2023 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, or
2. 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, and
3. 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.