§ 124.10 Exclusion of certain indebtedness for sewage facilities in
ascertaining the power of a municipality to contract indebtedness. * a.
In ascertaining the power of a municipality to contract indebtedness,
there may be excluded any outstanding indebtedness contracted by such
municipality on or after January first, nineteen hundred sixty-two, and
prior to January first, two thousand twenty-four, for the construction
or reconstruction of facilities for the conveyance, treatment and
disposal of sewage.

* NB Effective until the effective date of constitutional amendments
proposed in S.4597/A.3776

* a. In ascertaining the power of a municipality to contract
indebtedness, there may be excluded any outstanding indebtedness
contracted by such municipality on or after January first, nineteen
hundred sixty-two, and prior to January first, two thousand thirty-four,
for the construction or reconstruction of facilities for the conveyance,
treatment and disposal of sewage.

* NB Effective upon the effective date of constitutional amendments
proposed in S.4597/A.3776

b. The date of contracting any such indebtedness for a particular
facility shall be deemed to be the date of the first contract for the
construction or reconstruction of such facility or the date of the first
obligation issued to finance such construction or reconstruction,
whichever date is the earlier.

* c. The term indebtedness, as used in this section, shall include
indebtedness evidenced by obligations issued on or after January first,
two thousand twenty-four for the purpose of financing any indebtedness
contracted for the purposes and within the period specified in paragraph
a of this section.

* NB Effective until the effective date of constitutional amendments
proposed in S.4597/A.3776

* c. The term indebtedness, as used in this section, shall include
indebtedness evidenced by obligations issued on or after January first,
two thousand thirty-four for the purpose of financing any indebtedness
contracted for the purposes and within the period specified in paragraph
a of this section.

* NB Effective upon the effective date of constitutional amendments
proposed in S.4597/A.3776

d. The provisions of this section shall not be deemed to prevent the
exclusion of any refunded indebtedness if the indebtedness refunded was
excludable pursuant to this section.

e. Where indebtedness has been excluded pursuant to this section, the
revenues, if any, of the facility constructed or reconstructed, during
the period for which the exclusion is effective, shall be applied to and
actually used for the payment of all costs of operation, maintenance and
repairs for such period, and payment of the amounts required in such
period for the interest on and amortization of or redemption of the
indebtedness excluded, or such revenues shall be deposited in a special
fund to be used solely for such payments. The application and use of
such payments or the deposits required therefor shall not prohibit a
municipality from using any such revenues, in excess of such payments or
deposits, for any lawful purpose of the municipality for which such
revenues may be used.

f. The chief fiscal officer of a municipality in his discretion may
prepare, or on the direction of the finance board shall prepare, a
verified itemized statement of outstanding or proposed indebtedness of
the municipality contracted or to be contracted for the purposes and
within the period specified in paragraph a of this section. Such chief
fiscal officer in his discretion may file, or on the direction of the
finance board shall file, with the state comptroller a verified
application on behalf of the municipality for the purpose of obtaining a
certification of the several amounts of such indebtedness to be excluded
pursuant to this section. Such itemized statement shall be attached to
and form a part of the application. The itemized statement and
application shall be in such form and contain such information as shall
be prescribed by the state comptroller. In the case of application for a
certification of amounts of proposed indebtedness to be excluded, the
application shall state the approximate date or dates when such
indebtedness, or portions thereof, are proposed to be contracted and
whether such indebtedness is to be in the form of a contract for
construction or in the form of obligations, or in both such forms.

g. Within fifteen days after filing of such application with the state
comptroller, the chief fiscal officer shall cause a notice to be
published that such application has been filed with the state
comptroller. Such notice shall be published in the official newspaper or
newspapers of the municipality, or if there be no such newspaper or
newspapers, then the finance board of the municipality shall designate
one or more newspapers having a general circulation in the municipality
for the publication of such notice. The notice also shall contain a
statement of the amount of outstanding indebtedness, if any, to be
excluded and a statement of the amount of proposed indebtedness, if any,
to be excluded if and when contracted. Proof of publication of such
notice shall be filed in the office of the state comptroller. A copy of
the itemized statement and application and of all financial statements,
documents, computations and other data and information which will be
submitted by the chief fiscal officer of the municipality to the state
comptroller in support of such application shall be filed in the office
of the chief fiscal officer and shall be public records.

h. After the filing of any such application, the state comptroller
shall review the facts set forth therein. The state comptroller shall
have the power to examine the accounts and records of the municipality
with respect to such application. He may also require the chief fiscal
officer and other public officers, boards and agencies of the
municipality to furnish such additional data and information in their
possession as he deems necessary to enable him to ascertain the
indebtedness which may be excluded pursuant to paragraph a of this
section.

i. The state comptroller shall issue a written certificate setting
forth the amounts of any such indebtedness which may be excluded. If the
indebtedness described in the certificate is, or is to be, in the form
of (1) a contract for construction which is to be financed later by
issuance of obligations pursuant to this chapter or pursuant to any
special law or (2) bond anticipation notes issued in anticipation of
bonds to be issued pursuant to this chapter or pursuant to any special
law, such certification also shall be applicable to such obligations or
bonds, as the case may be, when issued. If the state comptroller
determines that the indebtedness described in the application, or any
part thereof, does not constitute indebtedness described in paragraph a
of this section the reasons for such determination shall be given. The
certification of the state comptroller shall be conclusive. The
certificate of the state comptroller shall not be issued until ten days
after the filing of such proof of publication in the office of the state
comptroller and shall be issued within forty-five days after such
filing. The certificate of the state comptroller shall be effective so
long as and to the extent that any such indebtedness described therein
is outstanding, or until such certificate is amended, modified,
superseded or rescinded by a written certificate of the state
comptroller issued upon application of the municipality in the manner
provided in paragraph f of this section. The certificate of the state
comptroller shall be executed under his hand and seal in duplicate. One
of such certificates shall be filed in the department of audit and
control and the other in the office of the chief fiscal officer of the
municipality.

j. The provisions of this section shall not affect or impair any
existing exclusions of indebtedness, or the power to exclude
indebtedness granted by any other provision of this chapter or the
constitution. However, if any exclusion has been granted by the state
comptroller pursuant to section 123.00 of this chapter for any
indebtedness for which an exclusion has been granted pursuant to this
section, the exclusion of such indebtedness granted pursuant to section
123.00 of this chapter shall cease to be applicable.