2023 New York Laws › LFN - Local Finance › Article 2 - Local Indebtedness › Title 2 - Local Obligations: Types Thereof › 26.10 - Temporary Alternative Methods of Financing Storm Relief Expenses.

§  26.10  Temporary  alternative  methods  of  financing  storm relief
  expenses.  a.  Definitions.  As  used  in  this   section,   the   terms
  "extraordinary   expenses  of  storm  relief"  and  "such  extraordinary
  expenses"  shall  mean  expenses  incurred  by  a  municipality,  school
  district  or  district  corporation before the first day of January, two
  thousand fourteen, for storm  relief  projects  necessitated  by  damage
  caused  by the storm commonly known as Sandy on or shortly after October
  twenty-ninth, two thousand twelve.  The  term  "storm  relief  projects"
  shall  mean  the  repair  or  reconstruction  of  public  thoroughfares,
  buildings, places, and projects of such municipality, school district or
  district corporation, in excess of the normal expenses which would  have
  been incurred for such purposes during such periods as determined by the
  finance   board  of  such  municipality,  school  district  or  district
  corporation. In making any such determination, the finance  board  shall
  not  include  as  a part of such extraordinary expenses the salaries and
  wages of regular employees, except for overtime work and work on Sundays
  and holidays. Such  extraordinary  expenses  may  include  any  interest
  payments  on  revenue  anticipation  notes issued in anticipation of the
  receipt of moneys from the state or federal  government  on  account  of
  such storm pursuant to any state or federal disaster relief act.
b.  The  financing  of storm relief expenses by the issuance of serial
  bonds.
1. The finance board of a municipality, school  district  or  district
  corporation  may  authorize  the  issuance  of serial bonds on or before
  December thirty-first two thousand thirteen to provide for  the  payment
  of  all  or  part  of  the  extraordinary  expenses  of storm relief, to
  reimburse any fund or account of the issuer from  which  moneys  to  pay
  such  extraordinary expenses have been advanced or to replenish any fund
  or account of the issuer from which  such  extraordinary  expenses  have
  been  paid,  or  any  combination of such purposes, notwithstanding that
  there may have been lack of statutory authority for any such advance  or
  payment  from such fund or account. The period of probable usefulness of
  such objects or purposes shall be five  years.  Any  such  serial  bonds
  shall  have  a maximum maturity of over two years, but the date of final
  maturity of any such issue shall not extend beyond the thirty-first  day
  of December, two thousand eighteen.
2.  No  provision of subdivision one of this paragraph shall be deemed
  to prohibit the issuance of serial bonds for the  purpose  of  financing
  any portion of such extraordinary expenses described in such subdivision
  which  heretofore  have  been  or  hereafter  shall  be  financed by the
  issuance of budget notes or for the purpose of redeeming any such notes.
3. Except as provided in this section, such serial bonds and any  bond
  anticipation  notes  in  anticipation thereof, shall be authorized, sold
  and issued in the manner provided by this chapter. Any bond anticipation
  notes issued in anticipation of such bonds shall,  for  the  purpose  of
  determining  the  power  of  the  issuer to contract indebtedness and to
  raise taxes upon real estate, be deemed to be serial bonds of  an  issue
  having  a  maximum  maturity  of  more  than  two  years as described in
  paragraph A of section five and in section ten of article eight  of  the
  state  constitution  and  for  the  purposes of (1) subdivision one-a of
  section 136.00 of this chapter, (2) section two hundred thirty-three  of
  the county law, (3) section 5-514 of the village law, (4) any general or
  special  law  applicable to counties, cities, villages, school districts
  or district corporations which relates to the raising of taxes  on  real
  estate  to  provide for the payment of the interest on and the principal
  of indebtedness, and (5) all laws relating  to  the  financial  reports,
  debt  statements  and  real  estate  tax  margin  computations  of  such
  municipalities, school districts or  district  corporations.  The  chief

