The Nassau County Sewer and Storm Water Finance Authority (NC-SSWFA)
The “Authority” was established in 2003 by the State of New York (the “State”) under the Nassau County Sewer and Storm Water Finance Authority Act, codified as Title 10-D of Article 5 of the Public Authorities Law of the State (the “Act”), as a public benefit corporation. The State Legislature determined the creation of the Authority to be an effective mechanism to achieve substantial savings to Nassau County, N.Y. (the “County”)
for past and prospective sewer and storm water resources
capital investments. The Authority has been established
for the limited objectives of refinancing outstanding
sewer and storm water resources debt issued by or on
behalf of the County and financing future County sewer
and storm water resources projects. The Authority may
issue debt in an amount up to $350,000,000 for such purposes
(exclusive of debt issued to refund or otherwise repay
Pursuant to the Act, the Authority’s governing body (the “Governing Body”) consists of seven members who must be residents of the County, and be appointed by the County Executive and confirmed by the County Legislature, one upon the recommendation of the County Comptroller, two upon recommendation of the Presiding Officer of the County Legislature and two upon the recommendation of the Minority Leader of the County Legislature. The current members of the Governing Body are:
The Authority has acquired all of the sewer and storm water resources facilities, buildings, equipment and related assets (the “System”) of the County pursuant to a Financing and Acquisition Agreement dated as of March 1, 2004 by and between the Authority and the County (the “Financing Agreement”). The Authority is to pay for the System in installments by undertaking to pay debt service on outstanding bonds issued by or on behalf of the County originally issued to finance the System (“County Bonds”). In addition, as part of such purchase price, the Authority may, at the request of the County, refinance County Bonds.
By its terms, the Authority’s enabling legislation is not intended to alter or modify the County’s responsibility to provide sewer and storm water resources services to County residents. Accordingly, County employees continue to operate and maintain all of the County’s sewer and storm water resources facilities. Pursuant to the Act, the Authority is not authorized to hire employees. In addition, the Act prohibits the County from transferring to the Authority any real property upon which the facilities are located. Therefore, any proposed sale of such land by the County to a third party would continue to require the approval of the County Legislature. The County has covenanted in the Financing Agreement not to sell, lease or encumber such land.
State legislation also provided for the then-existing 27 County sewage collection districts and three sewage disposal districts (the “Prior Districts”) to be abolished, dissolved and merged into one district (the “Nassau County Sewer and Storm Water Resources District” or the “District”), with the fund balance existing at the time of such dissolution to be transferred to the Authority for the limited purposes of supporting necessary capital investments, debt service, debt service-related expenses and reserve requirements in a manner consistent with the rate stabilization program established by the State legislation creating the District.
Bonds and notes of the Authority are special obligations of the Authority, and are payable solely from the revenues, funds and assets pledged as security for the payment thereof, including the transferred fund balance of the Prior Districts, as well as payments from the County under the Financing Agreement. Most of the Authority’s revenues are derived through the imposition by the County of assessments on properties receiving sewer and storm water resources from the County. The County has agreed in the Financing Agreement to direct each city and town receiver of taxes in the County to pay all such assessments directly to the trustee for the Authority’s bonds.
If you have any questions regarding the Authority, please contact one of the following:
Beaumont Jefferson, County Treasurer
|(516) 571-2090 ext.15031
Bernadette Kennedy- Garvey, Assistant Collateral Agent
|(516) 571-2090 ext.15029