N.Y. City of Troy Issuance of Serial Bonds § 6: No title

§ 6. (a) For each fiscal year occurring during the time bonds and/or

bond anticipation notes issued pursuant to this act are outstanding, 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, shall monitor all budgets and, for each such

budget, such chief fiscal officer shall prepare a quarterly report of

summarized budget data depicting overall trends of actual revenues and

budget expenditures for the entire budget rather than individual line

items. Such reports shall compare revenue estimates and appropriations

as set forth in such budget with the actual revenues and expenditures

made to date. All quarterly reports shall be accompanied by a

recommendation from the chief executive officer or the chief fiscal

officer to the city council setting forth any remedial action necessary

to resolve any unfavorable budget variance including the overestimation

of revenues and the underestimation of appropriations. The chief fiscal

officer shall also prepare a quarterly trial balance of general ledger

accounts. The above quarterly budgetary report and trial balance shall

be prepared in accordance with generally accepted accounting principles

and shall include the general, water, sewer, and general debt service

funds. These reports shall be completed within sixty days after the end

of each quarter and shall be submitted to the chief executive officer,

each member of the city council, the supervisory board, the state

comptroller, the director of the budget, the chair of the assembly ways

and means committee and the chair of the senate finance committee.

(b) The state comptroller shall examine such quarterly reports in a

timely fashion and make recommendations thereon to the chief executive

officer, the chief fiscal officer and the city council. The state

comptroller shall be required to submit a copy of any such

recommendations to 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. The chief executive officer shall be required

to submit, within fifteen days, a written response to any

recommendations made by the state comptroller, 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. If the city of Troy does not provide any

report as specified above, or respond to the recommendations made by the

state comptroller, the state comptroller shall notify the chief

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

noncompliance. If said report or response is not submitted to the state

comptroller within fifteen days after such notification, the city of

Troy shall not issue any bonds or notes until such information is

provided.

(c) Except during an emergency period, for each fiscal year occurring

during the time bonds and/or bond anticipation notes issued pursuant to

this act are outstanding, the chief fiscal officer shall submit a

tentative budget to the supervisory board within five days after its

preparation, and shall submit the adopted budget to the supervisory

board within five days after its adoption. During an emergency period, a

financial plan shall be submitted to the supervisory board in accordance

with subdivision (d) of this section.

(d) Pursuant to the procedures contained in this subdivision, each

year during any emergency period the city of Troy shall develop, and may

from time to time modify, with the approval of the supervisory board, a

four year financial plan covering the city of Troy and the covered

organizations. Each such financial plan and financial plan modification

shall conform to the requirements of paragraph (i) of this subdivision

and shall provide that the operating and capital funds of the city of

Troy will be balanced in accordance with generally accepted accounting

principles. The financial plan shall be developed and approved, and may

from time to time be modified, with the approval of the supervisory

board, in accordance with the following procedures:

(i) Commencing with the city of Troy's fiscal year beginning January

1, 1996, and not later than fifty days prior to the beginning of such

fiscal year and each fiscal year thereafter during any emergency period,

or such other date as the supervisory board may approve at the request

of the city of Troy, the city of Troy shall prepare and submit a

financial plan to the supervisory board covering the four year period

beginning with such fiscal year. On such dates, the chief executive

officer shall also submit to the supervisory board the city of Troy's

proposed operating and capital budgets for the ensuing fiscal year and a

certificate of the chief executive officer stating that such budgets are

consistent with the financial plan submitted therewith and that

operation within the budgets is feasible.

(ii) Not more than forty-five days after submission of a financial

plan or more than thirty days after submission of a financial plan

modification, the supervisory board shall determine whether the

financial plan or financial plan modification is complete and complies

with the provisions of this subdivision and shall approve or disapprove

the financial plan or financial plan modification in accordance with the

provisions of this subdivision.

(iii) If the supervisory board determines that the financial plan or

financial plan modification is complete and compiles with the standards

set forth in this paragraph, the supervisory board shall approve the

financial plan or financial plan modification. Upon making such

determination, the supervisory board shall make a certification to the

city of Troy setting forth revenue estimates approved by the supervisory

board in accordance with such determination.

