off the existing first mortgage and help consolidate/payoff existing debt with higher interest rates in an effort to increase cash flow each month and to be invested into other properties within the City; AND

WHEREAS, approval of the Paragon Home Loan is contingent upon subordination of the City’s mortgage to Paragon Home Loans Inc.’s new mortgage; AND

WHEREAS, the City’s Loan Committee reviewed the facts of this subordination request and hereby makes a recommendation to the City’s Common Council that the Council approve subordination of the City’s mortgage for the purpose of securing the Paragon Home Loan mortgage; NOW, THEREFORE, BE IT

RESOLVED that the City of Cortland subordinates, its mortgage instrument #2020-00980 recorded on March 09, 2020, with the Cortland County Clerk, said subordination to facilitate a new first mortgage with Paragon Home Loans, Inc. in the amount of $17,595 for said Owner, and further authorizes Mayor Scott Steve to sign a subordination agreement for the same.

Agenda Item #2 - Request to New York State Senator Lea Webb and Assembly Member Anna Kelles for Introduction of Home Rule Legislation to Amend Tax Law to Authorize the Collection of an Occupancy Tax in the City of Cortland

WHEREAS, Section 1202 of the New York State Tax Law allows municipalities to adopt and amend local laws
imposing a tax upon persons occupying hotel or motel rooms, bed and breakfast, and other tourist rental stay
facilities; AND

WHEREAS, the City of Cortland had prior authorization under New York State Tax Law 1202-gg which expired and was repealed on September 1, 2023; AND

WHEREAS, the home rule authority granted by that legislation (A09816/S07778; Signed as Chapter 361 of 2020) was not implemented; AND

WHEREAS, the City is now prepared and budgeted to implement this occupancy tax and seeks the support of the City’s elected representatives in the New York State Senate and Assembly as previously requested and communicated in meetings and through a January 24, 2024 letter to Senator Webb and Assembly Member Kelles after discussion and acknowledgment by the Common Council; AND

WHEREAS, upon the introduction of legislation, the City of Cortland will take further action to submit a home rule request pursuant to Article IX of the Constitution in support of legislation to authorize the City to implement a hotel and motel tax rate of up to three percent (3%) of the per-diem rental rate for each room; NOW, THEREFORE, BE IT

RESOLVED, that the City of Cortland Common Council finds that the implementation of a hotel and motel tax rate would benefit the City by providing additional revenues for the promotion of tourism, cultural programs, parks and recreation, and the critical infrastructure and capital improvements necessary to support those items; AND BE IT FURTHER

RESOLVED, that the Common Council hereby requests that New York State Senator Lea Webb and Assembly Member Anna Kelles, as elected representatives of the City of Cortland introduce legislation to authorize the City to adopt a local law to renew the authority to implement the hotel and motel tax rate at a rate up to three percent (3%) of the per-diem rental rate for each room; AND BE IT FUTHER

RESOLVED, that the Common Council requests the bill be drafted and introduced consistent with Chapter 361 of 2020, and to include additional language clarifying that for the purposes of the particular section of law, definition of the terms "hotel" or "motel" are to mean and include any facility providing lodging on an overnight basis and shall include those facilities designated and commonly known as "bed and breakfast" and “tourist" facilities; AND BE IT FURTHER

RESOLVED, that the Common Council requests the bill include additional language for the purpose as to enable authorized local law(s) enacted by the City to provide that any tax imposed shall be paid by the person liable therefore to the owner of the hotel or motel room occupied or to the person entitled to be paid the rent or
charge for the hotel or motel room occupied for and on account of the City of Cortland imposing the tax and
that such owner or person entitled to be paid the rent or charge shall be liable for the collection and payment
of the tax; AND BE IT FURTHER

RESOLVED, that the Common Council requests the bill include additional language relating to the deposit of
revenues resulting from the imposition of the tax be added with the purpose as to authorize the City to retain
the necessary revenue, in an amount not to exceed four percent of the total revenue, to defer the expense of
the city in administering such tax and the balance of such revenues shall be allocated to the promotion of tourism, cultural programs, parks and recreation, and the critical infrastructure and capital improvements
necessary to support those activities, including all financial costs and obligations incurred by the city related to
the creation of such events and activities as so determined by the City of Cortland Common Council; AND BE IT FURTHER

RESOLVED, that the City Clerk is hereby directed to forward certified copies of this resolution to New York State Senator Lea Webb and Assembly Member Anna Kelles.

