State Comptroller Releases Advisory Opinion Requested by Troy City Council
In response to a request from the Troy City Council, New York State Comptroller Thomas P. DiNapoli issued an advisory opinion finding that the city could lawfully issue bonds in connection with financing the city seeks from the State Environmental Facilities Corporation under a federal program to help fund its replacement of public and private lead water service lines without running afoul of the State Constitution’s prohibition on using public funds for private purposes.
“Exposure to lead from water service pipes is a public health crisis that poses serious risks to New York's children and needs to be immediately addressed. Our legal opinion is that the city of Troy’s proposed bond issuance to address this public health threat is constitutional and authorized by State law,” DiNapoli said. “It is encouraging that New York state and its local governments are taking action on this serious issue facing communities across the state.”
Troy’s Department of Public Utilities provides water to more than 50,000 residents, plus industrial and commercial customers through over 13,000 service connections. Many of the older buildings still have lead service lines and testing confirmed dangerous lead levels in multiple samples. Lead contamination can cause serious health problems and is particularly dangerous for pregnant women and children aged six and younger.
The city plans to pay for the replacement of public and private lead water service lines, using federal and state funds. According to the city, as part of the financing, it would issue bonds at no interest for nearly $3.9 million to be purchased by the State Environmental Facilities Corporation. Governor Hochul recently announced that Troy was awarded a state grant in the same amount, which in turn would cover the full amount of the city’s financing costs.
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