By
David B. Gubits
JACOBOWITZ & GUBITS, LLP

BONDS:

Section 21 – SERIAL BONDS. c.

The last installment of serial bonds shall mature not later than the expiration of the period of probable usefulness, computed from the date of the earliest bond anticipation note. d. No annual installment shall be more than 50% in excess of smallest prior installment. Includes BANs. Notwithstanding the foregoing, the finance board may determine to provide for substantially level or declining annual debt service. e. Serial bonds shall be redeemed by an annual appropriation.

Section 11- PERIODS OF PROBABLE USEFULNESS.

a.

1. Water systems – 40 years.
4. Sewer systems – 40 years.
Replacement of equipment, machinery or apparatus – 30 years.
11. Buildings –
A. fireproof – 30 years. (incombustible walls, floors, roofs)
B. fire resistant – 25 years. (outer walls are fire resistant)
C. not A or B – 15 years.
12. Additions to or conversions of buildings.
13. Certain building alterations – HVAC and lighting.
19. Parks, playgrounds and recreation areas, not less than 50 acres – 20 years; other – 15 years.
20. Highways, roads, streets, parking areas –
A. Single surface treatment – 5 years;
B. Flexible pavement (not A or C) – 10 years; or
C. Penetration macadam – 15 years.
21. Land acquisition – 30 years.
24. Curbs, sidewalks, gutters – 10 years.
27. Fire-fighting vehicles and apparatus
(cost more than $50,000.00 – 20 years).
28. Machinery and apparatus for construction and maintenance.
$15,000.00 or less – 5 years;
over $15,000.00 and less than $30,000.00 – 10 years;
over $30,000.00 – 15 years.
29. Motor vehicles – 5 years. (Not including passenger or fire vehicles).
30. Water meters – 20 years.
32. Equipment, machinery, apparatus or furnishings – for any physical public betterment or improvement – 5 years – GOOD for MOST EQUIPMENT.
33. Judgments, claims, awards and determinations – 5 years.
53-a. Computer assisted system for preparation and maintenance of assessment and tax rolls – 10 years.
77. Passenger vehicle (police or fire vehicle seating less than 10 persons) – 3 years.
81. Computer assisted integrated financial management and accounting system
hardware – 10 years;
software – 5 years.

Section 31 – BOND AND CAPITAL NOTE RESOLUTION. c.

The issuance of obligations for a capital improvement and for the acquisition of land or permanent rights in land for such improvement may be authorized by the same bond resolution or capital note resolution; d. Two or more objects, purposes, classes may be in one bond resolution if maximum period of probable usefulness is 5 years or less, or bond resolution is not subject to either mandatory or permissive referendum.

Section 32 – Bond (and Capital Note) Resolution (form and contents).

Section 33 – Bond (and Capital Note) Resolution; procedure for enactment. 2/3 vote (4 out of 5 votes) of entire Board is required; except a 3/5 vote ( 3 out of 5 votes) is sufficient where there is mandatory referendum or referendum by resolution. (Note: Board must comply with SEQRA before adopting Bond Resolution.)

Section 35 – Bond Resolution (Towns) shall be subject to permissive referendum (except for maturity not more than 5 years or for district or special improvement – provided that this exception does NOT apply to a town highway improvement – i.e. all town highway improvements are subject to permissive referendum unless part of the cost of the improvement is paid for by the County or State). See Town Law §90 et seq. Publish and post NOTICE OF ADOPTION containing an abstract of resolution within 10 days. Resolution shall not take effect until 30 days after its adoption; nor until passed at referendum if within 30 days after adoption, petition signed and acknowledged by 5% of total vote for Governor in said Town at the last general election is filed with Town Clerk.

Section 36 – Bond Resolution (Villages) – shall be subject to permissive referendum (except for (1) maturity of not more than 5 years or (2) for capital improvement or equipment of which any part of the cost is chargeable primarily to benefit real property; (3) construction, or improvement of street through the Village the cost of which is paid in part by the County or State, (4) for payment of judgments, claims or awards; (5) for the construction or reconstruction of sewer facilities required by State order; (6) the construction or reconstruction of facilities for incineration and disposal of refuse and garbage required by State order.) (See Village Law Section 9-900 et seq. Publish and post NOTICE OF ADOPTION containing an abstract of resolution within 10 days. Election Law Section 15-104. Section 9-902 – Resolution shall not take effect until 30 days after its adoption; nor until passed at referendum if within 30 days after adoption, petition signed and acknowledged by 20% of voters registered at the last general Village election is filed with Village Clerk).

Section 107 – DOWN PAYMENT – THIS PROVISION HAS BEEN SUSPENDED ON BORROWINGS AUTHORIZED PRIOR TO JULY 15, 2012. Unless extended by legislature, after July 15, 2012 – 5% from current funds. Current funds include trade-in allowance. No down payment needed for (1) water or sewer facility, (2) capital improvement of which 50% is to be paid by assessments upon benefited real property, (3) any object or purpose if bonds have maximum maturity not to exceed 1/2 of maximum period of probable usefulness, (4) any object or purpose with probable usefulness of 5 years or less. See d.9 – suspension provision.

