§ 3667 — County financial plans

New York § 3667

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 1: Nassau County Interim Finance Authority
• Art. 10-D: Miscellaneous Authorities

Text

§ 3667. County financial plans. 1. The county executive shall prepare\nand submit to the authority a four-year financial plan, initially for\nthe fiscal years ending December thirty-first, two thousand one through\ntwo thousand four, together with the proposed budget for the fiscal year\nending on December thirty-first, two thousand one, not later than the\ndate required for submission of such budget to the legislature pursuant\nto the county charter. Such financial plan shall, in addition to the\nrequirements for financial plans set forth in subdivisions two and three\nof this section, contain actions sufficient to ensure with respect to\nthe major operating funds for each fiscal year of the plan that annual\naggregate operating expenses for such fiscal year shall not exceed\nannual aggregate operating revenues for such fiscal year. For purposes\nof determining operating revenues in the fiscal years ending December\nthirty-first, two thousand one through two thousand seven, such plan may\nassume (a) borrowings by the county or the authority to finance tax\ncertiorari judgments or settlements in annual amounts not exceeding one\nhundred million dollars, or, in the aggregate for all such years, four\nhundred million dollars; however, of said four hundred million dollars,\nno more than fifteen million dollars may be counted as operating revenue\nin the fiscal year two thousand six and no more than ten million dollars\nmay be counted as operating revenue in fiscal year two thousand seven,\nand (b) receipt by the county of NCIFA assistance and transitional state\naid in the following collective amounts for each respective fiscal year:\n Amount Fiscal Year\n 2001 amount 2001\n 2002 amount 2002\n 2003 amount 2003\n 2004 amount 2004.\nThe one hundred million dollars annual limit on assumed tax certiorari\nborrowings may be waived by the authority respecting any fiscal year,\nupon its determination that the results of any increased and accelerated\nsettlement or litigation efforts by the county justify such waiver.\n As used in this subdivision:\n "2001 amount" means that amount expected to be provided by the\nauthority to ensure balanced major operating fund operations upon its\ndetermination that the county has taken recurring actions to close\nbetween thirty-five per centum (35%) and forty per centum (40%) of the\nprojected gap.\n "2002 amount" means that amount expected to be provided by the\nauthority to ensure balanced major operating fund operations upon its\ndetermination that the county has taken recurring actions to close\nbetween forty-five per centum (45%) and fifty per centum (50%) of the\nprojected gap.\n "2003 amount" means that amount expected to be provided by the\nauthority to ensure balanced major operating fund operations upon its\ndetermination that the county has taken recurring actions to close\nbetween sixty per centum (60%) and sixty-five per centum (65%) of the\nprojected gap.\n "2004 amount" means that amount expected to be provided by the\nauthority to ensure balanced major operating fund operations upon its\ndetermination that the county has taken recurring actions to close\nbetween eighty per centum (80%) and eighty-five per centum (85%) of the\nprojected gap.\n 2. Pursuant to the procedures contained in this subdivision, each year\nduring the interim finance period or during a control period the county\nshall develop, and may from time to time modify, taking into account\nrecommendations of the authority, a four year financial plan covering\nthe county and the covered organizations. Each such financial plan and\nfinancial plan modification shall conform to the requirements of\nparagraph (a) of this subdivision and shall provide that the major\noperating funds of the county will be balanced in accordance with\ngenerally accepted accounting principles. The financial plan shall be\ndeveloped and approved, and may from time to time be modified, in\naccordance with the following procedures:\n (a) The county executive shall prepare and submit to the authority and\nthe legislature a revised financial plan to the authority covering the\nfour year period beginning with the ensuing fiscal year, together with\nthe proposed budget for the ensuing fiscal year, not later than the date\nrequired for submission of such budget pursuant to the county charter.\nOn such dates, the county executive shall also submit to the authority a\ncertificate stating that such budget is consistent with the financial\nplan submitted therewith and that operation within the budget is\nfeasible.\n (b) Not more than twenty days after submission of a financial plan or\nmore than fifteen days after submission of a financial plan\nmodification, the authority shall determine whether the financial plan\nor financial plan modification is complete and complies with the\nprovisions of section thirty-six hundred sixty-six and this section and\nthe other requirements of this title, and shall submit its\nrecommendations with respect to the financial plan or financial plan\nmodification in accordance with the provisions of this subdivision.\n (c) Upon the approval by the county of a budget in accordance with the\nprovisions of the county charter and approval of the financial plan by\nthe legislature, the county executive shall submit such approved budget\nand financial plan to the authority accompanied by expenditure, revenue\nand cash flow projections on a quarterly basis and certify to the\nauthority that such budget is consistent with the financial plan to be\nsubmitted to the authority.\n (d) If the authority determines that the financial plan or financial\nplan modification provided pursuant to paragraphs (c) or (f) of this\nsubdivision is complete and complies with the standards set forth in\nthis subdivision, the authority shall make a certification to the county\nsetting forth revenue estimates agreed to by the authority in accordance\nwith such determination.\n (e) The authority shall, in the event it disagrees with elements of\nthe financial plan provided pursuant to paragraphs (c) or (f) of this\nsubdivision, provide notice thereof to the county executive, the\nlegislature and the comptroller, with copies to the director of the\nbudget, the state comptroller, the chair of the assembly ways and means\ncommittee and the chair of the senate finance committee, if, in the\njudgment of the authority, such plan:\n (i) is incomplete;\n (ii) fails to contain projections of revenues and expenditures that\nare based on reasonable and appropriate assumptions and methods of\nestimation;\n (iii) fails to provide that operations of the county and the covered\norganizations will be conducted within the cash resources available\naccording to the authority's revenue estimates; or\n (iv) fails to comply with the provisions of this title or other\nrequirements of law.