§ 26.10 — Temporary alternative methods of financing storm relief expenses

New York § 26.10

• Jurisdiction: New York
• Law LFN: Local Finance
• Title 2: Local Obligations: Types Thereof
• Art. 2: Local Indebtedness

Text

§ 26.10 Temporary alternative methods of financing storm relief\nexpenses. a. Definitions. As used in this section, the terms\n"extraordinary expenses of storm relief" and "such extraordinary\nexpenses" shall mean expenses incurred by a municipality, school\ndistrict or district corporation before the first day of January, two\nthousand fourteen, for storm relief projects necessitated by damage\ncaused by the storm commonly known as Sandy on or shortly after October\ntwenty-ninth, two thousand twelve. The term "storm relief projects"\nshall mean the repair or reconstruction of public thoroughfares,\nbuildings, places, and projects of such municipality, school district or\ndistrict corporation, in excess of the normal expenses which would have\nbeen incurred for such purposes during such periods as determined by the\nfinance board of such municipality, school district or district\ncorporation. In making any such determination, the finance board shall\nnot include as a part of such extraordinary expenses the salaries and\nwages of regular employees, except for overtime work and work on Sundays\nand holidays. Such extraordinary expenses may include any interest\npayments on revenue anticipation notes issued in anticipation of the\nreceipt of moneys from the state or federal government on account of\nsuch storm pursuant to any state or federal disaster relief act.\n b. The financing of storm relief expenses by the issuance of serial\nbonds.\n 1. The finance board of a municipality, school district or district\ncorporation may authorize the issuance of serial bonds on or before\nDecember thirty-first two thousand thirteen to provide for the payment\nof all or part of the extraordinary expenses of storm relief, to\nreimburse any fund or account of the issuer from which moneys to pay\nsuch extraordinary expenses have been advanced or to replenish any fund\nor account of the issuer from which such extraordinary expenses have\nbeen paid, or any combination of such purposes, notwithstanding that\nthere may have been lack of statutory authority for any such advance or\npayment from such fund or account. The period of probable usefulness of\nsuch objects or purposes shall be five years. Any such serial bonds\nshall have a maximum maturity of over two years, but the date of final\nmaturity of any such issue shall not extend beyond the thirty-first day\nof December, two thousand eighteen.\n 2. No provision of subdivision one of this paragraph shall be deemed\nto prohibit the issuance of serial bonds for the purpose of financing\nany portion of such extraordinary expenses described in such subdivision\nwhich heretofore have been or hereafter shall be financed by the\nissuance of budget notes or for the purpose of redeeming any such notes.\n 3. Except as provided in this section, such serial bonds and any bond\nanticipation notes in anticipation thereof, shall be authorized, sold\nand issued in the manner provided by this chapter. Any bond anticipation\nnotes issued in anticipation of such bonds shall, for the purpose of\ndetermining the power of the issuer to contract indebtedness and to\nraise taxes upon real estate, be deemed to be serial bonds of an issue\nhaving a maximum maturity of more than two years as described in\nparagraph A of section five and in section ten of article eight of the\nstate constitution and for the purposes of (1) subdivision one-a of\nsection 136.00 of this chapter, (2) section two hundred thirty-three of\nthe county law, (3) section 5-514 of the village law, (4) any general or\nspecial law applicable to counties, cities, villages, school districts\nor district corporations which relates to the raising of taxes on real\nestate to provide for the payment of the interest on and the principal\nof indebtedness, and (5) all laws relating to the financial reports,\ndebt statements and real estate tax margin computations of such\nmunicipalities, school districts or district corporations. The chief\nfiscal officer of any municipality, school district or district\ncorporation issuing or renewing such bond anticipation notes shall\nimmediately after the issuance or renewal thereof notify the state\ncomptroller of such issuance or renewal. The state comptroller may\nprescribe the form of any such notice and shall furnish such forms to\nmunicipalities, school districts and district corporations for the\npurpose of making any such report.\n 4. Capital notes may not be issued to finance any object or purpose\nfor which serial bonds are authorized to be issued pursuant to this\nparagraph. The provisions of this paragraph shall not affect the power\nof any municipality, school district or district corporation described\nin paragraph a of this section to finance all or part of any such\nextraordinary expenses pursuant to the provisions of section 29.00 of\nthis chapter and paragraph c of this section.\n 5. Section 104.10 of this chapter shall not be applicable in relation\nto, or as the result of, the adoption of a bond resolution authorizing\nthe issuance of serial bonds pursuant to this paragraph. The provisions\nof section 10.00, paragraph a of section 21.00 and any other section of\nthis chapter, or the provisions of any general, special or local law,\nwhich would restrict, limit or prohibit the issuance of such bonds\n(except those enacted to conform with the state constitution) are, to\nthe extent that this section is utilized by a municipality, school\ndistrict or district corporation, suspended and made ineffective insofar\nas necessary to effectuate the purposes of this section.\n c. The financing of storm relief expenses by the issuance of budget\nnotes. 