N.Y. City of Troy Issuance of Serial Bonds § 10: No title

§ 10. (a) Supervisory board; created. There shall be created for the

city of Troy a supervisory board for the purpose of reviewing, directing

and supervising the financial management of the city of Troy during any

emergency period and following termination of any emergency period for

the purpose of overseeing and advising the chief executive officer and

the chief fiscal officer, as such terms are defined in paragraphs 5 and

5-a of section 2.00 of the local finance law, of the city of Troy and

making recommendations regarding the city's budget. The supervisory

board shall continue in existence until the later of (i) the date on

which all the bonds or bond anticipation notes authorized by this act no

longer remain outstanding or (ii) the date on which the municipal

assistance corporation for the city of Troy created pursuant to article

10 of the public authorities law is terminated.

(b) The supervisory board shall consist of five members who shall be

initially appointed not later than sixty days after the effective date

of this act; one appointed by the city council, one appointed by the

chief executive officer, as defined in subdivision 5-a of section 2.00

of the local finance law, of the city of Troy and two appointed by the

governor. The state comptroller shall also serve on the supervisory

board as its chair. The state comptroller shall be entitled to designate

a representative to attend meetings, vote or otherwise act in his

behalf. The supervisory board members shall have knowledge and expertise

in financial matters. Each member of the supervisory board shall serve

at the pleasure of the appointing official. The board shall act by

majority vote of the entire board. The board shall maintain a record of

its proceedings in such form as it may determine, but such record shall

indicate attendance and all votes cast by each member. The supervisory

board shall convene as frequently as it deems necessary to accomplish

its purposes, but no less than quarterly.

(c) Notwithstanding any inconsistent provisions of general, special or

local law, no officer or employee of the state or of any political

subdivision of the state, any governmental entity operating any public

school or college or other public agency or instrumentality which

exercises governmental powers under the laws of the state, shall forfeit

office or employment by reason of acceptance or appointment as a member,

representative, officer, employee or agent of the board, nor shall

service as such member, representative, officer, employee or agent of

the board be deemed incompatible or in conflict with such office or

employment.

(d) The members of the supervisory board and all representatives

designated to serve on the supervisory board shall serve without salary

or per diem allowance but shall be entitled to reimbursement for actual

and necessary expenses incurred in the performance of official duties

under this section, provided however, that such members and

representatives are not, at the time such expenses are incurred, public

employees otherwise entitled to such reimbursement.

(e) The supervisory board may delegate to one or more of its officers,

employees or agents, such powers and duties as the board may deem

proper, except any duties inconsistent with the duties and functions

prescribed by any other office or position any such person may hold.

(f) Expenses of the supervisory board shall be a charge of the city of

Troy and shall be reimbursed by the city pursuant to an agreement signed

by the state comptroller and the chief executive officer of the city.

(g) The supervisory board shall so long as no emergency period is then

in effect: (i) conduct public meetings at least annually whereby minutes

shall be taken of such proceedings and the chief executive officer shall

provide for public access to such minutes within two weeks from the date

of such meeting, and copies of such minutes shall be submitted to the

city council, the state comptroller, the director of the budget, the

chair of the senate finance committee, the chair of the assembly ways

and means committee and the supervisory board established pursuant to

this section;

(ii) receive from the city all information required pursuant to this

act, and such other financial statements and projections, budgetary data

and information, and management reports and materials as the supervisory

board deems necessary or desirable to accomplish the purposes of this

section;

(iii) recommend to the city such measures relating to their operation,

management, efficiency and productivity as the supervisory board deems

appropriate to reduce costs and improve services so as to advance the

purposes of this act;

(iv) consult with the city in the preparation of the budget of the

city;

(v) review the terms and comment, within thirty days after

notification by the city of Troy of a proposed borrowing, on the

affordability of each proposed issuance of bonds or notes to be issued

by the city of Troy during the time the supervisory board is in

existence and no such borrowing shall be made unless first reviewed and

commented upon by the supervisory board. The supervisory board shall

provide such comments within thirty days after notification by the city

of Troy of a proposed borrowing to the chief executive officer, the

chief fiscal officer, each member of the city council, the director of

the budget, the state comptroller, the chair of the senate finance

committee and the chair of the assembly ways and means committee. The

supervisory board shall consult and coordinate with the state

comptroller with respect to any borrowing by the city of Troy and shall

consider any reports from the state comptroller detailing the state

comptroller's review of such borrowing; and

(vi) have the ability to perform such audits and reviews of the city

of Troy and any agency thereof as its deems necessary and such findings

shall be a matter of public record.

