§ 29.00 — Budget notes

New York § 29.00

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

Text

§ 29.00 Budget notes. a. 1. Any municipality or district corporation,\nother than a fire district, may issue budget notes during any fiscal\nyear for any unforeseeable public emergency during such year such as\nepidemic, conflagration, riot, storm, flood, earthquake or other unusual\nperil to the lives and property of the citizens of such unit of\ngovernment in such amount as the finance board shall determine to be\nnecessary, but no municipality may issue such notes for emergencies in\nbehalf of any local improvement district. Any school district may issue\nbudget notes during any fiscal year to provide temporary school\nbuildings or facilities in such year when such buildings or facilities\nare necessitated because of an unforeseeable public emergency during\nsuch year such as epidemic, conflagration, riot, storm, flood,\nearthquake or other unusual circumstance preventing the use in whole or\nin part, of the buildings or other facilities used by such school\ndistrict.\n 2. Any municipality or district corporation which adopts an annual\nbudget may issue budget notes during any fiscal year for expenditures\nfor which an insufficient or no provision is made in the annual budget\nfor such fiscal year in an amount not to exceed five per centum of the\namount of such annual budget.\n Notwithstanding the foregoing limitation, any fire district may issue\nbudget notes pursuant to this subdivision in the amount of at least one\nthousand dollars. In addition, any county which adopts an annual budget\nmay issue budget notes pursuant to this subdivision without limitation\nas to amount for necessary expenditures for the apprehension and\nprosecution of persons charged with the commission of crime and for\nwhich an insufficient or no provision has been made in the annual budget\nfor such fiscal year. If, however, any such municipality or district\ncorporation may issue budget notes for any such expenditures pursuant to\nthe provisions of any other paragraph of this section, such municipality\nor district corporation shall not issue budget notes for any such\nexpenditures pursuant to this subdivision. Any town, and any county, in\ncomputing "the amount of the annual budget" for the purposes of this\nsubdivision shall not include any amounts which are to be paid in the\nfirst instance from improvement district assessments.\n 3. A school district may issue budget notes during the last nine\nmonths of any fiscal year for expenditures for which an insufficient or\nno provision is made in the annual budget for such fiscal year in an\namount not to exceed five per centum of such annual budget. The\nforegoing limitation shall not be applicable in any case in which a\nbudget note resolution has been adopted by the finance board of a school\ndistrict and has been approved by a majority of the qualified voters of\nthe school district present and voting at any annual or special meeting\nof the school district held pursuant to the provisions of the education\nlaw during the last nine months of such fiscal year. The notice for any\nsuch meeting, in addition to complying with applicable provisions of the\neducation law, must state that such budget note resolution will be\nsubmitted for approval by the voters at such meeting; the purpose for\nwhich moneys are proposed to be borrowed under such resolution; the\ntotal amount proposed to be borrowed, and the fiscal year in which taxes\nare required to be levied for the payment of the budget note proposed to\nbe issued. The vote at any such meeting on such proposition shall be by\nballot, or ascertained by taking and recording the ayes and noes of such\nqualified voters attending and voting at such meeting.\n 3-a. Notwithstanding any other provisions of this section, where a\nschool district can demonstrate to the satisfaction of the commissioner\nof education extenuating circumstances that a waiver is warranted for\nthe adoption of a budget note resolution by its finance board, upon\ncertification by the chief executive officer to the commissioner of\neducation, in such form as the commissioner of education shall determine\npursuant to guidelines developed, for the purpose of making additional\naccruals requirements in the two thousand four--two thousand five or two\nthousand five--two thousand six school years associated with changes in\naccounting methodologies for liabilities for employer and employee\ncontributions due and payable to a public retirement system that will\nresult in a tax increase to the residents of the district in the\nfollowing school year, a school district may issue budget notes during\nthe last nine months of the school year in which such resolution is\nadopted, or during the first three months of the following school year,\nin an amount not to exceed the amount of such additional accruals for\npublic pension liabilities. The limitation on the amount of budget notes\ncontained in subdivision three of this paragraph shall not be applicable\nto notes issued pursuant to this section and the amount of budget notes\nissued pursuant to this section shall not be included in the computation\nof such limitation.