Section 107.00. Down payment

a. As used in this section the term "current
  funds" shall include:
    1. Budgetary appropriations for  capital  improvements  or  equipment,
  which appropriations have not lapsed.
    2. The proceeds of capital notes issued for the payment of the cost of
  capital improvements or equipment.
    3.  Revenues  other  than real estate taxes or assessments, which have
  been collected or received during a fiscal year in excess of  the  total
  amount  of  such revenues as estimated for such fiscal year, and surplus
  funds and unexpended balances, which are available to be applied  toward
  the payment of the cost of capital improvements or equipment.
    4.  Capital reserve funds established pursuant to section six-c of the
  general municipal law.
    5. The trade-in allowance received for any equipment traded in as part
  of the cost of equipment being purchased.
    Nothing herein contained shall be construed to permit the diversion of
  the proceeds of budgetary  appropriations,  capital  notes,  or  capital
  reserve   funds   to   a   purpose   other  than  that  for  which  such
  appropriations, capital notes, or capital reserve  funds,  respectively,
  were made, issued or established.
    b. No municipality shall:
    1.  Issue  bonds  or  bond  anticipation  notes for a specific capital
  improvement  or  items  of  equipment  or   several   specific   capital
  improvements or items of equipment or a combination thereof, or
    2.  Make  expenditures  for  a  specific  capital improvement from the
  proceeds of bonds or bond anticipation  notes  issued  for  a  class  or
  classes  of  capital improvements or from a fund into which the proceeds
  of bonds or bond anticipation notes are paid
  unless it shall have first provided from current funds a  sum  of  money
  sufficient to pay at least five per centum of the estimated cost of each
  such  capital  improvement or such equipment. The term "estimated cost",
  as used in this paragraph, shall not include (a) the portion of the cost
  of any capital improvement which is to be paid by the United  States  or
  the  state  of  New  York  or which is to be paid from funds, other than
  loans, granted to such municipality therefor by the United States or the
  state of New York, or (b)  the  portion  of  the  cost  of  any  capital
  improvement  which  is  to  be  paid  by assessments upon benefited real
  property in an area less than the area of the municipality.
    c. 1. During the first fiscal year of a city commencing  on  or  after
  July  first,  nineteen hundred forty-four, in which its debt-contracting
  power has been exhausted by more than fifty per centum and in which  its
  net  indebtedness  is  in  excess  of  one  hundred  twenty-five million
  dollars, such minimum percentage  to  be  provided  by  such  city  from
  current  funds,  as  prescribed in paragraph b of this section, shall be
  increased by nine per centum. Thereafter, during each succeeding  fiscal
  year  such minimum percentage to be provided from current funds shall be
  increased by two per  centum  over  and  above  the  minimum  percentage
  required  for the preceding fiscal year, notwithstanding any increase in
  the amount of the debt-contracting power of any such  city  during  such
  succeeding  fiscal  years. For the purposes of this subdivision the term
  "current funds" shall include only budgetary appropriations for  capital
  improvements  or  equipment which appropriations have not lapsed, or the
  proceeds of capital notes issued for the payment of the cost of  capital
  improvements or equipment.
    2.  The  term "net indebtedness" used in this paragraph shall mean the
  total net indebtedness as ascertained pursuant to section 138.00 of this
  chapter. The percentage of debt-contracting  power  exhausted  shall  be