  fiscal   officer  of  any  municipality,  school  district  or  district
  corporation issuing or  renewing  such  bond  anticipation  notes  shall
  immediately  after  the  issuance  or  renewal  thereof notify the state
  comptroller  of  such  issuance  or  renewal.  The state comptroller may
  prescribe the form of any such notice and shall furnish  such  forms  to
  municipalities,  school  districts  and  district  corporations  for the
  purpose of making any such report.
4. Capital notes may not be issued to finance any  object  or  purpose
  for  which  serial  bonds  are  authorized to be issued pursuant to this
  paragraph. The provisions of this paragraph shall not affect  the  power
  of  any  municipality, school district or district corporation described
  in paragraph a of this section to  finance  all  or  part  of  any  such
  extraordinary  expenses  pursuant  to the provisions of section 29.00 of
  this chapter and paragraph c of this section.
5. Section 104.10 of this chapter shall not be applicable in  relation
  to,  or  as the result of, the adoption of a bond resolution authorizing
  the issuance of serial bonds pursuant to this paragraph. The  provisions
  of  section 10.00, paragraph a of section 21.00 and any other section of
  this chapter, or the provisions of any general, special  or  local  law,
  which  would  restrict,  limit  or  prohibit  the issuance of such bonds
  (except those enacted to conform with the state  constitution)  are,  to
  the  extent  that  this  section  is  utilized by a municipality, school
  district or district corporation, suspended and made ineffective insofar
  as necessary to effectuate the purposes of this section.
c. The financing of storm relief expenses by the  issuance  of  budget
  notes.  1. If any municipality or school district described in paragraph
  a of this section has heretofore issued budget  notes  pursuant  to  the
  provisions  of  subdivision two or three of paragraph a of section 29.00
  of this chapter to provide for the payment of extraordinary expenses  of
  storm  relief, the finance board, by resolution, may determine that such
  notes shall be deemed to have been issued pursuant to the provisions  of
  subdivision  one  of  paragraph a of such section and that such notes so
  issued shall not thereafter be considered in determining  the  power  of
  such  municipality  or school district to issue budget notes pursuant to
  such subdivision two or three.
2. If  any  municipality,  school  district  or  district  corporation
  described  in  paragraph  a of this section has heretofore issued budget
  notes pursuant to the provisions of subdivision one,  two  or  three  of
  paragraph  a,  or  paragraph  b,  of  section  29.00 of this chapter, to
  provide for the payment of extraordinary expenses of storm  relief,  the
  finance  board  may determine that the provisions of paragraph j of such
  section shall not be applicable in relation  to  the  maturity  of  such
  notes  and (a) that such notes shall mature in equal annual installments
  in two different fiscal years, but the  final  maturity  of  such  notes
  shall  not extend beyond the close of the second fiscal year immediately
  succeeding the year of their issue, or  (b)  if  the  fiscal  procedures
  applicable to such municipality, school district or district corporation
  will  enable  the necessary budgetary appropriations for debt service to
  be made and such appropriations to become  available,  that  such  notes
  shall  mature  in  three  equal  annual  installments in three different
  fiscal years, but the final maturity of any such notes shall not  exceed
  three  years in accordance with the provisions of paragraph a of section
  11.00 of this chapter which prescribes a period of  probable  usefulness
  of  three  years  for  objects  or  purposes financed by the issuance of
  budget notes. Such budget notes  which  mature  in  three  equal  annual
  installments,  as  aforesaid,  shall, for the purpose of determining the
  power of the issuer to contract indebtedness and to raise taxes on  real
  estate,  be  deemed  to  be  serial  bonds  of an issue having a maximum

  maturity of more than two years as described in paragraph A  of  section
  five  and  in section ten of article eight of the state constitution and
  for the purposes of (1)  paragraph  one-a  of  section  136.00  of  this
  chapter,  (2)  section  two  hundred thirty-three of the county law, (3)
  section 5-514 of the  village  law,  (4)  any  general  or  special  law
  applicable  to  counties, cities, villages, school districts or district
  corporations which relates to the raising of taxes  on  real  estate  to
  provide  for  the  payment  of  the  interest  on  and  the principal of
  indebtedness, and (5) all  laws  relating  to  financial  reports,  debt
  statements   and   real   estate   tax   margin   computations  of  such
  municipalities,  school  districts  or  district  corporations.  If  the
  finance  board  determines  that such budget notes shall mature in three
  equal annual installments, as aforesaid, the  chief  fiscal  officer  of
  such  municipality,  school district or district corporation immediately
  after the adoption of the resolution  making  such  determination  shall
  file  a  copy  of  the  resolution  with the state comptroller and shall
  immediately after the issuance or renewal of such notes notify the state
  comptroller of such issuance  or  renewal.  The  state  comptroller  may
  prescribe  the  form  of any such notice and shall furnish such forms to
  municipalities,  school  districts  or  district  corporations  for  the
  purpose of making any such report.
3.  Notwithstanding  any  of  the  provisions of section 29.00 of this
  chapter, the finance board  of  a  municipality  or  a  school  district
  described  in  paragraph a of this section may authorize the issuance of
  budget notes pursuant to subdivision one of paragraph a, or, in the case
  of a municipality, paragraph b of such section 29.00 of this chapter  to
  provide  for the payment of all or part of the extraordinary expenses of
  storm relief, to reimburse any fund or account of  the  municipality  or
  school  district  from  which  moneys to pay such extraordinary expenses
  have  been  advanced  or  to  replenish  any  fund  or  account  of  the
  municipality  or  school district from which such extraordinary expenses
  have been paid, or any combination  of  such  purposes,  notwithstanding
  that  there  may  have  been  lack  of  statutory authority for any such
  advance or payment from such fund or  account.  The  finance  board  may
  determine that such notes may mature in the manner provided in paragraph
  j  of  section  29.00  of  this  chapter,  or,  if the fiscal procedures
  applicable to such municipality  or  school  district  will  enable  the
  necessary  budgetary appropriations for debt service to be made and such
  appropriations to become available, that such notes shall mature in  two
  equal  annual  installments in two different fiscal years, but the final
  maturity of such notes shall not extend beyond the close of  the  second
  fiscal year immediately succeeding the year of their issue.
4.  The provisions of subdivision four of paragraph c of section 40.00
  of this chapter and of  any  other  section  of  this  chapter  and  the
  provisions  of  any  general, special or local law which would restrict,
  limit or prohibit the renewal  of  budget  notes  as  provided  in  this
  paragraph (except those enacted to conform with the state constitution),
  are,  to  the  extent  that  this section is utilized by a municipality,
  school district or district corporation, suspended and made  ineffective
  insofar  as  necessary  to  effectuate  the objects and purposes of this
  section.
d. Separability. If any clause, sentence, subdivision,  paragraph,  or
  part  of this section be adjudged by any court of competent jurisdiction
  to be invalid, such judgment shall not affect, impair or invalidate  the
  remainder thereof, but shall be confined in its operation to the clause,
  sentence,  subdivision,  paragraph, or part thereof directly involved in
  the controversy in which such judgment shall have been rendered.