N.Y. Local Finance Law § 136.00: Statement of total debt; deductions from gross indebtedness

§ 136.00 Statement of total debt; deductions from gross indebtedness.

The debt statement of a municipality, school district in a city or fire

district setting forth its total net indebtedness may contain the

following items of deduction for the purpose of showing the net

indebtedness of such municipality, school district or fire district:

1. Tax and other revenue anticipation obligations. The amount of

outstanding indebtedness represented by obligations issued in any fiscal

year in anticipation of

(a) The collection of taxes or assessments on real estate for amounts

theretofore actually levied and uncollected or to be levied in such year

and payable out of such taxes or assessments,

(b) Money receivable from the state which has theretofore been

apportioned by the state or which is to be so apportioned within one

year after their issue, and

(c) The collection of any other taxes due and payable or to become due

and payable within one year after their issue or of other revenues,

including the receipt of moneys for any urban renewal project or part

thereof (1) from the sale of real property, or any interest therein,

acquired for or incidental to an urban renewal project; or (2) from the

United States government pursuant to title one of the housing act of

nineteen hundred forty-nine as amended; or (3) from the state of New

York for urban renewal purposes pursuant to the general municipal law,

to be received within one year after their issue;

except any such obligations or renewals thereof, which are not retired

within five years after their date of original issue.

1-a. Obligations issued for other than capital improvements. The

amount of outstanding indebtedness evidenced by obligations (except

serial bonds of an issue having a maximum maturity of more than two

years) issued for objects or purposes other than the financing of

capital improvements and contracted to be redeemed in one of the two

fiscal years immediately succeeding the year of their issue.

2. Water indebtedness. In the case of a municipality or fire district,

the amount of outstanding indebtedness contracted to provide for the

supply of water.

3. Indebtedness contracted for self-liquidating projects. (a) In the

case of a municipality, the amount of outstanding indebtedness,

contracted for a public improvement or part thereof, or service, owned

or rendered by such municipality, which has been excluded pursuant to

section 123.00 of this chapter. (b) In the case of a city, village or

town, the amount of outstanding indebtedness, contracted by a district

corporation, as the term "district corporation" is defined in paragraph

a of section 102.00 of this chapter, if such indebtedness was contracted

for a public improvement or part thereof, or service, owned or rendered

by such district corporation, which has been excluded pursuant to

section 123.00 of this chapter. (c) In the case of a county or town, the

amount of outstanding indebtedness, contracted by any such municipality

on behalf of an improvement district for a public improvement or part

thereof, or service, owned or rendered by such district, which has been

excluded pursuant to section 123.00 of this chapter.

3-a. Indebtedness arising from the amounts to become due pursuant to

contracts for the construction of buildings or other public improvements

entered into by the state commissioner of general services as agent for

a county or a city pursuant to chapter one hundred fifty-two of the laws

of nineteen hundred sixty-four or chapter three hundred fifty-four of

the laws of nineteen hundred sixty-three, if the amounts which are to

become due pursuant to such contracts are payable in the first instance

from appropriations made by the state for such purposes subject to

reimbursement of the state by such county or city from the proceeds of

the sale of obligations issued by such county or city.

3-b. Indebtedness arising from the amounts due or to become due as

rental payments pursuant to a lease or sublease between the New York

state housing finance agency and a municipality, which lease or sublease

provides for the acquisition, construction, reconstruction,

rehabilitation or improvement of a health facility by the health and

mental hygiene facilities improvement corporation and the financing

thereof by the New York state housing finance agency pursuant to the

provisions of the health and mental hygiene facilities improvement act

and section forty-seven-d of the private housing finance law.

3-c. Indebtedness arising from the amounts due or to become due as

rental payments pursuant to a lease or sublease between the New York

state medical care facilities finance agency and a municipality, which

lease or sublease provides for the acquisition, construction,

reconstruction, rehabilitation or improvement of a health facility by

the health and mental hygiene facilities improvement corporation and the

financing thereof by the New York state medical care facilities finance

agency pursuant to the provisions of the health and mental hygiene

facilities improvement act and the New York state medical care

facilities finance agency act.

4. Bonds for pensions. In the case of a municipality, the amount of

outstanding indebtedness represented by bonds issued in accordance with

section 124.00 of this chapter to place a pension or retirement system

or fund on a solvent basis.

* 4-a. Indebtedness for sewage facilities. In the case of a

municipality, the amount of outstanding indebtedness contracted 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. The

amount of such indebtedness to be deducted shall be ascertained pursuant

to section 124.10 of this chapter.

