The Nassau County, N.Y., government is suing its control board, the Nassau Interim Finance Authority.
The county's board of commissioners is seeking to overturn NIFA decisions that prevented the county from paying for tax refunds, hiring bond counsel and employing state lobbyists.
In 2011 NIFA established a control period on Nassau County government. The control period gives the NIFA board the power to approve all borrowings, freeze wages, review and approve all new contracts, require new financial plans, and direct the county to implement them.
John Ciampoli, Nassau County Attorney, is in talks with NIFA's attorneys about a possible settlement to the dispute, Ciampoli said on Friday. However this turns out, the two sides are scheduled to meet in May 1 at New York State Supreme Court.
Nassau County government is also concerned about taxpayers who are seeking refunds, Ciampoli said. The county has $192 million in bonds that are authorized for sale. NIFA is blocking the sale of these bonds. Nassau County would like to use the proceeds to pay the refunds.
There are three suits in the same court as the one by Nassau against NIFA. Two of the suits are against both Nassau and NIFA. One is against the county with NIFA as a third party defendant.
Moody's Investment Services rates Nassau County A2 and Fitch Ratings rates it A-plus.
