NY Loc Fin L § 29.00 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 2 - Local Obligations: Types Thereof 29.00 - Budget Notes.

§  29.00 Budget notes. a. 1. Any municipality or district corporation,   other than a fire district, may issue budget  notes  during  any  fiscal   year  for  any  unforeseeable  public emergency during such year such as   epidemic, conflagration, riot, storm, flood, earthquake or other unusual   peril to the lives  and  property  of  the  citizens  of  such  unit  of   government  in  such  amount  as the finance board shall determine to be   necessary, but no municipality may issue such notes for  emergencies  in   behalf  of any local improvement district. Any school district may issue   budget  notes  during  any  fiscal  year  to  provide  temporary  school   buildings  or  facilities in such year when such buildings or facilities   are necessitated because of an  unforeseeable  public  emergency  during   such   year   such  as  epidemic,  conflagration,  riot,  storm,  flood,   earthquake or other unusual circumstance preventing the use in whole  or   in  part,  of  the  buildings  or  other  facilities used by such school   district.2. Any municipality or district corporation  which  adopts  an  annual   budget  may  issue  budget notes during any fiscal year for expenditures   for which an insufficient or no provision is made in the  annual  budget   for  such  fiscal year in an amount not to exceed five per centum of the   amount of such annual budget.Notwithstanding the foregoing limitation, any fire district may  issue   budget  notes pursuant to this subdivision in the amount of at least one   thousand dollars. In addition, any county which adopts an annual  budget   may  issue  budget notes pursuant to this subdivision without limitation   as to  amount  for  necessary  expenditures  for  the  apprehension  and   prosecution  of  persons  charged  with  the commission of crime and for   which an insufficient or no provision has been made in the annual budget   for such fiscal year. If, however, any  such  municipality  or  district   corporation may issue budget notes for any such expenditures pursuant to   the provisions of any other paragraph of this section, such municipality   or  district  corporation  shall  not  issue  budget  notes for any such   expenditures pursuant to this subdivision. Any town, and any county,  in   computing  "the  amount  of  the annual budget" for the purposes of this   subdivision shall not include any amounts which are to be  paid  in  the   first instance from improvement district assessments.3.  A  school  district  may  issue  budget notes during the last nine   months of any fiscal year for expenditures for which an insufficient  or   no  provision  is  made  in the annual budget for such fiscal year in an   amount not to  exceed  five  per  centum  of  such  annual  budget.  The   foregoing  limitation  shall  not  be  applicable in any case in which a   budget note resolution has been adopted by the finance board of a school   district and has been approved by a majority of the qualified voters  of   the  school district present and voting at any annual or special meeting   of the school district held pursuant to the provisions of the  education   law  during the last nine months of such fiscal year. The notice for any   such meeting, in addition to complying with applicable provisions of the   education law, must state that  such  budget  note  resolution  will  be   submitted  for  approval  by the voters at such meeting; the purpose for   which moneys are proposed to be  borrowed  under  such  resolution;  the   total amount proposed to be borrowed, and the fiscal year in which taxes   are required to be levied for the payment of the budget note proposed to   be  issued. The vote at any such meeting on such proposition shall be by   ballot, or ascertained by taking and recording the ayes and noes of such   qualified voters attending and voting at such meeting.3-a. Notwithstanding any other provisions of  this  section,  where  a   school  district can demonstrate to the satisfaction of the commissioner   of education extenuating circumstances that a waiver  is  warranted  for   the  adoption  of  a  budget  note resolution by its finance board, upon    certification by the chief executive  officer  to  the  commissioner  of   education, in such form as the commissioner of education shall determine   pursuant  to  guidelines developed, for the purpose of making additional   accruals requirements in the two thousand four--two thousand five or two   thousand  five--two thousand six school years associated with changes in   accounting methodologies  for  liabilities  for  employer  and  employee   contributions  due  and  payable to a public retirement system that will   result in a tax increase  to  the  residents  of  the  district  in  the   following  school  year, a school district may issue budget notes during   the last nine months of the school year  in  which  such  resolution  is   adopted,  or during the first three months of the following school year,   in an amount not to exceed the amount of such  additional  accruals  for   public pension liabilities. The limitation on the amount of budget notes   contained in subdivision three of this paragraph shall not be applicable   to  notes issued pursuant to this section and the amount of budget notes   issued pursuant to this section shall not be included in the computation   of such limitation.4. Any fire district may  issue  budget  notes  for  expenditures  for   necessary repairs to any fire-fighting apparatus, fire-fighting vehicles   or  other  motorized  equipment  of  such  fire  district which has been   damaged as the result of an  accident;  but  only  to  the  extent  that   budgetary  appropriations for such purpose and the proceeds of insurance   received on account of such damage and on hand at the time  the  repairs   are  completed  are  insufficient  to  pay  for  such  damage.  