Section 26.10. Temporary alternative methods of financing flood-relief expenses

a. Definitions. 1. With respect to any municipality which has  a calendar fiscal year which commenced on the first day of January,  two
  thousand  five,  the terms "extraordinary expenses for flood relief" and
  "such extraordinary expenses", as used in this section, shall  mean  the
  expenses  incurred  for  flood  relief  projects  involving  the  public
  thoroughfares, public places and projects of  such  municipality  during
  any  or all of the months of such year, in excess of the normal expenses
  which would have been incurred for such purposes during such periods  as
  determined  by  the  finance  board  of  such  municipality and also any
  interest payments on revenue anticipation notes issued  in  anticipation
  of  the  receipt of moneys from the state or federal government pursuant
  to any state  or  federal  disaster  relief  act.  In  making  any  such
  determination,  the  finance  board  shall not include as a part of such
  extraordinary expenses the salaries  and  wages  of  regular  employees,
  except for overtime work and work on Sundays and holidays.
    2.  With  respect  to  any municipality or school district which has a
  fiscal year which commenced in the year two thousand five  on  or  after
  the  first  day of March in such year, the terms "extraordinary expenses
  for flood relief projects" and "such extraordinary expenses", as used in
  this section, shall mean the expense incurred for flood relief  projects
  involving  the  public thoroughfares, public places and projects of such
  municipality or school district during such fiscal year,  in  excess  of
  the amounts appropriated for such purposes in the annual budget for such
  fiscal  year, or, if no such appropriations were made, then in excess of
  the average of all expenditures for such purposes  during  each  of  the
  five  preceding  fiscal years prior to the fiscal year commencing in the
  year two thousand five, as determined  by  the  finance  board  of  such
  municipality or school district.
    b.  The  financing  of flood relief expenses by the issuance of serial
  bonds.
    1. The finance board of a municipality which has a fiscal  year  which
  commenced  on the first day of January, two thousand five, may authorize
  the issuance of serial bonds in the two  thousand  six  fiscal  year  to
  provide  for the payment of all or part of the extraordinary expenses of
  flood relief incurred during any or all of the months  of  two  thousand
  five,  to  reimburse  any fund or account of the municipality from which
  moneys to pay such extraordinary  expenses  have  been  advanced  or  to
  replenish  any  fund  or  account  of  the  municipality from which such
  extraordinary expenses have  been  paid,  or  any  combination  of  such
  purposes,  notwithstanding  that  there  may have been lack of statutory
  authority for any such advance or payment from such fund or account. The
  period of probable usefulness of such objects or purposes shall be  five
  years.  Any  such serial bonds shall have a maximum maturity of over two
  years, but the date of final maturity of any such issue shall not extend
  beyond the first day of March in the year  two  thousand  eleven  as  to
  counties  and  towns and shall not extend beyond the thirty-first day of
  December, two thousand eleven, as to other municipalities.
    2. The finance board of a municipality or school district which has  a
  fiscal  year  which  commenced in the year two thousand five on or after
  the first day of March in such year may authorize the issuance of serial
  bonds in the two thousand six fiscal year, or  in  its  next  succeeding
  fiscal  year,  to  provide  for  the  payment  of  all  or  part  of the
  extraordinary expenses of flood relief incurred in the two thousand five
  fiscal year, to reimburse any fund or account  of  the  municipality  or
  school  district  from  which  moneys to pay such extraordinary expenses
  have  been  advanced  or  to  replenish  any  fund  or  account  of  the
  municipality  or  school district from which such extraordinary expenses

