§ 29.00 Budget notes. a. 1. Any municipality or district corporation,
other than a fire district, may issue budget notes during any fiscal
year for any unforeseeable public emergency during such year such as
epidemic, conflagration, riot, storm, flood, earthquake or other unusual
peril to the lives and property of the citizens of such unit of
government in such amount as the finance board shall determine to be
necessary, but no municipality may issue such notes for emergencies in
behalf of any local improvement district. Any school district may issue
budget notes during any fiscal year to provide temporary school
buildings or facilities in such year when such buildings or facilities
are necessitated because of an unforeseeable public emergency during
such year such as epidemic, conflagration, riot, storm, flood,
earthquake or other unusual circumstance preventing the use in whole or
in part, of the buildings or other facilities used by such school
district.

2. Any municipality or district corporation which adopts an annual
budget may issue budget notes during any fiscal year for expenditures
for which an insufficient or no provision is made in the annual budget
for such fiscal year in an amount not to exceed five per centum of the
amount of such annual budget.

Notwithstanding the foregoing limitation, any fire district may issue
budget notes pursuant to this subdivision in the amount of at least one
thousand dollars. In addition, any county which adopts an annual budget
may issue budget notes pursuant to this subdivision without limitation
as to amount for necessary expenditures for the apprehension and
prosecution of persons charged with the commission of crime and for
which an insufficient or no provision has been made in the annual budget
for such fiscal year. If, however, any such municipality or district
corporation may issue budget notes for any such expenditures pursuant to
the provisions of any other paragraph of this section, such municipality
or district corporation shall not issue budget notes for any such
expenditures pursuant to this subdivision. Any town, and any county, in
computing "the amount of the annual budget" for the purposes of this
subdivision shall not include any amounts which are to be paid in the
first instance from improvement district assessments.

3. A school district may issue budget notes during the last nine
months of any fiscal year for expenditures for which an insufficient or
no provision is made in the annual budget for such fiscal year in an
amount not to exceed five per centum of such annual budget. The
foregoing limitation shall not be applicable in any case in which a
budget note resolution has been adopted by the finance board of a school
district and has been approved by a majority of the qualified voters of
the school district present and voting at any annual or special meeting
of the school district held pursuant to the provisions of the education
law during the last nine months of such fiscal year. The notice for any
such meeting, in addition to complying with applicable provisions of the
education law, must state that such budget note resolution will be
submitted for approval by the voters at such meeting; the purpose for
which moneys are proposed to be borrowed under such resolution; the
total amount proposed to be borrowed, and the fiscal year in which taxes
are required to be levied for the payment of the budget note proposed to
be issued. The vote at any such meeting on such proposition shall be by
ballot, or ascertained by taking and recording the ayes and noes of such
qualified voters attending and voting at such meeting.

3-a. Notwithstanding any other provisions of this section, where a
school district can demonstrate to the satisfaction of the commissioner
of education extenuating circumstances that a waiver is warranted for
the adoption of a budget note resolution by its finance board, upon
certification by the chief executive officer to the commissioner of
education, in such form as the commissioner of education shall determine
pursuant to guidelines developed, for the purpose of making additional
accruals requirements in the two thousand four--two thousand five or two
thousand five--two thousand six school years associated with changes in
accounting methodologies for liabilities for employer and employee
contributions due and payable to a public retirement system that will
result in a tax increase to the residents of the district in the
following school year, a school district may issue budget notes during
the last nine months of the school year in which such resolution is
adopted, or during the first three months of the following school year,
in an amount not to exceed the amount of such additional accruals for
public pension liabilities. The limitation on the amount of budget notes
contained in subdivision three of this paragraph shall not be applicable
to notes issued pursuant to this section and the amount of budget notes
issued pursuant to this section shall not be included in the computation
of such limitation.

