§ 10 — No title

New York § 10

• Jurisdiction: New York
• Law TRY: City of Troy Issuance of Serial Bonds

Text

§ 10. (a) Supervisory board; created. There shall be created for the\ncity of Troy a supervisory board for the purpose of reviewing, directing\nand supervising the financial management of the city of Troy during any\nemergency period and following termination of any emergency period for\nthe purpose of overseeing and advising the chief executive officer and\nthe chief fiscal officer, as such terms are defined in paragraphs 5 and\n5-a of section 2.00 of the local finance law, of the city of Troy and\nmaking recommendations regarding the city's budget. The supervisory\nboard shall continue in existence until the later of (i) the date on\nwhich all the bonds or bond anticipation notes authorized by this act no\nlonger remain outstanding or (ii) the date on which the municipal\nassistance corporation for the city of Troy created pursuant to article\n10 of the public authorities law is terminated.\n (b) The supervisory board shall consist of five members who shall be\ninitially appointed not later than sixty days after the effective date\nof this act; one appointed by the city council, one appointed by the\nchief executive officer, as defined in subdivision 5-a of section 2.00\nof the local finance law, of the city of Troy and two appointed by the\ngovernor. The state comptroller shall also serve on the supervisory\nboard as its chair. The state comptroller shall be entitled to designate\na representative to attend meetings, vote or otherwise act in his\nbehalf. The supervisory board members shall have knowledge and expertise\nin financial matters. Each member of the supervisory board shall serve\nat the pleasure of the appointing official. The board shall act by\nmajority vote of the entire board. The board shall maintain a record of\nits proceedings in such form as it may determine, but such record shall\nindicate attendance and all votes cast by each member. The supervisory\nboard shall convene as frequently as it deems necessary to accomplish\nits purposes, but no less than quarterly.\n (c) Notwithstanding any inconsistent provisions of general, special or\nlocal law, no officer or employee of the state or of any political\nsubdivision of the state, any governmental entity operating any public\nschool or college or other public agency or instrumentality which\nexercises governmental powers under the laws of the state, shall forfeit\noffice or employment by reason of acceptance or appointment as a member,\nrepresentative, officer, employee or agent of the board, nor shall\nservice as such member, representative, officer, employee or agent of\nthe board be deemed incompatible or in conflict with such office or\nemployment.\n (d) The members of the supervisory board and all representatives\ndesignated to serve on the supervisory board shall serve without salary\nor per diem allowance but shall be entitled to reimbursement for actual\nand necessary expenses incurred in the performance of official duties\nunder this section, provided however, that such members and\nrepresentatives are not, at the time such expenses are incurred, public\nemployees otherwise entitled to such reimbursement.\n (e) The supervisory board may delegate to one or more of its officers,\nemployees or agents, such powers and duties as the board may deem\nproper, except any duties inconsistent with the duties and functions\nprescribed by any other office or position any such person may hold.\n (f) Expenses of the supervisory board shall be a charge of the city of\nTroy and shall be reimbursed by the city pursuant to an agreement signed\nby the state comptroller and the chief executive officer of the city.\n (g) The supervisory board shall so long as no emergency period is then\nin effect: (i) conduct public meetings at least annually whereby minutes\nshall be taken of such proceedings and the chief executive officer shall\nprovide for public access to such minutes within two weeks from the date\nof such meeting, and copies of such minutes shall be submitted to the\ncity council, the state comptroller, the director of the budget, the\nchair of the senate finance committee, the chair of the assembly ways\nand means committee and the supervisory board established pursuant to\nthis section;\n (ii) receive from the city all information required pursuant to this\nact, and such other financial statements and projections, budgetary data\nand information, and management reports and materials as the supervisory\nboard deems necessary or desirable to accomplish the purposes of this\nsection;\n (iii) recommend to the city such measures relating to their operation,\nmanagement, efficiency and productivity as the supervisory board deems\nappropriate to reduce costs and improve services so as to advance the\npurposes of this act;\n (iv) consult with the city in the preparation of the budget of the\ncity;\n (v) review the terms and comment, within thirty days after\nnotification by the city of Troy of a proposed borrowing, on the\naffordability