(g-1) In carrying out the purposes of this act, the supervisory board

shall during any emergency period:

(i) As set forth in subdivision (d) of section six of this act, the

supervisory board shall (A) consult with the city of Troy and the

covered organizations in the preparation of the financial plan, and

certify to the city of Troy the revenue estimates approved therein, (B)

prescribe the form of the financial plan and the supporting information

required in connection therewith, and (C) exercise the rights of

approval, disapproval and modification with respect to the financial

plan, including but not limited to the revenue estimates contained

therein.

(ii) The supervisory board, to the extent it deems necessary or

appropriate in order to accomplish the purposes of this act, shall

establish and adopt procedures with respect to (A) proper maintenance of

the board fund, (B) the deposit and investment of revenues in such fund,

and (C) the disbursement of moneys from the supervisory board fund.

(iii) The supervisory board shall, from time to time and to the extent

it deems necessary or desirable in order to accomplish the purposes of

this act, (A) review the operations, management, efficiency and

productivity of such city of Troy operations and of such covered

organizations or portions thereof as the supervisory board may

determine, and make reports thereon; (B) audit compliance with the

financial plan in such areas as the supervisory board may determine; (C)

recommend to the city of Troy and the covered organizations such

measures relating to their operations, management, efficiency and

productivity as it deems appropriate to reduce costs and improve

services so as to advance the purposes of this act; and (D) obtain

information on the financial condition and needs of the city of Troy and

the covered organizations. Nothing herein shall diminish the powers of

the state comptroller otherwise provided by law and the supervisory

board may request the assistance of the state comptroller in the

performance of the above functions.

(iv) The supervisory board shall (A) receive from the city of Troy and

the covered organizations and from the state comptroller, and review,

such financial statements and projections, budgetary data and

information, and management reports and materials as the supervisory

board deems necessary or desirable to accomplish the purposes of this

act, and (B) inspect, copy and audit such books and records of the city

of Troy and the covered organizations as the supervisory board deems

necessary or desirable to accomplish the purposes of this act.

(v) All contracts entered into by the city of Troy or any covered

organization during any emergency period must be consistent with the

provisions of this act and must comply with the requirements of the

financial plan as approved by the supervisory board. With respect to all

contracts or other obligations to be entered into by the city of Troy or

any covered organization during any emergency period and after July 1,

1995, requiring the payment of funds or the incurring of costs by the

city of Troy or any covered organizations:

(A) Within twenty days from the effective date of this subdivision,

the chief executive officer shall present to the supervisory board

proposed regulations respecting the categories and types of contracts

and other obligations required to be reviewed by the supervisory board

pursuant to this subdivision. Within thirty days from the effective date

of this subdivision, the supervisory board shall approve or modify and

approve such proposed regulations or promulgate its own in the event

that such proposed regulations are not submitted to it within the twenty

days as provided for herein. Such regulation may thereafter be modified

by the supervisory board from time to time on not less than thirty days

notice to the chief executive officer and the chief executive officer

may from time to time propose modifications to the supervisory board.

Unless expressly disapproved or modified by the supervisory board within

thirty days from the date of submission by the chief executive officer,

any such proposed regulations or modifications shall be deemed approved

by the supervisory board;

(B) Prior to entering into any contract or other obligation subject to

review of the supervisory board under its regulations, the city of Troy

or any covered organization shall submit a copy of such contract or

other obligation to the supervisory board accompanied by an analysis of

the projected costs of such contract or other obligation and a

certification that performance thereof will be in accordance with the

financial plan, all in such form and with such additional information as

the supervisory board may prescribe. The supervisory board shall

promptly review the terms of such contract or other obligation and the

supporting information in order to determine compliance with the

financial plan;

(C) The supervisory board shall, by order, disapprove any contract or

other obligation reviewed by it only after enactment of a resolution

determining that, in its judgment, the performance of such contract or

other obligation would be inconsistent with the financial plan, and upon

such order the city of Troy or covered organization shall not enter into

such contract or other obligation;

(D) If the supervisory board approves the terms of a reviewed contract

or other obligation, the city of Troy or covered organization may enter

into such contract or other obligation upon the terms submitted to the

supervisory board. Failure of the supervisory board to notify the city

of Troy or covered organization within thirty days (or such additional

time, not exceeding thirty days, as the supervisory board shall have

notified the city of Troy or covered organization that it requires to

complete its review and analysis) after submission to it of a contract

or other obligation that such contract or other obligation has been

disapproved shall be deemed to constitute supervisory board approval

thereof;

(vi) The supervisory board shall review the terms of each proposed

long-term and short-term borrowing by the city of Troy and any covered

organization to be effected during any emergency period after July 1,

1995, and no such borrowing shall be made during any emergency period

unless it is approved by the supervisory board. The supervisory board

shall consult and coordinate with the state comptroller with respect to

the borrowings of the city of Troy and any covered organization and

shall receive reports from the state comptroller on his review of

borrowings by the city of Troy. Neither the city of Troy nor any covered

organization shall be prohibited from issuing bonds or notes to pay

outstanding bonds or notes.

