§ 11.00 Periods of probable usefulness. a. A municipality, school\ndistrict or district corporation may not contract indebtedness for any\nobject or purpose for a period longer than the period of probable\nusefulness set forth below for such object or purpose, provided,\nhowever, that for purposes of selling bonds or notes evidencing\nindebtedness contracted for any two or more objects or purposes, or any\ncombination thereof, for which the periods of probable usefulness as\ndetermined pursuant to this section are not all the same, such\nindebtedness may be contracted for a period no longer than the weighted\naverage period of probable usefulness of the objects or purposes. Unless\nthe context requires otherwise, whenever the phrase "period of probable\nusefulness" is used in this chapter, it shall include weighted average\nperiod of probable usefulness. For purposes of this chapter,\nindebtedness contracted for an object or purpose (or class of objects or\npurposes) shall be deemed to be contracted for no longer than the period\nof probable usefulness of such object or purpose (or class of objects or\npurposes) irrespective of whether such indebtedness is combined with\nindebtedness contracted for other objects or purposes (or classes of\nobjects or purposes) for purpose of sale and the combined indebtedness\nis contracted for the weighted average period of probable usefulness of\nall of the objects or purposes (or classes of objects or purposes) for\nwhich it is contracted. Weighted average period of probable usefulness\nshall be determined by the governing body by computing the sum of the\nproducts derived from multiplying the dollar value of the portion of the\nproceeds of the indebtedness expected to be received for each object or\npurpose (or class of objects or purposes) by the period of probable\nusefulness, or, if less, the maximum authorized maturity of indebtedness\nto be contracted for such object or purpose (or class of objects or\npurposes), as determined by the bond resolution authorizing such\nindebtedness, and dividing the resulting sum by the dollar value of the\nproceeds expected to be received by the municipality, school district or\ndistrict corporation from the combined indebtedness. Preliminary costs\nof surveys, maps, plans, estimates, and hearings in connection with a\ncapital improvement, and costs incidental to such improvement, including\nbut not limited to legal fees, printing or engraving, publication of\nnotices, taking of title, apportionment of costs, and interest during\nconstruction, shall be deemed part of the cost of the object or purpose\nin connection with which they are incurred. Where a municipality is\nauthorized by law to pay to the state or a county all or part of the\ncost of a capital improvement, the period of probable usefulness\ndetermined in this paragraph for a like capital improvement shall be the\nperiod of probable usefulness for the municipality's share of the cost\nof such capital improvement. The period of probable usefulness of each\nsuch object or purpose is hereby determined to be as follows:\n 1. Water systems. The acquisition, construction or reconstruction of\nor addition to a water supply or distribution system, whether or not\nincluding buildings, land or rights in land, original furnishings,\nequipment, machinery or apparatus, or the replacement of such equipment,\nmachinery or apparatus, forty years, except for the city of New York;\nfor the city of New York, fifty years, as authorized by section two of\narticle eight of the state constitution; the replacement of such\nfurnishings, fifteen years.\n 2. River regulating reservoirs. The construction, reconstruction or\naddition to a reservoir for the regulation of the flow of a stream or\nriver, whether or not including buildings appurtenant or incidental\nthereto, land or rights in land, original furnishings, equipment,\nmachinery or apparatus, or the replacement of such equipment, machinery\nor apparatus, fort
‹ 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.