Unless a   budgetary appropriation for the payment of such notes is in existence at   the time the proceeds of any such insurance are received, such  proceeds   shall be used only for the payment of such notes.5. Any municipality or fire district may issue budget notes during any   fiscal  year  to provide for the payment in such fiscal year of the cost   of insurance secured to indemnify against liability for benefits payable   under the volunteer firefighters' benefit law  and  for  which  cost  an   insufficient  or  no  provision  was  made  in  the annual budget of the   municipality or fire district for such fiscal year. The aggregate amount   of any such notes which may be issued for such purpose in a fiscal  year   commencing  after  December  thirty-first,  nineteen hundred sixty-five,   shall not exceed the sum by which the actual cost of such  insurance  to   be  paid  in  the fiscal year in which such notes are issued exceeds the   actual cost of such insurance in the fiscal year  prior  to  the  fiscal   year  in  which  such  notes  are  issued;  provided, however, that this   limitation shall not apply in a case  where  the  municipality  or  fire   district has not incurred any such cost in the fiscal year prior to that   in which such notes are issued.6. Any fire district may issue budget notes for expenditures for water   supply and in relation to fire hydrant maintenance and rental costs; but   only  to the extent that budgetary appropriations for such purpose under   subdivision twelve of section one hundred seventy-six of  the  town  law   are  insufficient  to  pay  increased  charges  which the public service   commission has authorized and the fire district is required  to  pay  in   the  fiscal year in which the budget note is issued for such maintenance   or rental.7. Any fire district which elects to become  liable  for  payments  in   lieu of contributions pursuant to section five hundred sixty-five of the   labor  law  and is required by the commissioner of labor to pay into the   unemployment insurance fund an amount equal to the  amount  of  benefits   paid  to claimants and charged to such fire district's account may issue   budget notes for such expenditures for the amount required to be so paid   in the fiscal year in which the budget note is issued, but only  to  the    extent  that  budgetary appropriations for such purpose are insufficient   to pay such claim.8.  Any  county,  city,  village, town, town on behalf of an ambulance   district, or  town  on  behalf  of  a  fire  protection  district  which   contracts  with  an ambulance service which is not organized pursuant to   section two hundred nine-b of  the  general  municipal  law,  may  issue   budget notes during the first fiscal year in which it is required to pay   contributions to the volunteer ambulance workers' service award program,   but  only  to  the extent that budgetary appropriations for such purpose   are insufficient to pay such contributions.b. Any municipality which adopts an annual  budget  may  issue  budget   notes during any fiscal year for either or both the following purposes:1.  The  payment  of  the  expenses  for  the removal of snow and ice,   exclusive of salaries and wages of regular employees except for overtime   work and work on Sundays and holidays, or2. The payment of the expenses for the demolition of unsafe buildings,   to the extent that  an  insufficient  provision  shall  have  been  made   therefor in the annual budget for such fiscal year, if such municipality   is  required by statute, local law or ordinance to include in its annual   budget for such fiscal year and each fiscal year thereafter  either  (a)   an  amount  equal  to  at least the average of all expenditures for such   purpose during each of the five preceding fiscal years for each  purpose   for  which  such budget notes are to be issued, or (b) such amount as is   prescribed in the schedule set forth below, for each purpose  for  which   such budget notes are to be issued:1.  For such fiscal year, an amount equal to at least one-fifth of the   average of all expenditures for such purpose during  each  of  the  five   preceding fiscal years.2.  For  the  first fiscal year succeeding such fiscal year, an amount   equal to at least two-fifths of the average of all expenditures for such   purpose during each of the five preceding fiscal years.3. For the second fiscal year succeeding such fiscal year,  an  amount   equal  to  at  least three-fifths of the average of all expenditures for   such purpose during each of the five preceding fiscal years.4. For the third fiscal year succeeding such fiscal  year,  an  amount   equal  to  at  least  four-fifths of the average of all expenditures for   such purpose during each of the five preceding years.5. For the fourth fiscal year succeeding such fiscal year and for each   succeeding fiscal year thereafter, an  amount  equal  to  at  least  the   average  of  all  expenditures  for such purpose during each of the five   preceding fiscal years.   