N.Y. Local Finance Law § 107.00: Down payment

§ 107.00 Down payment. a. As used in this section the term "current

funds" shall include:

1. Budgetary appropriations for capital improvements or equipment,

which appropriations have not lapsed.

2. The proceeds of capital notes issued for the payment of the cost of

capital improvements or equipment.

3. Revenues other than real estate taxes or assessments, which have

been collected or received during a fiscal year in excess of the total

amount of such revenues as estimated for such fiscal year, and surplus

funds and unexpended balances, which are available to be applied toward

the payment of the cost of capital improvements or equipment.

4. Capital reserve funds established pursuant to section six-c of the

general municipal law.

5. The trade-in allowance received for any equipment traded in as part

of the cost of equipment being purchased.

Nothing herein contained shall be construed to permit the diversion of

the proceeds of budgetary appropriations, capital notes, or capital

reserve funds to a purpose other than that for which such

appropriations, capital notes, or capital reserve funds, respectively,

were made, issued or established.

b. No municipality shall:

1. Issue bonds or bond anticipation notes for a specific capital

improvement or items of equipment or several specific capital

improvements or items of equipment or a combination thereof, or

2. Make expenditures for a specific capital improvement from the

proceeds of bonds or bond anticipation notes issued for a class or

classes of capital improvements or from a fund into which the proceeds

of bonds or bond anticipation notes are paid

unless it shall have first provided from current funds a sum of money

sufficient to pay at least five per centum of the estimated cost of each

such capital improvement or such equipment. The term "estimated cost",

as used in this paragraph, shall not include (a) the portion of the cost

of any capital improvement which is to be paid by the United States or

the state of New York or which is to be paid from funds, other than

loans, granted to such municipality therefor by the United States or the

state of New York, or (b) the portion of the cost of any capital

improvement which is to be paid by assessments upon benefited real

property in an area less than the area of the municipality.

c. 1. During the first fiscal year of a city commencing on or after

July first, nineteen hundred forty-four, in which its debt-contracting

power has been exhausted by more than fifty per centum and in which its

net indebtedness is in excess of one hundred twenty-five million

dollars, such minimum percentage to be provided by such city from

current funds, as prescribed in paragraph b of this section, shall be

increased by nine per centum. Thereafter, during each succeeding fiscal

year such minimum percentage to be provided from current funds shall be

increased by two per centum over and above the minimum percentage

required for the preceding fiscal year, notwithstanding any increase in

the amount of the debt-contracting power of any such city during such

succeeding fiscal years. For the purposes of this subdivision the term

"current funds" shall include only budgetary appropriations for capital

improvements or equipment which appropriations have not lapsed, or the

proceeds of capital notes issued for the payment of the cost of capital

improvements or equipment.

2. The term "net indebtedness" used in this paragraph shall mean the

total net indebtedness as ascertained pursuant to section 138.00 of this

chapter. The percentage of debt-contracting power exhausted shall be

computed pursuant to the provisions of subdivision two of paragraph a of

section 140.00 of this chapter.

d. The provisions of this section shall not apply to:

1. Bonds to be issued to redeem bond anticipation notes previously

issued.

2. Judgments, other than for capital improvements.

3. The following capital improvements:

(a) The acquisition, construction, reconstruction or equipment of or

addition to a water supply or distribution system, whether or not

including land.

(b) A capital improvement which the finance board by resolution

estimates will be self-sustaining.

(c) The acquisition, construction or equipment of or addition to rapid

transit railroads, whether or not including land.

(d) The acquisition, construction, reconstruction or equipment of or

addition to electric light and power or gas plants or systems, whether

or not including land.

(e) The acquisition, construction, reconstruction of or addition to

docks, piers or wharf property, whether or not including land.

(f) The acquisition, construction, reconstruction of or addition to a

bridge or a tunnel and the approaches thereto, whether or not including

land, the cost of which is estimated to exceed ten million dollars.

(g) A capital improvement, the cost of which is estimated to exceed

twenty million dollars.

(h) A capital improvement, the cost of which is estimated to exceed

one million dollars and part of which cost is to be paid by assessments

upon benefited real property in an area less than the area of the

municipality.

(i) A capital improvement, of which at least fifty per centum of the

cost is to be paid by assessments upon benefited real property in an

area less than the area of the municipality, whether or not the cost of

such improvement is estimated to be in excess of one million dollars.

(j) A capital improvement or the acquisition of equipment, when

necessitated by some destructive agency or to prevent the happening of a

calamity. The finance board, shall, by a four-fifths vote of its voting

strength, determine when such an emergency exists. The determination of

the finance board as to the existence of such an emergency shall be

conclusive.

(k) The construction, reconstruction and equipment of city hospitals

and schools, whether or not including land, if the bonds authorized for

any such object or purpose shall have a maximum maturity not to exceed

one-half of the maximum period of probable usefulness for any such

object or purpose prescribed in paragraph a of section 11.00 of this

chapter. Such maximum maturity shall be computed from the date of the

bonds or the date of the first bond anticipation note issued in

anticipation of such bonds, whichever date is the earlier, and shall not

exceed fifteen years in any event.

(l) The acquisition, construction, reconstruction, or equipment of or

addition to facilities for the conveyance, treatment and disposal of

sewage, whether or not including land.

(m) The cost of the preparation, pursuant to section ninety-nine-d of

the general municipal law, of surveys, preliminary plans and detailed

plans, specifications and estimates necessary for planning for a capital

improvement which it is contemplated might be undertaken in the future.

4. The financing by any municipality of any object or purpose, if the

bonds authorized for any such object or purpose shall have a maximum

maturity not to exceed one-half of the maximum period of probable

usefulness. Such maximum maturity shall be computed from the date of the

bonds or the date of the first bond anticipation note issued in

anticipation of such bonds, whichever date is the earlier, and shall not

exceed fifteen years in any event.

5. The financing by any municipality of any object or purpose which

has a period of probable usefulness of five years, or less, as

prescribed in paragraph a of section 11.00 of this chapter.

6. The financing by any municipality of any urban renewal program or

part thereof having a period of probable usefulness determined pursuant

to subdivision forty-one-a of section 11.00 of this chapter.

7. The financing by any municipality of any object or purpose which

has a period of probable usefulness prescribed in subdivision forty-one

or subdivision forty-one-b of paragraph a of section 11.00 of this

chapter.

8. Notwithstanding any other provision of law, the financing by the

city of New York prior to July first, two thousand twenty-seven of any

object or purpose which has a period of probable usefulness determined

by law by the issuance of any bonds or notes, including (i) the issuance

of bonds or notes to obtain reimbursement for funds heretofore advanced

for the object or purpose for which the bonds or notes are being issued,

(ii) the issuance of bonds or notes to redeem notes previously issued

for the object or purpose for which the bonds or notes are being issued

or (iii) the issuance of bonds to refund bonds previously issued for the

object or purpose for which bonds are being issued.

9. Notwithstanding any other provision of law, the financing by any

municipality, prior to July fifteenth, two thousand twenty-seven, of any

object or purpose which has a period of probable usefulness determined

by law, by the issuance of any bonds and notes, including (i) the

issuance of bonds or notes, to redeem notes previously issued for the

object or purpose for which the bonds or notes are being issued or (ii)

the issuance of bonds to refund bonds previously issued for the object

or purpose for which bonds are being issued.