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Connecticut Special Acts 1996

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House Bill No. 5703

SPECIAL ACT NO. 96-6

AN ACT AUTHORIZING THE CITY OF NEW BRITAIN TO ISSUE BONDS TO FUND THE UNFUNDED LIABILITY IN ITS POLICEMEN AND FIREMEN RETIREMENT SYSTEMS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Notwithstanding the charter of the city of New Britain or any provision of the general statutes or public or special act to the contrary, for the period commencing on the effective date of this act and ending three years from said effective date, the city of New Britain is authorized to issue one series of bonds for the purpose of funding the unfunded liability in its policemen and firemen retirement systems. Any such bonds (1) may be issued as serial or term bonds, with sinking fund payments required for any term bonds; (2) may be issued as serial bonds maturing in annual or semiannual installments of principal that do not substantially equalize the aggregate amount of principal and interest due in each annual period commencing with the first annual period in which an installment of principal is due, or maturing in annual or semiannual installments of principal which exceed by more than fifty per cent the amount of any prior installment, or may be term bonds with mandatory deposit of sinking fund payments into a sinking fund of amounts sufficient to redeem or amortize the principal of the bonds in annual or semiannual installments that do not substantially equalize the aggregate amount of principal redeemed or amortized and interest due in each annual period commencing with the first annual period in which a mandatory sinking fund payment would become due, or sufficient to redeem or amortize the principal of the bonds in annual or semiannual installments which exceed by more than fifty per cent the amount of any prior installment; (3) shall be issued where the first installment of any series of bonds matures or the first sinking fund payment, if any, of any series of bonds is due not later than one year from the date of issue of such series and may be issued where the last installment of such series shall mature or the last sinking fund payment of such series, if any, shall be due not later than thirty years therefrom; and (4) shall be excluded for purposes of calculating the city's limitation of indebtedness under subsection (b) of section 7-374 of the general statutes. The bonds shall be authorized in accordance with the charter of the city and the general statutes. The bonds issued pursuant to this section may be sold in a competitive offering or a negotiated underwriting. To the extent not inconsistent with this act, the provisions of chapter 109 of the general statutes, as amended, and the charter of the city shall be applicable to such bonds.

Sec. 2. The bonds shall be issued to establish, and the proceeds therefrom shall be deposited into, maintained, invested and disbursed from, a retiree benefits reserve fund in accordance with subsection (b) of section 7-374b and section 7-403a of the general statutes.

Sec. 3. The bonds shall be issued only upon a determination by Moody's Investors Service, Inc. and Standard and Poor's rating agencies that the bond issuance will not adversely affect the city's rating on its bonds and notes.

Sec. 4. This act is intended to authorize the city to issue bonds to fund the unfunded liabilities in its policemen and firemen retirement systems.

Approved May 29, 1996. Effective May 29, 1996.

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