2023 New York Laws › LFN - Local Finance › Article 2 - Local Indebtedness › Title 8 - Limitations on the Power to Contract Indebtedness › 104.10 - Additional Limitations on the Power to Contract Indebtedness.

§ 104.10 Additional limitations on the power to contract indebtedness.
In  addition  to  the  other limitations of this chapter on the power to
contract indebtedness:
1. Any municipality, school district or district corporation shall  be
subject   to  the  limitations  contained  in  any  law  requiring  such
municipality, school district or district corporation to adopt,  whether
or  not  as a part of an annual budget, a budget of the capital projects
which it may undertake, continue, complete or acquire during the  twelve
months' period for which such budget is adopted.
2.  Any county operating under an alternative form of government which
provides for the establishment of a county debt commission may establish
such a commission for the regulation,  pursuant  to  such  law,  of  the
contracting  of  indebtedness by such county and the units of government
within such county.
3. Any town which
(a) Is wholly or partly within the Adirondack park, and
(b) Has within its boundaries state lands subject to taxation assessed
at more than thirty per centum of the total taxable  assessed  valuation
of  such  town  as  determined from the assessment rolls of the town, as
completed  from  time  to  time,  shall  not  issue  its   bonds,   bond
anticipation  notes,  capital  notes  or budget notes if by doing so the
amount  of  its  outstanding  indebtedness  evidenced  by  bonds,   bond
anticipation  notes,  capital  notes,  budget  notes and certificates of
indebtedness, plus  the  amount  of  the  indebtedness  proposed  to  be
incurred, shall exceed five percent of such town's revenues for the last
year the state comptroller has such data or one hundred thousand dollars
whichever  is  the  lesser;  provided,  however, such obligations may be
issued originally by any such town upon the duly  verified  petition  of
the  owners  of  at  least  sixty-five  per  centum  of the taxable real
property therein, as such real property appears on  the  last  preceding
completed  assessment-roll  of such town, or upon the certificate of the
state comptroller consenting, on behalf of the state,  to  the  original
issuance of such obligations. For the purposes of any such petition, the
state  comptroller may act on behalf of the state. The state comptroller
shall annually calculate the dollar amount equal to five percent of such
town's total revenue for the last year the comptroller has such data  on
file.  Such  bonds  shall be refunded only pursuant to the provisions of
section 90.00 or 90.10 of this chapter. Such  bond  anticipation  notes,
capital  notes  and  budget notes may be renewed as provided in sections
23.00, 28.00 and 29.00 of this chapter, respectively. The consent of the
state comptroller shall not be required under this  subdivision  in  any
such  town  in  connection  with  the  issuance  of  obligations for the
purposes of an improvement district if they  are  issued  in  accordance
with the statement of the proposed manner of financing an improvement as
set  forth  in  an application to the state comptroller made pursuant to
section one hundred ninety-four of the town law and in  compliance  with
the  terms  or conditions, if any, of the order of the state comptroller
made pursuant to such section.  Likewise,  such  consent  shall  not  be
required  under  this  subdivision  in  connection  with the issuance of
obligations for the purpose  of  financing  an  expenditure  in  a  town
improvement  district  where  the  expenditure  has been approved by the
state comptroller.
4. Any town which, without first obtaining the permission of the state
comptroller, shall have established or extended an improvement  district
prior  to  September  first, nineteen hundred forty-five, or which shall
establish  or  extend  any  such  district  after  August  thirty-first,
nineteen   hundred   forty-five,   shall   not  issue  its  bonds,  bond
anticipation notes or  capital  notes  for  the  purposes  of  any  such

