NY Loc Fin L § 2.00 (2021)
2021 New York Laws LFN - Local Finance Article 1 - Short Title; Definitions 2.00 - Definitions.

§ 2.00 Definitions. As used in this chapter:   1. The term "municipality" shall mean a county, city, town or village.   2.  The  term "school district" shall mean any school district, except the school districts of the cities  of  New  York,  Buffalo,  Rochester, Syracuse and Yonkers.   2-a.  The  term  "city  school  district"  shall  mean the city school district of a city having less than  one  hundred  twenty-five  thousand inhabitants, according to the latest federal census.   2-b.  The  term  "school  district  in  a  city" shall mean any school district which is coterminous with, or partly within, or wholly  within, a  city  having  less than one hundred twenty-five thousand inhabitants, according to the latest federal census.   2-c. The term "board of cooperative educational services"  shall  mean any  board  of  cooperative  educational services, as defined in section nineteen hundred fifty of the  education  law,  and  such  board  shall, solely  for  the purpose of contracting indebtedness pursuant to section 25.00 of this chapter, be deemed to be a school district.   3. The term "district corporation" shall mean  (a) A fire district  (b)  A  river  improvement,  river  regulating  or  drainage  district established   by   or   under  the  supervision  of  the  department  of conservation, or  (c) Any  other  territorial  division  of  the  state,  other  than  a municipality  or  a  school district, which as of December thirty-first, nineteen hundred thirty-eight, possessed the power to  (1) Contract indebtedness in its own name, and  (2) Levy taxes or benefit assessments upon real estate or require  the levy of such taxes or assessments.   4. The term "finance board" shall mean  (a) In the case of counties, the board of supervisors.  (b) In the case of cities:  (1)  The  board  of  estimate,  board of estimate and apportionment or board of estimate and contract in any city in which, as of the effective date of this chapter, such body had the power to authorize the  issuance of  bonds  or  notes  without the approval, in any case, of the council, common council or board of aldermen.  (2) The council, common council or board of aldermen in  any  city  in which, as of the effective date of this chapter, such body had the power to authorize the issuance of bonds or notes without the approval, in any case, of the board of estimate or board of estimate and apportionment or board of estimate and contract.  (3)  The council, common council or board of aldermen and the board of estimate, board of estimate and apportionment or board of  estimate  and contract,  in  any  city  in  which,  as  of  the effective date of this chapter, the council, common council or board of aldermen had the  power to  authorize  the  issuance of all bonds or notes or bonds or notes for certain objects or purposes only with  the  approval  of  the  board  of estimate,  board  of estimate and apportionment or board of estimate and contract. In such a city, action by the finance board shall be initiated by the council, common council or board of aldermen.  (c) In the case of towns, the town board.  (d) In the case of villages, the village board.  (e) In the case of school districts, the board of education  or  board of  trustees; in the case of common school districts having one trustee, such trustee.  (f) In the case of district corporations, the governing board or body, except that in the case of river regulating districts the action of  the governing  board or body thereof shall be subject to the approval of the  water power and control commission in  relation  to  the  authorization, term, form and contents of bonds and capital notes. Nothing  contained  in this subdivision shall be construed to affect the power of (a) the executive of a county to veto the acts of the board  of supervisors  or  (b)  the  executive  of  a city to veto the acts of the council, common council or  board  of  aldermen,  or  of  the  board  of estimate,  board  of estimate and apportionment or board of estimate and contract, when such bodies are  acting  alone  or  jointly  or  (c)  the executive of a village to veto the acts of the board of trustees.   5. The term "chief fiscal officer" shall mean:  (a)  (1)  In  the  case of counties operating under (1) an alternative form of county government or charter  enacted  as  a  state  statute  or adopted  under the alternative county government law or by local law, or (2) the optional county government law, the official designated in  such statute,  consolidated law or local law as the chief fiscal officer, or, if no such designation is made therein, the official  possessing  powers and  duties  similar to those of a county treasurer under the county law as shall be designated by local law.  (2) In the case of counties not included in subparagraph (1)  of  this paragraph,  the  treasurer,  except  that,  in the case of such counties having a comptroller, it shall mean the comptroller.  (b) In the case of cities, the comptroller; if a city does not have  a comptroller,  the  treasurer;  if a city has neither a comptroller nor a treasurer, such official possessing powers and duties similar  to  those of  a  city  treasurer  as  the  finance  board  shall,  by  resolution, designate. A certified copy of such designation shall be filed with  the state comptroller and shall be a public record.  (c) In the case of towns, the town supervisor; if a town has more than one supervisor, the presiding supervisor.  (d) In the case of villages, the village treasurer.  (e)  In the case of school districts, the chairman or president of the school board; in the case of  common  school  districts  having  a  sole trustee, such trustee.  (f) In the case of fire districts, the district treasurer; in the case of  other  district  corporations,  such  official  as the finance board shall, by resolution, designate. A certified copy  of  such  designation shall be filed with the state comptroller and shall be a public record.   5-a. The term "chief executive officer" shall mean:  (a) In the case of counties, the chairman of the board of supervisors, except  that  in those counties having a county administrator, director, executive, manager or president, it shall mean such latter officer.  (b) In the case of cities, the mayor,  except  that  in  those  cities having a city manager, it shall mean such city manager.  (c) In the case of towns, the supervisor or presiding supervisor.  (d)  In the case of villages, the mayor, except that in those villages having a president or manager, it shall mean such latter officer.  (e) In the case of school districts, the chairman or president of  the school  board;  in  the  case  of  common school districts having a sole trustee, such trustee.  (f) In the case of fire  districts,  the  chairman  of  the  board  of commissioners;  in the case of other district corporations, the chairman of the board of commissioners or other comparable officer of the finance board of such district corporation.   6. The term "obligations" shall mean bonds or notes.   7. The term  "average  assessed  valuation"  shall  mean  the  average assessed  valuation  of  the real property within a municipality, school district or fire district subject to taxation for any  purpose  by  such municipality,   school  district  or  fire  district  as  determined  by  averaging the assessed valuation of  such  real  property  in  the  last completed  assessment  role  and  the four preceding assessment rolls of such municipality, school district or fire district. If less  than  five assessment  rolls have been prepared for a municipality, school district or fire district, the average assessed valuation shall be determined  by averaging  the  assessed valuation in the last completed assessment roll and all the preceding assessment  rolls  of  such  municipality,  school district  or fire district.  For the purpose of contracting indebtedness or for the purpose of preparing debt statements,  the  assessment  rolls referred  to  in  this  subdivision  shall mean such assessment rolls as completed, verified and filed by the assessors.   7-a. The term "average full valuation" shall  mean  the  valuation  of taxable  real estate of a municipality or of a school district in a city which is derived by dividing the assessed  valuations  of  taxable  real estate  on the last completed and the four preceding assessment rolls by the equalization rates established by the authorized  state  officer  or agency  for  such rolls or, in the case of school districts, by the city and town rates so established for the rolls on which the school district rolls were based. In a county the average full valuation of taxable real estate thereof shall be derived by dividing the assessed  valuations  of taxable  real estate on the last completed and four preceding assessment rolls of  the  cities  and  towns  therein  by  the  equalization  rates established  for  such  rolls;  provided,  however, in a county having a county department of assessment the state equalization rates established for the cities and towns therein on the basis of the county  roll  shall be  applied  to  the appropriate portions of the county roll. The sum of the  quotients  thus  obtained  shall  be  divided  by  five.  In   such computations the last completed assessment roll shall be the latest roll for  which  a state equalization rate shall have been established, or in the case of school districts the last completed assessment roll  thereof shall  be  the  latest  school  district roll for all parts of which the equalization rates to be applied thereto shall have been established. In addition to the foregoing, where real estate on the assessment  roll  is partially  exempt under the provisions of title two-a of article four of the real property tax law, an assessment roll shall not be deemed to  be completed  until  a  railroad ceiling, or, if a railroad ceiling has not been  certificated,  an  estimated  railroad  ceiling   established   in accordance  with  the  provisions  of such title shall have been applied thereto.   Where, after the creation of a new municipality or school district  in a  city, or after a consolidated school district shall have been created by the consolidation of a school district in a  city  and  one  or  more other school districts.   1.  There is no completed assessment roll or rolls of the municipality or school district as so created, the average full valuation of  taxable real  estate  thereof  shall  be  determined  from  the  last  completed assessment roll or rolls upon which the  real  estate  included  in  the municipality  or  school  district was assessed for city, town or school district purposes, as the case may be, or   2. There are assessment rolls of the municipality or  school  district as  so  created which have been completed for at least one year but less than five years, the average full valuation of the taxable  real  estate of the municipality or school district shall be determined from the last completed  assessment roll or rolls and the preceding assessment roll or rolls, if any, of the municipality or  district,  which  were  completed after such creation.   