N.Y. Local Finance Law § 15.10: Allocation of indebtedness

§ 15.10 Allocation of indebtedness. a. Several indebtedness and joint

indebtedness contracted or incurred for a joint service or a joint

water, sewage or drainage project shall be included as gross

indebtedness in the debt statement of the municipal corporation or

municipality which has contracted or incurred such indebtedness, except

that such indebtedness contracted or incurred by a school district,

other than a school district in a city, shall not be included unless it

is evidenced by bonds or bond anticipation notes or is included as

indebtedness of a merged or annexed school district pursuant to section

121.00 of this chapter.

b. The amount of joint indebtedness which is to be included as gross

indebtedness in the debt statement of a participating municipal

corporation or municipality shall not exceed the amount of such

indebtedness allocated and apportioned to such municipal corporation in

the bond resolution or note resolution authorizing such indebtedness to

be contracted. In the case of other joint indebtedness for such a joint

service or joint water, sewage or drainage project arising out of real

property liabilities and contract liabilities, the amount thereof to be

included as gross indebtedness in a debt statement of a participating

municipal corporation or municipality shall not exceed the amount of

such indebtedness required to be allocated and apportioned to such

municipal corporation in the agreement of the participating municipal

corporations in relation to such joint service. Where the agreement does

not provide for any such allocation and apportionment, or in the case of

involuntary joint indebtedness, the amount to be allocated and

apportioned to a participating municipal corporation or municipality

shall be in the same proportion as the full valuation of the real estate

subject to taxation or assessment for such joint service or joint water,

sewage or drainage project by such municipal corporation or municipality

bears to the full valuation of the real estate subject to taxation or

assessment by all of the participating municipal corporations or

municipalities for such joint service or project. Full valuations shall

be determined by applying to the latest assessed valuation the

appropriate state equalization rate established on the same period price

level. Where such rate has not been established on the same period price

level for all participants, application may be made to the commissioner

of taxation and finance for the establishment of a special rate or rates

as so required and the commissioner shall have power to establish the

same, which special rate or rates shall then be used. The amounts of

joint indebtedness so allocated and apportioned shall not exceed in the

aggregate the total amount of such joint indebtedness.

c. The agreement between the participating municipal corporations and

municipalities may provide for apportionment and allocation of joint

indebtedness on a ratio of full valuations of real property or on a

basis of the amount of services rendered or to be rendered, or benefits

received or conferred or to be received or conferred, or on any other

equitable basis.

d. Any allocation and apportionment of joint indebtedness which has

been contracted or incurred or which is proposed to be contracted or

incurred shall be conclusive if made or approved by the state

comptroller. The application to the state comptroller for any such

allocation and apportionment may be made on behalf of the participating

municipal corporations or municipalities by the finance boards thereof

acting jointly or by the chief fiscal officers thereof acting jointly

upon the direction of such finance boards, or by the finance board of

any such participating municipal corporation or municipality or the

chief fiscal officer thereof upon the direction of such finance board.

The application shall be verified by the finance board or boards or by

the chief fiscal officer or officers making the application. It shall be

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

by the state comptroller. If the application is not made by the finance

boards or by the chief fiscal officers of all of the participating

municipal corporations or municipalities, written notice of such

application shall be given to the chief fiscal officer of any other

participating municipal corporation or municipality prior to the filing

of the application with the state comptroller.

e. If the application to the state comptroller is for the allocation

or apportionment of existing or proposed indebtedness exceeding one

hundred thousand dollars in amount, then within five days after the

filing of such application with the state comptroller, the chief fiscal

officer or chief fiscal officers of the applicant or applicants shall

cause a notice to be published that such application has been filed with

the state comptroller. Such notice shall be published in accordance with

the provisions of paragraph c of section 15.20 of this chapter. The

notice also shall contain a description of the existing or proposed

indebtedness sought to be allocated and apportioned and the nature of

the joint service or joint water, sewage or drainage project in relation

to which such existing or proposed indebtedness is to be contracted or

incurred. Proof of publication of such notice shall be filed in the

office of the state comptroller. A copy of the application and of all

data and information which will be submitted to the state comptroller in

support of such application shall be filed in the office or offices of

such chief fiscal officer or chief fiscal officers and shall be public

records.

f. After the filing of the application, the state comptroller shall

review the facts set forth therein. Notwithstanding the provisions of

paragraph e of this section, the state comptroller may require notice of

the application to be published in any such proceeding. The state

comptroller shall have power to examine the accounts and records of the

municipal corporations or municipalities with respect to the joint

service or joint water, sewage or drainage project concerning which the

application is made. He may also require the chief fiscal officer and

other public officers, boards and agencies of the municipal corporations

or municipalities involved to furnish such additional data and

information in their possession as 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 how such existing or proposed indebtedness

should be allocated and apportioned. The certificate of the state

comptroller shall not be issued until ten days after the filing of such

application or proof of publication of the notice of such application,

whichever date is the later, and the certificate shall be issued within

forty-five days after such filing. The certificate of the state

comptroller shall be executed under his hand and seal. Such certificate

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

certificates shall be executed under the hand and seal of the state

comptroller and filed in the offices of the chief fiscal officers of

each of the participating municipal corporations or municipalities.