§ 11. (a) Whenever the city of New York is required by law to pay for
all or any part of the cost of capital improvements by direct budgetary
appropriation in any fiscal year or by the issuance of certificates or
other evidence of indebtedness (except serial bonds of an issue having a
maximum maturity of more than two years) to be redeemed in one of the
two immediately succeeding fiscal years, taxes required for such
appropriation or for the redemption of such certificates or other
evidence of indebtedness may be excluded in whole or in part by such
city from the tax limitation prescribed by section ten of this article,
in which event the total amount so required for such appropriation and
for the redemption of such certificates or other evidence of
indebtedness shall be deemed to be indebtedness to the same extent and
in the same manner as if such amount had been financed through
indebtedness payable in equal annual installments over the period of the
probable usefulness of such capital improvement, as determined by law.
The fiscal officer of such city shall determine the amount to be deemed
indebtedness pursuant to this section, and the legislature, in its
discretion, may provide that such determination, if approved by the
state comptroller, shall be conclusive. Any amounts determined to be
deemed indebtedness of any county, city, other than the city of New
York, village or school district in accordance with the provisions of
this section as in force and effect prior to January first, nineteen
hundred fifty-two, shall not be deemed to be indebtedness on and after
such date.

(b) 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 provides by
direct budgetary appropriation for any fiscal year for the payment in
such fiscal year or in any future fiscal year or years of all or any
part of the cost of an object or purpose for which a period of probable
usefulness has been determined by law, the taxes required for such
appropriation shall be excluded from the tax limitation prescribed by
section ten of this article unless the legislature otherwise provides.