§ 123.00 Exclusion of self-liquidating indebtedness in ascertaining\nthe power of a municipality to contract indebtedness. a. As used in this\nsection: 1. The term "outstanding indebtedness", shall mean indebtedness\nevidenced by bonds and bond anticipation notes.\n 2. The term "public improvement" shall mean either a single\nimprovement or a group of improvements, which are maintained for the\nsame purpose, including improvements used primarily in connection\ntherewith, and which are producing or are intended to produce revenue.\n b. 1. In ascertaining the power of a municipality to contract\nindebtedness, there may be excluded, to the extent permitted in\nparagraph e of this section, the outstanding indebtedness contracted by\nany such municipality for a public improvement or part thereof, or\nservice, owned or rendered by such municipality if such public\nimprovement or part thereof, or service, shall have yielded net revenue\nto such municipality during the preceding fiscal year in a sum equal to\ntwenty-five per centum or more of the amount required in such year for\nthe payment of the interest on and amortization of, or payment of, such\noutstanding indebtedness.\n 2. The outstanding indebtedness of a district corporation, as the term\n"district corporation" is defined in paragraph a of section 102.00 of\nthis chapter, contracted on or after January first, nineteen hundred\nthirty-nine, may be excluded, to the extent permitted in paragraph e of\nthis section, in ascertaining the indebtedness of a city or village\nwithin which, or of a town within the unincorporated area of which, such\ndistrict corporation is situated in whole or in part, if such\noutstanding indebtedness was contracted for a public improvement or part\nthereof, or service, owned or rendered by such district corporation and\nif such public improvement or part thereof, or service, shall have\nyielded net revenue to such district corporation during the preceding\nfiscal year of the district corporation in a sum equal to twenty-five\nper centum or more of the amount required in such year for the payment\nof the interest on and amortization of, or payment of, such outstanding\nindebtedness.\n 3. In ascertaining the power of a county or town to contract\nindebtedness, there may be excluded, to the extent permitted in\nparagraph e of this section, the outstanding indebtedness contracted by\nany such county or town on behalf of an improvement district for a\npublic improvement or part thereof, or service, owned or rendered by\nsuch district if such public improvement or part thereof, or service,\nshall have yielded net revenue to such district during the preceding\nfiscal year in a sum equal to twenty-five per centum or more of the\namount required in such year for the payment of the interest on and\namortization of, or payment of, such outstanding indebtedness.\n c. 1. A proportionate exclusion of indebtedness contracted or proposed\nto be contracted also may be granted for the period from the date when\nsuch indebtedness is first contracted or to be contracted for a public\nimprovement or part thereof, or service, owned or rendered or to be\nowned or rendered by a municipality, district corporation, or county or\ntown improvement district through the first year of operation of such\npublic improvement or part thereof, or service. The amount of such\nexclusion shall be computed in the manner provided in this section on\nthe basis of estimated net revenue for the first year of operation. Such\nestimated net revenue shall be determined by deducting from the gross\nrevenues estimated to be received during the first year of operation of\nsuch public improvement or part thereof, or service, all estimated costs\nof operation, maintenance and repairs for such year. The amount of any\nsuch proportionate exclusion shall not exceed seventy-five per centum of\nthe amount which would be excluded if the computation were made on the\nbasis of net revenue instead of est
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