§ 37 — Municipal operation; revenue and accounts; operating and other funds

New York § 37

• Jurisdiction: New York
• Law RAT: Rapid Transit
• Art. 4: Construction and Operation By the Board of Transportation

Text

§ 37. Municipal operation; revenue and accounts; operating and other\nfunds. a. The aggregate amount of the gross receipts of moneys derived\ndirectly or indirectly from or in connection with the operation by the\ncity of any road shall be known as the revenue thereof. Such revenue\nshall be derived from fares to be charged persons riding thereon; from\nrates to be charged for carrying property thereon; from rentals or fees\nto be charged for concessions or privileges thereon in connection\ntherewith; from the sale of surplus power, and any other receipts from\nwhatever source derived.\n b. The board of transportation shall establish and maintain a system\nof accounts to show at all times the cost of the several classes of\nproperty used in operation and the sources of funds used in the\nacquisition of such property; the several classes of operating revenue\nand other income; maintenance expenses; interest, amortization,\ndepreciation and all other charges against earnings. Such accounts shall\nbe kept in accordance with the uniform system of accounts prescribed for\nrailroads by the public service commission or other duly constituted\nauthority and published in the City Record.\n c. The revenue derived from all sources of income of any such road\nshall be deposited daily by the board in the name of the city in banks\nto be designated by the board of transportation and shall be held\nseparate and apart from all other funds of the city as the operating\nfund for the payment therefrom of the expenses of operation, maintenance\nand repairs, and depreciation, interest and amortization charges. An\naccurate report of all moneys received shall be made daily to the\ncomptroller of the city, who shall have power and whose duty it shall be\nto audit currently all the financial details of municipal operation,\nwhich audit shall not preclude examination of such account by any other\nproperly constituted authority. An itemized report of the result of such\nmunicipal operation shall be filed each month by the board of\ntransportation with the mayor and the board of estimate.\n d. From the operating fund thus derived there shall be deducted the\nfollowing charges in the order named and a separate accounting be made\nof each:\n 1. Operating expenses, exclusive of maintenance, including all\nexpenses for personal service, materials and supplies used in operation.\n 2. Expense of maintenance and repairs of structures and equipment,\nwhich shall be the actual cost of keeping the structures and equipment\nin thoroughly good order and repair, and shall include the replacement\nof parts of construction and parts of equipment units, but shall not\ninclude the renewal or replacement of any complete units of property, as\nsuch units are defined and specified from time to time by the board of\ntransportation for renewal or replacement from the capital reserve fund.\n 3. The amount of interest actually payable by the city and the\nproportionate annual contributions to sinking fund or other funds to\namortize and retire the bonds, corporate stock or other evidence of\nindebtedness issued by the city on account of any road.\n 4. Contributions to a depreciation fund for replacement or renewal of\nworn-out, obsolete or inadequate units of structures or equipment, of\nthe amount the board of transportation shall determine is the estimated\nnet loss of value, after maintenance has been applied, of such complete\nunits of property, with due provision for obsolescence or inadequacy of\nsuch units.\n e. The deduction for expenses of operation and maintenance shall be\nmade currently as required, and the deductions for depreciation,\ninterest and amortization installments shall be made after the close of\noperations each month and shall be the monthly proportion of the annual\namount required for such purposes.\n f. In addition to the principal operating fund in which all the\nrevenue shall be deposited as above provided, there shall be established\nand maintained in the custody of the comptroller a separate fund and\nbank account, to be designated as the capital reserve fund, to which\nshall actually be transferred the amounts deducted from revenue on\naccount of interest, amortization and depreciation. Any surplus or\nbalance which shall accrue from the revenue at the end of the fiscal\nyear, in excess of an amount equal to the average cost of operation and\nmaintenance for one month during such fiscal year, shall also be paid\ninto such capital reserve fund. Such fund shall be available for\ndisbursement in the same manner as the principal operating fund for the\nfollowing purposes in the order specified:\n 1. Interest payable by the city on account of bonds or other evidences\nof indebtedness issued, and contributions to sinking funds established\nfor the retirement thereof;\n 2. Amounts necessary for renewals or replacements on account of\ndepreciation and obsolescence.\nAny surplus accruing in the capital reserve fund over and above the\namounts disbursed for the purposes specified shall be retained in such\nfund and may be expended only for the support, installation or extension\nof such transportation facilities. All interest earnings of such fund\nshall be added to the fund. The comptroller shall make all payments out\nof the capital reserve fund, and shall report quarterly to the board of\nestimate the condition of the fund, itemized as to the amount on hand\nfor interest, amortization of bonds or other evidences of indebtedness,\ndepreciation and surplus, and shall keep the account of the fund so\nsubdivided.\n g. Payments or withdrawals of moneys from the operating fund and the\ncapital reserve fund shall be made by checks drawn and signed by the\ncomptroller upon vouchers certified by a member or an officer of the\nboard of transportation, duly authorized by resolution of such board,\nexcept that payments of interest, contributions to sinking funds and on\naccount of retirement of bonds or other evidences of indebtedness shall\nbe made by the comptroller upon his own initiative as such payments\nbecome due and payable, but a memorandum of such payments shall be\ntransmitted by the comptroller to the board of transportation for entry\nin the accounts thereof. The comptroller from time to time shall inform\nthe board of transportation in writing as to the amount to be\nperiodically deducted from revenue on account of interest and\namortization requirements, and the monthly charges and vouchers for such\namounts shall be made in accordance with such devices.\n