§ 107.00 — Down payment

New York § 107.00

• Jurisdiction: New York
• Law LFN: Local Finance
• Title 8: Limitations On the Power to Contract Indebtedness
• Art. 2: Local Indebtedness

Text

§ 107.00 Down payment. a. As used in this section the term "current\nfunds" shall include:\n 1. Budgetary appropriations for capital improvements or equipment,\nwhich appropriations have not lapsed.\n 2. The proceeds of capital notes issued for the payment of the cost of\ncapital improvements or equipment.\n 3. Revenues other than real estate taxes or assessments, which have\nbeen collected or received during a fiscal year in excess of the total\namount of such revenues as estimated for such fiscal year, and surplus\nfunds and unexpended balances, which are available to be applied toward\nthe payment of the cost of capital improvements or equipment.\n 4. Capital reserve funds established pursuant to section six-c of the\ngeneral municipal law.\n 5. The trade-in allowance received for any equipment traded in as part\nof the cost of equipment being purchased.\n Nothing herein contained shall be construed to permit the diversion of\nthe proceeds of budgetary appropriations, capital notes, or capital\nreserve funds to a purpose other than that for which such\nappropriations, capital notes, or capital reserve funds, respectively,\nwere made, issued or established.\n b. No municipality shall:\n 1. Issue bonds or bond anticipation notes for a specific capital\nimprovement or items of equipment or several specific capital\nimprovements or items of equipment or a combination thereof, or\n 2. Make expenditures for a specific capital improvement from the\nproceeds of bonds or bond anticipation notes issued for a class or\nclasses of capital improvements or from a fund into which the proceeds\nof bonds or bond anticipation notes are paid\nunless it shall have first provided from current funds a sum of money\nsufficient to pay at least five per centum of the estimated cost of each\nsuch capital improvement or such equipment. The term "estimated cost",\nas used in this paragraph, shall not include (a) the portion of the cost\nof any capital improvement which is to be paid by the United States or\nthe state of New York or which is to be paid from funds, other than\nloans, granted to such municipality therefor by the United States or the\nstate of New York, or (b) the portion of the cost of any capital\nimprovement which is to be paid by assessments upon benefited real\nproperty in an area less than the area of the municipality.\n c. 1. During the first fiscal year of a city commencing on or after\nJuly first, nineteen hundred forty-four, in which its debt-contracting\npower has been exhausted by more than fifty per centum and in which its\nnet indebtedness is in excess of one hundred twenty-five million\ndollars, such minimum percentage to be provided by such city from\ncurrent funds, as prescribed in paragraph b of this section, shall be\nincreased by nine per centum. Thereafter, during each succeeding fiscal\nyear such minimum percentage to be provided from current funds shall be\nincreased by two per centum over and above the minimum percentage\nrequired for the preceding fiscal year, notwithstanding any increase in\nthe amount of the debt-contracting power of any such city during such\nsucceeding fiscal years. For the purposes of this subdivision the term\n"current funds" shall include only budgetary appropriations for capital\nimprovements or equipment which appropriations have not lapsed, or the\nproceeds of capital notes issued for the payment of the cost of capital\nimprovements or equipment.\n 2. The term "net indebtedness" used in this paragraph shall mean the\ntotal net indebtedness as ascertained pursuant to section 138.00 of this\nchapter. The percentage of debt-contracting power exhausted shall be\ncomputed pursuant to the provisions of subdivision two of paragraph a of\nsection 140.00 of this chapter.\n d. The provisions of this section shall not apply to:\n 1. Bonds to be issued to redeem bond anticipation notes previously\nissued.\n 2. Judgments, other than for capital improvements.\n 3. The following capital improvements:\n (a) The acquisition, construction, reconstruction or equipment of or\naddition to a water supply or distribution system, whether or not\nincluding land.\n (b) A capital improvement which the finance board by resolution\nestimates will be self-sustaining.\n (c) The acquisition, construction or equipment of or addition to rapid\ntransit railroads, whether or not including land.\n (d) The acquisition, construction, reconstruction or equipment of or\naddition to electric light and power or gas plants or systems, whether\nor not including land.