4. Any fire district may issue budget notes for expenditures for
necessary repairs to any fire-fighting apparatus, fire-fighting vehicles
or other motorized equipment of such fire district which has been
damaged as the result of an accident; but only to the extent that
budgetary appropriations for such purpose and the proceeds of insurance
received on account of such damage and on hand at the time the repairs
are completed are insufficient to pay for such damage. Unless a
budgetary appropriation for the payment of such notes is in existence at
the time the proceeds of any such insurance are received, such proceeds
shall be used only for the payment of such notes.

5. Any municipality or fire district may issue budget notes during any
fiscal year to provide for the payment in such fiscal year of the cost
of insurance secured to indemnify against liability for benefits payable
under the volunteer firefighters' benefit law and for which cost an
insufficient or no provision was made in the annual budget of the
municipality or fire district for such fiscal year. The aggregate amount
of any such notes which may be issued for such purpose in a fiscal year
commencing after December thirty-first, nineteen hundred sixty-five,
shall not exceed the sum by which the actual cost of such insurance to
be paid in the fiscal year in which such notes are issued exceeds the
actual cost of such insurance in the fiscal year prior to the fiscal
year in which such notes are issued; provided, however, that this
limitation shall not apply in a case where the municipality or fire
district has not incurred any such cost in the fiscal year prior to that
in which such notes are issued.

6. Any fire district may issue budget notes for expenditures for water
supply and in relation to fire hydrant maintenance and rental costs; but
only to the extent that budgetary appropriations for such purpose under
subdivision twelve of section one hundred seventy-six of the town law
are insufficient to pay increased charges which the public service
commission has authorized and the fire district is required to pay in
the fiscal year in which the budget note is issued for such maintenance
or rental.

7. Any fire district which elects to become liable for payments in
lieu of contributions pursuant to section five hundred sixty-five of the
labor law and is required by the commissioner of labor to pay into the
unemployment insurance fund an amount equal to the amount of benefits
paid to claimants and charged to such fire district's account may issue
budget notes for such expenditures for the amount required to be so paid
in the fiscal year in which the budget note is issued, but only to the
extent that budgetary appropriations for such purpose are insufficient
to pay such claim.

8. Any county, city, village, town, town on behalf of an ambulance
district, or town on behalf of a fire protection district which
contracts with an ambulance service which is not organized pursuant to
section two hundred nine-b of the general municipal law, may issue
budget notes during the first fiscal year in which it is required to pay
contributions to the volunteer ambulance workers' service award program,
but only to the extent that budgetary appropriations for such purpose
are insufficient to pay such contributions.

b. Any municipality which adopts an annual budget may issue budget
notes during any fiscal year for either or both the following purposes:

1. The payment of the expenses for the removal of snow and ice,
exclusive of salaries and wages of regular employees except for overtime
work and work on Sundays and holidays, or

2. The payment of the expenses for the demolition of unsafe buildings,
to the extent that an insufficient provision shall have been made
therefor in the annual budget for such fiscal year, if such municipality
is required by statute, local law or ordinance to include in its annual
budget for such fiscal year and each fiscal year thereafter either (a)
an amount equal to at least the average of all expenditures for such
purpose during each of the five preceding fiscal years for each purpose
for which such budget notes are to be issued, or (b) such amount as is
prescribed in the schedule set forth below, for each purpose for which
such budget notes are to be issued:

1. For such fiscal year, an amount equal to at least one-fifth of the
average of all expenditures for such purpose during each of the five
preceding fiscal years.

2. For the first fiscal year succeeding such fiscal year, an amount
equal to at least two-fifths of the average of all expenditures for such
purpose during each of the five preceding fiscal years.

3. For the second fiscal year succeeding such fiscal year, an amount
equal to at least three-fifths of the average of all expenditures for
such purpose during each of the five preceding fiscal years.

4. For the third fiscal year succeeding such fiscal year, an amount
equal to at least four-fifths of the average of all expenditures for
such purpose during each of the five preceding years.

