N.Y. Yonkers financial emergency act 103/84 § 9: Development of the financial plan

§ 9. Development of the financial plan. 1. Pursuant to the procedures

contained in subdivision two of this section, each year the city shall

develop, and may from time to time modify, with the approval of the

board, a four year financial plan covering the city and the covered

organizations. Each such financial plan and financial plan modification

shall conform to the requirements of subdivision three of this section

and shall (a) provide that the operating and capital funds of the city

will be balanced in accordance with the accounting system and procedures

prescribed by the comptroller pursuant to section thirty-six of the

general municipal law, and (b) comply with the requirements of the

special fiscal act.

2. The financial plan shall be developed and approved, and may from

time to time be modified, with the approval of the board, in accordance

with the following procedures:

a. Commencing with the city's fiscal year beginning July first,

nineteen hundred eighty-four, and not later than fifty days prior to the

beginning of such fiscal year and each fiscal year thereafter, or such

other date as the board may approve at the request of the city, the city

shall prepare and submit a financial plan to the board covering the four

year period beginning with such fiscal year. On such dates, the mayor

shall also submit to the board the city's proposed operating and capital

budgets for the ensuing fiscal year and a certificate of the mayor

stating that such budgets are consistent with the financial plan

submitted therewith, that the budgets conform in all respects to the

requirements of the special fiscal act, and that operation within the

budgets is feasible.

b. 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 board shall determine whether the financial plan or

financial plan modification is complete and complies with the provisions

of subdivision one of this section and shall approve or disapprove the

financial plan or financial plan modification in accordance with the

provisions of this section.

c. If the board determines that the financial plan or financial plan

modification is complete and complies with the standards set forth in

subdivision one of this section, the board shall approve the financial

plan or financial plan modification. Upon making such determination, the

board shall make a certification to the city setting forth revenue

estimates approved by the board in accordance with such determination.

d. The board shall disapprove, by resolution, the financial plan

proposed by the city if, in the judgment of the board, 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

estimation;

(iii) fails to provide that operations of the city and the covered

organizations will be conducted within the cash resources available

according to the board's revenue estimates; or

(iv) fails to comply with the provisions of subdivision one of this

section.

e. In disapproving a financial plan or financial plan modification

proposed by the city, the board may direct that the aggregate

expenditures in any period be reduced to conform to the revenue

estimates certified by the board to achieve the objectives set forth in

subdivision one of this section.

f. In the event that the city shall, for any reason, fail to submit a

financial plan, as required pursuant to paragraph a of this subdivision,

or to adopt a financial plan approved by the board, or in the event that

the board has not, for any reason permitted under this act, approved a

financial plan submitted by the city, the board, after enactment of a

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

effective until the board 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.

g. After the initial adoption of the financial plan, the revenue

estimates certified by the board and the financial plan shall be

regularly reexamined by the board in consultation with the city and the

covered organizations and the city shall provide a modified financial

plan in such detail and within such time period as the board 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

city 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 board, 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 board, the 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.

h. The city may, from time to time, submit financial plan

modifications for review by the board. The board shall approve such

modifications unless, in the judgment of the board, such modifications

would constitute grounds for disapproval of a financial plan pursuant to

paragraph d of this subdivision.

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 board may specify, shall include the city and all the covered

organizations, and shall, in such detail as the board may from time to

time prescribe, include statements of all estimated revenues and of all

expenditures and cash flow projections of the city and each of the

covered organizations.

4. The financial plan shall, except to the extent waived by the board

with respect to any limited period, include any information which the

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 board

may specify, are consistent with the provisions made for such

obligations in the financial plan, (ii) 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, and (iii) adequate reserves are provided to

maintain essential programs in the event revenues have been

overestimated or expenditures underestimated for any period.

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

prepared and submitted by the city to the board 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 year covered by such financial plan or

modification as the city shall determine. Notwithstanding any other

provision of law limiting the authority of the city with respect to any

covered organization, the city, 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.