Where,  after the boundaries of a municipality or school district in a city shall have been altered so that real estate subject to taxation for  municipal or school district purposes, as the case may  be,  shall  have been thereby added to or subtracted from the area of the municipality or school district,   1. There is no completed assessment roll of the municipality or school district  as  so altered, the average full valuation of the taxable real estate of the municipality or school district shall be  determined  from the  last  completed  assessment  roll  or  rolls and the four preceding assessment rolls upon which the real estate included in the municipality or school district after such alteration  was  assessed  prior  to  such alteration  for  city, town or school district purposes, as the case may be, or   2. There are assessment rolls of the municipality or  school  district as  so  altered which have been completed for at least one year but less than five years, the average full valuation of taxable  real  estate  of the  municipality  or  school district shall be determined from the last completed assessment roll or rolls and  the  four  preceding  assessment rolls  upon which the real estate included in the municipality or school district after such alteration was assessed prior to such alteration for city, town or school district purposes, as the case may be.   For the purpose of contracting indebtedness  or  for  the  purpose  of preparing  debt  statements,  the  assessment  rolls referred to in this subdivision shall mean such assessment rolls as completed, verified  and filed by the assessors.   8. The terms "real property" or "real estate" shall mean such terms as defined in section two of the tax law, as amended from time to time.   9. The term "capital improvement" shall mean:  (a)  Any  physical public betterment or improvement or any preliminary studies and surveys relative thereto, or  (b) Land or rights in land, or  (c)  Any  furnishings,  machinery,  apparatus  or  equipment  for  any physical  betterment  or improvement when such betterment or improvement is first constructed or acquired, or  (d) Any combination of items (a), (b) and (c).   10. The term "annual budget" shall mean the annual budget or estimate, as finally adopted, of  a  municipality,  school  district  or  district corporation  which  is  required  by  law  to  adopt an annual budget or estimate of the expenditures to be made  during  a  current  or  ensuing fiscal  year  for  the  general  support  or  for  the  expenses  of the government of such municipality, school district or district corporation during such fiscal year.   11. The term "budgetary appropriation" shall mean an appropriation for a specific object or purpose in the annual budget as finally adopted  or in  the  annual  ordinance,  resolution  or local law of a municipality, school district or district corporation making  appropriations  for  the general   support   or   expenses   of  the  government  thereof,  which appropriation is to be paid from taxes  or  assessments  or  from  other current revenues or from the proceeds of notes issued in anticipation of the collection of such taxes, assessments or other current revenues.   12.  The  term  "voting  strength"  shall mean the aggregate number of votes which all the members of the finance board are entitled  to  cast. If  the  finance  board  consists  of more than one body, the term shall mean, in relation to each body, the aggregate number of votes which  all the members of such body are entitled to cast.   13.  The  term  "housing  authority" shall mean an "authority" as that term is defined in section three of the public housing law,  as  amended from time to time.    14.  The  term  "local share of safety net assistance" shall mean that term as defined in section ninety-three of the social services  law,  as amended from time to time.   15. The terms "solvent fund or system" or "solvent," in referring to a pension or retirement system or fund, shall mean a pension or retirement system  or  fund  which  is  on  an actuarial reserve basis with current payments to the reserve adequate to provide  for  all  current  accruing liabilities.   16.  The  term "assessment" shall mean any charge based in whole or in part on benefits (other than real estate taxes, water or sewer  charges, rents  or  rates)  against  a  parcel  of  real property for any capital improvement, for any work or service, for operation and maintenance,  or for debt service.   17. The term "resolution" shall mean resolution, act or ordinance.   18.  The  term  "renewal"  as applied to a note, shall mean a note the date of payment of which has been extended or  a  note  issued  for  the purpose of securing money for the redemption of an outstanding note. The proceeds of such renewal note shall be applied only to the redemption of the note for the renewal of which it was issued.   19.  The term "fiscal year" shall mean the fiscal year provided by law for a municipality, school district or district corporation,  or  if  no fiscal  year  is so provided, such fiscal year as shall be determined by resolution of the finance board of such municipality, school district or district corporation. A statement of such determination shall  be  filed with the state comptroller and shall be a public record.   20.  The  term "class," as applied to the terms "objects or purposes", "capital improvements" or "equipment", shall mean an unspecified  number of items, the description of which is contained in a single subdivision, other  than  subdivision  thirty-five of paragraph a of section 11.00 of this chapter, notwithstanding the fact  that  such  subdivision  may  be drafted in the singular number.   