(iv) The supervisory board shall disapprove, by resolution, the

financial plan proposed by the city of Troy if, in the judgment of the

supervisory board, such plan:

(A) is incomplete;

(B) fails to contain projections of revenues and expenditures that are

based on reasonable and appropriate assumptions and methods of

estimation;

(C) fails to provide that operations of the city of Troy and the

covered organizations will be conducted within the cash resources

available according to the supervisory board's revenue estimates; or

(D) fails to comply with the provisions of this subdivision;

(v) In disapproving a financial plan or financial plan modification

proposed by the city of Troy, the supervisory board shall direct that

the aggregate expenditures in any period conform to the revenue

estimates certified by the supervisory board to achieve the objectives

set forth in this subdivision.

(vi) In the event that the city of Troy shall, for any reason, fail to

submit a financial plan, as required pursuant to paragraph (i) of this

subdivision, or to adopt a financial plan approved by the supervisory

board, or in the event that the supervisory board has not, for any

reason permitted under this act, approved a financial plan submitted by

the city of Troy, the supervisory board, after enactment of a resolution

so finding, shall formulate and adopt a financial plan to be effective

until the supervisory board approves a financial plan submitted by the

city of Troy. All budgets and operations of the city of Troy or a

covered organization shall be in conformance and compliance with the

financial plan then in effect.

(vii) After the initial adoption of the financial plan, the revenue

estimates certified by the supervisory board and the financial plan

shall be regularly reexamined by the supervisory board in consultation

with the city of Troy and the covered organizations and the city of Troy

shall provide a modified financial plan in such detail and within such

time periods as the supervisory board may require. In the event of

reductions in such revenue estimates, or in the event the city of Troy

or a covered organization shall expend funds at a rate that would exceed

the aggregate expenditure limitation for the city of Troy or covered

organization prior to the expiration of the fiscal year, the city of

Troy shall submit a financial plan modification to effect such

adjustments in revenue estimates and reductions in total expenditures as

may be necessary to conform to such revised revenue estimates or

aggregate expenditure limitations. If, within a time period specified by

the supervisory board, the city of Troy fails to make such modifications

after reductions in revenue estimates, or to provide a modified plan in

detail and within such time period required by the supervisory board,

the supervisory board, after enactment of a resolution so finding, may

formulate and adopt such modifications to the financial plan, such

modifications to become effective on their adoption.

(viii) The city of Troy may, from time to time, submit financial plan

modifications for review by the supervisory board. The supervisory board

shall approve such modifications unless, in the judgment of the

supervisory board, such modifications would constitute grounds for

disapproval of a financial plan pursuant to paragraph (iv) of this

subdivision.

(e) The financial plan shall be in such form and shall contain such

information for each year during which the financial plan is in effect

as the supervisory board may specify, and shall include the city of Troy

and all the covered organizations, and shall, in such detail as the

supervisory board from time to time prescribe, include statements of all

estimated revenues and of all expenditures and cash flow projections of

the city of Troy and each of the covered organizations.

(f) The financial plan shall, except to the extent waived by the

supervisory board with respect to any limited period, include any

information which the supervisory board may request to satisfy itself

that (i) projected employment levels, collective bargaining agreements

and other action relating to employee costs, capital construction and

such other matters as the supervisory board may specify, are consistent

with the provisions made for such obligations in the financial plan,

(ii) the city of Troy and the covered organizations are taking whatever

action is necessary with respect to programs mandated by state and

federal law to ensure that expenditures for such programs are limited to

and covered by the expenditures stated in the financial plan, and (iii)

adequate reserves are provided to maintain essential programs in the

event revenues have been overestimated or expenditures underestimated

for any period.

(g) For each financial plan and financial plan modification to be

prepared and submitted by the city of Troy to the supervisory board

pursuant to the provisions of this section, the covered organizations

shall submit to the city of Troy such information with respect to their

projected expenditures, revenues and cash flows for each years covered

by such financial plan or modification as the city of Troy shall

determine. Notwithstanding any other provision of law limiting the

authority of the city of Troy with respect to any covered organization,

the city of Troy, in the preparation and submission of the financial

plan and modifications thereof, shall (except for debt service or for

other expenditures to the extent that such expenditures are required by

law) have the power to determine the aggregate expenditures to be

allocated to any covered organization in the financial plan and any

modifications thereto.