New York Laws
Article 2 - General Municipal Finances
9 - Use of Tax Moneys Raised Outside Constitutional Tax Limit.

§ 9. Use of tax moneys raised outside constitutional tax limit. 1.
Whenever any county, city (other than the city of New York), village, or
school district which is coterminous with, or partly within, or wholly
within, a city having less than one hundred twenty-five thousand
inhabitants according to the latest federal census, shall make a direct
budgetary appropriation for any fiscal year for

a. The payment in such year or in any future fiscal year or years of
all or any part of the cost of an object or purpose for which bonds may
be issued, or

b. The payment of the interest on and principal of indebtedness, and
the taxes required for such appropriation are excluded from the tax
limitation prescribed by section ten of article eight of the state
constitution, the amount so appropriated shall be used only for the
object or purpose for which such appropriation was made, except as
otherwise provided in subdivision two of this section.

2. Whenever the total amount of any such appropriation is not used for
the object or purpose for which made, any unexpended balance therein may
be used, in the manner provided and when authorized by law, for any of
the following objects or purposes or a combination thereof:

a. An appropriation for an object or purpose for which bonds may be
issued;

b. An appropriation to a reserve fund established pursuant to law for
the financing of all or part of the cost of an object or purpose for
which bonds may be issued; or

c. An appropriation for the payment of the interest on and principal
of indebtedness, other than indebtedness evidenced by bonds and notes
described in paragraphs A and D of section five of article eight of the
state constitution, or renewals thereof.

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