21.  The term "full valuation", when used in relation to real property subject to taxation by a school district, shall mean the valuation which is  derived  by  dividing  the  appropriate  portions  of  the  assessed valuation of the real property concerned, as shown by the last completed assessment   roll   of  the  school  district,  by  the  city  and  town equalization rates established by the authorized state officer or agency for the rolls on which such school district roll was  based.  Where,  in the  case  of  a  newly  created  school district, there is no completed assessment roll of such school district  in  existence,  full  valuation shall  be  determined  from  the last completed assessment roll or rolls upon which the real property included within the district  was  assessed for  school  purposes  prior  to such creation. In such computations the last completed assessment roll shall be the latest roll for all parts of which the equalization rates to  be  applied  thereto  shall  have  been established.  In  addition  to  the  foregoing, where real estate on the assessment roll is partially exempt under the provisions of title  two-a of  article  four of the real property tax law, an assessment roll shall not be deemed to be  completed  until  a  railroad  ceiling,  or,  if  a railroad  ceiling  has  not  been  certificated,  an  estimated railroad ceiling established in accordance with  the  provisions  of  such  title shall have been applied thereto.   21-a.  The  term  "full  valuation",  when  used  in  relation to real property subject  to  taxation  by  a  fire  district,  shall  mean  the valuation  which  is  derived  by dividing the assessed valuation of the real property concerned, as shown by the last completed assessment  roll for  the fire district, by the town equalization rate established by the authorized state officer or agency for such roll. Where, in the case  of  a newly-created fire district, there is no completed assessment roll for such  fire  district,  full  valuation shall be determined from the last completed assessment roll upon which the real property  included  within the  district  was  assessed  for  town purposes prior to such creation. Where, after the boundaries of a fire district shall have  been  changed so  that  real  property  subject to taxation for fire district purposes shall have been thereby added to or subtracted from the area of the fire district, there is no completed assessment roll for the fire district as so changed, full valuation shall be determined from the  last  completed assessment  roll  upon  which  the  real  property  included in the fire district after such change was assessed prior to such change for town or fire district  purposes,  as  the  case  may  be.  For  the  purpose  of contracting   indebtedness   or   for  the  purpose  of  preparing  debt statements, the assessment rolls referred to in this  subdivision  shall mean  such  assessment  rolls  as  completed,  verified and filed by the assessors. Where two or more fire districts consolidate to form one fire district the  consolidated  fire  district,  for  the  purpose  of  this subdivision,  shall  not  be  deemed  a newly-created fire district, but shall be deemed an existing fire district and its full  valuation  shall be determined accordingly.   22.  The  term "specific" as applied to the terms "object or purpose", "capital improvement" or "equipment" shall mean  a  single  item,  or  a specified  number  of  items, the description of which is contained in a single subdivision of paragraph a of section 11.00 of this chapter.   23. Urban renewal. The term "urban renewal" shall mean  that  term  as defined in the general municipal law.   24.  The  term  "financially responsible party" shall mean a person or persons other than the issuer, as determined by the finance board, or in the case of the city of New York, the mayor and the comptroller, to have sufficient net worth and liquidity to (a) purchase  and  pay  for  on  a timely  basis,  under  the terms of an agreement with the issuer, all of the bonds and notes which may be tendered for repurchase  or  redemption pursuant  to  the terms of the bonds or notes by the holders thereof, or (b) advance funds on a timely basis on behalf of a municipality,  school district  or district corporation to pay bonds, notes or other evidences of indebtedness of such public body on their date or dates  of  maturity or redemption.   25.  The  term  "governing  body" of a municipality or school district shall mean the finance board or its duly authorized designee pursuant to section 56.00 of this chapter.   26. The term "interest" shall mean any payments,  however  designated, for  the  use  of  borrowed  money.  Interest  shall include, but not be limited to, accretions to the value of bonds, notes or other obligations in amounts projected as of their dates of issuance, capital appreciation to bonds, notes or other obligations in amounts projected  as  of  their dates  of issuance and any similar payments whether scheduled to be made periodically or at the maturity or prior redemption of bonds,  notes  or other obligations.   27.  The  term  "face  value  at  maturity"  shall  mean all interest, principal and other payments due to the holders of bonds, notes or other obligations at their maturity or  prior  redemption,  provided  however, that  current  interest  on  bonds,  notes or other obligations on which interest is payable at least annually shall be excluded.