  computed pursuant to the provisions of subdivision two of paragraph a of
  section 140.00 of this chapter.
    d. The provisions of this section shall not apply to:
    1.  Bonds  to  be  issued to redeem bond anticipation notes previously
  issued.
    2. Judgments, other than for capital improvements.
    3. The following capital improvements:
    (a) The acquisition, construction, reconstruction or equipment  of  or
  addition  to  a  water  supply  or  distribution  system, whether or not
  including land.
    (b) A capital  improvement  which  the  finance  board  by  resolution
  estimates will be self-sustaining.
    (c) The acquisition, construction or equipment of or addition to rapid
  transit railroads, whether or not including land.
    (d)  The  acquisition, construction, reconstruction or equipment of or
  addition to electric light and power or gas plants or  systems,  whether
  or not including land.
    (e)  The  acquisition,  construction, reconstruction of or addition to
  docks, piers or wharf property, whether or not including land.
    (f) The acquisition, construction, reconstruction of or addition to  a
  bridge  or a tunnel and the approaches thereto, whether or not including
  land, the cost of which is estimated to exceed ten million dollars.
    (g) A capital improvement, the cost of which is  estimated  to  exceed
  twenty million dollars.
    (h)  A  capital  improvement, the cost of which is estimated to exceed
  one million dollars and part of which cost is to be paid by  assessments
  upon  benefited  real  property  in  an  area  less than the area of the
  municipality.
    (i) A capital improvement, of which at least fifty per centum  of  the
  cost  is  to  be  paid by assessments upon benefited real property in an
  area less than the area of the municipality, whether or not the cost  of
  such improvement is estimated to be in excess of one million dollars.
    (j)  A  capital  improvement  or  the  acquisition  of equipment, when
  necessitated by some destructive agency or to prevent the happening of a
  calamity. The finance board, shall, by a four-fifths vote of its  voting
  strength,  determine when such an emergency exists. The determination of
  the finance board as to the existence of  such  an  emergency  shall  be
  conclusive.
    (k)  The  construction, reconstruction and equipment of city hospitals
  and schools, whether or not including land, if the bonds authorized  for
  any  such  object or purpose shall have a maximum maturity not to exceed
  one-half of the maximum period  of  probable  usefulness  for  any  such
  object  or  purpose  prescribed  in paragraph a of section 11.00 of this
  chapter. Such maximum maturity shall be computed from the  date  of  the
  bonds  or  the  date  of  the  first  bond  anticipation  note issued in
  anticipation of such bonds, whichever date is the earlier, and shall not
  exceed fifteen years in any event.
    (l) The acquisition, construction, reconstruction, or equipment of  or
  addition  to  facilities  for  the conveyance, treatment and disposal of
  sewage, whether or not including land.
    (m) The cost of the preparation, pursuant to section ninety-nine-d  of
  the  general  municipal  law, of surveys, preliminary plans and detailed
  plans, specifications and estimates necessary for planning for a capital
  improvement which it is contemplated might be undertaken in the future.
    4. The financing by any municipality of any object or purpose, if  the
  bonds  authorized  for  any  such object or purpose shall have a maximum
  maturity not to exceed  one-half  of  the  maximum  period  of  probable
  usefulness. Such maximum maturity shall be computed from the date of the

  bonds  or  the  date  of  the  first  bond  anticipation  note issued in
  anticipation of such bonds, whichever date is the earlier, and shall not
  exceed fifteen years in any event.
    5.  The  financing  by any municipality of any object or purpose which
  has a  period  of  probable  usefulness  of  five  years,  or  less,  as
  prescribed in paragraph a of section 11.00 of this chapter.
    6.  The  financing by any municipality of any urban renewal program or
  part thereof having a period of probable usefulness determined  pursuant
  to subdivision forty-one-a of section 11.00 of this chapter.
    7.  The  financing  by any municipality of any object or purpose which
  has a period of probable usefulness prescribed in subdivision  forty-one
  or  subdivision  forty-one-b  of  paragraph  a  of section 11.00 of this
  chapter.
    8. Notwithstanding any other provision of law, the  financing  by  the
  city  of New York prior to July first, two thousand ten of any object or
  purpose which has a period of probable usefulness determined by  law  by
  the  issuance of any bonds or notes, including (i) the issuance of bonds
  or notes to obtain reimbursement for funds heretofore advanced  for  the
  object  or  purpose  for which the bonds or notes are being issued, (ii)
  the issuance of bonds or notes to redeem notes previously issued for the
  object or purpose for which the bonds or notes are being issued or (iii)
  the issuance of bonds to refund bonds previously issued for  the  object
  or purpose for which bonds are being issued.
    9.  Notwithstanding  any  other provision of law, the financing by any
  municipality, prior to July  fifteenth,  two  thousand  twelve,  of  any
  object  or  purpose which has a period of probable usefulness determined
  by law, by the issuance of  any  bonds  and  notes,  including  (i)  the
  issuance  of  bonds  or notes, to redeem notes previously issued for the
  object or purpose for which the bonds or notes are being issued or  (ii)
  the  issuance  of bonds to refund bonds previously issued for the object
  or purpose for which bonds are being issued.