The Text

In ascertaining the power of a county, city, town or village to contract indebtedness, there shall be excluded:
A. Certificates or other evidences of indebtedness issued in any fiscal year in anticipation of (a) the collection of taxes on real estate for amounts theretofore actually levied and uncollected or to be levied in such year and payable out of such taxes, (b) moneys receivable from the state which have theretofore been apportioned by the state or which are to be so apportioned within one year after their issue and (c) the collection of any other taxes due and payable or to become due and payable within one year or of other revenues to be received within one year after their issue; excepting any such certificates or other evidences of indebtedness or renewals thereof which are not retired within five years after their date of original issue.
B. Indebtedness heretofore or hereafter contracted to provide for the supply of water.
C. Indebtedness heretofore or hereafter contracted by any county, city, town or village for a public improvement or service owned or rendered by such county, city, town or village which shall have yielded to such county, city, town or village during the preceding year net revenue, to be determined annually by deducting from the gross revenues received therefrom during such preceding year an amount equal to all costs, during such year, of operation, maintenance, repairs and replacements, and the interest on such indebtedness and the amounts required in such years for the amortization or payment of such indebtedness. The legislature shall prescribe the method by which the amount of any such indebtedness to be so excluded shall be determined, and no such indebtedness shall be excluded except in accordance with such determination. The legislature may confer appropriate jurisdiction on the appellate division of the supreme court in the judicial departments in which such counties, cities, towns or villages are located for the purpose of determining the amount of any such indebtedness to be so excluded.
D. Serial bonds, issued by any county, city, town or village which now maintains a pension or retirement system or fund which is not on an actuarial reserve basis with current payments to the reserve adequate to provide for all current accruing liabilities. Such bonds shall not exceed in the aggregate an amount sufficient to provide for the payment of the liabilities of such system or fund, accrued on the date of issuing such bonds, both on account of pensioners on the pension roll on that date and prospective pensions to dependents of such pensioners and on account of prior service of active members of such system or fund on that date. Such bonds or the proceeds thereof shall be deposited in such system or fund. Each such pension or retirement system or fund thereafter shall be maintained on an actuarial reserve basis with current payments to the reserve adequate to provide for all current accruing liabilities.