of each proposed issuance of bonds or notes to be issued\nby the city of Troy during the time the supervisory board is in\nexistence and no such borrowing shall be made unless first reviewed and\ncommented upon by the supervisory board. The supervisory board shall\nprovide such comments within thirty days after notification by the city\nof Troy of a proposed borrowing to the chief executive officer, the\nchief fiscal officer, each member of the city council, the director of\nthe budget, the state comptroller, the chair of the senate finance\ncommittee and the chair of the assembly ways and means committee. The\nsupervisory board shall consult and coordinate with the state\ncomptroller with respect to any borrowing by the city of Troy and shall\nconsider any reports from the state comptroller detailing the state\ncomptroller's review of such borrowing; and\n (vi) have the ability to perform such audits and reviews of the city\nof Troy and any agency thereof as its deems necessary and such findings\nshall be a matter of public record.\n (g-1) In carrying out the purposes of this act, the supervisory board\nshall during any emergency period:\n (i) As set forth in subdivision (d) of section six of this act, the\nsupervisory board shall (A) consult with the city of Troy and the\ncovered organizations in the preparation of the financial plan, and\ncertify to the city of Troy the revenue estimates approved therein, (B)\nprescribe the form of the financial plan and the supporting information\nrequired in connection therewith, and (C) exercise the rights of\napproval, disapproval and modification with respect to the financial\nplan, including but not limited to the revenue estimates contained\ntherein.\n (ii) The supervisory board, to the extent it deems necessary or\nappropriate in order to accomplish the purposes of this act, shall\nestablish and adopt procedures with respect to (A) proper maintenance of\nthe board fund, (B) the deposit and investment of revenues in such fund,\nand (C) the disbursement of moneys from the supervisory board fund.\n (iii) The supervisory board shall, from time to time and to the extent\nit deems necessary or desirable in order to accomplish the purposes of\nthis act, (A) review the operations, management, efficiency and\nproductivity of such city of Troy operations and of such covered\norganizations or portions thereof as the supervisory board may\ndetermine, and make reports thereon; (B) audit compliance with the\nfinancial plan in such areas as the supervisory board may determine; (C)\nrecommend to the city of Troy and the covered organizations such\nmeasures relating to their operations, management, efficiency and\nproductivity as it deems appropriate to reduce costs and improve\nservices so as to advance the purposes of this act; and (D) obtain\ninformation on the financial condition and needs of the city of Troy and\nthe covered organizations. Nothing herein shall diminish the powers of\nthe state comptroller otherwise provided by law and the supervisory\nboard may request the assistance of the state comptroller in the\nperformance of the above functions.\n (iv) The supervisory board shall (A) receive from the city of Troy and\nthe covered organizations and from the state comptroller, and review,\nsuch financial statements and projections, budgetary data and\ninformation, and management reports and materials as the supervisory\nboard deems necessary or desirable to accomplish the purposes of this\nact, and (B) inspect, copy and audit such books and records of the city\nof Troy and the covered organizations as the supervisory board deems\nnecessary or desirable to accomplish the purposes of this act.\n (v) All contracts entered into by the city of Troy or any covered\norganization during any emergency period must be consistent with the\nprovisions of this act and must comply with the requirements of the\nfinancial plan as approved by the supervisory board. With respect to all\ncontracts or other obligations to be entered into by the city of Troy or\nany covered organization during any emergency period and after July 1,\n1995, requiring the payment of funds or the incurring of costs by the\ncity of Troy or any covered organizations:\n (A) Within twenty days from the effective date of this subdivision,\nthe chief executive officer shall present to the supervisory board\nproposed regulations respecting the categories and types of contracts\nand other obligations required to be reviewed by the supervisory board\npursuant to this subdivision. Within thirty days from the effective date\nof this subdivision, the supervisory board shall approve or modify and\napprove such proposed regulations or promulgate its own in the event\nthat such proposed regulations are not submitted to it within the twenty\ndays as provided for herein. Such regulation may thereafter be modified\nby the supervisory board from time to time on not less than thirty days\nnotice to the chief executive officer and the chief executive officer\nmay from time to time propose modifications to the supervisory board.