N.Y. Local Finance Law § 102.00: Consent by cities, towns and villages to the contracting of indebtedness by certain district corporations

§ 102.00 Consent by cities, towns and villages to the contracting of

indebtedness by certain district corporations. a. As used in this

section, the term "district corporations" shall mean any district

corporation other than a fire district, or a river improvement, river

regulating, or drainage district, established by or under the

supervision of the department of conservation.

b. A district corporation, as defined in paragraph a of this section,

shall not contract any indebtedness unless it shall first secure the

consent of the city or village within which, or of the town within any

unincorporated area of which, it is situated in whole or in part.

c. Whenever any district corporation, as defined in paragraph a of

this section, shall desire to contract indebtedness, it shall file a

petition in the office of the chief fiscal officer of each city, town or

village affected, for the consent of such municipality to the

contracting of such indebtedness. Such petition shall be executed by the

finance board of such district corporation and shall contain the

following items:

1. The amount of outstanding indebtedness of such district

corporation, the purposes for which it was contracted and the manner in

which such indebtedness will be paid.

2. The amount of outstanding indebtedness of such district corporation

contracted on or after January first, nineteen hundred thirty-nine, less

the total of those amounts included therein which, if contracted by such

city, town or village, would be listed as deductions by such

municipality, pursuant to section 136.00 of this chapter, in the debt

statement of total net indebtedness prepared pursuant to title ten of

article two of this chapter. The amounts so deducted shall be itemized.

3. The amount of the indebtedness proposed to be contracted by such

district corporation, the purpose for which and the manner in which it

will be contracted. If only part of such a district corporation is

situated within such city, village or the unincorporated area of such

town, the petition shall state the proportionate amount of such

indebtedness which would be allocated to such city, village or town,

pursuant to the procedure set forth in section 120.00 of this chapter,

regardless of whether such indebtedness would or would not be included

in ascertaining the power of such municipality to contract indebtedness

if contracted by such municipality.

4. The manner in which funds will be provided for the payment of the

proposed indebtedness.

5. A description of the real property within such city, town or

village subject to the levy of taxes or benefit assessments by or on

behalf of such petitioning corporate district.

6. The receipts and expenditures of such district corporation for the

latest completed fiscal year thereof.

d. Immediately after receipt of the petition, the chief fiscal officer

of such city, town or village shall prepare a certificate which shall

contain:

1. The average full valuation and the most recent assessed valuation

of such city, town or village and the average full valuation and the

most recent assessed valuation of the real property therein subject to

the levy of taxes or benefit assessments by or on behalf of such

petitioning district corporation.

2. A statement of the debt of such city, town or village, prepared in

the manner set forth in title ten of article two of this chapter, as of

a date not more than thirty days previous to the date of such

certificate, except that in a city containing more than one county such

statement shall be prepared as of a date not more than sixty days

previous to the date of such certificate.

3. The amount of indebtedness proposed to be contracted by the

petitioning district corporation or if such district corporation is not

wholly contained within such city, village, or the unincorporated area

of such town, the proportionate amount of such indebtedness which would

be allocated to such city, village or town pursuant to the procedure set

forth in section 120.00 of this chapter, regardless of whether such

indebtedness would or would not be included in ascertaining the power of

such municipality to contract indebtedness, and the percentage which

such proposed indebtedness or proportionate amount thereof, as the case

may be, bears to

(a) The average full valuation of such city, town or village and

(b) The average full valuation of the real property within such city,

town or village subject to the levy of taxes or benefit assessments by

or on behalf of the petitioning district corporation.

e. The finance board of each such city, town or village may require

any officer, board or agency of such municipality or of the district

corporation to furnish such additional data and information in his or

its possession as such finance board deems necessary to enable it to

make its decision as to whether or not to grant the consent petitioned

for.

f. The chief fiscal officer shall present the petition of the district

corporation to the finance board of such city, town or village together

with his certificate at the next regular meeting of such board to be

held after the preparation of his certificate or at a special meeting

thereof called for the purpose of fixing a time and place for a public

hearing on such petition. Upon presentation of the petition and

certificate, the finance board of such city, town or village shall adopt

a resolution fixing a time and place for a public hearing upon such

petition and shall cause a notice thereof to be published at least once

in the official newspaper or newspapers of such municipality, or if

there be no such newspaper or newspapers, then in a newspaper having a

general circulation in such city, town or village. The first publication

thereof shall be not less than ten days nor more than twenty days before

the day designated therein for the hearing. Such notice shall specify

the purpose of the hearing and the time when and place where such

finance board will meet to consider such petition. It shall also set

forth in full the certificate of the chief fiscal officer of such city,

town or village. Such publication shall be at the expense of the

petitioning district corporation.

g. After a public hearing held upon notice as hereinbefore provided,

the consent of such city, town or village may be granted by at least a

two-thirds vote of the voting strength of such finance board. If such

finance board shall consent to the contracting of indebtedness in an

amount which would increase the indebtedness of such city, town or

village by three per centum of the average full valuation thereof, such

action shall:

1. In the case of a city, be subject to a permissive referendum if a

procedure for a permissive referendum shall have been adopted by local

law pursuant to section 34.00 of this chapter.

2. (a) In the case of a town of the first class, be subject to a

permissive referendum in the manner provided in section 35.00 of this

chapter.

(b) In the case of a town of the second class, be subject to a

mandatory referendum in the manner provided in article six of the town

law.

3. In the case of a village, be subject to a permissive referendum in

the manner provided in section 36.00 of this chapter.

h. If all the cities, towns or villages affected do not give their

consent to the petitioning district corporation in the manner provided

in this section, such corporate district shall not contract such

indebtedness.