N.Y. Public Authorities Law § 3857: City financial plans

§ 3857. City financial plans. 1. Commencing with the city's two

thousand four--two thousand five fiscal year, the mayor shall prepare

and submit to the authority a four-year financial plan, and the mayor's

proposed city budget, not later than the date required for submission of

such budget to the council pursuant to the city charter. Such financial

plan shall, in addition to the requirements for financial plans set

forth in subdivisions two and three of this section, contain actions

sufficient to ensure with respect to the major operating funds for each

fiscal year of the plan that annual aggregate operating expenses for

such fiscal year shall not exceed annual aggregate operating revenues

for such fiscal year. For purposes of determining operating revenues in

the fiscal years ending June thirtieth, two thousand four through two

thousand seven, such plan may assume receipt by the city of BFSA

assistance in the following collective amounts for each respective

fiscal year:

Amount Fiscal Year Ending

2004 amount 2004

2005 amount 2005

2006 amount 2006

2007 amount 2007

As used in this subdivision:

"2004 amount" means that amount expected to be provided by the authority

to ensure balanced major operating fund operations upon its

determination that the city has taken recurring actions to close between

thirty-five per centum and forty per centum of the projected gap.

"2005 amount" means that amount expected to be provided by the authority

to ensure balanced major operating fund operations upon its

determination that the city has taken recurring actions to close between

forty-five per centum and fifty per centum of the projected gap.

"2006 amount" means that amount expected to be provided by the authority

to ensure balanced major operating fund operations upon its

determination that the city has taken recurring actions to close between

sixty per centum and sixty-five per centum of the projected gap.

"2007 amount" means that amount expected to be provided by the authority

to ensure balanced major operating fund operations upon its

determination that the city has taken recurring actions to close between

eighty per centum and eighty-five per centum of the projected gap.

2. Each financial plan and financial plan modification shall conform

to the requirements of paragraph (a) of this subdivision and shall

provide that the major operating funds of the city 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, in accordance with the following procedures:

(a) The mayor shall submit to the authority a certificate stating that

the budget submitted to the authority is consistent with the financial

plan submitted therewith and that operation within the budget is

feasible.

(a-1) Prior to the approval or disapproval of the financial plan of

the city by the authority, the authority shall request community,

educational or other entity or entities to seek public input and comment

relating to the city's and/or any covered organization's financial plan.

Such community, educational or other entity or entities shall report to

the authority on such public input and comment ten days after the city

has submitted the financial plan to the authority. The authority shall

evaluate any proposals submitted to the authority for cost savings

and/or service delivery enhancement in the city, and shall periodically,

at least twice a year, summarize in a public report the authority's

findings with respect to such proposals that, in the opinion of the

authority, merit further consideration based on their potential impact

on the city's budget. The authority shall provide public notice of the

dates on which it plans to make such public reports.

(b) Not more than twenty days after submission of a financial plan or

more than fifteen days after submission of a financial plan

modification, the authority shall determine whether the financial plan

or financial plan modification is complete and complies with the

provisions of this section and section thirty-eight hundred fifty-six of

this title and the other requirements of this title, and shall submit

its recommendations with respect to the financial plan or financial plan

modification in accordance with the provisions of this subdivision.

(c) Upon the approval by the city of a budget in accordance with the

provisions of the city charter, the mayor shall submit such approved

budget and financial plan to the authority accompanied by expenditure,

revenue and cash flow projections on a quarterly basis and certify to

the authority that such budget is consistent with the financial plan to

be submitted to the authority.

(d) If the authority determines that the financial plan or financial

plan modification provided pursuant to paragraph (c) or (f) of this

subdivision or section thirty-eight hundred fifty-six of this title is

complete and complies with the standards set forth in this subdivision,

the authority shall make a certification to the city setting forth

revenue estimates agreed to by the authority in accordance with such

determination.

