§ 122.00 Pay-as-you-go financing by the city of New York;
ascertainment of indebtedness arising therefrom. a. Whenever the city
of New York is required by law to pay for all or any part of the cost of
a capital improvement by direct budgetary appropriation in any fiscal
year or by the issuance of capital notes, the finance board of such city
may, by resolution, elect to exclude from the tax limitation prescribed
by section ten of article eight of the state constitution all or part of
the taxes required for such direct budgetary appropriation or for the
redemption of such capital notes. The amount so excluded 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 probable usefulness of such capital
improvement, as determined by section 11.00 of this chapter.

b. This section shall apply only to taxes required for a budgetary
appropriation, or for the redemption of a capital note issued, for the
payment, prior to the expiration of the fiscal year in which such
capital improvement is completed, of all or any part of the cost of such
capital improvement.

c. Where taxes required for such direct budgetary appropriation or for
the redemption of such capital notes are so excluded from the tax
limitation prescribed by section ten of article eight of the state
constitution, the cost of the capital improvement or improvements for
which the direct budgetary appropriation was made or the capital notes
issued shall, to the extent of the amount of such taxes, be required by
law to be financed in such manner and from no other source. Where taxes
so raised are so excluded from such tax limitation, and where a surplus
exists in the amount of taxes so excluded after paying all costs of a
capital improvement or by reason of the abandonment of the acquisition
or construction of a capital improvement, such surplus may be
transferred, in the manner provided by law, to and may be used only for
the purpose of (1) an appropriation for, or a capital reserve fund
created or to be created for, a capital improvement having a like or
lesser period of probable usefulness than the capital improvement for
which such taxes were raised, or (2) an appropriation for the payment of
interest on or principal of serial bonds of an issue having a maximum
maturity of more than two years and maturing at or prior to the
expiration of the period of probable usefulness of the capital
improvement for which such taxes were raised.

d. The chief fiscal officer of such city shall determine the amount to
be deemed indebtedness pursuant to this section, and shall set forth his
determination in a statement in writing, executed in duplicate, signed
and verified by him, which shall be in such form and contain such
information as shall be prescribed by the state comptroller. Both copies
of such statement shall be forwarded to the state comptroller, and, if
approved by him, the determination therein set forth shall be
conclusive. One copy of such determination, together with the approval
of the state comptroller, shall be filed in the office of the department
of audit and control and the other in the office of the chief fiscal
officer of such city. Both of such copies shall be public records.

e. For the purposes of this section the term "capital improvement"
shall include also boats, fire fighting vehicles and apparatus,
machinery and apparatus for construction and maintenance, and motor
vehicles having periods of probable usefulness assigned in subdivisions
twenty-six, twenty-seven, twenty-eight and twenty-nine of paragraph a of
section 11.00 of this chapter.

f. 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 or section eleven of
article eight of the constitution as in force and effort prior to
January first, nineteen hundred fifty-two, shall not be deemed to be
indebtedness on and after such date.