\n 4. Any fire district may issue budget notes for expenditures for\nnecessary repairs to any fire-fighting apparatus, fire-fighting vehicles\nor other motorized equipment of such fire district which has been\ndamaged as the result of an accident; but only to the extent that\nbudgetary appropriations for such purpose and the proceeds of insurance\nreceived on account of such damage and on hand at the time the repairs\nare completed are insufficient to pay for such damage. Unless a\nbudgetary appropriation for the payment of such notes is in existence at\nthe time the proceeds of any such insurance are received, such proceeds\nshall be used only for the payment of such notes.\n 5. Any municipality or fire district may issue budget notes during any\nfiscal year to provide for the payment in such fiscal year of the cost\nof insurance secured to indemnify against liability for benefits payable\nunder the volunteer firefighters' benefit law and for which cost an\ninsufficient or no provision was made in the annual budget of the\nmunicipality or fire district for such fiscal year. The aggregate amount\nof any such notes which may be issued for such purpose in a fiscal year\ncommencing after December thirty-first, nineteen hundred sixty-five,\nshall not exceed the sum by which the actual cost of such insurance to\nbe paid in the fiscal year in which such notes are issued exceeds the\nactual cost of such insurance in the fiscal year prior to the fiscal\nyear in which such notes are issued; provided, however, that this\nlimitation shall not apply in a case where the municipality or fire\ndistrict has not incurred any such cost in the fiscal year prior to that\nin which such notes are issued.\n 6. Any fire district may issue budget notes for expenditures for water\nsupply and in relation to fire hydrant maintenance and rental costs; but\nonly to the extent that budgetary appropriations for such purpose under\nsubdivision twelve of section one hundred seventy-six of the town law\nare insufficient to pay increased charges which the public service\ncommission has authorized and the fire district is required to pay in\nthe fiscal year in which the budget note is issued for such maintenance\nor rental.\n 7. Any fire district which elects to become liable for payments in\nlieu of contributions pursuant to section five hundred sixty-five of the\nlabor law and is required by the commissioner of labor to pay into the\nunemployment insurance fund an amount equal to the amount of benefits\npaid to claimants and charged to such fire district's account may issue\nbudget notes for such expenditures for the amount required to be so paid\nin the fiscal year in which the budget note is issued, but only to the\nextent that budgetary appropriations for such purpose are insufficient\nto pay such claim.\n 8. Any county, city, village, town, town on behalf of an ambulance\ndistrict, or town on behalf of a fire protection district which\ncontracts with an ambulance service which is not organized pursuant to\nsection two hundred nine-b of the general municipal law, may issue\nbudget notes during the first fiscal year in which it is required to pay\ncontributions to the volunteer ambulance workers' service award program,\nbut only to the extent that budgetary appropriations for such purpose\nare insufficient to pay such contributions.\n b. Any municipality which adopts an annual budget may issue budget\nnotes during any fiscal year for either or both the following purposes:\n 1. The payment of the expenses for the removal of snow and ice,\nexclusive of salaries and wages of regular employees except for overtime\nwork and work on Sundays and holidays, or\n 2. The payment of the expenses for the demolition of unsafe buildings,\nto the extent that an insufficient provision shall have been made\ntherefor in the annual budget for such fiscal year, if such municipality\nis required by statute, local law or ordinance to include in its annual\nbudget for such fiscal year and each fiscal year thereafter either (a)\nan amount equal to at least the average of all expenditures for such\npurpose during each of the five preceding fiscal years for each purpose\nfor which such budget notes are to be issued, or (b) such amount as is\nprescribed in the schedule set forth below, for each purpose for which\nsuch budget notes are to be issued:\n 1. For such fiscal year, an amount equal to at least one-fifth of the\naverage of all expenditures for such purpose during each of the five\npreceding fiscal years.\n 2. For the first fiscal year succeeding such fiscal year, an amount\nequal to at least two-fifths of the average of all expenditures for such\npurpose during each of the five preceding fiscal years.\n 3. For the second fiscal year succeeding such fiscal year, an amount\nequal to at least three-fifths of the average of all expenditures for\nsuch purpose during each of the five preceding fiscal years.\n 4. For the third fiscal year succeeding such fiscal year, an amount\nequal to at least four-fifths of the average of all expenditures for\nsuch purpose during each of the five preceding years.