* NB Effective until the effective date of constitutional amendments

proposed in S.4597/A.3776

* 4-a. Indebtedness for sewage facilities. In the case of a

municipality, the amount of outstanding indebtedness contracted 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. The

amount of such indebtedness to be deducted shall be ascertained pursuant

to section 124.10 of this chapter.

* NB Effective upon the effective date of constitutional amendments

proposed in S.4597/A.3776

5. Assessable improvements. The amount of outstanding indebtedness

contracted by the cities of Buffalo, Rochester and Syracuse for so much

of the cost and expense of any public improvement, as may be required by

the ordinance or local law assessing the same to be raised by assessment

upon local property or territory, to the extent that such outstanding

indebtedness, together with other indebtedness initially contracted

therefor from time to time after January first, nineteen hundred

twenty-eight, and since retired aggregates, in the case of the cities of

Buffalo and Rochester, a sum not exceeding ten million dollars and in

the case of the city of Syracuse, a sum not exceeding five million

dollars. Any indebtedness thereafter contracted for such purposes in

excess of such sums shall not be so deducted. Nothing in this

subdivision shall be construed to prevent the deduction of any refunded

indebtedness if the indebtedness refunded was deductible pursuant to

this subdivision.

6. Indebtedness of a county wholly included within or coterminous with

a city. In the case of a city, the amount of outstanding indebtedness of

a county wholly included within such city or which is coterminous with

such city.

7. In the case of the city of New York:

(b) Indebtedness for self-liquidating dock facilities. The amount of

outstanding indebtedness contracted by the city, prior to the first day

of January, nineteen hundred ten, for dock purposes proportionately to

the extent to which the current net revenues received by the city

therefrom shall meet the interest on and the annual requirements for the

amortization of such indebtedness. The amount of such indebtedness to be

deducted shall be ascertained pursuant to section 125.00 of this

chapter.

(c) Indebtedness of the independent subway system. The amount of

outstanding indebtedness contracted after January first, nineteen

hundred twenty-eight, for the construction or equipment, or both, of new

rapid transit railroads provided, however, that when the total of the

indebtedness initially contracted from time to time after such date

finally aggregates the sum of three hundred million dollars, regardless

of whether or not any part thereof has been previously retired, any

indebtedness thereafter contracted for such purposes shall not be

deducted. Nothing in this subdivision shall be construed to prevent the

deduction of any refunded indebtedness if the indebtedness refunded was

deductible pursuant to this subdivision.

(d) Indebtedness for transit unification purposes. The amount of

outstanding indebtedness contracted by the city for the acquisition of

railroads and facilities or properties used in connection therewith or

rights therein or securities of corporations owning such railroads,

facilities or rights, provided, however, that when the total of the

indebtedness initially contracted from time to time by the city for such

purposes finally aggregates the sum of three hundred fifteen million

dollars, regardless of whether or not any part thereof has been

previously retired, any indebtedness thereafter contracted for such

purposes shall not be deducted. Nothing in this subdivision shall be

construed to prevent the deduction of any refunded indebtedness if the

indebtedness refunded was deductible pursuant to this subdivision.

(e) Rapid transit indebtedness excluded prior to nineteen hundred

thirty-nine. The amount of outstanding indebtedness contracted for rapid

transit purposes which indebtedness was excluded in ascertaining the

power of the city to become indebted by order of the appellate division

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

nineteen hundred thirty-nine.

(f) Indebtedness for self-liquidating transit facilities. The amount

of outstanding indebtedness contracted by the city for transit purposes,

and not otherwise deducted, proportionately to the extent to which the

current net revenue received by the city from its transit facilities

shall meet the interest and the annual requirements for the amortization

and payment of such non-deducted indebtedness. The amount of such

indebtedness to be deducted shall be ascertained pursuant to section

125.00 of this chapter.

(g) Indebtedness for hospital purposes. The amount of outstanding

indebtedness contracted after January first, nineteen hundred fifty, for

the construction, reconstruction and equipment of city hospitals,

provided, however, that when the total of the indebtedness initially

contracted from time to time after such date finally aggregates the sum

of one hundred fifty million dollars, regardless of whether or not any

part thereof has been previously retired, any indebtedness thereafter

contracted for such purposes shall not be deducted. Nothing in this

subdivision shall be construed to prevent the deduction of any refunded

indebtedness if the indebtedness refunded was deductible pursuant to

this subdivision.

