Cost-Saving Ideas: Legal Requirements

General Municipal Law (GML)

Section 10 requires the designation of one or more "banks" or "trust companies" for deposit of public funds and for the securing of public deposits.
Section 11 allows for certain temporary investment of moneys not required for immediate expenditure.
Section 39 requires the adoption, by resolution, of an investment policy.
Articles 3-A and 5-G govern generally the temporary investment of moneys by more than one municipal corporation pursuant to a municipal cooperation agreement.

Banking Law

Section 107-a requires a bank or trust company to provide a pledge of assets or other security for public deposits under certain conditions.

Additional statutes that relate to banking include:

GML

Section 5-a authorizes local government officers to transfer funds electronically, subject to conditions.
Section 99-b allows the governing board of a local government to authorize the receipt of check images in lieu of cancelled checks.

Banking Law

Section 96-d allows a local government, in conjunction with a "bank, trust company or national bank," to submit an application for designation of a banking development district.

General Municipal Law

Section 6-c details procedures for the establishment of, and expenditures from, a capital reserve fund for cities, counties, towns, villages, and sewer and water improvement districts, including voter approval requirements.
Section 6-d details procedures for the establishment of, and expenditures from, repair reserve funds for cities, counties, towns, villages, school districts, fire districts, and town or county improvement districts. These funds may be used to fund repairs to capital improvements or equipment when the repairs are of a type that does not recur annually or at shorter intervals.
Section 6-g details procedures for the establishment of, and expenditures from, a capital reserve for fire districts, including voter approval requirements.
Section 99-g provides an optional, detailed process for developing a formal capital program for capital asset acquisitions.
Sections 101 and 103 provide competitive bidding requirements which must be followed.
Section 109-b provides requirements for installment purchase contracts for the acquisition of equipment, machinery and apparatus. The Office of the State Comptroller also has regulations on this subject (2 NYCRR Part 39).

Education Law

Section 416 details voter approval requirements for school taxes for certain capital purposes.
Section 3651 details procedures for the establishment of, and expenditures from, capital reserve funds for school districts, including voter approval requirements.

Local Finance Law

Local Finance Law contains provisions regarding the issuance of bonds and notes to finance various capital assets and infrastructure improvements.

Updated 2016