N.Y. Public Authorities Law § 3957: County financial plans

§ 3957. County financial plans. 1. Commencing with the county's two

thousand six fiscal year, the county executive shall prepare and submit

to the authority a four-year financial plan, and the county executive's

proposed county budget, not later than the date required for submission

of such budget to the legislature pursuant to the county 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 two thousand five through two

thousand nine, such plan may assume receipt by the county of ECFSA

assistance in the following collective amounts for each respective

fiscal year:

Amount Fiscal Year

2005 amount 2005

2006 amount 2006

2007 amount 2007

2008 amount 2008

2009 amount 2009

As used in this subdivision:

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

to ensure balanced major operating fund operations upon its

determination that the county has taken recurring actions subsequent to

June first, two thousand five to close at a minimum between ten per

centum and fifteen per centum of the projected gap.

Provided, however, for this purpose "projected gap" means the amount

identified by a report of the state comptroller in June two thousand

five.

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

to ensure balanced major operating fund operations upon its

determination that the county has taken recurring actions to close at a

minimum between thirty-five per centum and forty 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 county has taken recurring actions to close at a

minimum between forty-five per centum and fifty per centum of the

projected gap.

"2008 amount" means that amount expected to be provided by the authority

to ensure balanced major operating fund operations upon its

determination that the county has taken recurring actions to close at a

minimum between sixty per centum and sixty-five per centum of the

projected gap.

"2009 amount" means that amount expected to be provided by the authority

to ensure balanced major operating fund operations upon its

determination that the county has taken recurring actions to close at a

minimum between eighty per centum and eighty-five per centum of the

projected gap.

2. Pursuant to the procedures contained in this subdivision, each year

during an advisory period or during a control period the county shall

develop, and may from time to time modify, taking into account

recommendations of the authority, a four-year financial plan covering

the county and the covered organizations. 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 county 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 county executive 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.

(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 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 county of a budget in accordance with the

provisions of the county charter, the county executive 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 is complete and complies with the standards set forth in

this subdivision, the authority shall make a certification to the county

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 provide notice thereof to the county, with copies to the

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

assembly ways and means committee and the chair of the state 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 county 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

county and the covered organizations and the county executive 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 county or a covered organization

shall expend funds at a rate that would exceed the aggregate expenditure

limitation for the county or covered organization prior to the

expiration of the fiscal year, the county executive 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 county

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.

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

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

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

shall the county 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 county 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 county

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

of efficiency incentive grants available to the county 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 county 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 county 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 county, for each fiscal year

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

obligations issued pursuant to this title are outstanding, the county

executive 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 county executive to the legislature 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 legislature, the authority, the director of the budget, the chair

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

ways and means committee 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

county executive shall submit a proposed budget or revision thereto to

the authority concurrent with submission to the legislature, 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 county executive to the authority pursuant

to the provisions of this section, the covered organizations shall

submit to the county 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 county executive shall

determine.