2006 New York Code - Ascertainment of debt-incurring power of counties, cities, towns and villages; certain indebtedness to be excluded.

 
    §  5.  In ascertaining the power of a county, city, town or village to
  contract indebtedness, there shall be excluded:
    A. Certificates or other  evidences  of  indebtedness  (except  serial
  bonds  of  an  issue  having  a maximum maturity of more than two years)
  issued for purposes other than the financing of capital improvements and
  contracted to be redeemed in one of the  two  fiscal  years  immediately
  succeeding  the year of their issue, and certificates or other evidences
  of indebtedness issued in any fiscal year in  anticipation  of  (a)  the
  collection  of  taxes  on  real  estate for amounts theretofore actually
  levied and uncollected or to be levied in such year and payable  out  of
  such  taxes, (b) moneys receivable from the state which have theretofore
  been apportioned by the state or which are to be so  apportioned  within
  one year after their issue and (c) the collection of any other taxes due
  and  payable  or  to  become due and payable within one year or of other
  revenues to be received within one year after their issue; excepting any
  such certificates or other evidences of indebtedness or renewals thereof
  which are not retired within five years after  their  date  of  original
  issue.
    B.  Indebtedness heretofore or hereafter contracted to provide for the
  supply of water.
    C. Indebtedness heretofore or  hereafter  contracted  by  any  county,
  city,  town  or  village  for  a  public improvement or part thereof, or
  service, owned or rendered  by  such  county,  city,  town  or  village,
  annually  proportionately to the extent that the same shall have yielded
  to such county, city, town or village net  revenue;  provided,  however,
  that  such  net  revenue  shall be twenty-five per centum or more of the
  amount required in such  year  for  the  payment  of  the  interest  on,
  amortization  of, or payment of, such indebtedness. Such exclusion shall
  be granted only if the revenues  of  such  public  improvement  or  part
  thereof, or service, are applied to and actually used for payment of all
  costs  of operation, maintenance and repairs, and payment of the amounts
  required in such year for interest on and amortization of or  redemption
  of  such  indebtedness, or such revenues are deposited in a special fund
  to be used solely for such payments. Any revenues remaining  after  such
  payments  are  made  may  be used for any lawful purpose of such county,
  city, town or village, respectively.
    Net revenue shall be determined by deducting from  gross  revenues  of
  the  preceding  year all costs of operation, maintenance and repairs for
  such year, or the legislature may provide  that  net  revenue  shall  be
  determined by deducting from the average of the gross revenues of not to
  exceed  five  of the preceding years during which the public improvement
  or part thereof, or service, has been in operation, the average  of  all
  costs of operation, maintenance and repairs for the same years.
    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  such  public
  improvement  or  part  thereof,  or  service,  through the first year of
  operation of such public improvement or part thereof, or  service.  Such
  exclusion  shall  be  computed in the manner provided in this section on
  the basis  of  estimated  net  revenue  which  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.


    Except  as  otherwise provided herein, the legislature shall prescribe
  the method by which  and  the  terms  and  conditions  under  which  the
  proportionate amount of any such indebtedness to be so excluded shall be
  determined  and  no  proportionate  amount of such indebtedness shall be
  excluded  except  in accordance with such determination. The legislature
  may provide that the state comptroller shall make such determination  or
  it  may confer appropriate jurisdiction on the appellate division of the
  supreme court in  the  judicial  departments  in  which  such  counties,
  cities, towns or villages are located for the purpose of determining the
  proportionate amount of any such indebtedness to be so excluded.
    The  provisions  of  this  paragraph  C shall not affect or impair any
  existing  exclusions  of  indebtedness,  or   the   power   to   exclude
  indebtedness, granted by any other provision of this constitution.
    D. Serial bonds, issued by any county, city, town or village which now
  maintains  a  pension  or  retirement  system or fund which is not on an
  actuarial reserve basis with current payments to the reserve adequate to
  provide for all current  accruing  liabilities.  Such  bonds  shall  not
  exceed  in the aggregate an amount sufficient to provide for the payment
  of the liabilities of such system  or  fund,  accrued  on  the  date  of
  issuing such bonds, both on account of pensioners on the pension roll on
  that  date and prospective pensions to dependents of such pensioners and
  on account of prior service of active members of such system or fund  on
  that date. Such bonds or the proceeds thereof shall be deposited in such
  system  or  fund.  Each  such  pension  or  retirement  system  or  fund
  thereafter shall be  maintained  on  an  actuarial  reserve  basis  with
  current  payments  to  the  reserve  adequate to provide for all current
  accruing liabilities.
    E. Indebtedness contracted on or after January first, nineteen hundred
  sixty-two and prior to January first, two  thousand  fourteen,  for  the
  construction   or  reconstruction  of  facilities  for  the  conveyance,
  treatment and disposal of sewage. The legislature  shall  prescribe  the
  method  by  which and the terms and conditions under which the amount of
  any such indebtedness to be excluded shall be determined,  and  no  such
  indebtedness   shall   be   excluded  except  in  accordance  with  such
  determination.