1. If any municipality or school district described in paragraph\na of this section has heretofore issued budget notes pursuant to the\nprovisions of subdivision two or three of paragraph a of section 29.00\nof this chapter to provide for the payment of extraordinary expenses of\nstorm relief, the finance board, by resolution, may determine that such\nnotes shall be deemed to have been issued pursuant to the provisions of\nsubdivision one of paragraph a of such section and that such notes so\nissued shall not thereafter be considered in determining the power of\nsuch municipality or school district to issue budget notes pursuant to\nsuch subdivision two or three.\n 2. If any municipality, school district or district corporation\ndescribed in paragraph a of this section has heretofore issued budget\nnotes pursuant to the provisions of subdivision one, two or three of\nparagraph a, or paragraph b, of section 29.00 of this chapter, to\nprovide for the payment of extraordinary expenses of storm relief, the\nfinance board may determine that the provisions of paragraph j of such\nsection shall not be applicable in relation to the maturity of such\nnotes and (a) that such notes shall mature in equal annual installments\nin two different fiscal years, but the final maturity of such notes\nshall not extend beyond the close of the second fiscal year immediately\nsucceeding the year of their issue, or (b) if the fiscal procedures\napplicable to such municipality, school district or district corporation\nwill enable the necessary budgetary appropriations for debt service to\nbe made and such appropriations to become available, that such notes\nshall mature in three equal annual installments in three different\nfiscal years, but the final maturity of any such notes shall not exceed\nthree years in accordance with the provisions of paragraph a of section\n11.00 of this chapter which prescribes a period of probable usefulness\nof three years for objects or purposes financed by the issuance of\nbudget notes. Such budget notes which mature in three equal annual\ninstallments, as aforesaid, shall, for the purpose of determining the\npower of the issuer to contract indebtedness and to raise taxes on real\nestate, be deemed to be serial bonds of an issue having a maximum\nmaturity of more than two years as described in paragraph A of section\nfive and in section ten of article eight of the state constitution and\nfor the purposes of (1) paragraph one-a of section 136.00 of this\nchapter, (2) section two hundred thirty-three of the county law, (3)\nsection 5-514 of the village law, (4) any general or special law\napplicable to counties, cities, villages, school districts or district\ncorporations which relates to the raising of taxes on real estate to\nprovide for the payment of the interest on and the principal of\nindebtedness, and (5) all laws relating to financial reports, debt\nstatements and real estate tax margin computations of such\nmunicipalities, school districts or district corporations. If the\nfinance board determines that such budget notes shall mature in three\nequal annual installments, as aforesaid, the chief fiscal officer of\nsuch municipality, school district or district corporation immediately\nafter the adoption of the resolution making such determination shall\nfile a copy of the resolution with the state comptroller and shall\nimmediately after the issuance or renewal of such notes notify the state\ncomptroller of such issuance or renewal. The state comptroller may\nprescribe the form of any such notice and shall furnish such forms to\nmunicipalities, school districts or district corporations for the\npurpose of making any such report.\n 3. Notwithstanding any of the provisions of section 29.00 of this\nchapter, the finance board of a municipality or a school district\ndescribed in paragraph a of this section may authorize the issuance of\nbudget notes pursuant to subdivision one of paragraph a, or, in the case\nof a municipality, paragraph b of such section 29.00 of this chapter to\nprovide for the payment of all or part of the extraordinary expenses of\nstorm relief, to reimburse any fund or account of the municipality or\nschool district from which moneys to pay such extraordinary expenses\nhave been advanced or to replenish any fund or account of the\nmunicipality or school district from which such extraordinary expenses\nhave been paid, or any combination of such purposes, notwithstanding\nthat there may have been lack of statutory authority for any such\nadvance or payment from such fund or account. The finance board may\ndetermine that such notes may mature in the manner provided in paragraph\nj of section 29.00 of this chapter, or, if the fiscal procedures\napplicable to such municipality or school district will enable the\nnecessary budgetary appropriations for debt service to be made and such\nappropriations to become available, that such notes shall mature in two\nequal annual installments in two different fiscal years, but the final\nmaturity of such notes shall not extend beyond the close of the second\nfiscal year immediately succeeding the year of their issue.\n 4. The provisions of subdivision four of paragraph c of section 40.00\nof this chapter and of any other section of this chapter and the\nprovisions of any general, special or local law which would restrict,\nlimit or prohibit the renewal of budget notes as provided in this\nparagraph (except those enacted to conform with the state constitution),\nare, to the extent that this section is utilized by a municipality,\nschool district or district corporation, suspended and made ineffective\ninsofar as necessary to effectuate the objects and purposes of this\nsection.\n d. Separability. If any clause, sentence, subdivision, paragraph, or\npart of this section be adjudged by any court of competent jurisdiction\nto be invalid, such judgment shall not affect, impair or invalidate the\nremainder thereof, but shall be confined in its operation to the clause,\nsentence, subdivision, paragraph, or part thereof directly involved in\nthe controversy in which such judgment shall have been rendered.\n