Section 10 - Enacted without section heading(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.N.Y. City of Troy Issuance of Serial Bonds Law § 10