  have been paid, or any combination  of  such  purposes,  notwithstanding
  that  there  may  have  been  lack  of  statutory authority for any such
  advance or payment from such fund or account.  The  period  of  probable
  usefulness  of  such  objects  or purposes shall be five years. Any such
  serial bonds shall have a maximum maturity of over two  years,  but  the
  date  of  final  maturity  of any such issue shall not extend beyond the
  thirty-first day of December, two thousand eleven.
    3. No provision of subdivision one or two of this paragraph  shall  be
  deemed  to  prohibit  the  issuance  of  serial bonds for the purpose of
  financing any portion of such extraordinary expenses described  in  such
  subdivisions  which  heretofore have been or hereafter shall be financed
  by the issuance of budget notes or for the purpose of redeeming any such
  notes.
    4. Except as provided in this section, such serial bonds and any  bond
  anticipation  notes  in  anticipation thereof, shall be authorized, sold
  and issued in the manner provided by this chapter. Any bond anticipation
  notes issued in anticipation of such bonds shall,  for  the  purpose  of
  determining  the  power  of  the  issuer to contract indebtedness and to
  raise taxes upon real estate, be deemed to be serial bonds of  an  issue
  having  a  maximum  maturity  of  more  than  two  years as described in
  paragraph A of section five and in section ten of article eight  of  the
  state  constitution  and  for  the  purposes of (1) subdivision one-a of
  section 136.00 of this chapter, (2) section two hundred thirty-three  of
  the county law, (3) section 5-514 of the village law, (4) any general or
  special   law  applicable  to  counties,  cities,  villages  and  school
  districts which relates to the  raising  of  taxes  on  real  estate  to
  provide  for  the  payment  of  the  interest  on  and  the principal of
  indebtedness, and (5) all laws relating to the financial  reports,  debt
  statements   and   real   estate   tax   margin   computations  of  such
  municipalities or school districts. The  chief  fiscal  officer  of  any
  municipality   or   school   district  issuing  or  renewing  such  bond
  anticipation notes shall  immediately  after  the  issuance  or  renewal
  thereof  notify  the  state comptroller of such issuance or renewal. The
  state comptroller may prescribe the form of any such  notice  and  shall
  furnish  such  forms  to  municipalities  and  school  districts for the
  purpose of making any such report.
    5. Capital notes may not be issued to finance any  object  or  purpose
  for  which  serial  bonds  are  authorized to be issued pursuant to this
  paragraph. The provisions of this paragraph shall not affect  the  power
  of  any municipality or school district described in paragraph a of this
  section to finance all  or  part  of  any  such  extraordinary  expenses
  pursuant  to  the  provisions  of  section  29.00  of  this  chapter and
  paragraph c of this section.
    6. Section 104.10 of this chapter  shall  not  be  applicable  in  re-
  lation  to,  or  as  the  result  of,  the adoption of a bond resolution
  authorizing the issuance of serial bonds pursuant to this paragraph. The
  provisions of section 10.00, paragraph a of section 21.00 and any  other
  section  of  this  chapter, or the provisions of any general, special or
  local law, which would restrict, limit or prohibit the issuance of  such
  bonds (except those enacted to conform with the state constitution) are,
  to  the extent that this section is utilized by a municipality or school
  district,  suspended  and  made  ineffective  insofar  as  necessary  to
  effectuate the purposes of this section.
    c.  The  financing  of flood relief expenses by the issuance of budget
  notes. 1. If any municipality or school district described in  paragraph
  a  of  this  section  has heretofore issued budget notes pursuant to the
  provisions of subdivision two or three of paragraph a of  section  29.00
  of  this chapter to provide for the payment of extraordinary expenses of

  flood relief,  as  defined  in  this  section,  the  finance  board,  by
  resolution,  may  determine that such notes shall be deemed to have been
  issued pursuant to the provisions of subdivision one of paragraph  a  of
  such  section  and  that  such  notes  so issued shall not thereafter be
  considered in determining the  power  of  such  municipality  or  school
  district  to  issue  budget  notes  pursuant  to such subdivision two or
  three.
    2. If any municipality or school district described in paragraph a  of
  this  section  has  heretofore  issued  budget  notes  pursuant  to  the
  provisions of subdivision one, two or three of paragraph a, or paragraph
  b, of section 29.00 of this chapter,  to  provide  for  the  payment  of
  extraordinary  expenses of flood relief, as defined in this section, the
  finance board may determine that the provisions of paragraph j  of  such
  section  shall  not  be  applicable  in relation to the maturity of such
  notes and (a) that such notes shall mature in equal annual  installments
  in  two  different  fiscal  years,  but the final maturity of such notes
  shall not extend beyond the close of the second fiscal year  immediately
  succeeding  the  year  of  their  issue, or (b) if the fiscal procedures
  applicable to such municipality  or  school  district  will  enable  the
  necessary  budgetary appropriations for debt service to be made and such
  appropriations to become available, that  such  notes  shall  mature  in
  three equal annual installments in three different fiscal years, but the
  final  maturity  of  any  such  notes  shall  not  exceed three years in
  accordance with the provisions of paragraph a of section 11.00  of  this
  chapter  which prescribes a period of probable usefulness of three years
  for objects or purposes financed by the issuance of budget  notes.  Such
  budget  notes  which  mature  in  three  equal  annual  installments, as
  aforesaid, shall, for the purpose of determining the power of the issuer
  to contract indebtedness and to raise taxes on real estate, be deemed to
  be serial bonds of an issue having a maximum maturity of more  than  two
  years  as described in paragraph A of section five and in section ten of
  article eight of the state constitution and  for  the  purposes  of  (1)
  paragraph  one-a  of  section  136.00  of  this chapter, (2) section two
  hundred thirty-three of the county law, (3) section 5-514 of the village
  law, (4) any general or special  law  applicable  to  counties,  cities,
  villages  and  school districts which relates to the raising of taxes on
  real estate to provide for the  payment  of  the  interest  on  and  the
  principal  of  indebtedness,  and  (5)  all  laws  relating to financial
  reports, debt statements and real estate tax margin computations of such
  municipalities or school districts. If the finance board determines that
  such budget notes shall mature in three equal  annual  installments,  as
  aforesaid,  the  chief  fiscal  officer  of  such municipality or school
  district immediately after the adoption of the  resolution  making  such
  determination  shall  file  a  copy  of  the  resolution  with the state
  comptroller and shall immediately after the issuance or renewal of  such
  notes  notify  the  state  comptroller  of such issuance or renewal. The
  state comptroller may prescribe the form of any such  notice  and  shall
  furnish such forms to municipalities or school districts for the purpose
  of making any such report.
    3.  Notwithstanding  any  of  the  provisions of section 29.00 of this
  chapter, the finance board  of  a  municipality  or  a  school  district
  described  in  paragraph a of this section may authorize the issuance of
  budget notes pursuant to subdivision one of paragraph a, or, in the case
  of a municipality, paragraph b of such section 29.00 of this chapter  to
  provide  for the payment of all or part of the extraordinary expenses of
  flood relief, as defined in this  section,  to  reimburse  any  fund  or
  account  of the municipality or school district from which moneys to pay
  such extraordinary expenses have been advanced or to replenish any  fund