Any city, any county  and  any  village  having  a  population  of  five   thousand or more, as determined pursuant to the latest available federal   census,  may  adopt a local law or ordinance, and any other municipality   may adopt an ordinance requiring the  inclusions  of  such  amounts  set   forth  in  the above schedule for either of or both such purposes in its   annual budget.c. Any city which is required pursuant to law to include  annually  in   its annual budget an amount for:1.  Judgments  which  may  be  obtained against the city and which may   become due and payable during the fiscal year for which  the  budget  is   adopted,2.  Claims  which  may  be  settled  or compromised and become payable   during such fiscal year, and3. The repaving of streets   may issue budget notes for any of such purposes during a fiscal year  if   the  amount  included  in  the  annual  budget  for  such fiscal year is   insufficient therefor. d. Any municipality, school district or district corporation which  is   required  by law to include in its annual budget the amount of judgments   or compromised or settled claims which are outstanding at the time  such   budget  is  prepared, may issue budget notes for the payment of any such   judgment  or  claim.  Such  notes may be issued at any time prior to the   earliest time at which tax anticipation notes  may  be  issued  by  such   municipality,  school  district  or  district  corporation  pursuant  to   section 24.00 of this chapter in anticipation of the levy or  collection   of  taxes  for  such  budget.  If such notes are issued in a fiscal year   prior to the preparation of an annual budget during such fiscal year, an   appropriation for their redemption shall be included in such next budget   when it is prepared. If such notes are issued after an appropriation has   been included in an annual budget for the payment of  the  judgments  or   claims for which the notes are issued, such notes shall be redeemed from   such  appropriation. Such budget notes may be renewed from time to time,   but such notes including renewals thereof shall mature  not  later  than   the close of the fiscal year for which such annual budget is adopted.e. Any city, county or town, during any fiscal year or, in the case of   the  city of New York, within ninety days after the close of such fiscal   year, for which it shall make a supplemental, deficiency  or  additional   appropriation  for  one  or  more  purposes  authorized  by or under the   provisions of the social  services  law,  including  the  administration   thereof, may issue budget notes for the amount of the local share of the   cost thereof.e-1.  If  any  town has made an appropriation in its annual budget for   any fiscal year for its share of the cost of an approved  project  under   article   eight-A   of   the  highway  law,  and  the  appropriation  is   insufficient, the town may issue budget notes in  such  fiscal  year  to   finance  such  share  in an amount not to exceed fifty per centum of the   town's share of the cost of such project. Budget notes may not be issued   under any other paragraph of this section to finance any portion of  the   town's  share  of  the  cost  of  an approved project under such article   eight-A of the highway law.f. If any municipality which is  authorized  or  required  by  law  to   include  in its annual budget an estimate of the amount of state, county   district and other county taxes to be levied on the real property within   such municipality for or during the fiscal year for which such budget is   adopted,  underestimates  the  amount  that  is  actually  levied,  such   municipality  may  issue  budget notes for the payment of all or part of   such deficiency.g.  If  any  portion  of  the  taxes  or  assessments  levied   by   a   municipality, school district or district corporation in any fiscal year   are   cancelled   prior   to   the  collection  thereof  pursuant  to  a   determination by a court in an  action  or  proceeding  brought  by  the   taxpayer, or, in the case of a school district with the written approval   and  consent  of the commissioner of education under section thirty-five   hundred twelve of the education law, such municipality, school  district   or  district  corporation  may  issue budget notes in the fiscal year in   which any such cancellation occurs in an amount not  in  excess  of  the   amount  of taxes or assessments so cancelled. The proceeds of such notes   shall be used only for the purposes for which such taxes or  assessments   so  cancelled  were  levied,  or  for the redemption of tax anticipation   notes which had been issued in anticipation of  the  collection  of  the   taxes  or assessments so cancelled and for the redemption of which notes   no other provision has been made, or for the redemption of budget  notes   in renewal of which they were issued.h.  