N.Y. Local Finance Law § 125.00: Exclusion of indebtedness for self-liquidating dock and transit facilities; New York City

§ 125.00 Exclusion of indebtedness for self-liquidating dock and

transit facilities; New York City. a. As used in this section:

1. The term "dock improvement" shall mean a dock improvement for which

indebtedness was contracted by the city of New York prior to January

first, nineteen hundred ten, and for which indebtedness a partial or

complete exclusion is sought in accordance with the provisions of this

section.

2. The term "transit facilities" shall mean:

(a) Railroads and facilities and properties used in connection

therewith and rights therein owned by the city of New York, and

(b) Securities of corporations owning such railroads, facilities,

properties or rights, owned by the city of New York.

b. In ascertaining the power of the city of New York to contract

indebtedness, there may be excluded:

1. Any outstanding indebtedness contracted by the city prior to the

first day of January, nineteen hundred ten, for a dock improvement

proportionately to the extent to which the net revenue received by the

city therefrom during the preceding fiscal year shall have met the

interest on and the annual requirements for the amortization of such

indebtedness during such fiscal year.

2. Any outstanding indebtedness contracted by the city for transit

purposes, and not otherwise excluded, proportionately to the extent to

which the net revenue received by the city during the preceding fiscal

year from all its transit facilities less the total of the items

enumerated in paragraph c of this section shall have met the interest on

and the annual requirements for the amortization and payment of such

non-excluded indebtedness during such fiscal year.

c. In ascertaining the amount of indebtedness for transit purposes

that may be excluded in accordance with the provisions of this section,

there shall be deducted from the net revenue received by the city from

all its transit facilities during such preceding fiscal year:

1. An amount equal to the interest and amortization requirements for

such preceding fiscal year on indebtedness contracted for rapid transit

purposes which indebtedness was excluded in ascertaining the power of

the city to contract indebtedness by order of the appellate division of

the supreme court, first judicial department, prior to January first,

nineteen hundred thirty-nine.

2. An amount equal to (a) the interest for such preceding fiscal year

on that portion of the indebtedness contracted for the acquisition of

transit facilities which is excluded pursuant to paragraph A of section

seven-a of article eight of the state constitution in ascertaining the

power of the city to contract indebtedness, and (b) the requirements for

such preceding fiscal year for amortization on any sinking fund bonds

and the redemption of any serial bonds evidencing such excluded

indebtedness.

3. An amount equal to the sum of all taxes and bridge tolls which

accrued to the city from transit facilities during the fiscal year of

the city preceding the fiscal year in which such transit facilities were

acquired. The transit facilities referred to in this subdivision are

those for the acquisition of which indebtedness was contracted and all

or part of which indebtedness is excluded pursuant to paragraph A of

section seven-a of article eight of the state constitution in

ascertaining the power of the city to contract indebtedness.

4. The amount of net operating revenue derived by the city from the

independent subway system during the fiscal year of the city preceding

the fiscal year in which were acquired the transit facilities referred

to in subdivision three of paragraph c of this section.

d. At any time after the close of a fiscal year of the city, the city

comptroller may, in his discretion, file with the state comptroller a

financial statement for such fiscal year of any dock improvement or of

all the transit facilities, if in the opinion of the city comptroller,

the city has received sufficient net revenue from such dock improvement

or from such transit facilities, as the case may be, to entitle the city

to an exclusion, in accordance with the provisions of this section, of

all or part of the indebtedness contracted for such dock improvement or

for such transit facilities. The city comptroller shall, in his

discretion, determine and set forth in such statement the amount of such

indebtedness which the city seeks to exclude. Such statement shall be in

such form and shall contain such information as shall be prescribed by

the state comptroller and shall be verified by the city comptroller.

e. However, prior to the submission of such financial statement, the

city comptroller shall cause to be published at least once a week for

two weeks in the city record a notice that on the date specified

therein, which date shall be at least two weeks from the date of the

first publication of the notice, such financial statement will be filed

with the state comptroller on the date specified in the notice and the

financial statement which will be filed by the city comptroller with the

state comptroller on the date specified in the notice and a copy of all

documents, computations and other data and information which will be

submitted by the city comptroller to the state comptroller in support of

such financial statement.

f. Upon the receipt of such a financial statement from the city

comptroller, the state comptroller forthwith shall review the facts set

forth therein. The state comptroller shall have the power to examine the

accounts and records of the city with respect to the dock improvement or

the transit facilities, as the case may be. He may also require the city

comptroller and other public officers, boards and agencies to furnish

such additional data and information in their possession which he deems

necessary to enable him to make his determination.

g. The state comptroller shall issue a written certificate setting

forth his determination as to whether the amount of indebtedness which

the city seeks to exclude, or any part thereof, may be excluded. Such

certificate shall constitute the authorization for the exclusion of the

amount of such indebtedness set forth therein, in ascertaining the power

of the city to contract indebtedness and shall be effective until the

close of the fiscal year in which such financial statement shall have

been submitted. If the state comptroller disallows, in whole or in part,

the claim of the city for the exclusion, he shall set forth the reason

for such disallowance. The determination of the state comptroller shall

be conclusive. The certificate of the state comptroller shall be

executed under his hand and seal in duplicate. One of such duplicates

shall be filed in the department of audit and control and the other in

the office of the city comptroller. Both of such duplicates shall be

public records.