NY Loc Fin L § 160.05 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 12 - Miscellaneous Provisions 160.05 - Financial Restructuring Board for Local Governments.

§  160.05.  Financial  restructuring  board  for local governments. 1. There shall be a financial restructuring  board  for  local  governments which shall consist of ten members: the director of the budget who shall be  chair of the board, the attorney general, the state comptroller, and the secretary of state, each of whom may designate a  representative  to attend  sessions  of  the  board  on  his or her behalf, and six members appointed by the governor, one of whom upon the  recommendation  of  the temporary  president  of the senate, one of whom upon the recommendation of the speaker of the assembly, and four other members appointed by  the governor,  one  of  whom  shall have significant experience in municipal financial and restructuring matters. In making  such  appointments,  the governor  shall  consider  regional diversity. Appointees shall serve at the pleasure of his or her appointing authority. The  appointee  of  the governor  who  has  been  designated as having significant experience in municipal  financial  and  restructuring  matters  shall  receive   fair compensation  for his or her services performed pursuant to this section in an amount to be determined by the director  of  the  budget  and  all members  shall  be  reimbursed  for all reasonable expenses actually and necessarily incurred by him or her in the  performance  of  his  or  her duties.  The board shall have the power to act by an affirmative vote of a majority of the total number of members and shall render its  findings and  recommendations  within  six  months of being requested to act by a fiscally eligible municipality. The provisions of section  seventeen  of the  public  officers law shall apply to members of the board. No member of the board shall be held liable for the performance of any function or duty authorized by  this  section.  The  work  of  the  board  shall  be conducted  with  such staff as the director of the budget, the secretary of state, the attorney general and  the  state  comptroller  shall  make available. All proceedings, meetings and hearings conducted by the board shall be held in the city of Albany.   2.  A  "fiscally  eligible  municipality" shall mean any county, city, excluding a city with a population greater than one  million,  town,  or village  that  the  board,  on  a  case  by case basis, determines would benefit from the services and  assistance  which  the  board  has  legal authority  to  offer. In evaluating whether a municipality is a fiscally eligible municipality, the board shall consider the average  full  value property  tax  rate of such public employer and the average fund balance percentage of such public employer and such other criteria as the  board deems  relevant.  For purposes of this section, "full value property tax rate" shall mean the amount to be raised by tax  on  real  estate  by  a local government in a given fiscal year divided by the full valuation of taxable  real estate for that same fiscal year as reported to the office of the state comptroller; "average full value property tax  rate"  shall mean  the  sum  of  the  full value property tax rates for the five most recent fiscal years divided by five;  "fund  balance  percentage"  shall mean the total fund balance in the general fund of a local government in a  given  fiscal year divided by the total expenditures from the general fund for that same fiscal year as reported to the office  of  the  state comptroller; and "average fund balance percentage" shall mean the sum of the fund balance percentages for the five most recently completed fiscal years divided by five.  (a)  If  the average full value property tax rate of such municipality is greater than the average full value property tax rate of seventy-five percent of counties, cities, towns,  and  villages,  with  local  fiscal years ending in the same calendar year as of the most recently available information,  the  board  must find that such municipality is a fiscally eligible municipality. The office of the state  comptroller  shall  make publicly  available  the  list  of counties, cities, towns, and villages  that have an average full  value  property  tax  rate  that  meets  such criteria  in  each local fiscal year. If a municipality has not reported to the office of the state  comptroller  the  information  necessary  to calculate  its  average  full value property tax rate, such municipality may not be deemed a fiscally eligible municipality and the provisions of this section shall not apply.  (b) If the average fund balance percentage  of  such  municipality  is less  than five percent, the board must find that such municipality is a fiscally eligible municipality. The  office  of  the  state  comptroller shall  make  publicly available the list of counties, cities, towns, and villages that have an average fund balance percentage  that  meets  such criteria  in  each local fiscal year. If a municipality has not reported to the office of the state  comptroller  the  information  necessary  to calculate its average fund balance percentage, such municipality may not be  deemed  a  fiscally eligible municipality and the provisions of this section shall not apply.   3. (a) Upon the  request  of  a  fiscally  eligible  municipality,  by resolution   of  the  governing  body  of  such  municipality  with  the concurrence of the chief executive of such municipality,  the  financial restructuring  board for local governments may undertake a comprehensive review of the operations, finances, management practices, economic  base and  any  other factors that in its sole discretion it deems relevant to be  able  to  make  findings  and  recommendations  on   reforming   and restructuring  the  operations of the fiscally eligible municipality. As part  of  such  recommendations,  the  board  may  propose   that   such municipality  agree  to fiscal accountability measures, as determined by the board, including, but not limited to, multi-year financial planning. It may also identify cost-saving measures,  recommend  consolidation  of functions   or   agencies  within  such  municipality  or  between  such municipality and other municipalities,  consistent  with  existing  law, identify  and  make available, to the extent otherwise permitted by law, grants and loans on such terms and conditions as it  deems  appropriate, and  make  such  other  recommendations  as  the board may deem just and proper but in no event shall the sum of all awards made by the board  to a  single  fiscally  eligible  municipality be greater than five million dollars. If such award is a loan, it may not be for a term  longer  than ten years. In the event a grant or loan is made, the board may condition such  award on the fiscally eligible municipality submitting a report or reports on such actions taken  by  the  fiscally  eligible  municipality pursuant  to  the  board's  recommendations, and the board shall require that the eligible municipality must adopt and implement all the  board's recommendations  as  a condition to receiving an award or awards. Before making final recommendations, the board shall consult with the  fiscally eligible  municipality.  Such  recommendations  shall  not  be final and binding on a fiscally eligible municipality unless it formally agrees to abide  by  and  implement  such  recommendations  in  which  event  such recommendations  and  the  terms  provided thereunder shall be final and binding on such municipality.  (b)  Notwithstanding  paragraph  t  of  subdivision  ten  of   section fifty-four  of  the  state finance law and irrespective of whether there has been a determination or finding of  fiscal  eligibility  under  this section,  upon  the request of any county, city, excluding a city with a population of greater than one million, town, or village which  (1)  has elected  to  engage  in  multi-year  planning  with the assistance of an external financial advisor, and (2) has been identified as  experiencing fiscal  stress,  the financial restructuring board for local governments may determine that all or part of the cost to the county, city, town, or  village for such external advisor shall be subject to reimbursement from monies appropriated to such board for the making of grants and loans.   4. The board may hold hearings and shall have authority to require the production  of  any information that it deems necessary to undertake its comprehensive review. The board  shall  post  on  a  publicly  available website all recommendations and findings made pursuant to this section.   5.  The  board shall also be authorized to resolve an impasse pursuant to subdivision four-a of section two hundred nine of the  civil  service law.