\n 5. For the fourth fiscal year succeeding such fiscal year and for each\nsucceeding fiscal year thereafter, an amount equal to at least the\naverage of all expenditures for such purpose during each of the five\npreceding fiscal years.\nAny city, any county and any village having a population of five\nthousand or more, as determined pursuant to the latest available federal\ncensus, may adopt a local law or ordinance, and any other municipality\nmay adopt an ordinance requiring the inclusions of such amounts set\nforth in the above schedule for either of or both such purposes in its\nannual budget.\n c. Any city which is required pursuant to law to include annually in\nits annual budget an amount for:\n 1. Judgments which may be obtained against the city and which may\nbecome due and payable during the fiscal year for which the budget is\nadopted,\n 2. Claims which may be settled or compromised and become payable\nduring such fiscal year, and\n 3. The repaving of streets\nmay issue budget notes for any of such purposes during a fiscal year if\nthe amount included in the annual budget for such fiscal year is\ninsufficient therefor.\n d. Any municipality, school district or district corporation which is\nrequired by law to include in its annual budget the amount of judgments\nor compromised or settled claims which are outstanding at the time such\nbudget is prepared, may issue budget notes for the payment of any such\njudgment or claim. Such notes may be issued at any time prior to the\nearliest time at which tax anticipation notes may be issued by such\nmunicipality, school district or district corporation pursuant to\nsection 24.00 of this chapter in anticipation of the levy or collection\nof taxes for such budget. If such notes are issued in a fiscal year\nprior to the preparation of an annual budget during such fiscal year, an\nappropriation for their redemption shall be included in such next budget\nwhen it is prepared. If such notes are issued after an appropriation has\nbeen included in an annual budget for the payment of the judgments or\nclaims for which the notes are issued, such notes shall be redeemed from\nsuch appropriation. Such budget notes may be renewed from time to time,\nbut such notes including renewals thereof shall mature not later than\nthe close of the fiscal year for which such annual budget is adopted.\n e. Any city, county or town, during any fiscal year or, in the case of\nthe city of New York, within ninety days after the close of such fiscal\nyear, for which it shall make a supplemental, deficiency or additional\nappropriation for one or more purposes authorized by or under the\nprovisions of the social services law, including the administration\nthereof, may issue budget notes for the amount of the local share of the\ncost thereof.\n e-1. If any town has made an appropriation in its annual budget for\nany fiscal year for its share of the cost of an approved project under\narticle eight-A of the highway law, and the appropriation is\ninsufficient, the town may issue budget notes in such fiscal year to\nfinance such share in an amount not to exceed fifty per centum of the\ntown's share of the cost of such project. Budget notes may not be issued\nunder any other paragraph of this section to finance any portion of the\ntown's share of the cost of an approved project under such article\neight-A of the highway law.\n f. If any municipality which is authorized or required by law to\ninclude in its annual budget an estimate of the amount of state, county\ndistrict and other county taxes to be levied on the real property within\nsuch municipality for or during the fiscal year for which such budget is\nadopted, underestimates the amount that is actually levied, such\nmunicipality may issue budget notes for the payment of all or part of\nsuch deficiency.\n g. If any portion of the taxes or assessments levied by a\nmunicipality, school district or district corporation in any fiscal year\nare cancelled prior to the collection thereof pursuant to a\ndetermination by a court in an action or proceeding brought by the\ntaxpayer, or, in the case of a school district with the written approval\nand consent of the commissioner of education under section thirty-five\nhundred twelve of the education law, such municipality, school district\nor district corporation may issue budget notes in the fiscal year in\nwhich any such cancellation occurs in an amount not in excess of the\namount of taxes or assessments so cancelled. The proceeds of such notes\nshall be used only for the purposes for which such taxes or assessments\nso cancelled were levied, or for the redemption of tax anticipation\nnotes which had been issued in anticipation of the collection of the\ntaxes or assessments so cancelled and for the redemption of which notes\nno other provision has been made, or for the redemption of budget notes\nin renewal of which they were issued.\n h. Any county which does not adopt an annual budget may issue budget\nnotes during any fiscal year to pay accounts, claims, demands or charges\nwhich may be directed to be paid pursuant to the provisions of any law\nin an amount not in excess of the total amount of such accounts, claims,\ndemands or charges directed to be paid in such fiscal year and for which\nan insufficient or no provision was made in the estimate upon which the\ntax levy for such fiscal year was based. No county shall issue budget\nnotes pursuant to this paragraph on or after January first, nineteen\nhundred fifty-one; provided that budget notes issued prior to such date\npursuant to this paragraph may be renewed as provided in paragraph j of\nthis section.