Any  county which does not adopt an annual budget may issue budget   notes during any fiscal year to pay accounts, claims, demands or charges    which may be directed to be paid pursuant to the provisions of  any  law   in an amount not in excess of the total amount of such accounts, claims,   demands or charges directed to be paid in such fiscal year and for which   an  insufficient or no provision was made in the estimate upon which the   tax levy for such fiscal year was based. No county  shall  issue  budget   notes  pursuant  to  this  paragraph on or after January first, nineteen   hundred fifty-one; provided that budget notes issued prior to such  date   pursuant  to this paragraph may be renewed as provided in paragraph j of   this section.i. Any town on behalf of a town improvement district situated therein,   or any county on  behalf  of  a  county  improvement  district  situated   therein,  may issue budget notes during any fiscal year for expenditures   for which an insufficient or no provision is made in the annual estimate   for such improvement district as finally adopted for such fiscal year in   an amount not to exceed five per centum of the  amount  of  such  annual   estimate.j. Except as otherwise provided in paragraph d of this section, budget   notes  may  be  renewed  from time to time but such notes, including the   renewals thereof, shall mature not later than the close  of  the  fiscal   year succeeding the fiscal year in which such notes are issued. However,   such  notes,  including  the renewals thereof, may mature not later than   the close of the second fiscal year succeeding the fiscal year in  which   such  notes  are issued, when authorized and issued during a fiscal year   at a time subsequent to the date of the adoption of  the  annual  budget   for  the next succeeding fiscal year, by a municipality, school district   or  district  corporation  in  which  the  total  amount  of  taxes   or   assessments levied for a fiscal year is determined pursuant to an annual   budget adopted during the fiscal year preceding such fiscal year.k.  Budget  notes  shall  be  redeemed out of the taxes or assessments   levied or to be levied for the fiscal year in which they mature  or  out   of  other  revenues  of  that  fiscal  year  legally  available for that   purpose.l. Notwithstanding the provisions of any  general,  special  or  local   law,  any  municipality,  school district or district corporation, which   has the power to issue budget notes under this  section,  shall  to  the   same extent have the power to appropriate and expend money received from   the proceeds of the sale of budget notes for the purposes for which such   notes are issued.m. Notwithstanding the provisions of this section or any other law, no   city shall issue budget notes for the purpose of providing funds for the   payment  pursuant  to  section thirty-six-a of the rapid transit law, or   otherwise, of the amounts which the board of transportation or any other   agency of such city determines or estimates,  claims  (including  claims   reduced  to  judgment)  or  certifies  to the board of estimate or other   analogous local authority of such city, as the sum by which the revenues   derived from operation of any railroad, as defined in section two of the   rapid transit law, fail or will  fail  to  provide  for  any  costs  and   expenses of operation and maintenance of such railroad for any period or   periods commencing on or after July first, nineteen hundred fifty-three.   For  the  purpose  of this paragraph, such costs and expenses shall also   include the payments or contributions paid or payable by  the  board  of   transportation  or the city during such period to any employees' pension   or retirement system on account of membership therein  of  officers  and   employees of such board of transportation.n.  Notwithstanding  any other provision of this section, except where   any obligations other than budget notes are or have been issued for  the   object  or purpose described in subdivision fifty-nine of paragraph a of   section 11.00  of  this  chapter,  budget  notes  may  be  issued  by  a    municipality, school district or district corporation, or by a county on   behalf of a county improvement district situated therein or by a town on   behalf  of  a town improvement district situated therein, pursuant to an   irrevocable  election  to finance all or part of the employer's share of   the cost of retroactive coverage provided to  its  employees  under  the   federal  old-age  and survivors insurance system pursuant to section one   hundred thirty-eight-a of the retirement and social security  law  where   an insufficient or no provision is or has been made in the annual budget   for such cost.o. Notwithstanding any other provision of this section, if any city in   this  state  having  a population of one million or more includes in its   annual budget for the fiscal year nineteen hundred seventy-one--nineteen   hundred seventy-two an estimate in an amount not to exceed  one  hundred   million  dollars of additional revenues available to it as a result of a   federal program of general or special revenue  sharing  or  any  similar   program  or  any combination of such programs which relieves a financial   burden which would otherwise require expenditure from city tax  receipts   in  such  amount for the fiscal year, and if that estimate should exceed   the amount of such revenue that actually becomes available to  it,  such   city  may issue during the last quarter of such fiscal year budget notes   which shall have a maximum maturity of not more than one  year  for  the   payment  of  all  or  part  of  the  amount of such overestimate, upon a   determination by the  state  budget  director  of  the  amount  of  such   overestimate.