New York Laws
Title 8 - Limitations on the Power to Contract Indebtedness
104.00 - Limitation on Amount of Local Indebtedness Which May Be Contracted.

§ 104.00 Limitation on amount of local indebtedness which may be
contracted. a. The term "indebtedness", as used in this section, shall
mean in relation to a county, city, town, village, school district or
fire district, any indebtedness other than an indebtedness which would
be excluded, pursuant to law, in ascertaining the power of such county,
city, town, village, school district or fire district to contract
indebtedness. For purposes of any debt limitation contained in this
title and title nine of this article, when obligations are sold by a
county, city, town, village, school district or fire district at a
discount, the term indebtedness shall only include the original amount
of money actually received by such county, city, town, village, school
district or fire district, irrespective of the face amount of the
obligations at maturity.

b. No county, city, town, village or school district in a city shall
contract indebtedness for any purpose or in any manner which, including
existing indebtedness, shall exceed an amount equal to the following
percentages of the average full valuation of such county, city, town,
village or school district:

1. The county of Nassau, for county purposes, ten per centum;

2. Any county, other than the county of Nassau, for county purposes,
seven per centum;

3. The city of New York, for city purposes, ten per centum;

4. Any city, other than the city of New York, having one hundred
twenty-five thousand or more inhabitants according to the latest federal
census, for city purposes; nine per centum;

5. Any city having less than one hundred twenty-five thousand
inhabitants according to the latest federal census, for city purposes,
excluding education purposes, seven per centum;

6. Any town, for town purposes, seven per centum;

7. Any village, for village purposes, seven per centum; and

8. Any school district in a city, for education purposes, five per
centum.

c. Notwithstanding the provisions of paragraph b of this section any
school district in a city may issue bonds, bond anticipation notes or
capital notes for a specific object or purpose, and, where authorized by
this chapter, for a class of objects or purposes, in an amount which,
including existing indebtedness, shall exceed an amount equal to five
per centum of the average full valuation of such school district,
provided:

1. The tax voted to be collected in installments in relation thereto,
or the proposition for the approval of a bond resolution or capital note
resolution in relation thereto, shall have been voted or approved, as
the case may be, by at least a sixty per centum vote of the qualified
voters voting thereon in person at the meeting or election called for
such purpose;

2. The proposition to authorize the tax to be collected in
installments in relation thereto, or the proposition for the approval of
a bond resolution or capital note resolution in relation thereto,
contained a statement to the effect that the obligations to be issued
may be issued in excess of the constitutional debt limitation of the
school district; and

3. The board of regents and the state comptroller severally shall
consent thereto.

d. A school district, other than a school district in a city, having
an aggregate assessed valuation of taxable real property of one hundred
thousand dollars or over, except for the payment of judgments, or
compromised or settled claims against the school district, or awards or
sums payable by the school district pursuant to a determination by a

court, or an officer, body or agency acting in an administrative or
quasi-judicial capacity, shall not issue bonds or bond anticipation
notes, if the indebtedness of the school district determined pursuant to
section 137.00 of this chapter will exceed ten per centum of the full
valuation of the real property subject to taxation by the school
district, unless:

1. The tax voted to be collected in installments in relation thereto,
or the proposition for the approval of a bond resolution in relation
thereto, shall have been voted or approved, as the case may be, before
July first, nineteen hundred sixty-three, by at least a two thirds vote,
or on and after July first, nineteen hundred sixty-three, by at least a
sixty per centum vote, of the qualified voters voting thereon in person
at the meeting or election called for such purpose;

2. The board of regents shall consent thereto; and

3. In a school district located wholly or partly in the Adirondack
park which has within its boundaries state lands subject to taxation,
the full valuation of which is more than thirty per centum of the full
valuation of the real property subject to taxation by the school
district, the state comptroller, on behalf of the state, also shall
consent thereto.

e. No fire district shall contract idebtedness for any purpose or in
any manner to an amount which, including existing indebtedness, shall
exceed three per centum of the full valuation of the taxable real
property of such fire district, except that a fire district may contract
indebtedness to an amount which, including existing indebtedness, shall
not exceed five per centum of the full valuation of the taxable real
property of the fire district if the proposition, when required, for the
approval of the resolution authorizing the contracting of such
indebtedness shall have been approved by a two-thirds vote of the
qualified voters of the fire district voting thereon in person at the
election called for that purpose and the state comptroller consents
thereto. Before any such consent is granted, the state comptroller shall
find and determine that it is in the public interest that the limitation
of three per centum should be exceeded.