New York Laws
Title 8 - Limitations on the Power to Contract Indebtedness
104.10 - Additional Limitations on the Power to Contract Indebtedness.

(a) Is wholly or partly within the Adirondack park, and
(b) Has within its boundaries state lands subject to taxation assessed
at more than thirty per centum of the total taxable assessed valuation
of such town as determined from the assessment rolls of the town, as
completed from time to time, shall not issue its bonds, bond
anticipation notes, capital notes or budget notes if by doing so the
amount of its outstanding indebtedness evidenced by bonds, bond
anticipation notes, capital notes, budget notes and certificates of
indebtedness, plus the amount of the indebtedness proposed to be
incurred, shall exceed five percent of such town's revenues for the last
year the state comptroller has such data or one hundred thousand dollars
whichever is the lesser; provided, however, such obligations may be
issued originally by any such town upon the duly verified petition of
the owners of at least sixty-five per centum of the taxable real
property therein, as such real property appears on the last preceding
completed assessment-roll of such town, or upon the certificate of the
state comptroller consenting, on behalf of the state, to the original
issuance of such obligations. For the purposes of any such petition, the
state comptroller may act on behalf of the state. The state comptroller
shall annually calculate the dollar amount equal to five percent of such
town's total revenue for the last year the comptroller has such data on
file. Such bonds shall be refunded only pursuant to the provisions of
section 90.00 or 90.10 of this chapter. Such bond anticipation notes,
capital notes and budget notes may be renewed as provided in sections
23.00, 28.00 and 29.00 of this chapter, respectively. The consent of the
state comptroller shall not be required under this subdivision in any
such town in connection with the issuance of obligations for the
purposes of an improvement district if they are issued in accordance
with the statement of the proposed manner of financing an improvement as
set forth in an application to the state comptroller made pursuant to
section one hundred ninety-four of the town law and in compliance with
the terms or conditions, if any, of the order of the state comptroller
made pursuant to such section. Likewise, such consent shall not be
required under this subdivision in connection with the issuance of
obligations for the purpose of financing an expenditure in a town
improvement district where the expenditure has been approved by the
state comptroller.
4. Any town which, without first obtaining the permission of the state
comptroller, shall have established or extended an improvement district
prior to September first, nineteen hundred forty-five, or which shall
establish or extend any such district after August thirty-first,
nineteen hundred forty-five, shall not issue its bonds, bond
anticipation notes or capital notes for the purposes of any such

district or extension, except for improvements undertaken pursuant to
sections one hundred ninety-nine, two hundred two-b of the town law, and
section 222.5 of the Nassau county civil divisions act, and except when
the cost of the district or extension to the typical property or, if
different, the cost to the typical one or two family home is not above
the average cost threshold as may be annually computed by the state
comptroller pursuant to section one hundred ninety-four or two hundred
nine-f of the town law, unless it secure the permission of the state
comptroller, granted upon a written application signed and verified by
the supervisor or such other officer of the town as the town board shall
determine. Any such application shall include:
(a) A certified copy of the petition for the creation of the district
(omitting, however, the signatures and acknowledgements or proofs);
(b) An itemized statement of the then outstanding indebtedness of the
town for all purposes as evidenced by bonds, bond anticipation notes,
capital notes and budget notes; the amount of joint indebtedness
contracted or incurred for a joint service or a joint water, sewage or
drainage project and the amount of such indebtedness allocated and
apportioned to the town, as defined in title one-a of the local finance
law; the amount of the indebtedness proposed to be contracted for the
improvement; the amount of budgetary appropriations for the payment of
any such indebtedness, whether or not such appropriations have been
realized as cash, and the amounts, purposes and probable dates of
issuance of any bonds, bond anticipation notes, capital notes and budget
notes which the town has authorized to be issued but which in fact have
not been issued on the date of such application;
(c) A statement of the aggregate assessed valuation of the real
property in the district, as such assessed valuations are shown on the
last completed assessment roll of the town prior to the date of such
application; and
(d) A statement of the average full valuation of the taxable real
property of the town. Such average full valuation shall be determined by
taking the assessed valuation of the taxable real property of the town
as it appears on the assessment roll of the town which was last
completed prior to the date of the application, and such valuations as
they appear on each of the four preceding rolls; dividing the amount for
each such roll by the equalization rate established for it for the
assessment of special franchises by the state officer or agency
authorized to establish such rates; adding the quotients thus obtained,
and dividing the sum thereof by five; and
(e) A certified copy of the resolution authorizing the issuance of the
obligations in connection with which the application is made.
The state comptroller in his discretion may require the submission of
additional information in such form and detail as he shall deem
sufficient, or may cause an investigation to be made, to aid him in
making the determinations herein required. Any such application may be
amended prior to any final determination. If the state comptroller shall
determine (1) that the issuance of the obligations will not cause an
undue burden upon the property of the district, and (2) that amount of
the indebtedness of the town for all purposes as evidenced by bonds,
bond anticipation notes, capital notes and budget notes, plus the amount
of the indebtedness proposed to be incurred for the improvement
district, less the amount of budgetary appropriations for the payment of
any such indebtedness, whether or not such appropriations have been
realized as cash, as of the date of the application filed with the state
comptroller, will not exceed fifteen per centum of the average full
valuation of the taxable real property of the town he shall grant such
application; otherwise, it shall be denied. Such average full valuation

