§ 9 — Development of the financial plan

New York § 9

• Jurisdiction: New York
• Law YFA: Yonkers financial emergency act 103/84

Text

§ 9. Development of the financial plan. 1. Pursuant to the procedures\ncontained in subdivision two of this section, each year the city shall\ndevelop, and may from time to time modify, with the approval of the\nboard, a four year financial plan covering the city and the covered\norganizations. Each such financial plan and financial plan modification\nshall conform to the requirements of subdivision three of this section\nand shall (a) provide that the operating and capital funds of the city\nwill be balanced in accordance with the accounting system and procedures\nprescribed by the comptroller pursuant to section thirty-six of the\ngeneral municipal law, and (b) comply with the requirements of the\nspecial fiscal act.\n 2. The financial plan shall be developed and approved, and may from\ntime to time be modified, with the approval of the board, in accordance\nwith the following procedures:\n a. Commencing with the city's fiscal year beginning July first,\nnineteen hundred eighty-four, and not later than fifty days prior to the\nbeginning of such fiscal year and each fiscal year thereafter, or such\nother date as the board may approve at the request of the city, the city\nshall prepare and submit a financial plan to the board covering the four\nyear period beginning with such fiscal year. On such dates, the mayor\nshall also submit to the board the city's proposed operating and capital\nbudgets for the ensuing fiscal year and a certificate of the mayor\nstating that such budgets are consistent with the financial plan\nsubmitted therewith, that the budgets conform in all respects to the\nrequirements of the special fiscal act, and that operation within the\nbudgets is feasible.\n b. Not more than forty-five days after submission of a financial plan\nor more than thirty days after submission of a financial plan\nmodification, the board shall determine whether the financial plan or\nfinancial plan modification is complete and complies with the provisions\nof subdivision one of this section and shall approve or disapprove the\nfinancial plan or financial plan modification in accordance with the\nprovisions of this section.\n c. If the board determines that the financial plan or financial plan\nmodification is complete and complies with the standards set forth in\nsubdivision one of this section, the board shall approve the financial\nplan or financial plan modification. Upon making such determination, the\nboard shall make a certification to the city setting forth revenue\nestimates approved by the board in accordance with such determination.\n d. The board shall disapprove, by resolution, the financial plan\nproposed by the city if, in the judgment of the board, 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 city and the covered\norganizations will be conducted within the cash resources available\naccording to the board's revenue estimates; or\n (iv) fails to comply with the provisions of subdivision one of this\nsection.\n e. In disapproving a financial plan or financial plan modification\nproposed by the city, the board may direct that the aggregate\nexpenditures in any period be reduced to conform to the revenue\nestimates certified by the board to achieve the objectives set forth in\nsubdivision one of this section.\n f. In the event that the city shall, for any reason, fail to submit a\nfinancial plan, as required pursuant to paragraph a of this subdivision,\nor to adopt a financial plan approved by the board, or in the event that\nthe board has not, for any reason permitted under this act, approved a\nfinancial plan submitted by the city, the board, after enactment of a\nresolution so finding, shall formulate and adopt a financial plan to be\neffective until the board approves a financial plan submitted by the\ncity. All budgets and operations of the city or a covered organization\nshall be in conformance and compliance with the financial plan then in\neffect.\n g. After the initial adoption of the financial plan, the revenue\nestimates certified by the board and the financial plan shall be\nregularly reexamined by the board in consultation with the city and the\ncovered organizations and the city shall provide a modified financial\nplan in such detail and within such time period as the board may\nrequire. In the event of reductions in such revenue estimates, or in the\nevent the city or a covered organization shall expend funds at a rate\nthat would exceed the aggregate expenditure limitation for the city or\ncovered organization prior to the expiration of the fiscal year, the\ncity shall submit a financial plan modification to effect such\nadjustments in revenue estimates and reductions in total expenditures as\nmay be necessary to conform to such revised revenue estimates or\naggregate expenditure limitations. If, within a time period specified by\nthe board, the city fails to make such modifications after reductions in\nrevenue estimates, or to provide a modified plan in detail and within\nsuch time period required by the board, the board, after enactment of a\nresolution so finding, may formulate and adopt such modifications to the\nfinancial plan, such modifications to become effective on their\nadoption.\n h. The city may, from time to time, submit financial plan\nmodifications for review by the board. The board shall approve such\nmodifications unless, in the judgment of the board, such modifications\nwould constitute grounds for disapproval of a financial plan pursuant to\nparagraph d of this subdivision.\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 board may specify, shall include the city and all the covered\norganizations, and shall, in such detail as the board may from time to\ntime prescribe, include statements of all estimated revenues and of all\nexpenditures and cash flow projections of the city and each of the\ncovered organizations.\n 4. The financial plan shall, except to the extent waived by the board\nwith respect to any limited period, include any information which the\nboard may request to satisfy itself that (i) projected employment\nlevels, collective bargaining agreements and other action relating to\nemployee costs, capital construction and such other matters as the board\nmay specify, are consistent with the provisions made for such\nobligations in the financial plan, (ii) the city 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, and (iii) adequate reserves are provided to\nmaintain essential programs in the event revenues have been\noverestimated or expenditures underestimated for any period.\n 5. For each financial plan and financial plan modification to be\nprepared and submitted by the city to the board pursuant to the\nprovisions of this section, the covered organizations shall submit to\nthe city such information with respect to their projected expenditures,\nrevenues and cash flows for each year covered by such financial plan or\nmodification as the city shall determine. Notwithstanding any other\nprovision of law limiting the authority of the city with respect to any\ncovered organization, the city, in the preparation and submission of the\nfinancial plan and modifications thereof, shall (except for debt service\nor for other expenditures to the extent that such expenditures are\nrequired by law) have the power to determine the aggregate expenditures\nto be allocated to any covered organization in the financial plan and\nany modifications thereto.\n