(h) Indebtedness for rapid transit railroads. The amount of

outstanding indebtedness contracted after January first, nineteen

hundred fifty-two, for the construction and equipment of new rapid

transit railroads, including extensions and interconnections with and

between existing rapid transit railroads or portions thereof, and

reconstruction and equipment of existing rapid transit railroads,

provided, however, that when the total of the indebtedness initially

contracted from time to time after such date finally aggregates the sum

of five hundred million dollars, regardless of whether or not any part

thereof has been previously retired, any indebtedness thereafter

contracted for such purposes shall not be deducted. Nothing in this

subdivision shall be construed to prevent the deduction of any refunded

indebtedness if the indebtedness refunded was deductible pursuant to

this subdivision.

(i) Indebtedness for certain school purposes. The amount of

outstanding indebtedness contracted 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 meet the

interest on and the annual requirements for the amortization and payment

of all or part of one or more issues of such bonds. The amount of such

indebtedness to be deducted in any fiscal year of the city shall be

ascertained pursuant to section 126.00 of this chapter.

8. Indebtedness of a city or a village having a population of five

thousand or more for housing or urban renewal. In the case of a city or

a village having a population of five thousand or more as determined by

the last federal census, the amount of outstanding indebtedness of such

city or village

(a) On account of any contract for capital or periodic subsidies to a

housing authority to be paid subsequent to the then current year.

(b) Arising from a guarantee of the principal of and interest on or

only the interest on indebtedness contracted by a housing authority.

(c) Represented by the unpaid balance of a loan from the state to a

housing authority acting as an instrumentality of such city or village.

(d) Arising from the effectuating of any of the purposes of article

eighteen of the state constitution by any means other than those set

forth in items (a), (b) and (c) of this subdivision.

The amount of indebtedness that may be deducted pursuant to items (a)

and (b) of this subdivision shall be ascertained pursuant to section

143.00 of this chapter.

8-a. The provisions of paragraph (d) of subdivision eight of this

section shall not apply to indebtedness for housing or urban renewal

purposes to which the provisions of sections 150.00 and 151.00 of this

chapter are inapplicable under the terms of paragraph d of section

150.00 and paragraph g of section 151.00 of this chapter.

9. Subsidies or guarantees by a town or a village having a population

of less than five thousand for housing purposes. In the case of a town

or a village having a population of less than five thousand as

determined by the last federal census, the amount of outstanding

indebtedness arising:

(a) From a guarantee of the payment of the principal of and interest

on or only the interest on the indebtedness of a housing authority, or

from the unpaid balance of a loan by the state to a housing authority

acting as an instrumentality of such town or village, or

(b) From a contract for a periodic subsidy to such an authority,

whichever amount is smaller, provided that in the case of a guarantee

and subsidy there is a contractual obligation to apply the sums due

under such subsidy to the payment of all or part of the debt service so

guaranteed and that in the case of a state loan and subsidy there is a

contractual obligation to apply the sums due under such subsidy to the

payment of all or part of the debt service of such loan. The

indebtedness on account of a subsidy and the indebtedness arising from a

guarantee shall be ascertained pursuant to section 143.00 of this

chapter.

10. Assets of sinking funds. Outstanding indebtedness not otherwise

deducted pursuant to this section, to the extent to which there may be

applied against such indebtedness the assets of sinking funds, inclusive

of cash therein and current budgetary appropriations thereto not yet

realized as cash. The securities in such sinking funds shall be valued

at not to exceed par.

10-a. Refunded bonds. Outstanding indebtedness, not otherwise

deducted, evidenced by bonds to be refunded, provided that provision

shall have been made pursuant to section 90.10 of this chapter for the

payment in full, from the proceeds from the sale of refunding bonds or

ascertainable income from investments or both, of all principal of and

interest on such bonds to be refunded, including all redemption

premiums, as the same respectively become due and payable.

10-b. Certain refunding bonds. Outstanding indebtedness, not otherwise

deducted, evidenced by any separate series of refunding bonds issued

pursuant to section 90.10 of this chapter, provided that provision shall

have been made pursuant to such section for the payment in full, from

ascertainable income from investments, of all principal of and interest

on such separate series of refunding bonds, as the same respectively

become due and payable.

11. Cash on hand for debts. Outstanding indebtedness not otherwise

deducted pursuant to this section, to the extent to which there may be

applied against such indebtedness cash on hand, other than in a sinking

fund.

12. Appropriations. Outstanding indebtedness not otherwise deducted

pursuant to this section, to the extent to which there may be applied

against such indebtedness current budgetary appropriations, other than

to a sinking fund, which have not yet been realized as cash.

13. School indebtedness of certain cities. In the case of a city

having less than one hundred twenty-five thousand inhabitants according

to the latest federal census, the several amounts of outstanding city

indebtedness for education purposes allocated to a city school district

by the state comptroller.