shall be determined in the manner provided in this subdivision. If any
such application shall be granted by the state comptroller, it shall not
be necessary to apply to the state comptroller under the provisions of
subdivision three of this section for his consent to the issuance of the
obligations described in the application made pursuant to this
subdivision. There shall be excluded from the amount of indebtedness to
be considered by the state comptroller in making such determination any
indebtedness allocated or apportioned or proposed by all the
participating municipal corporations to be allocated or apportioned to
any municipal corporation other than such town in accordance with the
provisions of section 15.10 of the local finance law.
5. Any town, in any county now or hereafter operating under an
optional form of government, shall not let any contract or incur any
indebtedness whatsoever for any capital improvement for any improvement
district therein for which such town intends to issue obligations unless
it shall have first secured the consent of the finance board of such
county to the issuance of such obligations. Whenever any such town
intends to issue obligations for such a purpose, it shall present a
petition to the finance board of such county, setting forth the
improvement proposed and the amounts and type or types of obligations to
be issued and requesting the approval of such county for the issuance of
the obligations. The finance board of such county within sixty days
after the presentation of such petition, by resolution, shall either
approve or disapprove of the issuance of such obligations and shall
forward a certified copy of such resolution to the town board of such
town.
6. Any fire district which is situated in whole or in part in a town
which is wholly or partly within the Adirondack park and has within the
town boundaries state lands subject to taxation assessed at more than
thirty per centum of the total taxable assessed valuation of the town as
determined from the assessment rolls of the town, as completed from time
to time, shall not issue its bonds, bond anticipation notes, capital
notes or budget notes if by doing so the amount of outstanding
indebtedness evidenced by bonds, bond anticipation notes, budget notes
and certificates of indebtedness, plus the amount of the indebtedness
proposed to be incurred shall exceed five percent of such district's
revenues for the last year the comptroller has such data or one hundred
thousand dollars whichever is the lesser unless the state comptroller,
on behalf of the state, shall consent thereto.
7. The total amount of bonds or capital notes which may be authorized
in any fiscal year of the municipal corporation, school district or
district corporation to finance advance planning pursuant to section
ninety-nine-d of the general municipal law shall not exceed the maximum
amount of budget notes which it may issue in such year pursuant to
subdivision two or three of paragraph a of section 29.00 of this
chapter, as the case may be, provided, however, that for the purposes of
this subdivision, amounts which are to be paid in the first instance
from improvement district assessments shall be included in computing
"the amount of the annual budget" of a town or a county in accordance
with section 29.00 of this chapter.