(vii) The supervisory board shall receive quarterly reports from the

state comptroller setting forth the debt service requirements on all

bonds and notes of the city of Troy and covered organizations for the

following quarter, which reports shall be in such form and contain such

information as the board shall determine.

(viii) The supervisory board shall issue, to the appropriate official

of the city of Troy and the covered organization, such orders as it

deems necessary to accomplish the purposes of this act, including but

not limited to, timely and satisfactory implementation of an approved

financial plan. Any order so issued shall be binding upon the official

to whom it was issued and failure to comply with such order shall

subject the official to the penalties described in section ten-b of this

act.

(ix) The supervisory board shall coordinate with the municipal

assistance corporation with respect to the performance of its review and

monitoring of the revenues and expenditures of the city of Troy and

covered organizations.

(x) The supervisory board may employ such consultants as it may deem

necessary to assist it in performing its functions required under this

act.

(xi) The supervisory board shall have the authority to make and

execute agreements and all other instruments which the board deems

necessary for the exercise of its powers and functions including, in

connection with any agreement to guarantee the payment of the principal

of or interest on bonds or notes issued by the city or by a state

financing agency.

(xii) The supervisory board may appoint qualified individuals to

participate as members of such audit, productivity or similar committees

or councils as the city may from time to time establish in consultation

with the board. Such individuals, however, shall not be deemed to be

officers, employees or agents of the board. The board shall review and

report on, not less than annually, the development and implementation of

methods for enhancing the productivity of the city's labor force

proposed by any such committee or council.

(xiii) Not later than January 1, 1996 the city shall issue a report to

the board on its program designed to enable the city (i) during its

fiscal years ending December 31, 1996 and December 31, 1997, to minimize

its dependence upon the state financing agency to the extent that it

shall be prudent to satisfy the city's financing needs by the sale of

obligations of the city or its agencies in the public markets, and (ii)

thereafter to satisfy its financing needs entirely by the sale of such

obligations. The report shall describe such actions that the city

proposes to take, in addition to those actions required by law, to

implement the program and shall contain such further information as the

board may reasonably specify. After the issuance of such initial report,

the city shall report to the board at least semi-annually through

December 31, 1996 and thereafter at least quarterly on the actions it

has taken to implement the program and on the results thereof. The city

may revise the program from time to time but shall promptly describe any

revisions and the reasons therefor to the board. The city may comply

with the requirements of this subdivision by submitting the necessary

information as supplementary material to a financial plan or financial

plan modification in accordance with the standards and procedures of

this act.

(h) Within thirty days after the board has communicated

recommendations or findings to the city of Troy, the chief executive

officer shall respond in writing to such recommendations. A copy of such

response shall be distributed to the chief fiscal officer, all members

of the city council, the supervisory board established pursuant to this

section, the state comptroller, the director of the budget, the chair of

the senate finance committee and the chair of the assembly ways and

means committee. The supervisory board shall have the power to require

all officers, employees or agents of the city or any agency thereof to

respond to all inquiries made by the supervisory board.

(i) For any instance in which the city of Troy or any officer,

employee or agent thereof does not respond to an inquiry made by the

supervisory board, the supervisory board shall notify the chief

executive officer, the chief fiscal officer and the city council of such

city of such noncompliance. If such response is not submitted to the

supervisory board within fifteen days after notification, the city of

Troy shall not issue bonds or notes until such information is provided.

(j) No officer, employee or agent of the city of Troy shall take any

action in violation of any valid request of the board or shall fail or

refuse to take any valid action requested or shall prepare or present

any information (including any projections or estimates) or report for

the board or any of its agents that is false or misleading, or, upon

learning that any such information is false or misleading, shall fail to

advise the board or its agents thereof in a timely manner.

