Section 122.00. Pay-as-you-go financing by the city of New York; ascertainment of indebtedness arising therefrom

a. Whenever  the  city  of New York is required by law to pay for all or any part of the cost of
  a  capital  improvement  by direct budgetary appropriation in any fiscal
  year or by the issuance of capital notes, the finance board of such city
  may, by resolution, elect to exclude from the tax limitation  prescribed
  by section ten of article eight of the state constitution all or part of
  the  taxes  required  for such direct budgetary appropriation or for the
  redemption of such capital notes. The amount so excluded shall be deemed
  to be indebtedness to the same extent and in the same manner as if  such
  amount  had  been  financed through indebtedness payable in equal annual
  installments over the period of  probable  usefulness  of  such  capital
  improvement, as determined by section 11.00 of this chapter.
    b.  This  section  shall  apply only to taxes required for a budgetary
  appropriation, or for the redemption of a capital note issued,  for  the
  payment,  prior  to  the  expiration  of  the  fiscal year in which such
  capital improvement is completed, of all or any part of the cost of such
  capital improvement.
    c. Where taxes required for such direct budgetary appropriation or for
  the redemption of such capital  notes  are  so  excluded  from  the  tax
  limitation  prescribed  by  section  ten  of  article eight of the state
  constitution, the cost of the capital improvement  or  improvements  for
  which  the  direct budgetary appropriation was made or the capital notes
  issued shall, to the extent of the amount of such taxes, be required  by
  law  to be financed in such manner and from no other source. Where taxes
  so raised are so excluded from such tax limitation, and where a  surplus
  exists  in  the  amount of taxes so excluded after paying all costs of a
  capital improvement or by reason of the abandonment of  the  acquisition
  or   construction   of  a  capital  improvement,  such  surplus  may  be
  transferred, in the manner provided by law, to and may be used only  for
  the  purpose  of  (1)  an  appropriation  for, or a capital reserve fund
  created or to be created for, a capital improvement  having  a  like  or
  lesser  period  of  probable usefulness than the capital improvement for
  which such taxes were raised, or (2) an appropriation for the payment of
  interest on or principal of serial bonds of an issue  having  a  maximum
  maturity  of  more  than  two  years  and  maturing  at  or prior to the
  expiration  of  the  period  of  probable  usefulness  of  the   capital
  improvement for which such taxes were raised.
    d. The chief fiscal officer of such city shall determine the amount to
  be deemed indebtedness pursuant to this section, and shall set forth his
  determination  in  a statement in writing, executed in duplicate, signed
  and verified by him, which shall  be  in  such  form  and  contain  such
  information as shall be prescribed by the state comptroller. Both copies
  of  such  statement shall be forwarded to the state comptroller, and, if
  approved  by  him,  the  determination  therein  set  forth   shall   be
  conclusive.   One copy of such determination, together with the approval
  of the state comptroller, shall be filed in the office of the department
  of audit and control and the other in the office  of  the  chief  fiscal
  officer of such city. Both of such copies shall be public records.
    e.  For  the  purposes  of this section the term "capital improvement"
  shall  include  also  boats,  fire  fighting  vehicles  and   apparatus,
  machinery  and  apparatus  for  construction  and maintenance, and motor
  vehicles having periods of probable usefulness assigned in  subdivisions
  twenty-six, twenty-seven, twenty-eight and twenty-nine of paragraph a of
  section 11.00 of this chapter.
    f.  Any  amounts  determined  to be deemed indebtedness of any county,
  city, other than the city of New York, village  or  school  district  in
  accordance  with  the  provisions  of  this section or section eleven of

  article eight of the constitution  as  in  force  and  effort  prior  to
  January  first,  nineteen  hundred  fifty-two, shall not be deemed to be
  indebtedness on and after such date.