§ 3651. Reserve fund. 1. A reserve fund may be established by the\nschool authorities of any school district, provided, however, that no\nsuch fund shall be established (a) until approved by a majority vote of\nthe qualified voters of the district voting on a proposition therefor\nsubmitted at a regular or special school district meeting, or in school\ndistricts which do not have such meetings, at an election called for\nsuch purpose, and (b) unless the notice of such meeting or election\nshall have stated that a proposition to establish a reserve fund would\nbe so submitted, the purpose of the fund, the ultimate amount thereof,\nits probable term and the source from which the funds would be obtained.\nSuch reserve fund may be established for financing, in whole or in part,\nthe cost of any object or purpose for which bonds may be issued by, or\nfor the objects or purposes of, the school district pursuant to the\nlocal finance law. The proposition shall specify the purpose for which\nthe fund is established, the ultimate amount, the probable term and the\nsource from which the funds are to be obtained. There shall be paid into\nany such fund an annual amount sufficient to meet the requirements of\nthe proposition. In addition, the voters may from time to time direct\nthe school authorities to pay into such fund moneys derived from any\nother source.\n 1-a. Notwithstanding the provisions of subdivision one of this\nsection, any school district may establish a reserve fund for the\npayment of judgments and claims in tax certiorari proceedings in\naccordance with article seven of the real property tax law, without\napproval by the qualified voters of the district, provided, however,\nthat the total of the monies held in such reserve fund shall not exceed\nthat amount which might reasonably be deemed necessary to meet\nanticipated judgments and claims arising out of such tax certiorari\nproceedings. Any monies deposited to such reserve fund which are not\nexpended for the payment of judgments or claims arising out of such tax\ncertiorari proceedings for the tax roll in the year such monies are\ndeposited to the said fund and/or which will not reasonably be required\nto pay any such judgment or claim shall be returned to the general fund\non or before the first day of the fourth fiscal year following the\ndeposit of such monies to said reserve fund. For purposes of this\nsubdivision, such monies shall be deemed reasonably required to pay any\nsuch judgment or claim if the proceeding or claim has not been finally\ndetermined or otherwise terminated or disposed of after the exhaustion\nof all appeals.\n 1-b. Notwithstanding the provisions of subdivision one of this\nsection, where the city or county is not required to pay to the\ntreasurer of a city school district unpaid taxes during the fiscal year\nfor which such real property taxes are levied, the board of education of\nsuch city school district may establish a reserve for uncollected taxes\nwithout approval of the qualified voters of the school district,\nprovided that the ratio of the amount of such reserve to the total\nprincipal amount of the district's tax levy for such fiscal year shall\nnot be less than the ratio of the principal amount of the school\ndistrict taxes as levied by the school district for the last completed\nfiscal year but not received by the district before the end of such\nfiscal year to the total principal amount of the tax levy for such last\ncompleted fiscal year. If the city or county is not required to pay to\nthe treasurer of a city school district unpaid taxes pursuant to section\nthirteen hundred thirty-two of the real property tax law, the board of\neducation of the city school district shall establish a reserve pursuant\nto this subdivision, provided that such reserve shall not be less than\nthe amount of taxes for the fiscal year for which such budget is being\nprepared which are estimated to be unpaid during such fiscal year under\nthe afores
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.