\nUnless expressly disapproved or modified by the supervisory board within\nthirty days from the date of submission by the chief executive officer,\nany such proposed regulations or modifications shall be deemed approved\nby the supervisory board;\n (B) Prior to entering into any contract or other obligation subject to\nreview of the supervisory board under its regulations, the city of Troy\nor any covered organization shall submit a copy of such contract or\nother obligation to the supervisory board accompanied by an analysis of\nthe projected costs of such contract or other obligation and a\ncertification that performance thereof will be in accordance with the\nfinancial plan, all in such form and with such additional information as\nthe supervisory board may prescribe. The supervisory board shall\npromptly review the terms of such contract or other obligation and the\nsupporting information in order to determine compliance with the\nfinancial plan;\n (C) The supervisory board shall, by order, disapprove any contract or\nother obligation reviewed by it only after enactment of a resolution\ndetermining that, in its judgment, the performance of such contract or\nother obligation would be inconsistent with the financial plan, and upon\nsuch order the city of Troy or covered organization shall not enter into\nsuch contract or other obligation;\n (D) If the supervisory board approves the terms of a reviewed contract\nor other obligation, the city of Troy or covered organization may enter\ninto such contract or other obligation upon the terms submitted to the\nsupervisory board. Failure of the supervisory board to notify the city\nof Troy or covered organization within thirty days (or such additional\ntime, not exceeding thirty days, as the supervisory board shall have\nnotified the city of Troy or covered organization that it requires to\ncomplete its review and analysis) after submission to it of a contract\nor other obligation that such contract or other obligation has been\ndisapproved shall be deemed to constitute supervisory board approval\nthereof;\n (vi) The supervisory board shall review the terms of each proposed\nlong-term and short-term borrowing by the city of Troy and any covered\norganization to be effected during any emergency period after July 1,\n1995, and no such borrowing shall be made during any emergency period\nunless it is approved by the supervisory board. The supervisory board\nshall consult and coordinate with the state comptroller with respect to\nthe borrowings of the city of Troy and any covered organization and\nshall receive reports from the state comptroller on his review of\nborrowings by the city of Troy. Neither the city of Troy nor any covered\norganization shall be prohibited from issuing bonds or notes to pay\noutstanding bonds or notes.\n (vii) The supervisory board shall receive quarterly reports from the\nstate comptroller setting forth the debt service requirements on all\nbonds and notes of the city of Troy and covered organizations for the\nfollowing quarter, which reports shall be in such form and contain such\ninformation as the board shall determine.\n (viii) The supervisory board shall issue, to the appropriate official\nof the city of Troy and the covered organization, such orders as it\ndeems necessary to accomplish the purposes of this act, including but\nnot limited to, timely and satisfactory implementation of an approved\nfinancial plan. Any order so issued shall be binding upon the official\nto whom it was issued and failure to comply with such order shall\nsubject the official to the penalties described in section ten-b of this\nact.\n (ix) The supervisory board shall coordinate with the municipal\nassistance corporation with respect to the performance of its review and\nmonitoring of the revenues and expenditures of the city of Troy and\ncovered organizations.\n (x) The supervisory board may employ such consultants as it may deem\nnecessary to assist it in performing its functions required under this\nact.\n (xi) The supervisory board shall have the authority to make and\nexecute agreements and all other instruments which the board deems\nnecessary for the exercise of its powers and functions including, in\nconnection with any agreement to guarantee the payment of the principal\nof or interest on bonds or notes issued by the city or by a state\nfinancing agency.\n (xii) The supervisory board may appoint qualified individuals to\nparticipate as members of such audit, productivity or similar committees\nor councils as the city may from time to time establish in consultation\nwith the board. Such individuals, however, shall not be deemed to be\nofficers, employees or agents of the board. The board shall review and\nreport on, not less than annually, the development and implementation of\nmethods for enhancing the productivity of the city's labor force\nproposed by any such committee or council.