§ 120.00 Indebtedness of certain district corporations; amount thereof
included as indebtedness of municipalities. a. As used in this section:

1. The term "assessment roll" shall mean the assessment roll used for
the annual county, city, town or village taxes, as the case may be.

2. The term "city, village or town affected" shall mean any city or
village within which or any town within the unincorporated area of
which, all or part of a district corporation, as defined in paragraph a
of section 102.00 of this chapter, is situated.

3. The term "net indebtedness" shall mean any outstanding indebtedness
contracted by a district corporation, as defined in paragraph a of
section 102.00 of this chapter, on or after January first, nineteen
hundred thirty-nine, other than an indebtedness which, if contracted by
a city, town or village, would be excluded in ascertaining the power of
such city, town or village to contract indebtedness.

4. The term "taxable real property" shall mean real property subject
to taxation for any purpose by the city, town or village within which it
is situated.

b. If a district corporation, as defined in paragraph a of section
102.00 of this chapter, is situated wholly within a city, village or the
unincorporated area of a town, in ascertaining the power of such city,
town or village to contract indebtedness there shall be included the net
indebtedness of such district corporation.

c. If only part of a district corporation, as defined in paragraph a
of section 102.00 of this chapter, is situated within a city, village or
the unincorporated area of a town, in ascertaining the power of such
city, town or village to contract indebtedness there shall be included
the appropriate proportion of the net indebtedness of such district
corporation. The amount of net indebtedness to be so included shall be
annually determined in the following manner:

1. If such district corporation is situated wholly within the
boundaries of a town, or is situated wholly within the boundaries of a
county for which a county assessment roll is prepared, such district
corporation, by its finance board, shall ascertain from the last
completed assessment roll of such town or county:

(a) The assessed valuation of the taxable real property within such
district corporation and

(b) The assessed valuation of the taxable real property within such
district corporation situated in each such city, town or village
affected.

The proportion of the net indebtedness to be included in ascertaining
the power of each such city, town or village affected to contract
indebtedness shall be determined by multiplying the amount of such net
indebtedness of such district corporation by the percentage or ratio the
assessed valuation of the taxable real property of such district
corporation situated in each such city, town or village affected bears
to the assessed valuation of all the taxable real property within such
district corporation.

2. If such district corporation is not situated wholly within the
boundaries of a town, or a county for which a county assessment roll is
prepared, such district corporation, by its finance board, shall

(a) Ascertain from the last completed assessment roll of such cities
or towns within which such district corporation is situated a statement
of the assessed valuation of the taxable real property within such
district corporation located in each such city, town or village
affected.

(b) Procure from the appropriate state officer or agency a statement
of the ratios of the assessed valuation to the true valuation
established by such officer or agency for the last completed assessment
roll of such cities or towns.

(c) Determine the full valuation of the taxable real property within
such district corporation situated in each such city, town or village
affected by dividing the assessed valuation of such real property by the
ratio fixed for the city or town in which such taxable real property is
situated. The total full value of the taxable real property within the
entire district corporation shall be ascertained by adding together the
full value of the taxable real property within the district corporation
situated in each city, town or village affected.

(d) Ascertain the proportion of net indebtedness to be included in
ascertaining the power of each such city, town or village affected to
contract indebtedness by multiplying the amount of such net indebtedness
of such district corporation by the percentage or ratio the full value
of the taxable real property within such district corporation situated
in such city, town or village affected bears to the total full value of
the taxable real property within the entire district corporation.

d. Immediately after the close of a fiscal year of a district
corporation, as defined in paragraph a of section 102.00 of this
chapter, its finance board shall determine the net indebtedness of such
district corporation and shall file with the chief fiscal officer of
each city, town or village affected a written certificate setting forth
the amount of such net indebtedness to be included, pursuant to this
section, in ascertaining the power of such city, town or village to
contract indebtedness.