§ 6-H — Reserve fund for payment of bonded indebtedness in counties, cities, villages, towns and fire districts

New York § 6-H

• Jurisdiction: New York
• Law GMU: General Municipal
• Art. 2: General Municipal Finances

Text

§ 6-h. Reserve fund for payment of bonded indebtedness in counties,\ncities, villages, towns and fire districts. 1. As used in this section,\nthe term "governing board," in so far as it is used in reference to a\ncounty, shall mean the board of supervisors thereof; in so far as it is\nused in reference to a city, shall mean the "local legislative body"\nthereof, as that term is defined in subdivision seven of section two of\nthe municipal home rule law, as amended from time to time; in so far as\nit is used in reference to a village, shall mean the board of trustees\nthereof; in so far as it is used in reference to a town, shall mean the\ntown board thereof; in so far as it is used in reference to a fire\ndistrict, shall mean the board of fire commissioners.\n 2. The governing board of any county, city, village, town or fire\ndistrict may by resolution adopted by a majority vote of its governing\nbody establish a reserve fund for the payment of its bonded indebtedness\nas herein described, provided, however, that such debt reserve fund\nshall not be established for, or moneys therein used to pay, any\nobligations payable in the first instance from assessments, or from\ntaxes levied upon an area in such county, city, village, town or fire\ndistrict smaller than the area of such county, city, village, town or\nfire district.\n 3. Such fund may be established for the payment of one or of several\nissues of bonds of such municipality or the purchase of the same.\n 4. There may be paid into such fund:\n a. Such an amount as may be provided therefor by budgetary\nappropriation.\n b. Such revenues as are not otherwise appropriated or required by law\nto be paid into any other fund or account.\n 5. An expenditure from such a reserve fund may only be made by\nappropriation pursuant to a resolution of the governing board of the\nmunicipal corporation or fire district establishing the same and only\nfor the payment of the principal and interest on bonds issued by such\nmunicipal corporation or fire district and forming a part of an issue\nhaving a maximum maturity of not less than five years; or for the\npurchase of bonds of such municipal corporation or fire district forming\na part of an issue having a maximum maturity of not less than five years\nat a price not to exceed the par value thereof and accrued interest to\nthe date of delivery of such bonds to such municipal corporation or fire\ndistrict, provided, however, that if any such bonds were issued subject\nto the right of such municipal corporation or fire district to redeem\nthe same prior to the maturity date thereof then such purchase may be\nmade for the redemption of such bonds at the price and on the terms\nstated in such bonds or in the proceeding authorizing the same as the\ncase may be.\n Where provision has been made in the current budget from funds other\nthan a reserve fund for the payment of the principal and interest on\nbonds or the purchase thereof, no expenditure may be made for the\npurchase or payment of the same from such a reserve fund during the\ncurrent fiscal year for which such budget was adopted.\n All expenditures from such fund as provided in this subdivision may\nonly be made by the chief fiscal officer of the municipal corporation or\nfire district establishing the same.\n Any such bonds so paid, purchased or redeemed and any interest coupons\nrepresenting unmatured interest attached thereto shall be cancelled and\ndestroyed by the chief fiscal officer of such municipal corporation or\nfire district establishing such fund who shall make a notation of such\ncancellation and destruction in the bond register of such municipal\ncorporation or fire district. Such notation shall describe each such\nbond by title, date of issue, number, denomination and date of maturity,\nand if coupons are attached thereto by number, face value and date of\nmaturity.\n 6. The governing board of a municipal corporation may, subject to a\npermissive referendum, authorize the transfer of a portion or all of\nsuch reserve to a capital reserve fund established pursuant to section\nsix-c of the general municipal law.\n The board of fire commissioners of a fire district may, subject to the\napproval of the voters at a regular or special election in such\ndistrict, in the manner provided in section one hundred seventy-nine of\nthe town law, authorize the transfer of a portion or all of such reserve\nto a capital reserve fund established pursuant to section six-g hereof.\n 7. The chief fiscal officer shall keep a separate account for each\nfund established. Such account shall show:\n a. The date and amount of each sum paid into the fund.\n b. The interest earned by such fund.\n c. The capital gains or losses resulting from the sale of investments\nof the fund.\n d. The interest or capital gains which have accrued to the fund.\n e. The amount and date of each withdrawal from the fund.\n f. The assets of the fund, indicating the cash balance therein and a\nschedule of the amounts invested. The chief fiscal officer at the\ntermination of each fiscal year shall render a detailed report of the\noperation and condition of each of such funds to the governing board.\n 8. The members of the governing board are hereby declared trustees of\nsuch funds and shall be subject to all the duties and responsibilities\nimposed by law on trustees, and such duties and responsibilities may be\nenforced by the county, city, village, town or fire district, as the\ncase may be, or by any board, commission, agency, officer or taxpayer\nthereof.\n 9. The moneys in each such fund shall be deposited and secured in the\nmanner provided by section ten of this article. The governing board or\nthe chief fiscal officer of such municipal corporation or fire district,\nif the governing board shall delegate such duty to him, may invest the\nmoneys in each such fund in the manner provided in section eleven of\nthis article. Any interest earned or capital gains realized on the\nmoneys so deposited or invested shall accrue to and become a part of\neach such fund. The separate identity of each such fund shall be\nmaintained whether its assets consist of cash, investments, or both.\n 10. The members of the governing board shall be guilty of a\nmisdemeanor if they:\n a. Authorize a withdrawal from a fund for any other purpose except as\nprovided in this section.\n b. Expend any money withdrawn from a fund for a purpose other than\nthat as provided in this section.\n 11. Notwithstanding the foregoing provisions of this section, in any\ntown which is located wholly or partly within the Adirondack park and\nhas within its boundaries state lands subject to taxation assessed at\nmore than thirty percentum of the total taxable assessed valuation of\nthe town as determined from the assessment rolls of the town, as\ncompleted from time to time, a reserve fund for the payment of bonded\nindebtedness shall not be established on and after May first, nineteen\nhundred forty-eight, unless the state comptroller, on behalf of the\nstate, shall consent thereto, and, on and after May first, nineteen\nhundred forty-eight, in any such town no expenditure or transfer from\nany such fund heretofore or hereafter established shall be made unless\nthe state comptroller, on behalf of the state, shall consent thereto.\n