NY Loc Fin L § 123.00 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 9 - Procedures Relating to the Ascertainment of Amounts to Be Included or Excluded in Ascertaining Debt-Contracting Power 123.00 - Exclusion of Self-Liquidating Indebtedness in Ascertaining the Power of a Municipality to Contract Indebtedness.

§  123.00  Exclusion  of self-liquidating indebtedness in ascertaining   the power of a municipality to contract indebtedness. a. As used in this   section: 1. The term "outstanding indebtedness", shall mean indebtedness   evidenced by bonds and bond anticipation notes.2.  The  term  "public  improvement"  shall  mean  either   a   single   improvement  or  a  group  of improvements, which are maintained for the   same  purpose,  including  improvements  used  primarily  in  connection   therewith, and which are producing or are intended to produce revenue.b.  1.  In  ascertaining  the  power  of  a  municipality  to contract   indebtedness,  there  may  be  excluded,  to  the  extent  permitted  in   paragraph  e of this section, the outstanding indebtedness contracted by   any such municipality for a  public  improvement  or  part  thereof,  or   service,   owned  or  rendered  by  such  municipality  if  such  public   improvement or part thereof, or service, shall have yielded net  revenue   to  such municipality during the preceding fiscal year in a sum equal to   twenty-five per centum or more of the amount required in such  year  for   the  payment of the interest on and amortization of, or payment of, such   outstanding indebtedness.2. The outstanding indebtedness of a district corporation, as the term   "district corporation" is defined in paragraph a of  section  102.00  of   this  chapter,  contracted  on  or after January first, nineteen hundred   thirty-nine, may be excluded, to the extent permitted in paragraph e  of   this  section,  in  ascertaining  the  indebtedness of a city or village   within which, or of a town within the unincorporated area of which, such   district  corporation  is  situated  in  whole  or  in  part,  if   such   outstanding indebtedness was contracted for a public improvement or part   thereof,  or service, owned or rendered by such district corporation and   if such public improvement or  part  thereof,  or  service,  shall  have   yielded  net  revenue  to such district corporation during the preceding   fiscal year of the district corporation in a sum  equal  to  twenty-five   per  centum  or more of the amount required in such year for the payment   of the interest on and amortization of, or payment of, such  outstanding   indebtedness.3.  In  ascertaining  the  power  of  a  county  or  town  to contract   indebtedness,  there  may  be  excluded,  to  the  extent  permitted  in   paragraph  e of this section, the outstanding indebtedness contracted by   any such county or town on behalf  of  an  improvement  district  for  a   public  improvement  or  part  thereof, or service, owned or rendered by   such district if such public improvement or part  thereof,  or  service,   shall  have  yielded  net  revenue to such district during the preceding   fiscal year in a sum equal to twenty-five per  centum  or  more  of  the   amount  required  in  such  year  for the payment of the interest on and   amortization of, or payment of, such outstanding indebtedness.c. 1. A proportionate exclusion of indebtedness contracted or proposed   to be contracted also may be granted for the period from the  date  when   such  indebtedness  is first contracted or to be contracted for a public   improvement or part thereof, or service, owned  or  rendered  or  to  be   owned  or rendered by a municipality, district corporation, or county or   town improvement district through the first year of  operation  of  such   public  improvement  or  part  thereof,  or  service. The amount of such   exclusion shall be computed in the manner provided in  this  section  on   the basis of estimated net revenue for the first year of operation. Such   estimated  net  revenue  shall be determined by deducting from the gross   revenues estimated to be received during the first year of operation  of   such public improvement or part thereof, or service, all estimated costs   of  operation,  maintenance and repairs for such year. The amount of any   such proportionate exclusion shall not exceed seventy-five per centum of   the amount which would be excluded if the computation were made  on  the    basis  of  net  revenue  instead  of  estimated  net  revenue.  The term   "indebtedness," as used in this  subdivision  means  indebtedness  which   would  be  included  in  ascertaining  the  power  of  a municipality to   contract   indebtedness,  including  indebtedness  evidenced  or  to  be   evidenced by bonds or bond anticipation notes.2. A  proportionate  exclusion  of  outstanding  indebtedness  may  be   granted,  to the extent permitted in paragraph e of this section, in the   fiscal year in which the first year of operation of a public improvement   or part thereof, or service, is completed if  the  improvement  or  part   thereof,  or  service,  shall  have yielded net revenue during the first   year of operation in a sum equal to twenty-five per centum  or  more  of   the  amount required in such year for the payment of the interest on and   amortization of, or payment of, such indebtedness.d. The net revenue  of  a  public  improvement  or  part  thereof,  or   service,  shall  be determined by deducting from its gross revenues of a   year all costs of operation, maintenance  and  repairs  for  such  year.   