Section 120.00. Indebtedness of certain district corporations; amount thereof included as indebtedness of municipalities

a. As used in this section:    1.  The term "assessment roll" shall mean the assessment roll used for
  the annual county, city, town or village taxes, as the case may be.
    2. The term "city, village or town affected" shall mean  any  city  or
  village  within  which  or  any  town  within the unincorporated area of
  which, all or part of a district corporation, as defined in paragraph  a
  of section 102.00 of this chapter, is situated.
    3. The term "net indebtedness" shall mean any outstanding indebtedness
  contracted  by  a  district  corporation,  as  defined in paragraph a of
  section 102.00 of this chapter, on  or  after  January  first,  nineteen
  hundred  thirty-nine, other than an indebtedness which, if contracted by
  a city, town or village, would be excluded in ascertaining the power  of
  such city, town or village to contract indebtedness.
    4.  The  term "taxable real property" shall mean real property subject
  to taxation for any purpose by the city, town or village within which it
  is situated.
    b. If a district corporation, as defined in  paragraph  a  of  section
  102.00 of this chapter, is situated wholly within a city, village or the
  unincorporated  area  of a town, in ascertaining the power of such city,
  town or village to contract indebtedness there shall be included the net
  indebtedness of such district corporation.
    c. If only part of a district corporation, as defined in  paragraph  a
  of section 102.00 of this chapter, is situated within a city, village or
  the  unincorporated  area  of  a town, in ascertaining the power of such
  city, town or village to contract indebtedness there shall  be  included
  the  appropriate  proportion  of  the  net indebtedness of such district
  corporation. The amount of net indebtedness to be so included  shall  be
  annually determined in the following manner:
    1.  If  such  district  corporation  is  situated  wholly  within  the
  boundaries of a town, or is situated wholly within the boundaries  of  a
  county  for  which  a  county assessment roll is prepared, such district
  corporation, by  its  finance  board,  shall  ascertain  from  the  last
  completed assessment roll of such town or county:
    (a)  The  assessed  valuation of the taxable real property within such
  district corporation and
    (b) The assessed valuation of the taxable real  property  within  such
  district  corporation  situated  in  each  such  city,  town  or village
  affected.
    The proportion of the net indebtedness to be included in  ascertaining
  the  power  of  each  such  city,  town  or village affected to contract
  indebtedness shall be determined by multiplying the amount of  such  net
  indebtedness of such district corporation by the percentage or ratio the
  assessed  valuation  of  the  taxable  real  property  of  such district
  corporation situated in each such city, town or village  affected  bears
  to  the  assessed valuation of all the taxable real property within such
  district corporation.
    2. If such district corporation is  not  situated  wholly  within  the
  boundaries  of a town, or a county for which a county assessment roll is
  prepared, such district corporation, by its finance board, shall
    (a) Ascertain from the last completed assessment roll of  such  cities
  or  towns within which such district corporation is situated a statement
  of the assessed valuation of  the  taxable  real  property  within  such
  district  corporation  located  in  each  such  city,  town  or  village
  affected.
    (b) Procure from the appropriate state officer or agency  a  statement
  of   the  ratios  of  the  assessed  valuation  to  the  true  valuation

  established by such officer or agency for the last completed  assessment
  roll of such cities or towns.
    (c)  Determine  the full valuation of the taxable real property within
  such district corporation situated in each such city,  town  or  village
  affected by dividing the assessed valuation of such real property by the
  ratio  fixed for the city or town in which such taxable real property is
  situated. The total full value of the taxable real property  within  the
  entire  district corporation shall be ascertained by adding together the
  full value of the taxable real property within the district  corporation
  situated in each city, town or village affected.
    (d)  Ascertain  the  proportion  of net indebtedness to be included in
  ascertaining the power of each such city, town or  village  affected  to
  contract indebtedness by multiplying the amount of such net indebtedness
  of  such  district corporation by the percentage or ratio the full value
  of the taxable real property within such district  corporation  situated
  in  such city, town or village affected bears to the total full value of
  the taxable real property within the entire district corporation.
    d. Immediately after  the  close  of  a  fiscal  year  of  a  district
  corporation,  as  defined  in  paragraph  a  of  section  102.00 of this
  chapter, its finance board shall determine the net indebtedness of  such
  district  corporation  and  shall  file with the chief fiscal officer of
  each city, town or village affected a written certificate setting  forth
  the  amount  of  such  net indebtedness to be included, pursuant to this
  section, in ascertaining the power of such  city,  town  or  village  to
  contract indebtedness.