\n (e) The acquisition, construction, reconstruction of or addition to\ndocks, piers or wharf property, whether or not including land.\n (f) The acquisition, construction, reconstruction of or addition to a\nbridge or a tunnel and the approaches thereto, whether or not including\nland, the cost of which is estimated to exceed ten million dollars.\n (g) A capital improvement, the cost of which is estimated to exceed\ntwenty million dollars.\n (h) A capital improvement, the cost of which is estimated to exceed\none million dollars and part of which cost is to be paid by assessments\nupon benefited real property in an area less than the area of the\nmunicipality.\n (i) A capital improvement, of which at least fifty per centum of the\ncost is to be paid by assessments upon benefited real property in an\narea less than the area of the municipality, whether or not the cost of\nsuch improvement is estimated to be in excess of one million dollars.\n (j) A capital improvement or the acquisition of equipment, when\nnecessitated by some destructive agency or to prevent the happening of a\ncalamity. The finance board, shall, by a four-fifths vote of its voting\nstrength, determine when such an emergency exists. The determination of\nthe finance board as to the existence of such an emergency shall be\nconclusive.\n (k) The construction, reconstruction and equipment of city hospitals\nand schools, whether or not including land, if the bonds authorized for\nany such object or purpose shall have a maximum maturity not to exceed\none-half of the maximum period of probable usefulness for any such\nobject or purpose prescribed in paragraph a of section 11.00 of this\nchapter. Such maximum maturity shall be computed from the date of the\nbonds or the date of the first bond anticipation note issued in\nanticipation of such bonds, whichever date is the earlier, and shall not\nexceed fifteen years in any event.\n (l) The acquisition, construction, reconstruction, or equipment of or\naddition to facilities for the conveyance, treatment and disposal of\nsewage, whether or not including land.\n (m) The cost of the preparation, pursuant to section ninety-nine-d of\nthe general municipal law, of surveys, preliminary plans and detailed\nplans, specifications and estimates necessary for planning for a capital\nimprovement which it is contemplated might be undertaken in the future.\n 4. The financing by any municipality of any object or purpose, if the\nbonds authorized for any such object or purpose shall have a maximum\nmaturity not to exceed one-half of the maximum period of probable\nusefulness. Such maximum maturity shall be computed from the date of the\nbonds or the date of the first bond anticipation note issued in\nanticipation of such bonds, whichever date is the earlier, and shall not\nexceed fifteen years in any event.\n 5. The financing by any municipality of any object or purpose which\nhas a period of probable usefulness of five years, or less, as\nprescribed in paragraph a of section 11.00 of this chapter.\n 6. The financing by any municipality of any urban renewal program or\npart thereof having a period of probable usefulness determined pursuant\nto subdivision forty-one-a of section 11.00 of this chapter.\n 7. The financing by any municipality of any object or purpose which\nhas a period of probable usefulness prescribed in subdivision forty-one\nor subdivision forty-one-b of paragraph a of section 11.00 of this\nchapter.\n 8. Notwithstanding any other provision of law, the financing by the\ncity of New York prior to July first, two thousand twenty-six of any\nobject or purpose which has a period of probable usefulness determined\nby law by the issuance of any bonds or notes, including (i) the issuance\nof bonds or notes to obtain reimbursement for funds heretofore advanced\nfor the object or purpose for which the bonds or notes are being issued,\n(ii) the issuance of bonds or notes to redeem notes previously issued\nfor the object or purpose for which the bonds or notes are being issued\nor (iii) the issuance of bonds to refund bonds previously issued for the\nobject or purpose for which bonds are being issued.\n 9. Notwithstanding any other provision of law, the financing by any\nmunicipality, prior to July fifteenth, two thousand twenty-seven, of any\nobject or purpose which has a period of probable usefulness determined\nby law, by the issuance of any bonds and notes, including (i) the\nissuance of bonds or notes, to redeem notes previously issued for the\nobject or purpose for which the bonds or notes are being issued or (ii)\nthe issuance of bonds to refund bonds previously issued for the object\nor purpose for which bonds are being issued.\n