\n (xiii) Not later than January 1, 1996 the city shall issue a report to\nthe board on its program designed to enable the city (i) during its\nfiscal years ending December 31, 1996 and December 31, 1997, to minimize\nits dependence upon the state financing agency to the extent that it\nshall be prudent to satisfy the city's financing needs by the sale of\nobligations of the city or its agencies in the public markets, and (ii)\nthereafter to satisfy its financing needs entirely by the sale of such\nobligations. The report shall describe such actions that the city\nproposes to take, in addition to those actions required by law, to\nimplement the program and shall contain such further information as the\nboard may reasonably specify. After the issuance of such initial report,\nthe city shall report to the board at least semi-annually through\nDecember 31, 1996 and thereafter at least quarterly on the actions it\nhas taken to implement the program and on the results thereof. The city\nmay revise the program from time to time but shall promptly describe any\nrevisions and the reasons therefor to the board. The city may comply\nwith the requirements of this subdivision by submitting the necessary\ninformation as supplementary material to a financial plan or financial\nplan modification in accordance with the standards and procedures of\nthis act.\n (h) Within thirty days after the board has communicated\nrecommendations or findings to the city of Troy, the chief executive\nofficer shall respond in writing to such recommendations. A copy of such\nresponse shall be distributed to the chief fiscal officer, all members\nof the city council, the supervisory board established pursuant to this\nsection, the state comptroller, the director of the budget, the chair of\nthe senate finance committee and the chair of the assembly ways and\nmeans committee. The supervisory board shall have the power to require\nall officers, employees or agents of the city or any agency thereof to\nrespond to all inquiries made by the supervisory board.\n (i) For any instance in which the city of Troy or any officer,\nemployee or agent thereof does not respond to an inquiry made by the\nsupervisory board, the supervisory board shall notify the chief\nexecutive officer, the chief fiscal officer and the city council of such\ncity of such noncompliance. If such response is not submitted to the\nsupervisory board within fifteen days after notification, the city of\nTroy shall not issue bonds or notes until such information is provided.\n (j) No officer, employee or agent of the city of Troy shall take any\naction in violation of any valid request of the board or shall fail or\nrefuse to take any valid action requested or shall prepare or present\nany information (including any projections or estimates) or report for\nthe board or any of its agents that is false or misleading, or, upon\nlearning that any such information is false or misleading, shall fail to\nadvise the board or its agents thereof in a timely manner.\n (k) Authorization for wage freeze. 1. During an emergency period, upon\na finding by the supervisory board that a wage freeze is essential to\nthe adoption or maintenance of a city budget that is in compliance with\nthis act, the supervisory board, after enactment of a resolution so\nfinding, may declare a fiscal crisis. Upon making such a declaration,\nthe supervisory board shall be empowered to order that all increases in\nsalary or wages of employees of the city and employees of covered\norganizations which will take effect after the date of the order\npursuant to collective bargaining agreements or other analogous\ncontracts, now in existence or hereafter entered into, requiring such\nsalary increases as of any date thereafter are suspended. Such order may\nalso provide that all increased payments for holiday and vacation\ndifferentials, shift differentials, salary adjustments according to plan\nand step-ups or increments for employees of the city and employees of\ncovered organizations which will take effect after the date of the order\npursuant to collective bargaining agreements or other analogous\ncontracts requiring such increased payments as of any date thereafter\nare, in the same manner, suspended. For the purposes of computing the\npension base of retirement allowances, any suspended salary or wage\nincreases and any suspended other payments shall not be considered as\npart of compensation or final compensation or of annual salary earned or\nearnable. The suspensions authorized hereunder shall continue until one\nyear after the date of the order and, to the extent of any determination\nof the board that a continuation of such suspensions, to a date\nspecified by the board, is necessary in order to achieve the objectives\nof the financial plan, such suspensions shall be continued to the date\nspecified by such board, which date shall in no event be later than the\nend of the emergency period, provided that such suspensions shall\nterminate with respect to employees who have agreed to a deferral of\nsalary or wage increase upon the certification of the agreement by the\nboard pursuant to paragraph two of this subdivision.