§ 15.10 — Allocation of indebtedness

New York § 15.10

• Jurisdiction: New York
• Law LFN: Local Finance
• Title 1-A: Indebtedness Relative to Municipal Cooperative Activities
• Art. 2: Local Indebtedness

Text

§ 15.10 Allocation of indebtedness. a. Several indebtedness and joint\nindebtedness contracted or incurred for a joint service or a joint\nwater, sewage or drainage project shall be included as gross\nindebtedness in the debt statement of the municipal corporation or\nmunicipality which has contracted or incurred such indebtedness, except\nthat such indebtedness contracted or incurred by a school district,\nother than a school district in a city, shall not be included unless it\nis evidenced by bonds or bond anticipation notes or is included as\nindebtedness of a merged or annexed school district pursuant to section\n121.00 of this chapter.\n b. The amount of joint indebtedness which is to be included as gross\nindebtedness in the debt statement of a participating municipal\ncorporation or municipality shall not exceed the amount of such\nindebtedness allocated and apportioned to such municipal corporation in\nthe bond resolution or note resolution authorizing such indebtedness to\nbe contracted. In the case of other joint indebtedness for such a joint\nservice or joint water, sewage or drainage project arising out of real\nproperty liabilities and contract liabilities, the amount thereof to be\nincluded as gross indebtedness in a debt statement of a participating\nmunicipal corporation or municipality shall not exceed the amount of\nsuch indebtedness required to be allocated and apportioned to such\nmunicipal corporation in the agreement of the participating municipal\ncorporations in relation to such joint service. Where the agreement does\nnot provide for any such allocation and apportionment, or in the case of\ninvoluntary joint indebtedness, the amount to be allocated and\napportioned to a participating municipal corporation or municipality\nshall be in the same proportion as the full valuation of the real estate\nsubject to taxation or assessment for such joint service or joint water,\nsewage or drainage project by such municipal corporation or municipality\nbears to the full valuation of the real estate subject to taxation or\nassessment by all of the participating municipal corporations or\nmunicipalities for such joint service or project. Full valuations shall\nbe determined by applying to the latest assessed valuation the\nappropriate state equalization rate established on the same period price\nlevel. Where such rate has not been established on the same period price\nlevel for all participants, application may be made to the commissioner\nof taxation and finance for the establishment of a special rate or rates\nas so required and the commissioner shall have power to establish the\nsame, which special rate or rates shall then be used. The amounts of\njoint indebtedness so allocated and apportioned shall not exceed in the\naggregate the total amount of such joint indebtedness.\n c. The agreement between the participating municipal corporations and\nmunicipalities may provide for apportionment and allocation of joint\nindebtedness on a ratio of full valuations of real property or on a\nbasis of the amount of services rendered or to be rendered, or benefits\nreceived or conferred or to be received or conferred, or on any other\nequitable basis.\n d. Any allocation and apportionment of joint indebtedness which has\nbeen contracted or incurred or which is proposed to be contracted or\nincurred shall be conclusive if made or approved by the state\ncomptroller. The application to the state comptroller for any such\nallocation and apportionment may be made on behalf of the participating\nmunicipal corporations or municipalities by the finance boards thereof\nacting jointly or by the chief fiscal officers thereof acting jointly\nupon the direction of such finance boards, or by the finance board of\nany such participating municipal corporation or municipality or the\nchief fiscal officer thereof upon the direction of such finance board.\nThe application shall be verified by the finance board or boards or by\nthe chief fiscal officer or officers making the application. It shall be\nin such form and shall contain such information as shall be prescribed\nby the state comptroller. If the application is not made by the finance\nboards or by the chief fiscal officers of all of the participating\nmunicipal corporations or municipalities, written notice of such\napplication shall be given to the chief fiscal officer of any other\nparticipating municipal corporation or municipality prior to the filing\nof the application with the state comptroller.\n e. If the application to the state comptroller is for the allocation\nor apportionment of existing or proposed indebtedness exceeding one\nhundred thousand dollars in amount, then within five days after the\nfiling of such application with the state comptroller, the chief fiscal\nofficer or chief fiscal officers of the applicant or applicants shall\ncause a notice to be published that such application has been filed with\nthe state comptroller. Such notice shall be published in accordance with\nthe provisions of paragraph c of section 15.20 of this chapter. The\nnotice also shall contain a description of the existing or proposed\nindebtedness sought to be allocated and apportioned and the nature of\nthe joint service or joint water, sewage or drainage project in relation\nto which such existing or proposed indebtedness is to be contracted or\nincurred. Proof of publication of such notice shall be filed in the\noffice of the state comptroller. A copy of the application and of all\ndata and information which will be submitted to the state comptroller in\nsupport of such application shall be filed in the office or offices of\nsuch chief fiscal officer or chief fiscal officers and shall be public\nrecords.\n f. After the filing of the application, the state comptroller shall\nreview the facts set forth therein. Notwithstanding the provisions of\nparagraph e of this section, the state comptroller may require notice of\nthe application to be published in any such proceeding. The state\ncomptroller shall have power to examine the accounts and records of the\nmunicipal corporations or municipalities with respect to the joint\nservice or joint water, sewage or drainage project concerning which the\napplication is made. He may also require the chief fiscal officer and\nother public officers, boards and agencies of the municipal corporations\nor municipalities involved to furnish such additional data and\ninformation in their possession as he deems necessary to enable him to\nmake his determination.\n g. The state comptroller shall issue a written certificate setting\nforth his determination as to how such existing or proposed indebtedness\nshould be allocated and apportioned. The certificate of the state\ncomptroller shall not be issued until ten days after the filing of such\napplication or proof of publication of the notice of such application,\nwhichever date is the later, and the certificate shall be issued within\nforty-five days after such filing. The certificate of the state\ncomptroller shall be executed under his hand and seal. Such certificate\nshall be filed in the department of audit and control and duplicate\ncertificates shall be executed under the hand and seal of the state\ncomptroller and filed in the offices of the chief fiscal officers of\neach of the participating municipal corporations or municipalities.\n