N.Y. Yonkers Financial Emergency Act § 9

Current through 2024 NY Law Chapter 456

Section 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.

N.Y. Yonkers Financial Emergency Act § 9