§ 4. To effectuate any of the purposes of this article, the\nlegislature may authorize any city, town or village to contract\nindebtedness to an amount which shall not exceed two per centum of the\naverage assessed valuation of the real estate of such city, town or\nvillage subject to taxation, as determined by the last completed\nassessment roll and the four preceding assessment rolls of such city,\ntown or village, for city, town or village taxes prior to the\ncontracting of such indebtedness. In ascertaining the power of a city,\nor village having a population of five thousand or more as determined by\nthe last federal census, to contract indebtedness pursuant to this\narticle there may be excluded any such indebtedness if the project or\nprojects aided by guarantees representing such
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§ 4. To effectuate any of the purposes of this article, the\nlegislature may authorize any city, town or village to contract\nindebtedness to an amount which shall not exceed two per centum of the\naverage assessed valuation of the real estate of such city, town or\nvillage subject to taxation, as determined by the last completed\nassessment roll and the four preceding assessment rolls of such city,\ntown or village, for city, town or village taxes prior to the\ncontracting of such indebtedness. In ascertaining the power of a city,\nor village having a population of five thousand or more as determined by\nthe last federal census, to contract indebtedness pursuant to this\narticle there may be excluded any such indebtedness if the project or\nprojects aided by guarantees representing such indebtedness or by loans\nfor which such indebtedness was contracted shall have yielded during the\npreceding year net revenue to be determined annually by deducting from\nthe gross revenues, including periodic subsidies therefor, received from\nsuch project or projects, all costs of operation, maintenance, repairs\nand replacements, and the interest on such indebtedness and the amounts\nrequired in such year for the payment of such indebtedness; provided\nthat in the case of guarantees such interest and such amounts shall have\nbeen paid, and in the case of loans an amount equal to such interest and\nsuch amounts shall have been paid to such city or village. The\nlegislature shall prescribe the method by which the amount of any such\nindebtedness to be excluded shall be determined, and no such\nindebtedness shall be excluded except in accordance with such\ndetermination. The legislature may confer appropriate jurisdiction on\nthe appellate division of the supreme court in the judicial departments\nin which such cities or villages are located for the purpose of\ndetermining the amount of any such indebtedness to be so excluded.\n The liability of a city, town or village on account of any contract\nfor capital or periodic subsidies to be paid subsequent to the then\ncurrent year shall, for the purpose of ascertaining the power of such\ncity, town or village to contract indebtedness, be deemed indebtedness\nin the amount of the commuted value of the total of such capital or\nperiodic subsidies remaining unpaid, calculated on the basis of an\nannual interest rate of four per centum. Such periodic subsidies shall\nnot be contracted for a period longer than the life of the projects\nassisted thereby, and in no event for more than sixty years.\nIndebtedness contracted pursuant to this article shall be excluded in\nascertaining the power of a city or such village otherwise to create\nindebtedness under any other section of this constitution.\nNotwithstanding the foregoing the legislature shall not authorize any\ncity or village having a population of five thousand or more to contract\nindebtedness hereunder in excess of the limitations prescribed by any\nother article of this constitution unless at the same time it shall by\nlaw require such city or village to levy annually a tax or taxes other\nthan an ad valorem tax on real estate to an extent sufficient to provide\nfor the payment of the principal of and interest on any such\nindebtedness. Nothing herein contained, however, shall be construed to\nprevent such city or village from pledging its faith and credit for the\npayment of such principal and interest nor shall any such law prevent\nrecourse to an ad valorem tax on real estate to the extent that revenue\nderived from such other tax or taxes in any year, together with revenues\nfrom the project or projects aided by the proceeds of such indebtedness,\nshall become insufficient to provide fully for payment of such principal\nand interest in that year.\n