\n i. Any town on behalf of a town improvement district situated therein,\nor any county on behalf of a county improvement district situated\ntherein, may issue budget notes during any fiscal year for expenditures\nfor which an insufficient or no provision is made in the annual estimate\nfor such improvement district as finally adopted for such fiscal year in\nan amount not to exceed five per centum of the amount of such annual\nestimate.\n j. Except as otherwise provided in paragraph d of this section, budget\nnotes may be renewed from time to time but such notes, including the\nrenewals thereof, shall mature not later than the close of the fiscal\nyear succeeding the fiscal year in which such notes are issued. However,\nsuch notes, including the renewals thereof, may mature not later than\nthe close of the second fiscal year succeeding the fiscal year in which\nsuch notes are issued, when authorized and issued during a fiscal year\nat a time subsequent to the date of the adoption of the annual budget\nfor the next succeeding fiscal year, by a municipality, school district\nor district corporation in which the total amount of taxes or\nassessments levied for a fiscal year is determined pursuant to an annual\nbudget adopted during the fiscal year preceding such fiscal year.\n k. Budget notes shall be redeemed out of the taxes or assessments\nlevied or to be levied for the fiscal year in which they mature or out\nof other revenues of that fiscal year legally available for that\npurpose.\n l. Notwithstanding the provisions of any general, special or local\nlaw, any municipality, school district or district corporation, which\nhas the power to issue budget notes under this section, shall to the\nsame extent have the power to appropriate and expend money received from\nthe proceeds of the sale of budget notes for the purposes for which such\nnotes are issued.\n m. Notwithstanding the provisions of this section or any other law, no\ncity shall issue budget notes for the purpose of providing funds for the\npayment pursuant to section thirty-six-a of the rapid transit law, or\notherwise, of the amounts which the board of transportation or any other\nagency of such city determines or estimates, claims (including claims\nreduced to judgment) or certifies to the board of estimate or other\nanalogous local authority of such city, as the sum by which the revenues\nderived from operation of any railroad, as defined in section two of the\nrapid transit law, fail or will fail to provide for any costs and\nexpenses of operation and maintenance of such railroad for any period or\nperiods commencing on or after July first, nineteen hundred fifty-three.\nFor the purpose of this paragraph, such costs and expenses shall also\ninclude the payments or contributions paid or payable by the board of\ntransportation or the city during such period to any employees' pension\nor retirement system on account of membership therein of officers and\nemployees of such board of transportation.\n n. Notwithstanding any other provision of this section, except where\nany obligations other than budget notes are or have been issued for the\nobject or purpose described in subdivision fifty-nine of paragraph a of\nsection 11.00 of this chapter, budget notes may be issued by a\nmunicipality, school district or district corporation, or by a county on\nbehalf of a county improvement district situated therein or by a town on\nbehalf of a town improvement district situated therein, pursuant to an\nirrevocable election to finance all or part of the employer's share of\nthe cost of retroactive coverage provided to its employees under the\nfederal old-age and survivors insurance system pursuant to section one\nhundred thirty-eight-a of the retirement and social security law where\nan insufficient or no provision is or has been made in the annual budget\nfor such cost.\n o. Notwithstanding any other provision of this section, if any city in\nthis state having a population of one million or more includes in its\nannual budget for the fiscal year nineteen hundred seventy-one--nineteen\nhundred seventy-two an estimate in an amount not to exceed one hundred\nmillion dollars of additional revenues available to it as a result of a\nfederal program of general or special revenue sharing or any similar\nprogram or any combination of such programs which relieves a financial\nburden which would otherwise require expenditure from city tax receipts\nin such amount for the fiscal year, and if that estimate should exceed\nthe amount of such revenue that actually becomes available to it, such\ncity may issue during the last quarter of such fiscal year budget notes\nwhich shall have a maximum maturity of not more than one year for the\npayment of all or part of the amount of such overestimate, upon a\ndetermination by the state budget director of the amount of such\noverestimate.\n