NY Loc Fin L § 107.00 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 8 - Limitations on the Power to Contract Indebtedness 107.00 - Down Payment.

§  107.00  Down  payment. a. As used in this section the term "current funds" shall include:   1. Budgetary appropriations for  capital  improvements  or  equipment, which appropriations have not lapsed.   2. The proceeds of capital notes issued for the payment of the cost of capital improvements or equipment.   3.  Revenues  other  than real estate taxes or assessments, which have been collected or received during a fiscal year in excess of  the  total amount  of  such revenues as estimated for such fiscal year, and surplus funds and unexpended balances, which are available to be applied  toward the payment of the cost of capital improvements or equipment.   4.  Capital reserve funds established pursuant to section six-c of the general municipal law.   5. The trade-in allowance received for any equipment traded in as part of the cost of equipment being purchased.   Nothing herein contained shall be construed to permit the diversion of the proceeds of budgetary  appropriations,  capital  notes,  or  capital reserve   funds   to   a   purpose   other  than  that  for  which  such appropriations, capital notes, or capital reserve  funds,  respectively, were made, issued or established.   b. No municipality shall:   1.  Issue  bonds  or  bond  anticipation  notes for a specific capital improvement  or  items  of  equipment  or   several   specific   capital improvements or items of equipment or a combination thereof, or   2.  Make  expenditures  for  a  specific  capital improvement from the proceeds of bonds or bond anticipation  notes  issued  for  a  class  or classes  of  capital improvements or from a fund into which the proceeds of bonds or bond anticipation notes are paid unless it shall have first provided from current funds a  sum  of  money sufficient to pay at least five per centum of the estimated cost of each such  capital  improvement or such equipment. The term "estimated cost", as used in this paragraph, shall not include (a) the portion of the cost of any capital improvement which is to be paid by the United  States  or the  state  of  New  York  or which is to be paid from funds, other than loans, granted to such municipality therefor by the United States or the state of New York, or (b)  the  portion  of  the  cost  of  any  capital improvement  which  is  to  be  paid  by assessments upon benefited real property in an area less than the area of the municipality.   c. 1. During the first fiscal year of a city commencing  on  or  after July  first,  nineteen hundred forty-four, in which its debt-contracting power has been exhausted by more than fifty per centum and in which  its net  indebtedness  is  in  excess  of  one  hundred  twenty-five million dollars, such minimum percentage  to  be  provided  by  such  city  from current  funds,  as  prescribed in paragraph b of this section, shall be increased by nine per centum. Thereafter, during each succeeding  fiscal year  such minimum percentage to be provided from current funds shall be increased by two per  centum  over  and  above  the  minimum  percentage required  for the preceding fiscal year, notwithstanding any increase in the amount of the debt-contracting power of any such  city  during  such succeeding  fiscal  years. For the purposes of this subdivision the term "current funds" shall include only budgetary appropriations for  capital improvements  or  equipment which appropriations have not lapsed, or the proceeds of capital notes issued for the payment of the cost of  capital improvements or equipment.   2.  The  term "net indebtedness" used in this paragraph shall mean the total net indebtedness as ascertained pursuant to section 138.00 of this chapter. The percentage of debt-contracting  power  exhausted  shall  be  computed pursuant to the provisions of subdivision two of paragraph a of section 140.00 of this chapter.   d. The provisions of this section shall not apply to:   1.  Bonds  to  be  issued to redeem bond anticipation notes previously issued.   2. Judgments, other than for capital improvements.   3. The following capital improvements:  (a) The acquisition, construction, reconstruction or equipment  of  or addition  to  a  water  supply  or  distribution  system, whether or not including land.  (b) A capital  improvement  which  the  finance  board  by  resolution estimates will be self-sustaining.  (c) The acquisition, construction or equipment of or addition to rapid transit railroads, whether or not including land.  (d)  The  acquisition, construction, reconstruction or equipment of or addition to electric light and power or gas plants or  systems,  whether or not including land.  (e)  The  acquisition,  construction, reconstruction of or addition to docks, piers or wharf property, whether or not including land.  (f) The acquisition, construction, reconstruction of or addition to  a bridge  or a tunnel and the approaches thereto, whether or not including land, the cost of which is estimated to exceed ten million dollars.  (g) A capital improvement, the cost of which is  estimated  to  exceed twenty million dollars.  (h)  A  capital  improvement, the cost of which is estimated to exceed one million dollars and part of which cost is to be paid by  assessments upon  benefited  real  property  in  an  area  less than the area of the municipality.  (i) A capital improvement, of which at least fifty per centum  of  the cost  is  to  be  paid by assessments upon benefited real property in an area less than the area of the municipality, whether or not the cost  of such improvement is estimated to be in excess of one million dollars.  (j)  A  capital  improvement  or  the  acquisition  of equipment, when necessitated by some destructive agency or to prevent the happening of a calamity. The finance board, shall, by a four-fifths vote of its  voting strength,  determine when such an emergency exists. The determination of the finance board as to the existence of  such  an  emergency  shall  be conclusive.  (k)  The  construction, reconstruction and equipment of city hospitals and schools, whether or not including land, if the bonds authorized  for any  such  object or purpose shall have a maximum maturity not to exceed one-half of the maximum period  of  probable  usefulness  for  any  such object  or  purpose  prescribed  in paragraph a of section 11.00 of this chapter. Such maximum maturity shall be computed from the  date  of  the bonds  or  the  date  of  the  first  bond  anticipation  note issued in anticipation of such bonds, whichever date is the earlier, and shall not exceed fifteen years in any event.  (l) The acquisition, construction, reconstruction, or equipment of  or addition  to  facilities  for  the conveyance, treatment and disposal of sewage, whether or not including land.  (m) The cost of the preparation, pursuant to section ninety-nine-d  of the  general  municipal  law, of surveys, preliminary plans and detailed plans, specifications and estimates necessary for planning for a capital improvement which it is contemplated might be undertaken in the future.   4. The financing by any municipality of any object or purpose, if  the bonds  authorized  for  any  such object or purpose shall have a maximum maturity not to exceed  one-half  of  the  maximum  period  of  probable usefulness. Such maximum maturity shall be computed from the date of the  bonds  or  the  date  of  the  first  bond  anticipation  note issued in anticipation of such bonds, whichever date is the earlier, and shall not exceed fifteen years in any event.   5.  The  financing  by any municipality of any object or purpose which has a  period  of  probable  usefulness  of  five  years,  or  less,  as prescribed in paragraph a of section 11.00 of this chapter.   6.  The  financing by any municipality of any urban renewal program or part thereof having a period of probable usefulness determined  pursuant to subdivision forty-one-a of section 11.00 of this chapter.   7.  The  financing  by any municipality of any object or purpose which has a period of probable usefulness prescribed in subdivision  forty-one or  subdivision  forty-one-b  of  paragraph  a  of section 11.00 of this chapter.   8. Notwithstanding any other provision of law, the  financing  by  the city  of  New  York  prior to July first, two thousand twenty-two of any object or purpose which has a period of probable  usefulness  determined by law by the issuance of any bonds or notes, including (i) the issuance of  bonds or notes to obtain reimbursement for funds heretofore advanced for the object or purpose for which the bonds or notes are being issued, (ii) the issuance of bonds or notes to redeem  notes  previously  issued for  the object or purpose for which the bonds or notes are being issued or (iii) the issuance of bonds to refund bonds previously issued for the object or purpose for which bonds are being issued.   9. Notwithstanding any other provision of law, the  financing  by  any municipality,  prior to July fifteenth, two thousand twenty-four, of any object or purpose which has a period of probable  usefulness  determined by  law,  by  the  issuance  of  any  bonds and notes, including (i) the issuance of bonds or notes, to redeem notes previously  issued  for  the object  or purpose for which the bonds or notes are being issued or (ii) the issuance of bonds to refund bonds previously issued for  the  object or purpose for which bonds are being issued.