Skip navigation.

Help | Contact Us | FAQ | Site Map

Dinolfo Announces Next Step In Dissolution of LDCs

Dinolfo Announces Next Step In Dissolution of LDCs

Monroe County Executive Cheryl Dinolfo continues to work towards the dissolution of the LDCs that were the subject of today's court proceedings. Dinolfo has proposed legislation to the New York State Senate and Assembly to assist in this process. This legislation, if enacted, will permit the County to refinance the LDCs’ debt. Under the current arrangement, the County payments to these LDCs, among other things, services the LDCs’ existing debt. The proposed legislation will authorize the County to convert its contractual obligation to debt service. The County’s refinancing of this debt accounts for significant savings to the taxpayers of Monroe County. The value of the total savings from refinancing the UTC and M3S debt is more than $4,300,000.

“Senators Joe Robach and Rich Funke are co-sponsoring this legislation in the New York State Senate and I have had productive discussions with Assembly Majority Leader Joe Morelle as well,” said Dinolfo. “I thank Senators Robach and Funke for agreeing to sponsor this bill and Majority Leader Morelle for meeting with us and for his consideration of this important legislation for the people of Monroe County.”

Assuming this legislation is introduced in both the Senate and Assembly, the Monroe County Legislature will be asked to consider issuing a home rule message, a formal request, of the State Legislature for the enactment of the legislation. Thereafter, the LDC boards will formally adopt resolutions to dissolve. The dissolution of the LDCs, in conjunction with the County’s assumption of the LDCs operations, restores transparency and accountability to these important governmental services.

Additionally, significant savings will be derived by the dissolution of another LDC, Monroe Newpower, which is unrelated to today’s court proceedings. The County has been examining the purpose and benefit of its use of LDCs and has concluded that dissolving Monroe Newpower and refinancing its debt will save an additional $8,100,000.

Administrative savings of an additional $6,800,000 are anticipated with the dissolution of the LDCs.

With this new restructuring of these debt obligations, Monroe County will still be well below its Constitutional debt limit. The refinancing period will mirror the existing terms of the LDCs bonds. Discussions with credit rating agencies have indicated that these steps will have no negative impact on the County’s credit rating.

“Today brings to a close a sad past chapter of County government and the criminal aspect of the LDC matter,” said Monroe County Executive Cheryl Dinolfo. “Prior to today’s proceedings, the County had requested that restitution from the defendants be returned to the County. I thank Attorney General Eric Schneiderman, Assistant Attorney General Mary Gorman and Judge Dennis Kehoe for agreeing to return $552,000 to the taxpayers of Monroe County, which was received today.”