2023 New York Laws › RAT - Rapid Transit › Article 4 - Construction and Operation by the Board of Transportation › 37 - Municipal Operation; Revenue and Accounts; Operating and Other Funds.

§  37.  Municipal operation; revenue and accounts; operating and other
  funds.  a. The aggregate amount of the gross receipts of moneys  derived
  directly  or  indirectly from or in connection with the operation by the
  city of any road shall be known as the  revenue  thereof.  Such  revenue
  shall  be  derived from fares to be charged persons riding thereon; from
  rates to be charged for carrying property thereon; from rentals or  fees
  to  be  charged  for  concessions  or  privileges  thereon in connection
  therewith; from the sale of surplus power, and any other  receipts  from
  whatever source derived.
b.  The  board of transportation shall establish and maintain a system
  of accounts to show at all times the cost  of  the  several  classes  of
  property  used  in  operation  and  the  sources  of  funds  used in the
  acquisition of such property; the several classes of  operating  revenue
  and   other   income;   maintenance  expenses;  interest,  amortization,
  depreciation and all other charges against earnings. Such accounts shall
  be kept in accordance with the uniform system of accounts prescribed for
  railroads by the public service commission  or  other  duly  constituted
  authority and published in the City Record.
c.  The  revenue  derived  from all sources of income of any such road
  shall be deposited daily by the board in the name of the city  in  banks
  to  be  designated  by  the  board  of  transportation and shall be held
  separate and apart from all other funds of the  city  as  the  operating
  fund for the payment therefrom of the expenses of operation, maintenance
  and  repairs,  and  depreciation,  interest and amortization charges. An
  accurate report of all moneys  received  shall  be  made  daily  to  the
  comptroller of the city, who shall have power and whose duty it shall be
  to  audit  currently  all  the financial details of municipal operation,
  which audit shall not preclude examination of such account by any  other
  properly constituted authority. An itemized report of the result of such
  municipal   operation  shall  be  filed  each  month  by  the  board  of
  transportation with the mayor and the board of estimate.
d. From the operating fund thus derived there shall  be  deducted  the
  following  charges  in the order named and a separate accounting be made
  of each:
1.  Operating  expenses,  exclusive  of  maintenance,  including   all
  expenses for personal service, materials and supplies used in operation.
2.  Expense  of  maintenance  and repairs of structures and equipment,
  which shall be the actual cost of keeping the structures  and  equipment
  in  thoroughly  good order and repair, and shall include the replacement
  of parts of construction and parts of equipment  units,  but  shall  not
  include the renewal or replacement of any complete units of property, as
  such  units  are defined and specified from time to time by the board of
  transportation for renewal or replacement from the capital reserve fund.
3. The amount of  interest  actually  payable  by  the  city  and  the
  proportionate  annual  contributions  to  sinking fund or other funds to
  amortize and retire the bonds, corporate  stock  or  other  evidence  of
  indebtedness issued by the city on account of any road.
4.  Contributions to a depreciation fund for replacement or renewal of
  worn-out, obsolete or inadequate units of structures  or  equipment,  of
  the  amount the board of transportation shall determine is the estimated
  net loss of value, after maintenance has been applied, of such  complete
  units  of property, with due provision for obsolescence or inadequacy of
  such units.
e. The deduction for expenses of operation and  maintenance  shall  be
  made  currently  as  required,  and  the  deductions  for  depreciation,
  interest and amortization installments shall be made after the close  of
  operations  each month and shall be the monthly proportion of the annual
  amount required for such purposes.
f. In addition to the  principal  operating  fund  in  which  all  the
  revenue shall be deposited as above provided, there shall be established
  and  maintained  in  the  custody of the comptroller a separate fund and
  bank account, to be designated as the capital  reserve  fund,  to  which
  shall  actually  be  transferred  the  amounts  deducted from revenue on
  account of interest,  amortization  and  depreciation.  Any  surplus  or
  balance  which  shall  accrue  from the revenue at the end of the fiscal
  year, in excess of an amount equal to the average cost of operation  and
  maintenance  for  one  month during such fiscal year, shall also be paid
  into such capital  reserve  fund.  Such  fund  shall  be  available  for
  disbursement  in the same manner as the principal operating fund for the
  following purposes in the order specified:
1. Interest payable by the city on account of bonds or other evidences
  of indebtedness issued, and contributions to sinking  funds  established
  for the retirement thereof;
2.  Amounts  necessary  for  renewals  or  replacements  on account of
  depreciation and obsolescence.
  Any surplus accruing in the capital reserve  fund  over  and  above  the
  amounts  disbursed  for the purposes specified shall be retained in such
  fund and may be expended only for the support, installation or extension
  of such transportation facilities. All interest earnings  of  such  fund
  shall  be added to the fund. The comptroller shall make all payments out
  of the capital reserve fund, and shall report quarterly to the board  of
  estimate  the  condition  of the fund, itemized as to the amount on hand
  for interest, amortization of bonds or other evidences of  indebtedness,
  depreciation  and  surplus,  and  shall  keep the account of the fund so
  subdivided.
   g. Payments or withdrawals of moneys from the operating  fund  and  the
  capital  reserve  fund  shall  be made by checks drawn and signed by the
  comptroller upon vouchers certified by a member or  an  officer  of  the
  board  of  transportation,  duly authorized by resolution of such board,
  except that payments of interest, contributions to sinking funds and  on
  account  of retirement of bonds or other evidences of indebtedness shall
  be made by the comptroller upon his  own  initiative  as  such  payments
  become  due  and  payable,  but  a  memorandum of such payments shall be
  transmitted by the comptroller to the board of transportation for  entry
  in  the accounts thereof. The comptroller from time to time shall inform
  the  board  of  transportation  in  writing  as  to  the  amount  to  be
  periodically   deducted   from   revenue  on  account  of  interest  and
  amortization requirements, and the monthly charges and vouchers for such
  amounts shall be made in accordance with such devices.