Section 80.00 Bond or note resolution may contain ESTOPPEL CLAUSE.

Section 81.00 PUBLICATION of resolution or summary thereof and ESTOPPEL NOTICE in official newspaper. Specifies requirements for summary of resolution. Section 81.00b -If subject to referendum, estoppel notice must specify that resolution has been approved at referendum, or that a valid petition has not been submitted and filed. The validity of such bonds or bond anticipation notes may be contested only if: 1) such obligations are authorized for an object or purpose for which the municipality is not authorized to expend money, or 2) the provisions of law which should be complied with at the date of publication are not3 substantially complied with, and an action, suit or proceeding contesting such validity, is commenced within twenty days after the date of such publication, or 3) such obligations are authorized in violation of the provisions of the New York State constitution.

Section 41– Repeal of unexpended authorizations.

Section 51– Terms, form and contents of obligations.

Section 52 – Recital of validity in obligations.

Section 57 – Sale of Bonds.

Section 58 – Notice of Sale of Bonds.

Section 63.00 a – Public Bond issues of $1,000,000.00 or less if maximum maturity not more than 5 years, do not need notice of sale required by Section 58, but may be sold upon such notice as prescribed by the State Comptroller. b. Bonds not exceeding $1,000,000.00 may be sold at private sale without limitation as to rate of interest provided that the total amount of bonds sold in the fiscal year shall not exceed $1,000,000.00 and if bonds have a maturity more than 10 years, a legal opinion is required.

Section 101.00 – No municipality shall a) give or loan its credit to or in aid of any individual, or public or private corporation or association, or private undertaking, or b) contract indebtedness except for the purposes of the municipality (except for specific listed purposes)..

STATUTORY INSTALLMENT BONDS:

Section 11 – Periods of probable usefulness.

Section 62.10 – Statutory Installment bonds (may not exceed $1,000,000.00 and may be sold at private sale); form. (Note: Under SEC Rule 15(c)2-12, a bond issue of $1,000,000.00 or more requires the preparation and distribution of an official statement.)

Section 63.00(b) – Total bonds not exceeding $1,000,000.00 in any fiscal year may be sold at private sale without limitation as to rate of interest. If maximum maturity exceeds 10 years, attorneys opinion required.

Section 31 – Bond and Capital Note Resolution. Two or more objects, purposes, classes may be in one bond resolution if maximum period of probable usefulness is 5 years or less.

Section 32 – Bond (and Capital Note) Resolution (form and contents).

Section 33 – Bond (and Capital Note) Resolution; procedure for enactment. 2/3 vote; except a 3/5 vote is sufficient where there is mandatory referendum or referendum by resolution. (Note: Board must comply with SEQRA before adopting Bond Resolutions.)

Section 107 – DOWN PAYMENT – THIS PROVISION HAS BEEN SUSPENDED ON BORROWINGS AUTHORIZED PRIOR TO JULY 15, 2012. Unless extended by legislature, after July 15, 2012 – 5% from current funds. Current funds include trade-in allowance. No down payment needed for (1) water or sewer facility, (2) capital improvement of which 50% is to be paid by assessments upon benefited real property, (3) any object or purpose if bonds have maximum maturity not to exceed 1/2 of maximum period of probable usefulness, (4) any object or purpose with probable usefulness of 5 years or less. See d.9 – suspension provision.

Section 35 – Bond Resolution (Towns) shall be subject to permissive referendum (except for maturity not more than 5 years or for district or special improvement – provided that this exception does NOT apply to a town highway improvement – i.e. all town highway improvements are subject to permissive referendum unless part of the cost of the improvement is paid for by the County or State). See Town Law §90 et seq. Publish and post NOTICE OF ADOPTION containing an abstract of resolution within 10 days. Resolution shall not take effect until 30 days after its adoption; nor until passed at referendum if within 30 days after adoption, petition signed and acknowledged by 5% of total vote for Governor in said Town at the last general election is filed with Town Clerk.

Section 36 – Bond Resolution (Villages) – shall be subject to permissive referendum (except for (1) maturity of not more than 5 years or (2) for capital improvement or equipment of which any part of the cost is chargeable primarily to benefit real property; (3) construction, or improvement of street through the Village the cost of which is paid in part by the County or State, (4) for payment of judgments, claims or awards; (5) for the construction or reconstruction of sewer facilities required by State order; (6) the construction or reconstruction of facilities for incineration and disposal of refuse and garbage required by State order.) (See Village Law Section 9-900 et seq. Publish and post NOTICE OF ADOPTION within 10 days. Election Law Section 15-104. Section 9-902 – Resolution shall not take effect until 30 days after its adoption; nor until passed at referendum if within 30 days after adoption, petition signed and acknowledged by 20% of voters registered at the last general Village election is filed with Village Clerk).

Section 80.00 – Bond or note resolution may contain ESTOPPEL CLAUSE.

