N.Y. Local Finance Law § 124.10: Exclusion of certain indebtedness for sewage facilities in ascertaining the power of a municipality to contract indebtedness

§ 124.10 Exclusion of certain indebtedness for sewage facilities in

ascertaining the power of a municipality to contract indebtedness. * a.

In ascertaining the power of a municipality to contract indebtedness,

there may be excluded any outstanding indebtedness contracted by such

municipality on or after January first, nineteen hundred sixty-two, and

prior to January first, two thousand twenty-four, for the construction

or reconstruction of facilities for the conveyance, treatment and

disposal of sewage.

* NB Effective until the effective date of constitutional amendments

proposed in S.4597/A.3776

* a. In ascertaining the power of a municipality to contract

indebtedness, there may be excluded any outstanding indebtedness

contracted by such municipality on or after January first, nineteen

hundred sixty-two, and prior to January first, two thousand thirty-four,

for the construction or reconstruction of facilities for the conveyance,

treatment and disposal of sewage.

* NB Effective upon the effective date of constitutional amendments

proposed in S.4597/A.3776

b. The date of contracting any such indebtedness for a particular

facility shall be deemed to be the date of the first contract for the

construction or reconstruction of such facility or the date of the first

obligation issued to finance such construction or reconstruction,

whichever date is the earlier.

* c. The term indebtedness, as used in this section, shall include

indebtedness evidenced by obligations issued on or after January first,

two thousand twenty-four for the purpose of financing any indebtedness

contracted for the purposes and within the period specified in paragraph

a of this section.

* NB Effective until the effective date of constitutional amendments

proposed in S.4597/A.3776

* c. The term indebtedness, as used in this section, shall include

indebtedness evidenced by obligations issued on or after January first,

two thousand thirty-four for the purpose of financing any indebtedness

contracted for the purposes and within the period specified in paragraph

a of this section.

* NB Effective upon the effective date of constitutional amendments

proposed in S.4597/A.3776

d. The provisions of this section shall not be deemed to prevent the

exclusion of any refunded indebtedness if the indebtedness refunded was

excludable pursuant to this section.

e. Where indebtedness has been excluded pursuant to this section, the

revenues, if any, of the facility constructed or reconstructed, during

the period for which the exclusion is effective, shall be applied to and

actually used for the payment of all costs of operation, maintenance and

repairs for such period, and payment of the amounts required in such

period for the interest on and amortization of or redemption of the

indebtedness excluded, or such revenues shall be deposited in a special

fund to be used solely for such payments. The application and use of

such payments or the deposits required therefor shall not prohibit a

municipality from using any such revenues, in excess of such payments or

deposits, for any lawful purpose of the municipality for which such

revenues may be used.

f. The chief fiscal officer of a municipality in his discretion may

prepare, or on the direction of the finance board shall prepare, a

verified itemized statement of outstanding or proposed indebtedness of

the municipality contracted or to be contracted for the purposes and

within the period specified in paragraph a of this section. Such chief

fiscal officer in his discretion may file, or on the direction of the

finance board shall file, with the state comptroller a verified

application on behalf of the municipality for the purpose of obtaining a

certification of the several amounts of such indebtedness to be excluded

pursuant to this section. Such itemized statement shall be attached to

and form a part of the application. The itemized statement and

application shall be in such form and contain such information as shall

be prescribed by the state comptroller. In the case of application for a

certification of amounts of proposed indebtedness to be excluded, the

application shall state the approximate date or dates when such

indebtedness, or portions thereof, are proposed to be contracted and

whether such indebtedness is to be in the form of a contract for

construction or in the form of obligations, or in both such forms.

g. Within fifteen days after filing of such application with the state

comptroller, the chief fiscal officer shall cause a notice to be

published that such application has been filed with the state

comptroller. Such notice shall be published in the official newspaper or

newspapers of the municipality, or if there be no such newspaper or

newspapers, then the finance board of the municipality shall designate

one or more newspapers having a general circulation in the municipality

for the publication of such notice. The notice also shall contain a

statement of the amount of outstanding indebtedness, if any, to be

excluded and a statement of the amount of proposed indebtedness, if any,

to be excluded if and when contracted. Proof of publication of such

notice shall be filed in the office of the state comptroller. A copy of

the itemized statement and application and of all financial statements,

documents, computations and other data and information which will be

submitted by the chief fiscal officer of the municipality to the state

comptroller in support of such application shall be filed in the office

of the chief fiscal officer and shall be public records.

h. After the filing of any such application, the state comptroller

shall review the facts set forth therein. The state comptroller shall

have the power to examine the accounts and records of the municipality

with respect to such application. He may also require the chief fiscal

officer and other public officers, boards and agencies of the

municipality to furnish such additional data and information in their

possession as he deems necessary to enable him to ascertain the

indebtedness which may be excluded pursuant to paragraph a of this

section.

i. The state comptroller shall issue a written certificate setting

forth the amounts of any such indebtedness which may be excluded. If the

indebtedness described in the certificate is, or is to be, in the form

of (1) a contract for construction which is to be financed later by

issuance of obligations pursuant to this chapter or pursuant to any

special law or (2) bond anticipation notes issued in anticipation of

bonds to be issued pursuant to this chapter or pursuant to any special

law, such certification also shall be applicable to such obligations or

bonds, as the case may be, when issued. If the state comptroller

determines that the indebtedness described in the application, or any

part thereof, does not constitute indebtedness described in paragraph a

of this section the reasons for such determination shall be given. The

certification of the state comptroller shall be conclusive. The

certificate of the state comptroller shall not be issued until ten days

after the filing of such proof of publication in the office of the state

comptroller and shall be issued within forty-five days after such

filing. The certificate of the state comptroller shall be effective so

long as and to the extent that any such indebtedness described therein

is outstanding, or until such certificate is amended, modified,

superseded or rescinded by a written certificate of the state

comptroller issued upon application of the municipality in the manner

provided in paragraph f of this section. The certificate of the state

comptroller shall be executed under his hand and seal in duplicate. One

of such certificates shall be filed in the department of audit and

control and the other in the office of the chief fiscal officer of the

municipality.

j. The provisions of this section shall not affect or impair any

existing exclusions of indebtedness, or the power to exclude

indebtedness granted by any other provision of this chapter or the

constitution. However, if any exclusion has been granted by the state

comptroller pursuant to section 123.00 of this chapter for any

indebtedness for which an exclusion has been granted pursuant to this

section, the exclusion of such indebtedness granted pursuant to section

123.00 of this chapter shall cease to be applicable.