Agenda Item #3 - Amended and Restated Bond Resolution of the City Of Cortland, Cortland County, New York Authorizing the Issuance of $1,471,000 Serial Bonds to Finance the Cost of Various Projects 

WHEREAS, on September 20, 2022 the Common Council of the City of Cortland, Cortland County, New York (the “City”) adopted a Bond Resolution entitled “BOND RESOLUTION #161 OF 2022 DATED SEPTEMBER 20, 2022 OF THE CITY OF CORTLAND, CORTLAND COUNTY, NEW YORK AUTHORIZING THE ISSUANCE OF $1,171,000 SERIAL BONDS TO FINANCE THE COST OF VARIOUS PROJECTS” (the “Original Bond Resolution”); AND

WHEREAS, the City now wishes to amend and restate the Original Bond Resolution in order to (i) clarify and state the City’s determination that the estimated maximum cost of the project described in Section 1 of the Original Bond Resolution shall be $1,471,000, and (ii) clarify and state the City’s determination that the plan of financing described in Section 2 of the Original Bond Resolution shall be by the issuance of $1,471,000 in Serial Bonds; NOW, THEREFORE, BE IT

RESOLVED by the Common Council of the City of Cortland, New York as follows:

Section 1. The City of Cortland, New York (the “City”) is hereby authorized to undertake the various capital projects described below (each, a “Project”) at an aggregate estimated maximum cost of $1,471,000, the estimated maximum cost of each Project being as follows:

  • Machinery and Apparatus for Construction and Maintenance Costing $30,000 or More – Toro Tractor with Mower and Attachments. The purchase of machinery and apparatus to be used for constructing, reconstructing, repairing, maintaining or removing the snow and ice from, any physical public betterment or improvement the cost of which is $30,000 or over, including one (1) Toro Groundsmaster tractor with mower and attachments, at an estimated maximum cost not to exceed $131,000;
  • Machinery and Apparatus for Construction and Maintenance Costing $30,000 or More – 2023 International Construction Dump Truck. The purchase of machinery and apparatus to be used for constructing, reconstructing, repairing, maintaining or removing the snow and ice from, any physical public betterment or improvement the cost of which is $30,000 or over, including one (1) 2023 International construction dump truck at an estimated maximum cost not to exceed $190,000;
  • Machinery and Apparatus for Construction and Maintenance Costing $30,000 or More – 2024 International Truck with Plow. The purchase of machinery and apparatus to be used for constructing, reconstructing, repairing, maintaining or removing the snow and ice from, any physical public betterment or improvement the cost of which is $30,000 or over, including one (1) 2024 International truck with plow at an estimated maximum cost not to exceed $200,000;
  • Machinery and Apparatus for Construction and Maintenance Costing $30,000 or More – Fire Fighting Vehicle and Apparatus. The purchase of a fire-fighting vehicle and apparatus, including the acquisition of original furnishings, equipment, machinery or apparatus at an estimated maximum cost not to exceed $650,000;
  • Machinery and Apparatus for Construction and Maintenance Costing $30,000 or More – Vacuum Street Sweeper. The purchase of machinery and apparatus to be used for constructing, reconstructing, repairing, maintaining or removing the snow and ice from, any physical public betterment or improvement the cost of which is $30,000 or over, including one (1) vacuum street sweeper and attachments, at an estimated maximum cost not to exceed $300,000;

Section 2. The plan for financing such estimated maximum cost shall be by the issuance of $1,471,000 in serial bonds (the “Bonds”) of the City, which are hereby authorized to be issued pursuant to this resolution.

Section 3. It is hereby determined that the period of probable usefulness of the aforesaid objects or purposes or classes of objects or purposes pursuant to Section 11.00(a) of the Local Finance Law are as follows:

Section 4. Pursuant to Section 107.00(d)(9) of the Local Finance Law, current funds are not required to be provided prior to issuance of the Bonds or any bond anticipation notes issued in anticipation of issuance of the Bonds.

Section 5. The temporary use of available funds of the City, not immediately required for the purpose or purposes for which the same were borrowed, raised or otherwise created, is hereby authorized pursuant to Section 165.10 of the Local Finance Law, for the capital purposes described in Section 1 of this resolution.