  or  account  of  the  municipality  or  school  district from which such
  extraordinary expenses have  been  paid,  or  any  combination  of  such
  purposes,  notwithstanding  that  there  may have been lack of statutory
  authority for any such advance or payment from such fund or account. The
  finance  board  may  determine  that such notes may mature in the manner
  provided in paragraph j of section 29.00 of this  chapter,  or,  if  the
  fiscal  procedures  applicable  to  such municipality or school district
  will enable the necessary budgetary appropriations for debt  service  to
  be  made  and  such  appropriations to become available, that such notes
  shall mature in two equal annual installments in  two  different  fiscal
  years,  but the final maturity of such notes shall not extend beyond the
  close of the second fiscal year immediately succeeding the year of their
  issue.
    4. If a municipality which had a calendar fiscal year which  commenced
  on  the first day of January, nineteen hundred seventy-two, or the first
  day of January, nineteen hundred seventy-three, issued budget  notes  in
  such year pursuant to the provisions of section 29.00 of this chapter to
  finance the payment of expenses of flood relief in such fiscal years and
  if  such  budget  notes,  under  the  provisions  of paragraph j of such
  section, could not be renewed after the close of its fiscal  year  which
  would  end in the year next succeeding the year of issuance, then and in
  such event the finance board of such municipality may determine that the
  provisions of paragraph j of such section shall  not  be  applicable  in
  relation  to the maturity of such notes and that such notes shall mature
  in equal annual installments in the two years next succeeding  the  year
  of issuance.
    5. If a municipality which had a calendar fiscal year, which commenced
  on  the  first day of January, nineteen hundred seventy-two or the first
  day of January, nineteen hundred seventy-three, authorized the  issuance
  of  budget  notes  in  such  years pursuant to the provisions of section
  29.00 of this chapter to finance the payment of expenses of flood relief
  in such years and if such notes were not issued in  the  years  nineteen
  hundred  seventy-two  or nineteen hundred seventy-three, but were or are
  to be issued in the years nineteen  hundred  seventy-three  or  nineteen
  hundred  seventy-four, and if such budget notes, under the provisions of
  paragraph j of such section, could not be renewed after the close of its
  fiscal year which would end in the year  next  succeeding  the  year  of
  issuance,  then  and  in  any  such  event  the  finance  board  of such
  municipality may determine that the provisions of paragraph  j  of  such
  section  shall  not  be  applicable  in relation to the maturity of such
  notes and that such notes shall mature in equal annual  installments  in
  the two years next succeeding the year of issuance.
    6.  Any  resolution  of  a  finance  board  of a municipality making a
  determination pursuant to subdivisions one, two, three, four or five  of
  this  paragraph  may be adopted by a majority vote of the finance board,
  notwithstanding the provisions of paragraph d of section 40.00  of  this
  chapter.
    7.  The provisions of subdivision four of paragraph c of section 40.00
  of this chapter and of  any  other  section  of  this  chapter  and  the
  provisions  of  any  general, special or local law which would restrict,
  limit or prohibit the renewal  of  budget  notes  as  provided  in  this
  paragraph (except those enacted to conform with the state constitution),
  are,  to the extent that this section is utilized by a municipality or a
  school district, suspended and made ineffective insofar as necessary  to
  effectuate the objects and purposes of this section.
    d.  Separability.  If any clause, sentence, subdivision, paragraph, or
  part of this section be adjudged by any court of competent  jurisdiction
  to  be invalid, such judgment shall not affect, impair or invalidate the

  remainder thereof, but shall be confined in its operation to the clause,
  sentence, subdivision, paragraph, or part thereof directly  involved  in
  the controversy in which such judgment shall have been rendered.