N.Y. Local Finance Law § 126.00: Exclusion of certain indebtedness for school purposes; New York City

§ 126.00 Exclusion of certain indebtedness for school purposes; New

York City. a. In ascertaining the power of the city of New York to

contract indebtedness, there may be excluded the outstanding

indebtedness contracted by such city for school purposes, evidenced by

bonds, to the extent to which state aid for common schools, not

exceeding two million five hundred thousand dollars, shall be applied by

such city to meet the interest and the annual requirements for the

amortization and payment of part or all of one or more issues of such

bonds.

b. Such exclusion shall be effective only during a fiscal year of the

city in which its expense budget provides for the payment of such debt

service from such state aid for common schools.

c. At any time during a fiscal year for which the expense budget of

the city provides for the payment of such debt service from such state

aid or at any time prior to such fiscal year but after the expense

budget for such fiscal year has been finally adopted, an application may

be filed with the state comptroller for the purpose of obtaining an

exclusion of such outstanding indebtedness. Such application shall be

made on behalf of the city by its chief fiscal officer in his

discretion, or by its chief fiscal officer on the direction of its

finance board. The application shall be verified by the chief fiscal

officer or finance board making the application. The application shall

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

prescribed by the state comptroller.

d. Within five days after the filing of such application with the

state comptroller, such chief fiscal officer making the application

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 city. The notice also shall

contain a statement of the amount of outstanding indebtedness sought to

be excluded and a statement of the amount of state aid for schools

allocated to the payment of debt service. Proof of publication of such

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

the application and of all financial statements, documents, computations

and other data and information which will be submitted by the chief

fiscal officer of such city to the state comptroller in support of such

application shall be filed in the office of such chief fiscal officer

and shall be public records.

e. After the filing of 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 city with respect to

such application. He may also require the chief fiscal officer and other

public officers, boards and agencies of such city to furnish such

additional data and information in their possession as he deems

necessary to enable him to make his determination.

f. The state comptroller shall issue a written certificate setting

forth his determination as to the extent to which any such outstanding

indebtedness may be excluded. If an exclusion is allowed by the state

comptroller, such certificate shall constitute the authorization for the

exclusion of such amount of such indebtedness in ascertaining the power

of such city to contract indebtedness. If the state comptroller

disallows the application, the certificate shall set forth the reasons

for such disallowances. The determination 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 twenty

days after such filing. The certificate of the state comptroller

granting an exclusion shall be effective until the close of the fiscal

year for which an application has been filed setting forth that the

expense budget of the city provides for the payment of debt service from

state aid for common schools. 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 such city. Both

of such certificates shall be public records.