NY Gen Mun L § 6-E (2021)
2021 New York Laws GMU - General Municipal Article 2 - General Municipal Finances 6-E - Contingency and Tax Stabilization Reserve Fund for Municipal Corporations.

§  6-e.  Contingency  and tax stabilization reserve fund for municipal corporations. 1. As used in this section:   a. "Annual budget" means the annual budget  or  estimate,  as  finally adopted, of a municipal corporation which is required by law to adopt an annual  budget  or  estimate of the expenditures to be made for a fiscal year for the general support or for the expenses of  the  government  of such municipal corporation during such fiscal year.   b.  "Base  year" means the most recent fiscal year for which an annual report has been filed with the state  comptroller  pursuant  to  section thirty of this chapter.   c.  "Chief  executive  officer"  means  a  chief  executive officer as defined in paragraph five-a of section 2.00 of the local finance law.   d. "Chief fiscal officer" means a chief fiscal officer as  defined  in paragraph five of section 2.00 of the local finance law.   e. "Eligible portion of the annual budget" means:  (1)  in  the  case of a contingency and tax stabilization reserve fund established for a county, city, village or fire  district,  the  general fund portion of the annual budget;  (2)  in  the  case of a contingency and tax stabilization reserve fund established for a town, the town-wide  general  fund  and  highway  fund portions of the annual budget; and  (3)  in  the  case of a contingency and tax stabilization reserve fund established for the part of a town outside  any  villages,  the  general fund and highway fund portions of the annual budget for such part of the town.   f.  "Estimated  revenue" means revenue from a specific source which is expected to be received during a fiscal year and which  is  included  in the annual budget as finally adopted for that fiscal year.   g. "Governing board" means a governing board as defined in section two of  this  chapter  and,  in  the case of a fire district, shall mean the board of fire commissioners.   h. "Municipal corporation" means a municipal corporation as defined in section two of this chapter and shall also include a fire district.   i. "Public emergency" means an epidemic, conflagration,  riot,  storm, flood  or other sudden, unforeseen or unexpected occurrence or condition which requires the immediate expenditure of moneys to protect the public health,  safety  or  welfare  of  the  inhabitants  of   the   municipal corporation.   j.  "Tentative budget" means the tentative budget prepared pursuant to section three hundred fifty-four of the county law, section one  hundred six  of  the town law or section 5-504 of the village law, the statement of expenditures prepared pursuant to section one hundred  eighty-one  of the  town law, or similar document prepared pursuant to general, special or local law.   k. "Unanticipated expenditure" means an  expenditure  for  a  specific purpose  for  which  there  is no or insufficient appropriation or which will cause an appropriation to be insufficient that is necessitated by a change in federal or state laws, rules or regulations,  a  court  order, judgement or decree, a public emergency, or an industry-wide price, rate or  premium  increase, which takes effect or occurs after final adoption of  the  annual  budget  and  which  could  not  have  been   reasonably anticipated prior to final adoption of the annual budget.   l.  "Unanticipated  revenue  loss"  means  estimated  revenue which is rendered unreceivable because of a change  in  federal  or  state  laws, rules  or  regulations,  a  court  order,  judgement or decree, or other circumstance, which takes effect or occurs after final adoption  of  the annual budget and which could not have been reasonably anticipated prior to final adoption of the annual budget.    m.  "Unappropriated  unreserved  fund  balance"  means  the difference between the total assets for a fund and the total liabilities,  deferred revenues,   encumbered  appropriations,  amounts  appropriated  for  the ensuing fiscal year's budget, and amounts reserved for  stated  purposes pursuant  to  law,  including  reserve funds established pursuant to the general municipal law for the fund, as determined through application of the system of accounts prescribed by the state comptroller  pursuant  to section thirty-six of this chapter.   n. "Voting strength" means the aggregate number of votes which all the members of the governing board are entitled to cast.   2.  The  governing  board  of any municipal corporation, by resolution subject to a permissive referendum, may establish a contingency and  tax stabilization  reserve  fund  for  the municipal corporation and, in the case of a town, also for the part of the town outside any villages. Such permissive referendum shall be governed by:   a. in the case of a county,  sections  one  hundred  one  through  one hundred three of the county law;   b.  in  the case of a city, sections twenty-four through twenty-six of the municipal home rule law;   c. in the case of a town or the part of a town outside  any  villages, article seven of the town law;   d. in the case of a village, article nine of the village law; and   e.  in  the case of a fire district, subdivision four of section six-g of this article.   3. There may be  paid  into  the  contingency  and  tax  stabilization reserve  fund  such  amounts  as  may  be provided therefor by budgetary appropriation, unappropriated unreserved fund balance  in  the  eligible portion  of  the annual budget, and such revenues as are not required by law to be paid into any other fund or account; provided,  however,  that no  amount  may  be  appropriated for payment into a contingency and tax stabilization reserve fund which would cause the balance of the fund  to exceed  ten percent of the eligible portion of the annual budget for the fiscal year for which the appropriation would be made.   4. a. The moneys in a contingency and tax stabilization  reserve  fund may  be  expended  only  pursuant  to  an  appropriation  for  a purpose authorized by this subdivision. Except as provided  in  paragraph  e  of this  subdivision,  such  an  appropriation  shall be made only upon the recommendation of the chief executive officer  and  the  adoption  of  a resolution  appropriating  the recommended amount by at least two-thirds of the voting strength of the governing board.   