\n 2. This subdivision shall not be applicable to employees of the city\nor employees of a covered organization covered by a collective\nbargaining agreement or an employee of the city or a covered\norganization not covered by a collective bargaining agreement where the\ncollective bargaining representative or such unrepresented employee has\nagreed to a deferment of salary or wage increase, by an instrument in\nwriting which has been certified by the supervisory board as being an\nacceptable and appropriate contribution toward alleviating the fiscal\ncrisis of the city. Any such agreement to a deferment of salary or wage\nincrease may provide that for the purposes of computing the pension base\nof retirement allowances, any deferred salary or wage increase may be\nconsidered as part of compensation or final compensation or of annual\nsalary earned or earnable.\n 3. The supervisory board may, if it finds that the fiscal crisis has\nbeen sufficiently alleviated or for any other appropriate reason, direct\nthat the suspensions of salary or wage increases or suspensions of other\nincreased payments or benefits shall, in whole or in part, be\nterminated.\n (l) 1. Notwithstanding the provisions or limitations of any law,\ngeneral, special or local, including the charter of the city of Troy, an\nimpasse panel, arbitrator, collective bargaining board, fact finding or\nsimilar type of panel, body or individual which is authorized to\nrecommend or award an increase in wages or fringe benefits to any\nemployee of the city or covered organization shall, in addition to\nconsidering any standard or factor required to be considered by\napplicable law, also take into consideration and accord substantial\nweight to the financial ability of the city or covered organization to\npay the cost of such increase in wages or fringe benefits.\n 2. Any determination pursuant to article 8 of the labor law or any\nagreement or stipulation entered into in lieu thereof which provides for\nan increase in wages or fringe benefits of any employee of the city or\ncovered organization shall, in addition to considering any standard or\nfactor required to be considered by applicable law, also take into\nconsideration and accord substantial weight to the financial ability of\nthe city or covered organization to pay the cost of such increase in\nwages or fringe benefits.\n 3. Any party to a proceeding before a panel, body or individual as\ndescribed in paragraph one or two of this subdivision may commence a\nspecial proceeding in the appellate division, third department, supreme\ncourt, state of New York, to review the determination as to the city or\ncovered organization's financial ability to pay. Such proceeding shall\nbe commenced not later than thirty days after the final determination\nhas been made by the panel, body or individual. Such proceeding shall\nhave preference over all other cases in such appellate division, other\nthan cases relating to the election law.\n 4. The court shall make a de novo review of the record solely for the\npurpose of determining whether an award of an increase in wages or\nfringe benefits was within the city's or covered organization's\nfinancial ability to pay. The court's findings as to such issue shall be\nbased upon a preponderance of all the evidence set forth in the record.\nUnless the parties stipulate otherwise, arguments or submission shall be\nhad within fifteen days after commencement of the special proceeding and\nthe court shall render its decision within fifteen days thereafter. All\nquestions, other than the question relating to the determination, shall\nbe reviewed by the appellate division in the same proceeding in the\nmanner provided by article 75 or 78 of the civil practice law and rules\nas may be appropriate, notwithstanding that the issue would otherwise\nhave been cognizable in the first instance before a special or trial\nterm of the supreme court. If an appeal shall otherwise lie from such\ndetermination of the appellate division to the court of appeals, notice\nof such appeal shall be filed within thirty days after the entry of the\nfinal order or judgment of the appellate division if such appeal is of\nright or within ten days after entry of an order granting leave to\nappeal, and such appeal shall have preference over all other appeals\nother than appeals relating to the election law.\n 5. At any stage of any proceeding under paragraph one, two or three of\nthis subdivision or any appeal from an order or judgment therefrom the\nsupervisory board may intervene as a party on the issue of the financial\nability of the city or covered organization to pay the cost of an\nincrease in wages or fringe benefits.\n 6. For the purposes of this subdivision, financial ability to pay\nshall mean the financial ability of the city or covered organization to\npay the cost of any increase in wages or fringe benefits without\nrequiring an increase in the level of city taxes as approved in the\nfinancial plan of the city in effect at the time of the commencement of\na proceeding under paragraph one or two of this subdivision.\n