Section 6. The Bonds and any bond anticipation notes issued in anticipation of the Bonds, shall contain the
recital of validity prescribed by Section 52.00 of the Local Finance Law and the Bonds, and any bond anticipation notes issued in anticipation of the Bonds, shall be general obligations of the City, payable as to both principal and interest by a general tax upon all the real property within the City without legal or constitutional limitation as to rate or amount. The faith and credit of the City are hereby irrevocably pledged to the punctual payment of the principal of and interest on the Bonds, and any bond anticipation notes issued in anticipation of the Bonds, and provision shall be made annually in the budget of the City by appropriation for (a) the amortization and redemption of the Bonds and bond anticipation notes to mature in such year, and (b) the payment of interest to be due and payable in such year.

Section 7. Subject to the provisions of this resolution and of the Local Finance Law, and pursuant to the provisions of Sections 21.00, 30.00, 50.00 and 56.00 to 63.00, inclusive, of the Local Finance Law, the power to authorize the issuance of and to sell bond anticipation notes in anticipation of the issuance and sale of the Bonds herein authorized, including renewals of such notes, and the power to prescribe the terms, form and contents of the Bonds, and any bond anticipation notes, and the power to sell and deliver the Bonds and any bond anticipation notes issued in anticipation of the issuance of the Bonds, and the power to issue bonds providing for level or substantially level or declining annual debt service, is hereby delegated to the City Director of Administration and Finance, the Chief Fiscal Officer of the City.

Section 8. The reasonably expected source of funds to be used to initially pay for the expenditures authorized by Section 1 of this resolution shall be from the City’s General Fund. It is intended that the City shall then reimburse such expenditures with the proceeds of the Bonds and bond anticipation notes authorized by this resolution and that the interest payable on the Bonds and any bond anticipation notes issued in anticipation of the Bonds shall be excludable from gross income for federal income tax purposes. This resolution is intended to constitute the declaration of the City’s “official intent” to reimburse the expenditures authorized by this resolution with the proceeds of the Bonds and bond anticipation notes authorized herein, as required by Regulation Section 1.150-2. Other than as specified in this resolution, no moneys are reasonably expected to be, received, allocated on a long-term basis, or otherwise set aside with respect to the permanent funding of the objects or purposes described herein.

Section 9. The serial bonds and bond anticipation notes authorized to be issued by this resolution are hereby authorized to be consolidated, at the option of the City’s Director of Administration and Finance, the Chief Fiscal Officer, with the serial bonds and bond anticipation notes authorized by other bond resolutions previously or heretofore adopted by the City Council for purposes of sale in to one or more bond or note issues aggregating an amount not to exceed the amount authorized in such resolutions. All matters regarding the sale of the bonds, including the dated date of the bonds, the use of electronic bidding, the consolidation of the serial bonds and the bond anticipation notes with other issues of the City and the serial maturities of the bonds are hereby delegated to the City Director of Administration and Finance, the Chief Fiscal Officer of the City.

Section 10. The City may receive certain federal and New York State grant funds for the capital purposes described in Section 1 of this resolution. Any such grant funds shall be applied to pay the principal or interest on the Bonds or any bond anticipation notes issued in anticipation of the Bonds or to the extent obligations shall not have been issued under this resolution, to reduce the maximum amount to be borrowed for such capital purposes.

Section 11. The validity of the Bonds authorized by this resolution and of any bond anticipation notes issued in anticipation of the Bonds may be contested only if:

  • such obligations are authorized for an object or purpose for which the City is not authorized to expend
    money; or
  • the provisions of law which should be complied with at the date of the publication of this resolution or a summary hereof are not substantially complied with, and an action, suit or proceeding contesting such validity is commenced within twenty (20) days after the date of such publication; or
  • such obligations are authorized in violation of the provisions of the Constitution.

Section 12. The City Director of Administration and Finance, as Chief Fiscal Officer of the City, is hereby authorized to enter into an undertaking for the benefit of the holders of the Bonds from time to time, and any bond anticipation notes issued in anticipation of the sale of the Bonds, requiring the City to provide secondary market disclosure as required by Securities and Exchange Commission Rule 15c2-12, as amended.

Section 13. This resolution, or a summary of this resolution, shall be published in the official newspapers of the City for such purpose, together with a notice of the Clerk of the City in substantially the form provided in Section 81.00 of the Local Finance Law.

Section 14. This resolution is not subject to a mandatory or permissive referendum.

Section 15. The Council hereby determines that the provisions of the State Environmental Quality Review Act and the regulations thereunder have previously been satisfied with respect to the expenditures authorized by this resolution.

Section 16. This resolution amends, restates and replaces the Original Bond Resolution.

Section 17. This resolution shall take effect immediately upon its adoption.

 

ADJOURNMENT