district  or  extension,  except for improvements undertaken pursuant to
sections one hundred ninety-nine, two hundred two-b of the town law, and
section 222.5 of the Nassau county civil divisions act, and except  when
the  cost  of  the  district or extension to the typical property or, if
different, the cost to the typical one or two family home is  not  above
the  average  cost  threshold  as  may be annually computed by the state
comptroller pursuant to section one hundred ninety-four or  two  hundred
nine-f  of  the  town  law, unless it secure the permission of the state
comptroller, granted upon a written application signed and  verified  by
the supervisor or such other officer of the town as the town board shall
determine. Any such application shall include:
(a)  A certified copy of the petition for the creation of the district
(omitting, however, the signatures and acknowledgements or proofs);
(b) An itemized statement of the then outstanding indebtedness of  the
town  for  all  purposes as evidenced by bonds, bond anticipation notes,
capital notes  and  budget  notes;  the  amount  of  joint  indebtedness
contracted  or  incurred for a joint service or a joint water, sewage or
drainage project and the  amount  of  such  indebtedness  allocated  and
apportioned  to the town, as defined in title one-a of the local finance
law; the amount of the indebtedness proposed to be  contracted  for  the
improvement;  the  amount of budgetary appropriations for the payment of
any such indebtedness, whether or  not  such  appropriations  have  been
realized  as  cash,  and  the  amounts,  purposes  and probable dates of
issuance of any bonds, bond anticipation notes, capital notes and budget
notes which the town has authorized to be issued but which in fact  have
not been issued on the date of such application;
(c)  A  statement  of  the  aggregate  assessed  valuation of the real
property in the district, as such assessed valuations are shown  on  the
last  completed  assessment  roll  of the town prior to the date of such
application; and
(d) A statement of the average full  valuation  of  the  taxable  real
property of the town. Such average full valuation shall be determined by
taking  the  assessed valuation of the taxable real property of the town
as it appears on  the  assessment  roll  of  the  town  which  was  last
completed  prior  to the date of the application, and such valuations as
they appear on each of the four preceding rolls; dividing the amount for
each such roll by the equalization  rate  established  for  it  for  the
assessment  of  special  franchises  by  the  state  officer  or  agency
authorized to establish such rates; adding the quotients thus  obtained,
and dividing the sum thereof by five; and
(e) A certified copy of the resolution authorizing the issuance of the
obligations in connection with which the application is made.
The  state comptroller in his discretion may require the submission of
additional information  in  such  form  and  detail  as  he  shall  deem
sufficient,  or  may  cause  an  investigation to be made, to aid him in
making the determinations herein required. Any such application  may  be
amended prior to any final determination. If the state comptroller shall
determine  (1)  that  the  issuance of the obligations will not cause an
undue burden upon the property of the district, and (2) that  amount  of
the  indebtedness  of  the  town for all purposes as evidenced by bonds,
bond anticipation notes, capital notes and budget notes, plus the amount
of  the  indebtedness  proposed  to  be  incurred  for  the  improvement
district, less the amount of budgetary appropriations for the payment of
any  such  indebtedness,  whether  or  not such appropriations have been
realized as cash, as of the date of the application filed with the state
comptroller, will not exceed fifteen per  centum  of  the  average  full
valuation  of  the taxable real property of the town he shall grant such
application; otherwise, it shall be denied. Such average full  valuation

shall  be  determined in the manner provided in this subdivision. If any
such application shall be granted by the state comptroller, it shall not
be necessary to apply to the state comptroller under the  provisions  of
subdivision three of this section for his consent to the issuance of the
obligations   described   in  the  application  made  pursuant  to  this
subdivision. There shall be excluded from the amount of indebtedness  to
be  considered by the state comptroller in making such determination any
indebtedness  allocated  or  apportioned  or   proposed   by   all   the
participating  municipal  corporations to be allocated or apportioned to
any municipal corporation other than such town in  accordance  with  the
provisions of section 15.10 of the local finance law.
5.  Any  town,  in  any  county  now  or  hereafter operating under an
optional form of government, shall not let any  contract  or  incur  any
indebtedness  whatsoever for any capital improvement for any improvement
district therein for which such town intends to issue obligations unless
it shall have first secured the consent of the  finance  board  of  such
county  to  the  issuance  of  such  obligations. Whenever any such town
intends to issue obligations for such a  purpose,  it  shall  present  a
petition  to  the  finance  board  of  such  county,  setting  forth the
improvement proposed and the amounts and type or types of obligations to
be issued and requesting the approval of such county for the issuance of
the obligations. The finance board of  such  county  within  sixty  days
after  the  presentation  of  such petition, by resolution, shall either
approve or disapprove of the issuance  of  such  obligations  and  shall
forward  a  certified  copy of such resolution to the town board of such
town.
6. Any fire district which is situated in whole or in part in  a  town
which  is wholly or partly within the Adirondack park and has within the
town boundaries state lands subject to taxation assessed  at  more  than
thirty per centum of the total taxable assessed valuation of the town as
determined from the assessment rolls of the town, as completed from time
to  time,  shall  not  issue its bonds, bond anticipation notes, capital
notes or  budget  notes  if  by  doing  so  the  amount  of  outstanding
indebtedness  evidenced  by bonds, bond anticipation notes, budget notes
and certificates of indebtedness, plus the amount  of  the  indebtedness
proposed  to  be  incurred  shall exceed five percent of such district's
revenues for the last year the comptroller has such data or one  hundred
thousand  dollars  whichever is the lesser unless the state comptroller,
on behalf of the state, shall consent thereto.
7. The total amount of bonds or capital notes which may be  authorized
in  any  fiscal  year  of  the municipal corporation, school district or
district corporation to finance advance  planning  pursuant  to  section
ninety-nine-d  of the general municipal law shall not exceed the maximum
amount of budget notes which it may  issue  in  such  year  pursuant  to
subdivision  two  or  three  of  paragraph  a  of  section 29.00 of this
chapter, as the case may be, provided, however, that for the purposes of
this subdivision, amounts which are to be paid  in  the  first  instance
from  improvement  district  assessments  shall be included in computing
"the amount of the annual budget" of a town or a  county  in  accordance
with section 29.00 of this chapter.