Reserve fund for payment of bonded indebtedness – this reserve fund is used by the New York city-state to pay different bonds within the state like the county, town and others. The reserve fund cannot be established for or cannot be used to pay for obligations paid for the first instance from assessments or taxes levied on an area smaller than the entire city. Thus these reserve plays a significant role in the city to ensure there is no bonded indebtedness within the New York City (Derrick, 2019). The reserve fund is created by the municipal corporation and the fire district and is based on the resolutions of the governing board. There are appropriations pursuant to resolution and use of the governing board to expend money on permitted uses. Usually, there is no referendum needed to establish and expend money from the bonded indebtedness reserve fund during the creation. The source of the funds which is remitted to the fund is budget appropriations.
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