(k) Authorization for wage freeze. 1. During an emergency period, upon

a finding by the supervisory board that a wage freeze is essential to

the adoption or maintenance of a city budget that is in compliance with

this act, the supervisory board, after enactment of a resolution so

finding, may declare a fiscal crisis. Upon making such a declaration,

the supervisory board shall be empowered to order that all increases in

salary or wages of employees of the city and employees of covered

organizations which will take effect after the date of the order

pursuant to collective bargaining agreements or other analogous

contracts, now in existence or hereafter entered into, requiring such

salary increases as of any date thereafter are suspended. Such order may

also provide that all increased payments for holiday and vacation

differentials, shift differentials, salary adjustments according to plan

and step-ups or increments for employees of the city and employees of

covered organizations which will take effect after the date of the order

pursuant to collective bargaining agreements or other analogous

contracts requiring such increased payments as of any date thereafter

are, in the same manner, suspended. For the purposes of computing the

pension base of retirement allowances, any suspended salary or wage

increases and any suspended other payments shall not be considered as

part of compensation or final compensation or of annual salary earned or

earnable. The suspensions authorized hereunder shall continue until one

year after the date of the order and, to the extent of any determination

of the board that a continuation of such suspensions, to a date

specified by the board, is necessary in order to achieve the objectives

of the financial plan, such suspensions shall be continued to the date

specified by such board, which date shall in no event be later than the

end of the emergency period, provided that such suspensions shall

terminate with respect to employees who have agreed to a deferral of

salary or wage increase upon the certification of the agreement by the

board pursuant to paragraph two of this subdivision.

2. This subdivision shall not be applicable to employees of the city

or employees of a covered organization covered by a collective

bargaining agreement or an employee of the city or a covered

organization not covered by a collective bargaining agreement where the

collective bargaining representative or such unrepresented employee has

agreed to a deferment of salary or wage increase, by an instrument in

writing which has been certified by the supervisory board as being an

acceptable and appropriate contribution toward alleviating the fiscal

crisis of the city. Any such agreement to a deferment of salary or wage

increase may provide that for the purposes of computing the pension base

of retirement allowances, any deferred salary or wage increase may be

considered as part of compensation or final compensation or of annual

salary earned or earnable.

3. The supervisory board may, if it finds that the fiscal crisis has

been sufficiently alleviated or for any other appropriate reason, direct

that the suspensions of salary or wage increases or suspensions of other

increased payments or benefits shall, in whole or in part, be

terminated.

(l) 1. Notwithstanding the provisions or limitations of any law,

general, special or local, including the charter of the city of Troy, an

impasse panel, arbitrator, collective bargaining board, fact finding or

similar type of panel, body or individual which is authorized to

recommend or award an increase in wages or fringe benefits to any

employee of the city or covered organization shall, in addition to

considering any standard or factor required to be considered by

applicable law, also take into consideration and accord substantial

weight to the financial ability of the city or covered organization to

pay the cost of such increase in wages or fringe benefits.

2. Any determination pursuant to article 8 of the labor law or any

agreement or stipulation entered into in lieu thereof which provides for

an increase in wages or fringe benefits of any employee of the city or

covered organization shall, in addition to considering any standard or

factor required to be considered by applicable law, also take into

consideration and accord substantial weight to the financial ability of

the city or covered organization to pay the cost of such increase in

wages or fringe benefits.

3. Any party to a proceeding before a panel, body or individual as

described in paragraph one or two of this subdivision may commence a

special proceeding in the appellate division, third department, supreme

court, state of New York, to review the determination as to the city or

covered organization's financial ability to pay. Such proceeding shall

be commenced not later than thirty days after the final determination

has been made by the panel, body or individual. Such proceeding shall

have preference over all other cases in such appellate division, other

than cases relating to the election law.

4. The court shall make a de novo review of the record solely for the

purpose of determining whether an award of an increase in wages or

fringe benefits was within the city's or covered organization's

financial ability to pay. The court's findings as to such issue shall be

based upon a preponderance of all the evidence set forth in the record.

Unless the parties stipulate otherwise, arguments or submission shall be

had within fifteen days after commencement of the special proceeding and

the court shall render its decision within fifteen days thereafter. All

questions, other than the question relating to the determination, shall

be reviewed by the appellate division in the same proceeding in the

manner provided by article 75 or 78 of the civil practice law and rules

as may be appropriate, notwithstanding that the issue would otherwise

have been cognizable in the first instance before a special or trial

term of the supreme court. If an appeal shall otherwise lie from such

determination of the appellate division to the court of appeals, notice

of such appeal shall be filed within thirty days after the entry of the

final order or judgment of the appellate division if such appeal is of

right or within ten days after entry of an order granting leave to

appeal, and such appeal shall have preference over all other appeals

other than appeals relating to the election law.

5. At any stage of any proceeding under paragraph one, two or three of

this subdivision or any appeal from an order or judgment therefrom the

supervisory board may intervene as a party on the issue of the financial

ability of the city or covered organization to pay the cost of an

increase in wages or fringe benefits.

6. For the purposes of this subdivision, financial ability to pay

shall mean the financial ability of the city or covered organization to

pay the cost of any increase in wages or fringe benefits without

requiring an increase in the level of city taxes as approved in the

financial plan of the city in effect at the time of the commencement of

a proceeding under paragraph one or two of this subdivision.