Section 81.00 – PUBLICATION of resolution or summary thereof and ESTOPPEL NOTICE in official newspaper. Section 81.00b -If subject to referendum, estoppel notice must specify that resolution has been approved at referendum, or that a valid petition has not been submitted and filed. The validity of such bonds or bond anticipation notes may be contested only if: 1) such obligations are authorized for an object or purpose for which the municipality is not authorized to expend money, or 2) the provisions of law which should be complied with at the date of publication are not substantially complied with, and an action, suit or proceeding contesting such validity, is commenced within twenty days after the date of such publication, or 3) such obligations are authorized in violation of the provisions of the New York State constitution.

BOND ANTICIPATION NOTES:

Section 23 – Bond Anticipation Notes. Original issue may mature up to two years and renewal notes may mature within one year. No renewals beyond two years from date of original issue unless principal reduction; no renewal beyond five years, (Chapter 386, laws of 2010: beyond SEVEN (7) years, if original BAN was issued in 2004 and 2005) unless assessable improvement. (Note: Renewal two year BANs would be inconsistent with the constitutional requirement of “annual” principal payments commencing on the second anniversary date of original issuance.)

Section 30 – Finance Board has power to authorize issuance of bonds and notes. However, Finance Board may, by resolution, delegate such power re bond, tax and revenue anticipation notes and renewals thereof to chief fiscal officer, who shall before issuing the same file with Board a certificate authorizing such issuance which shall comply with Section 38.10 or Section 39.

Section 38.10 – BAN Resolution; form and contents.

Section 54.90 – Prior to July 15, 2012 (and may be extended by legislature), permits bonds or notes “with variable rates of interest” provided that the principal amount of such bonds or notes not exceed 10% of issuer’s constitutional debt limit at any time. Such bonds or notes may be sold at private sale pursuant to rules to be issued by the State Comptroller.

Section 60 – Sale of Notes – may be private or public sale without limitation as to rate of interest.

TAX AND REVENUE ANTICIPATION NOTES:

Section 24 – Tax Anticipation Notes – in anticipation of uncollected taxes. Ten (10) days prior to fiscal year.

If fiscal year is calendar year, 30 days prior to commencement of fiscal year.

Section 25 – Revenue Anticipation Notes – in anticipation of uncollected revenue (excluding real estate taxes).

(C.1) May be issued during any fiscal year in which anticipated revenue becomes due and payable

(f) One year and may be renewed for one year periods, but shall not extend beyond the close of the second fiscal year succeeding the fiscal year of issue.

Section 30 – Finance Board has power to authorize issuance of bonds and notes. However, Finance Board may, by resolution, delegate such power re bond, tax and revenue anticipation notes and renewals thereof to chief fiscal officer, who shall before issuing the same file with Board a certificate authorizing such issuance which shall comply with Section 38.10 or Section 30.

Section 39 – Tax and Revenue Anticipation note resolution; form and contents.

Section 60 – Sale of Notes – may be private or public sale without limitation as to rate of interest.

Section 11a.36 – Period of probable usefulness – 5 years on real property taxes and assessments; 3 years on receipt of moneys from U.S. Government, State or local subdivision thereof; 3 years on collection of sewer or water rents and charges other than real property taxes.

BUDGET NOTES:

Section 29 – Budget Notes. (j) Maturity: Note and renewals shall not mature later than close of fiscal year succeeding fiscal year of issue, but may mature not later than close of second fiscal year after fiscal year of issue if authorized and issued during fiscal year subsequent to adoption of budget for next fiscal year. Not for improvement districts.

Section 40 – Budget Note Resolution; form and contents. Must set forth the facts and circumstances necessitating the issuance of such budget notes and the specific object or purpose or the class of objects or purposes for which the budget notes to be authorized by such resolution are to be issued and state that there are no other funds available with which to pay or provide for such object or purpose or class of objects or purposes.

Section 60 – Sale of notes – may be private or public sale without limitation as to rate of interest.

CAPITAL NOTES:

Section 28 – Capital Notes – Capital note including renewal shall mature not later than last day of second fiscal year succeeding fiscal year in which notes are issued.

Section 31 – Bond and Capital Note Resolution. Two or more objects, purposes, classes may be in one bond resolution if maximum period of probable usefulness is 5 years or less.

Section 32 – Bond (and Capital Note) Resolution (form and contents).

Section 33 – Bond (and Capital Note) Resolution; procedure for enactment. 2/3 vote; except a 3/5 vote is sufficient where there is mandatory referendum or referendum by resolution.

Section 60 – Sale of notes – may be private or public sale without limitation as to rate of interest.

GENERAL:

Section 51.00 – Terms, form and content of obligations.

Section 61.00 – Execution by chief fiscal officer (defined in section 2.00-5. – Towns – Supervisor, Villages -Treasurer).

Section 165.10 – Advances from (general) funds. Finance Board may authorize temporary use of general funds for purposes for which an issue of bonds, capital notes, or urban renewal notes has been authorized.

Inter-fund Advances – See General Municipal Law §9-a