Taxes,  assessments,  and  subsidies  by  the  municipality  or district   corporation, shall not be included in computing gross revenues.e. The maximum amount of any such outstanding indebtedness  which  may   be  so  excluded  shall be in the same proportion to the total amount of   any such indebtedness as the amount of any such net revenue  shall  bear   to  the amount required in any such year for the payment of the interest   on and amortization of, or payment of, any such indebtedness.f. Where an exclusion has been granted pursuant to this  section,  the   revenues of such public improvement or part thereof, or service, for the   period  for  which  the  exclusion  is  granted, shall be applied to and   actually used for payment of all costs  of  operation,  maintenance  and   repairs  for  such  period,  and payment of the amounts required in such   period for  interest  on  and  amortization  of  or  redemption  of  the   indebtedness  excluded, or such revenues shall be deposited in a special   fund to be used solely for such payments. The  application  and  use  of   such  payments  or  the  deposits required therefor shall not prohibit a   municipality, district corporation or improvement  district  from  using   any  such  revenues,  in  excess  of  such payments or deposits, for any   lawful purpose of the municipality, district corporation or  improvement   district.g.  An  application  may  be  filed with the state comptroller for the   purpose of obtaining an exclusion of such indebtedness. Such application   shall be made on behalf of any municipality by its chief fiscal  officer   in  his  discretion,  or by its chief fiscal officer on the direction of   its finance board, and on behalf of  any  district  corporation  by  its   finance  board.  If  the  finance  board of a district corporation shall   refuse or fail to make such application, the application may be made  by   the  municipality  seeking an exclusion of indebtedness. The application   shall be verified by the chief fiscal officer or  finance  board  making   the application. The application shall be in such form and shall contain   such information as shall be prescribed by the state comptroller.h.  Within  fifteen days after the filing of such application with the   state comptroller, such chief  fiscal  officer  or  such  finance  board   making  the  application  shall cause a notice to be published that such   application has been filed with the state comptroller. Such notice shall   be published in the official newspaper or newspapers of the municipality   or district corporation, or if there be no such newspaper or newspapers,   then the finance board of the municipality or district corporation shall   designate one or more newspapers having a general  circulation  in  such   municipality or district corporation for the publication of such notice.   The  notice also shall contain a statement of the amount of indebtedness   for which a proportionate exclusion is sought and a brief description of    the public improvement or part thereof, or service. Proof of publication   of such notice shall be filed in the office of the state comptroller.  A   copy  of  the  application  and  of all financial statements, documents,   computations  and  other data and information which will be submitted by   the chief fiscal officer of such municipality or the  finance  board  of   such  district  corporation  to the state comptroller in support of such   application shall be filed in the office of such chief fiscal officer or   finance board and shall be public records.i. After the filing of such application, the state  comptroller  shall   review the facts set forth therein. The state comptroller shall have the   power  to examine the accounts and records of the municipality, district   corporation  or  improvement  district  with  respect  to  such   public   improvement  or  part thereof, or service. He may also require the chief   fiscal officer and other public officers, boards and  agencies  of  such   municipality,  district  corporation  or improvement district to furnish   such additional data and information in their  possession  as  he  deems   necessary to enable him to make his determination.j.  In the case of a municipality, the state comptroller shall issue a   written certificate setting forth his determination as to the extent  to   which  any such indebtedness may be excluded. If an exclusion is allowed   by  the  state  comptroller,  such  certificate  shall  constitute   the   authorization  for  the exclusion of such amount of such indebtedness in   ascertaining the power of such municipality to contract indebtedness. In   the case of a district corporation, the state comptroller shall issue  a   written  certificate setting forth his determination as to the extent to   which any such  indebtedness  shall  be  excluded  in  ascertaining  the   indebtedness  of a city or village within which, or of a town within the   unincorporated area of which, such district corporation is  situated  in   whole  or  in part. If an exclusion is allowed by the state comptroller,   such certificate shall constitute the authorization for the exclusion of   such amount of such indebtedness in ascertaining the power of such city,   village or town to  contract  indebtedness.  If  the  state  comptroller   disallows  the  application, the certificate shall set forth the reasons   for such disallowance. The determination of the state comptroller  shall   be  conclusive.  The  certificate  of the state comptroller shall not be   issued until ten days after the filing of such proof of  publication  in   the  office  of  the  state  comptroller  and  shall  be  issued  within   forty-five  days  after  such  filing.  The  certificate  of  the  state   comptroller granting an exclusion shall be effective until the first day   of  the fourth month following the close of the fiscal year in which the   application is made, except  that  where  the  application  is  made  in   connection  with a public improvement or part thereof, or service, which   has not been  in  operation  for  one  year  the  certificate  shall  be   effective until the first day of the fourth month following the close of   the  first  year  of operation. The certificate of the state comptroller   shall be executed under his hand and seal  in  duplicate.  One  of  such   certificates  shall  be filed in the department of audit and control and   the other in the office of the chief fiscal officer of such municipality   or in the office of the finance board of the district corporation.  Both   of such certificates shall be public records.k.  The  provisions  of  this  section  shall not affect or impair any   existing  exclusions  of  indebtedness,  or   the   power   to   exclude   indebtedness  granted  by  any  other  provision  of this chapter or the   constitution.