§ 8-A — Establishment and application of a general debt service fund

§ 8-a. Establishment and application of a general debt service fund.\n(a) The city shall establish a general debt service fund for the purpose\nof paying debt service due or becoming due in the then current fiscal\nyear and in subsequent fiscal years and for making payments to the\ncounty of Rensselaer in accordance with section eight-b of this act. All\nmonies in the fund shall be held by the comptroller, who shall\nadminister and maintain the fund in accordance with the provisions of\nthis section and section eight-b.\n (b) All payments of or on account of real estate taxes or assessments\ncollected by the city on its own behalf or on behalf of the county of\nRensselaer shall be immediately upon receipt deposited in such fund. On\nor before the fifth business day of each month, the city shall certify\nto the comptroller the amount of deposits during the immediately\npreceding month that constitute collections of or on account of real\nestate taxes or assessments on behalf of the county of Rensselaer.\nExcept as otherwise provided in section eight-b of this act, the\ncomptroller shall retain, disburse and apply monies in the fund during\neach month as follows:\n 1. During the first month of each fiscal quarter, there shall be\nretained in the fund, subject to the provisions of subdivision (c) of\nthis section, all real estate tax payments deposited in the fund until\nthere shall have been retained from monies so deposited during such\nmonth an amount equal to the total monthly debt service, computed as of\nthe date of any disbursement of money from the fund, for the second and\nthird months of such fiscal quarter; provided that such amount shall be\nreduced by any amount already on deposit in the fund which may be used\nto pay the monthly debt service for such months.\n For purposes of this section, fiscal quarter shall mean the\nthree-month period beginning January first, April first, July first or\nOctober first, and monthly debt service shall mean, as of any date of\ncomputation, the amount of monies equal to the aggregate of (i) all\ninterest payable during such month on bonds and notes of the city, plus\n(ii) the amount of principal (including payments into sinking funds)\nmaturing or otherwise coming due during such month on all bonds of the\ncity (excluding principal payments made from sinking funds required by\nthe terms of certain city bonds), plus (iii) the amount of principal to\nbe paid on notes of the city during such month from sources other than\nthe proceeds of bonds or renewal notes (exclusive of revenue\nanticipation notes and tax anticipation notes or renewals thereof issued\nless than two years prior to the date of computation).\n 2. During the second and third months of each fiscal quarter, there\nshall be retained in the fund, subject to the provisions of subdivision\n(c) of this section, all real estate tax payments deposited in the fund\nuntil there shall have been retained from monies so deposited during\nsuch month an amount equal to the total monthly debt service, computed\nas of the date of any disbursement of monies from the fund, for the\nfirst month of the next succeeding fiscal quarter; provided that such\namount shall be reduced by any amount already on deposit in the fund\nwhich may be used to pay the monthly debt service for such month.\n 3. The city may at any time pay into the fund any monies required by\nlaw to be used to pay monthly debt service and any other monies\navailable for such purpose.\n (c) The board may approve, subject to agreements made with the holders\nor guarantors of outstanding notes or bonds issued by or for the benefit\nof the city after the effective date of this act, criteria for\ncalculating a proportion of real estate tax receipts to be retained in\nthe fund in order to provide for the retention of amounts required by\nthe provisions of subdivision (b) of this section in lieu of the\nretention of all initial receipts as required by such subdivision;\nprovided, that if the board at any time determines that retentions in\nthe fund pursuant to the provisions of such subdivision are or are\nlikely to be insufficient to provide for the payment of monthly debt\nservice when due, in order to ensure that the amounts on deposit in the\nfund will be sufficient to pay monthly debt service when due, the board\nshall require (i) that real estate tax receipts be retained in the fund\nin greater amounts or at earlier dates than the provisions of such\nsubdivision require, or (ii) that other revenues or cash resources of\nthe city be paid into the fund. Prior to the issuance by the city of any\nbonds or notes, the board shall review any criteria then in effect which\ndetermine the proportion of real estate tax receipts to be retained in\nthe fund to determine whether the proposed debt service schedule for\nsuch bonds or notes is consistent with the monies which will be\navailable therefor or whether such criteria should be revised. The board\nshall from time to time take such action as it determines is necessary,\nincluding disapproval of a proposed issue pursuant to paragraph (vi) of\nsubdivision (g-1) of section 10 of this act, so that the monies in the\nfund shall be adequate to meet debt service requirements.\n (d) The board may approve criteria for calculating a proportion of\nreal estate tax receipts to be retained in the fund in order to provide\nfor the retention of amounts required by section eight-b of this act,\nbut only in accordance with the real property tax law, the charter of\nthe city, and any agreement concerning such matters between the city and\nthe county of Rensselaer.\n (e) The comptroller shall invest the monies in the fund in permissible\ninvestments under sections 98 and 98-a of the state finance law, subject\nin all respects to any agreements made with holders or guarantors of\noutstanding notes or bonds issued by or for the benefit of the city\nafter the effective date of this subdivision. Any earnings accruing on\nsuch investment shall inure to the benefit of the city. At least one\nbusiness day prior to the beginning of each month the city shall provide\nthe comptroller with a detailed schedule of cash flow requirements from\nthe fund under this section and section eight-b of this act for the\nensuing three month period. Notwithstanding any other provision of law\nto the contrary, the decisions of the comptroller as to the investments\npurchased from monies in the fund shall be conclusive.\n (f) Notwithstanding any other provision of this section, the city may,\nat any time, subject to approval by the comptroller, designate a trust\ncompany or bank having its principal place of business in the state of\nNew York and having the powers of a trust company in the state of New\nYork to hold all or any part of the monies in the fund and to administer\nand maintain the monies so held in accordance with the applicable\nprovisions of this section and any agreements made pursuant thereto.\n