(e) The authority shall, in the event it disagrees with elements of

the financial plan provided pursuant to paragraph (c) or (f) of this

subdivision, or section thirty-eight hundred fifty-six of this title,

provide notice thereof to the city, with copies to the director of the

budget, the state comptroller, the chair of the assembly ways and means

committee and the chair of the senate finance committee, if, in the

judgment of the authority, such plan: (i) is incomplete; (ii) fails to

contain projections of revenues and expenditures that are based on

reasonable and appropriate assumptions and methods of estimations; (iii)

fails to provide that operations of the city and the covered

organizations will be conducted within the cash resources available; or

(iv) fails to comply with the provisions of this title or other

requirements of law.

(f) After the initial adoption of an approved financial plan, the

revenue estimates certified by the authority and the financial plan

shall be regularly reexamined by the authority in consultation with the

city and the covered organizations and the mayor shall provide a

modified financial plan in such detail and within such time periods as

the authority may require. In the event of reductions in such revenue

estimates, or in the event the city or a covered organization shall

expend funds at a rate that would exceed the aggregate expenditure

limitation for the city or covered organization prior to the expiration

of the fiscal year, the mayor 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.

(g) If, within a time period specified by the authority, the city

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 authority, the authority shall adopt a resolution so

finding and shall, as soon as practicable thereafter, formulate and

adopt a financial plan to be effective until the authority approves a

financial plan submitted by the city. All budgets and operations of the

city or a covered organization shall be in conformance and compliance

with the financial plan then in effect.

(h) The city shall amend its budget or shall submit a financial plan

modification for the approval of the authority such that the city's

budget and the approved financial plan shall be consistent. In no event

shall the city operate under a budget that is inconsistent with an

approved financial plan.

3. 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 authority may specify, and shall include the city and all the

covered organizations, and shall, in such detail as the authority from

time to time may prescribe, include (a) statements of all estimated

revenues and of all expenditures and cash flow projections of the city

and each covered organization, and (b) an accounting of the expenditure

of efficiency incentive grants available to the city for each year of

the plan.

4. The financial plan shall include any information which the

authority may request to satisfy itself that (a) projected employment

levels, collective bargaining agreements and other actions relating to

employee costs, capital construction and such other matters as the

authority may specify are consistent with the provisions made for such

obligations in the financial plan, (b) the city 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, (c) adequate reserves are provided to maintain

essential programs in the event revenues have been overestimated or

expenditures underestimated for any period, and (d) the city has

adequate cash resources to meet its obligations. In addition, except to

the extent such reporting requirements may be modified pursuant to

agreement between the authority and the city, for each fiscal year

occurring during a control period, or while bonds, notes or other

obligations issued pursuant to this title are outstanding, the mayor

shall prepare a quarterly report of summarized budget data depicting

overall trends, by major category within funds, of actual revenues and

budget expenditures for the entire budget rather than individual line

items, as well as updated quarterly cash flow projections of receipts

and disbursements. Such reports shall compare revenue estimates and

appropriations as set forth in such budget and in the quarterly revenue

and expenditure projections submitted therewith, with the actual

revenues and expenditures made to date. Such reports shall also compare

actual receipts and disbursements with the estimates contained in the

cash flow projections, together with variances and their explanation.

All quarterly reports shall be accompanied by recommendations from the

mayor to the council setting forth any remedial action necessary to

resolve any unfavorable budget variance including the overestimation of

revenues and the underestimation of appropriations. These reports shall

be completed within thirty days after the end of each quarter and shall

be submitted to the council, the authority, the director of the budget

and the state comptroller. For each fiscal year occurring during a

control or advisory period or while bonds, notes or other obligations

issued pursuant to this title are outstanding, the mayor shall submit a

proposed budget or revision thereto to the authority concurrent with

submission to the council, and shall submit the adopted budget to the

authority immediately upon its adoption.

5. For each financial plan and financial plan modification to be

prepared and submitted by the mayor to the authority pursuant to the

provisions of this section, the covered organizations shall submit to

the city such information with respect to their projected expenditures,

revenues and cash flows for each of the years covered by such financial

plan or modification as the mayor shall determine.