Relates to reports of financial condition submitted by municipal corporations.
TITLE OF BILL: An act to amend the general municipal law, in relation to reports of financial condition submitted to the comptroller by municipal corporations
PURPOSE: To implement best practices of municipal management by requiring that the reports of financial conditions of municipal corporations submitted to the comptroller include a multi-year financial plan.
SUMMARY OF PROVISIONS:
Section one creates a new paragraph b to subdivision of section 30 of the General Municipal Law to include with reports of financial conditions submitted by municipal corporations include a multi-year financial plan including projected annual expenditures for the current fiscal year and three subsequent fiscal years.
Section two sets the effective date.
JUSTIFICATION: On July 18, 2013, the city of Detroit became the largest city in United States history to file for bankruptcy protection. With debts totaling over $18.5 billion dollars, resulting from a multitude of factors including a decrease in tax base and population, Detroit presents a worst case scenario for municipalities nationwide.To address this issue in New York, the Senate Standing Committee on Local Governments held a series of public hearings in an effort to prevent such results from occurring in New York.
The most common theme, upon hearing testimony from the various Mayors, Town Supervisors, City Managers and County Executives from around the state, was the implementation of a four year financial plan to accurately track recurring revenues and expenditures consistently year to year and transparently showcase the management of Local Governments. Many of the municipalities that have displayed fiscal prudence already employ such multi-year plans on their own accord. It is recommended that all municipalities participate in such extended planning to implement best practices statewide and ensure their continued solvency.
LEGISLATIVE HISTORY: This is a new bill.
FISCAL IMPLICATIONS: None to the State.
EFFECTIVE DATE: This act shall take effect on one hundred eightieth day after it shall have become law and shall apply to reports submitted on or after such date.
STATE OF NEW YORK ________________________________________________________________________ 6608 IN SENATE February 12, 2014 ___________Introduced by Sen. MARTINS -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the general municipal law, in relation to reports of financial condition submitted to the comptroller by municipal corpo- rations THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of subdivision 1 of section 30 of the general municipal law is designated paragraph (a) and a new paragraph (b) is added to read as follows: (B) A REPORT SUBMITTED BY A MUNICIPAL CORPORATION PURSUANT TO PARA- GRAPH (A) OF THIS SUBDIVISION SHALL INCLUDE A MULTI-YEAR FINANCIAL PLAN, INCLUDING PROJECTED EMPLOYMENT LEVELS; PROJECTED ANNUAL EXPENDITURES FOR PERSONAL SERVICE, FRINGE BENEFITS, NON-PERSONAL SERVICES AND DEBT SERVICE; APPROPRIATE RESERVE FUND AMOUNTS; RESTRICTED AND UNRESTRICTED FUND BALANCES; ESTIMATED ANNUAL REVENUES, INCLUDING PROJECTED PROPERTY TAX RATES, THE VALUE OF THE TAXABLE REAL PROPERTY AND RESULTING TAX LEVY, ANNUAL GROWTH IN SALES TAX AND NON-PROPERTY TAX REVENUES; AND THE PROPOSED USE OF ONE-TIME REVENUE SOURCES. SUCH MULTI-YEAR FINANCIAL PLAN SHALL CONSIST OF, AT A MINIMUM, FOUR FISCAL YEARS INCLUDING THE MUNICI- PALITY'S MOST RECENTLY COMPLETED FISCAL YEAR, ITS CURRENT FISCAL YEAR ADOPTED BUDGET, AND THE SUBSEQUENT TWO FISCAL YEARS. THE COMPTROLLER IS AUTHORIZED TO PROMULGATE RULES AND REGULATIONS NECESSARY FOR THE IMPLE- MENTATION OF THIS PARAGRAPH. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law and shall apply to reports submitted on or after such date; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized to be made and completed on or before such date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13867-02-4