Section 15.20. Limitations on amount of local indebtedness; exclusions of certain indebtedness

a. The provisions  of  section  104.00  of  this  chapter  shall  be  applicable  in  relation  to the powers of counties,
  cities, towns, villages and  school  districts  in  cities  to  contract
  indebtedness,  and  the  powers of other school districts to issue bonds
  and bond anticipation notes, in connection with a joint service or joint
  water, sewage or drainage project; provided, however, that the amount of
  the joint indebtedness of any such municipal corporation or municipality
  therefor shall not  exceed  the  amount  allocated  and  apportioned  as
  provided  in  or  pursuant  to  the  provisions of section 15.10 of this
  chapter.
    b. In ascertaining the power of a county, city,  town  or  village  to
  contract  indebtedness,  there  shall be excluded any joint indebtedness
  and any several indebtedness contracted to provide  for  the  supply  of
  water.   Any such indebtedness for such purpose shall not be excluded in
  ascertaining the power of any school district to contract  indebtedness.
  The  provisions  of  paragraph  c  of  this  section  shall not apply to
  indebtedness contracted to provide for the supply of water.
    c. In ascertaining the power of a county, city,  town  or  village  to
  contract  indebtedness there shall be excluded any joint indebtedness or
  several indebtedness contracted or proposed to be contracted for a joint
  service, other than a joint sewage or drainage project,  to  the  extent
  permitted  by  paragraph  C  of  section  five  of  article eight of the
  constitution, as implemented by section  123.00  of  this  chapter.  The
  provisions of this paragraph shall not be deemed to affect or impair any
  other existing exclusions of indebtedness granted by any other provision
  of  this chapter or the constitution. Any such municipal corporation, or
  all of such municipal corporations, participating in  a  joint  service,
  other  than  a  joint sewage or drainage project, may apply to the state
  comptroller for a conclusive determination of the amount or  amounts  of
  any  such  indebtedness contracted or proposed to be contracted for such
  joint service to be excluded  pursuant  to  the  provisions  of  section
  123.00  of  this  chapter.  The  provisions  of such section, other than
  subdivision two of paragraph b thereof, shall be applicable in  relation
  to  any such application, and the procedural provisions thereof shall be
  liberally construed to effectuate  the  provisions  of  paragraph  C  of
  section  five  of  article  eight of the constitution.  Where there is a
  joint application and the fiscal years of the municipal corporations are
  not the same, the term "preceding fiscal year,  "  as  used  in  section
  123.00,  shall, for the purposes of this section, mean "preceding year."
  If an application is not  made  jointly  by  all  of  the  chief  fiscal
  officers  of the participating municipal corporations, written notice of
  such application shall be given, prior to the filing of the  application
  with  the  state  comptroller,  to  the  chief  fiscal  officer  of each
  participating municipal corporation not joining in such application.  In
  the  case  of  a  joint  application the notice required to be published
  under the provisions of paragraph h of section 123.00 shall be published
  in the official newspaper or newspapers of  each  of  the  participating
  municipal  corporations, or if there be no such newspaper or newspapers,
  then in one or  more  newspapers  having  general  circulation  in  such
  municipal  corporations  as  the  finance boards shall designate, except
  that where any newspaper  is  the  official  newspaper  of  all  of  the
  participating   municipal   corporations,   or  is  the  only  newspaper
  designated  by  the  finance  boards  as  a  newspaper  having   general
  circulation in all of the participating municipal corporations, only one
  notice  need  be published in any such newspaper. Where there is a joint
  application in relation to a joint service which has been  in  operation
  for one year, and the fiscal years of the municipal corporations are not

  the  same,  the  certificate of the state comptroller shall be effective
  only until the first day of the fourth month following the close of  the
  year of operation described in the application.
    d.   In   ascertaining   the  power  of  a  municipality  to  contract
  indebtedness there shall be excluded  all  or  any  part  of  the  joint
  indebtedness  or  several  indebtedness  contracted  or  proposed  to be
  contracted for a joint sewage or drainage project the amount or  amounts
  of  which  shall  be determined conclusively by the state comptroller in
  the same manner as provided in paragraph c of this section, except that,
  in any  proceeding  under  this  paragraph,  any  requirement  that  the
  improvement,  or part thereof, or service shall have yielded net revenue
  during the preceding fiscal year or preceding year in  a  sum  equal  to
  twenty-five  per  centum or more of the amount required in such year for
  the payment of the interest  on  an  amortization  of,  or  payment  of,
  indebtedness,  as set forth in subdivisions one and three of paragraph b
  and in subdivision two of paragraph c of section 123.00,  shall  not  be
  applicable.