5. For the fourth fiscal year succeeding such fiscal year and for each
succeeding fiscal year thereafter, an amount equal to at least the
average of all expenditures for such purpose during each of the five
preceding fiscal years.
Any city, any county and any village having a population of five
thousand or more, as determined pursuant to the latest available federal
census, may adopt a local law or ordinance, and any other municipality
may adopt an ordinance requiring the inclusions of such amounts set
forth in the above schedule for either of or both such purposes in its
annual budget.

c. Any city which is required pursuant to law to include annually in
its annual budget an amount for:

1. Judgments which may be obtained against the city and which may
become due and payable during the fiscal year for which the budget is
adopted,

2. Claims which may be settled or compromised and become payable
during such fiscal year, and

3. The repaving of streets
may issue budget notes for any of such purposes during a fiscal year if
the amount included in the annual budget for such fiscal year is
insufficient therefor.

d. Any municipality, school district or district corporation which is
required by law to include in its annual budget the amount of judgments
or compromised or settled claims which are outstanding at the time such
budget is prepared, may issue budget notes for the payment of any such
judgment or claim. Such notes may be issued at any time prior to the
earliest time at which tax anticipation notes may be issued by such
municipality, school district or district corporation pursuant to
section 24.00 of this chapter in anticipation of the levy or collection
of taxes for such budget. If such notes are issued in a fiscal year
prior to the preparation of an annual budget during such fiscal year, an
appropriation for their redemption shall be included in such next budget
when it is prepared. If such notes are issued after an appropriation has
been included in an annual budget for the payment of the judgments or
claims for which the notes are issued, such notes shall be redeemed from
such appropriation. Such budget notes may be renewed from time to time,
but such notes including renewals thereof shall mature not later than
the close of the fiscal year for which such annual budget is adopted.

e. Any city, county or town, during any fiscal year or, in the case of
the city of New York, within ninety days after the close of such fiscal
year, for which it shall make a supplemental, deficiency or additional
appropriation for one or more purposes authorized by or under the
provisions of the social services law, including the administration
thereof, may issue budget notes for the amount of the local share of the
cost thereof.

e-1. If any town has made an appropriation in its annual budget for
any fiscal year for its share of the cost of an approved project under
article eight-A of the highway law, and the appropriation is
insufficient, the town may issue budget notes in such fiscal year to
finance such share in an amount not to exceed fifty per centum of the
town's share of the cost of such project. Budget notes may not be issued
under any other paragraph of this section to finance any portion of the
town's share of the cost of an approved project under such article
eight-A of the highway law.

f. If any municipality which is authorized or required by law to
include in its annual budget an estimate of the amount of state, county
district and other county taxes to be levied on the real property within
such municipality for or during the fiscal year for which such budget is
adopted, underestimates the amount that is actually levied, such
municipality may issue budget notes for the payment of all or part of
such deficiency.

g. If any portion of the taxes or assessments levied by a
municipality, school district or district corporation in any fiscal year
are cancelled prior to the collection thereof pursuant to a
determination by a court in an action or proceeding brought by the
taxpayer, or, in the case of a school district with the written approval
and consent of the commissioner of education under section thirty-five
hundred twelve of the education law, such municipality, school district
or district corporation may issue budget notes in the fiscal year in
which any such cancellation occurs in an amount not in excess of the
amount of taxes or assessments so cancelled. The proceeds of such notes
shall be used only for the purposes for which such taxes or assessments
so cancelled were levied, or for the redemption of tax anticipation
notes which had been issued in anticipation of the collection of the
taxes or assessments so cancelled and for the redemption of which notes
no other provision has been made, or for the redemption of budget notes
in renewal of which they were issued.

h. Any county which does not adopt an annual budget may issue budget
notes during any fiscal year to pay accounts, claims, demands or charges
which may be directed to be paid pursuant to the provisions of any law
in an amount not in excess of the total amount of such accounts, claims,
demands or charges directed to be paid in such fiscal year and for which
an insufficient or no provision was made in the estimate upon which the
tax levy for such fiscal year was based. No county shall issue budget
notes pursuant to this paragraph on or after January first, nineteen
hundred fifty-one; provided that budget notes issued prior to such date
pursuant to this paragraph may be renewed as provided in paragraph j of
this section.