\n (f) After the initial adoption of an approved financial plan, the\nrevenue estimates certified by the authority and the financial plan\nshall be regularly reexamined by the authority in consultation with the\ncounty and the covered organizations and the county executive shall\nprovide a modified financial plan in such detail and within such time\nperiods as the authority may require. In the event of reductions in such\nrevenue estimates, or in the event the county or a covered organization\nshall expend funds at a rate that would exceed the aggregate expenditure\nlimitation for the county or covered organization prior to the\nexpiration of the fiscal year, the county executive shall submit a\nfinancial plan modification to effect such adjustments in revenue\nestimates and reductions in total expenditures as may be necessary to\nconform to such revised revenue estimates or aggregate expenditure\nlimitations.\n (g) If, within a time period specified by the authority, the county\nfails to make such modifications after reductions in revenue estimates,\nor to provide a modified plan in detail and within such time period\nrequired by the authority, the authority shall adopt a resolution so\nfinding.\n (h) The county shall amend its budget or shall submit a financial plan\nmodification for the approval of the authority such that the county's\nbudget and the approved financial plan shall be consistent. In no event\nshall the county operate under a budget that is inconsistent with an\napproved financial plan.\n 3. The financial plan shall be in such form and shall contain such\ninformation for each year during which the financial plan is in effect\nas the authority may specify, and shall include the county and all the\ncovered organizations, and shall, in such detail as the authority from\ntime to time may prescribe, include (a) statements of all estimated\nrevenues and of all expenditures and cash flow projections of the county\nand each of the covered organizations, (b) a report on the status of\nefforts to reform and streamline the tax certiorari claims process and\neliminate the need in each year of the plan for the county to borrow to\nfinance such claims or judgments, including an accounting of the\nexpenditure of any transitional state aid for such purposes, and (c) an\naccounting of the expenditure of any remaining transitional state aid\navailable to the county for each year of the plan.\n 4. The financial plan shall include any information which the\nauthority may request to satisfy itself that (a) projected employment\nlevels, collective bargaining agreements and other actions relating to\nemployee costs, capital construction and such other matters as the\nauthority may specify are consistent with the provisions made for such\nobligations in the financial plan, (b) the county and the covered\norganizations are taking whatever action is necessary with respect to\nprograms mandated by state and federal law to ensure that expenditures\nfor such programs are limited to and covered by the expenditures stated\nin the financial plan, (c) adequate reserves are provided to maintain\nessential programs in the event revenues have been overestimated or\nexpenditures underestimated for any period, and (d) the county has\nadequate cash resources to meet its obligations. In addition, except to\nthe extent such reporting requirements may be modified pursuant to\nagreement between the authority and the county, for each fiscal year\noccurring during the interim finance period or while bonds issued\npursuant to this title are outstanding, the county executive shall\nprepare a quarterly report of summarized budget data depicting overall\ntrends of actual revenues and budget expenditures for the entire budget\nrather than individual line items and updated quarterly cash flow\nprojections of receipts and disbursements. Such reports shall compare\nrevenue estimates and appropriations as set forth in such budget and in\nthe quarterly revenue and expenditure projections submitted therewith\nwith the actual revenues and expenditures made to date. Such reports\nshall also compare actual receipts and disbursements with the estimates\ncontained in the cash flow projections, together with variances and\ntheir explanation. All quarterly reports shall be accompanied by\nrecommendations from the county executive to the legislature setting\nforth any remedial action necessary to resolve any unfavorable budget\nvariance including the overestimation of revenues and the\nunderestimation of appropriations. These reports shall be completed\nwithin thirty days after the end of each quarter and shall be submitted\nto the legislature, the authority, the director of the budget and the\nstate comptroller. Except during a control period, for each fiscal year\noccurring during the interim finance period or while bonds issued\npursuant to this title are outstanding, the county executive shall\nsubmit a proposed budget or revision thereto to the authority concurrent\nwith submission to the legislature, and shall submit the adopted budget\nto the authority immediately upon its adoption.\n 5. For each financial plan and financial plan modification to be\nprepared and submitted by the county executive to the authority pursuant\nto the provisions of this section, the covered organizations shall\nsubmit to the county such information with respect to their projected\nexpenditures, revenues and cash flows for each of the years covered by\nsuch financial plan or modification as the county executive shall\ndetermine. Notwithstanding any other provision of law limiting the\nauthority of the county with respect to any covered organization, the\ncounty, in the preparation and submission of the financial plan and\nmodifications thereof, shall (except for debt service or for other\nexpenditures to the extent that such expenditures are required by law)\nhave the power to determine the aggregate expenditures to be allocated\nto any covered organization in the financial plan and any modifications\nthereto.\n 6. The authority and the county shall confer concerning the projected\neffect on the budgets of the county and the covered organizations of any\nchange in generally accepted accounting principles, or change in the\napplication of generally accepted accounting principles to the county\nand the covered organizations, made or to be implemented after the\neffective date of this title. If the authority determines that immediate\ncompliance with such change will have a material effect on such budgets\nover a time period insufficient to accommodate the effect without a\nsubstantial adverse impact on the delivery of essential services by the\ncounty, the authority may authorize and approve a method of phasing the\nrequirements of such change into such budgets over such reasonably\nexpeditious time period as the authority deems appropriate.\n