b. The moneys in a contingency and tax stabilization reserve fund  may be  used  to  finance  an  unanticipated  revenue loss chargeable to the eligible  portion  of  the  annual  budget,  subject  to  the  following limitations:  (1)  the  maximum  amount  of  moneys  in the fund that may be used to finance an unanticipated revenue loss shall equal either the  amount  of the  revenue  actually  received  for the base year or the amount of the estimated revenue for the current fiscal year, whichever is less,  minus the amount of the revenue actually received for the current fiscal year; and  (2) the moneys in the fund may be used only to finance that portion of the  unanticipated  revenue  loss  which,  as a matter of law, cannot be financed with amounts available in any other account or fund.   c. The moneys in a contingency and tax stabilization reserve fund  may be  used  to  finance  an  unanticipated  expenditure  chargeable to the eligible  portion  of  the  annual  budget,  subject  to  the  following limitations:  (1)  the  maximum  amount  of  moneys  in the fund that may be used to finance an unanticipated expenditure shall equal the sum of  the  amount of  the  unanticipated  expenditure and the amount appropriated for that purpose for the current fiscal year minus either the amount appropriated for  that  purpose for the current fiscal year or the actual expenditure for the same purpose in the base year, whichever is greater; and  (2) the moneys in the fund may be used only to finance that portion of an unanticipated expenditure which,  as  a  matter  of  law,  cannot  be financed with amounts available in any other account or fund.   d.  The  moneys  in the contingency and tax stabilization reserve fund may be used to lessen or prevent any projected increase in excess of two and one-half percent in the amount of the real property tax levy  needed to  finance  the  eligible  portion  of  the  annual budget for the next succeeding fiscal year. The maximum amount of moneys in  the  fund  that may  be  used  for  this  purpose shall equal the difference between the projected amount of such real property tax levy and one hundred two  and one-half  percent  of the amount of the real property tax levy needed to finance the eligible portion of the annual budget for the current fiscal year.   e. When preparing the tentative budget of a municipal corporation,  if the current balance of a contingency and tax stabilization reserve fund, as  shown  by  the  statement  of  the  chief fiscal officer required by subdivision six of this section, exceeds ten  percent  of  the  eligible portion  of  the  annual budget for the current fiscal year, such excess shall be used to reduce the amount of  real  property  taxes  needed  to finance  the  eligible  portion  of  the  annual  budget  for  the  next succeeding fiscal year.   5. The moneys in the contingency and tax  stabilization  reserve  fund shall  be  deposited  in  one  or  more  of the banks or trust companies designated, in the manner provided by law, as depositories of the  funds of  such municipal corporation. The governing board, or the chief fiscal officer having custody of such money of such municipal  corporation,  if the  governing  board  shall  delegate  such duty to him, may invest the moneys in such fund in obligations specified in section eleven  of  this article.  Any  interest  earned or capital gain realized on the money so deposited or invested shall accrue to and become part of such fund.   6. The chief fiscal officer shall account for the contingency and  tax stabilization  reserve  fund  separate and apart from all other funds of the municipal corporation. Such accounting shall show: the source,  date and  amount  of each sum paid into the fund; the interest earned by such fund; capital gains or losses resulting from the sale of investments  of the   fund;   the  order,  source  thereof,  date  and  amount  of  each appropriation from this fund; the assets of the  fund,  indicating  cash balance  and  a schedule of investments. Not later than sixty days after the start of each fiscal year and at such times as may  be  required  by the  governing  board,  the  chief  fiscal  officer shall furnish to the governing board a detailed report of the operation and condition of  the fund during the preceding fiscal year which shall include a statement of receipts  and  disbursements, and a statement of the balance of the fund as of the last day of such preceding fiscal year and such other dates as may be specified by the governing board.  Not  later  than  thirty  days prior  to  the last date provided by law for the filing of the tentative budget, the chief fiscal officer shall furnish to the  officer  or  body responsible  for  preparing  the  tentative  budget  a  statement of the current balance of the fund.   7. The members of the governing board are hereby declared trustees  of the  moneys  in  the  contingency and tax stabilization reserve fund and shall be subject to all duties and responsibilities imposed  by  law  on  trustees,  and  such  duties and responsibilities may be enforced by the municipal corporation or by any board, commission,  agency,  officer  or taxpayer thereof.   8.  Any  officer  of  a  municipal  corporation  shall  be guilty of a misdemeanor if he or she willfully and knowingly  causes  the  municipal corporation to:   a.  Appropriate  moneys  from  the  contingency  and tax stabilization reserve fund for any purpose not authorized by this section.   b. Expend any money from the contingency and tax stabilization reserve fund for a purpose other than that for which it was appropriated. The provisions of this subdivision shall be considered to be in addition to any other penalties provided by law.   * 4. Moneys in such fund shall be deposited and secured in the  manner provided  by  section  ten  of  this article. The moneys in such fund so deposited shall be kept in a separate bank account. The governing  board or the chief fiscal officer of such municipality, if the governing board shall  delegate  such duty to him, may invest the moneys in such fund in the manner provided in section eleven  of  this  article.  Any  interest earned  or capital gains realized on the moneys so deposited or invested shall accrue to and become part of such  fund.  Such  board  or  officer shall  incur  no  personal  liability  on account of any investment made pursuant to the provisions of this section.   * NB sb. 4 amended by Ch. 708/92, § 3  is  to  former  section  6-E  - repealed Ch. 655/92