i. Any town on behalf of a town improvement district situated therein,
or any county on behalf of a county improvement district situated
therein, may issue budget notes during any fiscal year for expenditures
for which an insufficient or no provision is made in the annual estimate
for such improvement district as finally adopted for such fiscal year in
an amount not to exceed five per centum of the amount of such annual
estimate.

j. Except as otherwise provided in paragraph d of this section, budget
notes may be renewed from time to time but such notes, including the
renewals thereof, shall mature not later than the close of the fiscal
year succeeding the fiscal year in which such notes are issued. However,
such notes, including the renewals thereof, may mature not later than
the close of the second fiscal year succeeding the fiscal year in which
such notes are issued, when authorized and issued during a fiscal year
at a time subsequent to the date of the adoption of the annual budget
for the next succeeding fiscal year, by a municipality, school district
or district corporation in which the total amount of taxes or
assessments levied for a fiscal year is determined pursuant to an annual
budget adopted during the fiscal year preceding such fiscal year.

k. Budget notes shall be redeemed out of the taxes or assessments
levied or to be levied for the fiscal year in which they mature or out
of other revenues of that fiscal year legally available for that
purpose.

l. Notwithstanding the provisions of any general, special or local
law, any municipality, school district or district corporation, which
has the power to issue budget notes under this section, shall to the
same extent have the power to appropriate and expend money received from
the proceeds of the sale of budget notes for the purposes for which such
notes are issued.

m. Notwithstanding the provisions of this section or any other law, no
city shall issue budget notes for the purpose of providing funds for the
payment pursuant to section thirty-six-a of the rapid transit law, or
otherwise, of the amounts which the board of transportation or any other
agency of such city determines or estimates, claims (including claims
reduced to judgment) or certifies to the board of estimate or other
analogous local authority of such city, as the sum by which the revenues
derived from operation of any railroad, as defined in section two of the
rapid transit law, fail or will fail to provide for any costs and
expenses of operation and maintenance of such railroad for any period or
periods commencing on or after July first, nineteen hundred fifty-three.
For the purpose of this paragraph, such costs and expenses shall also
include the payments or contributions paid or payable by the board of
transportation or the city during such period to any employees' pension
or retirement system on account of membership therein of officers and
employees of such board of transportation.

n. Notwithstanding any other provision of this section, except where
any obligations other than budget notes are or have been issued for the
object or purpose described in subdivision fifty-nine of paragraph a of
section 11.00 of this chapter, budget notes may be issued by a
municipality, school district or district corporation, or by a county on
behalf of a county improvement district situated therein or by a town on
behalf of a town improvement district situated therein, pursuant to an
irrevocable election to finance all or part of the employer's share of
the cost of retroactive coverage provided to its employees under the
federal old-age and survivors insurance system pursuant to section one
hundred thirty-eight-a of the retirement and social security law where
an insufficient or no provision is or has been made in the annual budget
for such cost.

o. Notwithstanding any other provision of this section, if any city in
this state having a population of one million or more includes in its
annual budget for the fiscal year nineteen hundred seventy-one--nineteen
hundred seventy-two an estimate in an amount not to exceed one hundred
million dollars of additional revenues available to it as a result of a
federal program of general or special revenue sharing or any similar
program or any combination of such programs which relieves a financial
burden which would otherwise require expenditure from city tax receipts
in such amount for the fiscal year, and if that estimate should exceed
the amount of such revenue that actually becomes available to it, such
city may issue during the last quarter of such fiscal year budget notes
which shall have a maximum maturity of not more than one year for the
payment of all or part of the amount of such overestimate, upon a
determination by the state budget director of the amount of such
overestimate.