2023 Connecticut General Statutes › Title 7 - Municipalities › Chapter 117 - Municipal Deficit Financing › Section 7-560. - Definitions.

Whenever used in subsection (a) of section 7-394b, and sections 7-560 to 7-579, inclusive, the following definitions shall apply:
(1) “Attorney General” means the Attorney General of the state of Connecticut.
(2) “Certified municipality” means a municipality that has been certified as a tier I or tier II municipality by the secretary.
(3) “Chief executive officer” means the officer described in section 7-193.
(4) “Debt service payment fund” means the fund into which the proceeds of the property tax intercept procedure are deposited and from which debt service on all outstanding general obligations of a municipality which have a term of more than one year and additionally all outstanding general obligations which the municipality determines are to be supported by the tax intercept procedure shall be paid as provided in subsection (a) of section 7-394b and sections 7-560 to 7-579, inclusive.
(5) “Debt service payment fund requirement” means an amount at least equal to the aggregate amount of principal, sinking fund installments, if any, and interest during the then current fiscal year as the same become due and payable on all outstanding general obligations of the municipality which have a term of more than one year and additionally all outstanding general obligations which the municipality determines are to be supported by the tax intercept procedure.
(6) “Deficit” means with respect to the general fund of any municipality, any cumulative excess of expenditures, encumbrances, or other uses of funds for any fiscal year and all prior fiscal years over revenues of the municipality for such period and the prior year's unassigned fund balance, as reflected in the most recent audited financial statements of such municipality. For purposes of determining such excess, revenues shall not include the proceeds of tax anticipation notes and expenditures shall not include any principal payment of tax anticipation notes.
(7) “Deficit obligation” means any general obligation with a term of more than one year or any bond or any note issued in anticipation thereof, issued by a municipality either for the purpose of or having the effect of reducing, eliminating or preventing a general fund, special revenue fund or enterprise fund deficiency, other than any obligation issued pursuant to chapter 110.
(8) “Designated tier I municipality” means a municipality designated as a tier I municipality in accordance with the provisions of section 7-576a.
(9) “Designated tier II municipality” means a municipality designated as a tier II municipality in accordance with the provisions of section 7-576b.
(10) “Designated tier III municipality” means a municipality designated as a tier III municipality in accordance with the provisions of section 7-576c.
(11) “Designated tier IV municipality” means a municipality designated as a tier IV municipality in accordance with the provisions of section 7-576e.
(12) “Equalized mill rate” means the tax rate derived from the most recent available grand levy of a municipality divided by the equalized net grand list on which such levy is based, as determined by the secretary in accordance with section 10-261a.
(13) “Fund balance” means the amount that assets and deferred outflow of resources of a municipality's general fund exceeds the liabilities and deferred inflow of resources of the general fund of the municipality, as of the fiscal year ended as reflected in the municipality's most recent audited financial statements presented in accordance with generally accepted accounting principles.
(14) “Fund balance percentage” means the fund balance of the general fund of a municipality as of the fiscal year ended in the municipality's most recent audited financial statements and presented in accordance with generally accepted accounting principles, divided by the sum of revenues of the general fund and operating transfers into the general fund for the fiscal year.
(15) “General fund deficiency” means a deficit or a projected fiscal year deficit, or both.
(16) “General obligation” means an obligation issued by a municipality and secured by the full faith and credit and taxing power of such municipality including any contingent obligation which is payable from the general fund and is subject to annual appropriation.
(17) “Maximum required capital reserve” means the maximum aggregate amount of principal, interest and other amounts due and owing during any succeeding fiscal year, excluding any sinking fund installments payable in a prior fiscal year on outstanding general obligations of a certified municipality supported by a special capital reserve fund issued pursuant to subsection (a) of section 7-394b and sections 7-568 to 7-579, inclusive.
(18) “Minimum required capital reserve” means the aggregate amount of principal, sinking fund installments, interest and other amounts due and owing during the next succeeding fiscal year on outstanding general obligations of a certified municipality supported by a special capital reserve fund pursuant to subsection (a) of section 7-394b and sections 7-560 to 7-579, inclusive.
(19) “Municipal Accountability Review Board” means the Municipal Accountability Review Board established pursuant to section 7-576d.
(20) “Municipal aid” means formula grants, grants, payments in lieu of taxes, reimbursements, payments and other funding provided by the state to municipalities and used to fund municipal general fund budgets, including education budgets.
(21) “Municipal Finance Advisory Commission” means the Municipal Finance Advisory Commission established in section 7-394b.
(22) “Municipal restructuring fund loan” means a loan received by a municipality from the Municipal Restructuring Fund pursuant to section 7-576i.
(23) “Municipal revenue increase in fiscal year ending June 30, 2018, as a per cent of revenues” means the net difference in estimated municipal revenues from state sources and new municipal taxing authority as compiled by the secretary pursuant to section 4-71b for the fiscal year ending June 30, 2018, as compared to the estimated municipal revenues from such sources compiled by the secretary pursuant to section 4-71b for the fiscal year ending June 30, 2017, divided by the sum of revenues of the general fund and operating transfers into the general fund as reported in the municipality's audited financial statements for the fiscal year ending June 30, 2016.
(24) “Municipality” means any town, city, borough, consolidated town and city, consolidated city and borough, any metropolitan district, any district, as defined in section 7-324, and any other political subdivision of the state having the power to levy taxes and to issue bonds, notes or other obligations.
(25) “Obligation” means any bond, bond anticipation note or other interim funding obligation, certificate of participation, security, financing lease, installment purchase agreements, capital lease, receivable or other asset sale, refinancing covered by this definition and any other transaction which constitutes debt in accordance with both municipal reporting standards in section 7-394a and the regulations prescribing municipal financial reporting adopted by the secretary.
(26) “Outstanding obligation” means any obligation with respect to which a principal or interest payment, sinking fund installment or other payment or deposit is, or will be, due in the future and for which moneys or defeasance securities have not been deposited in escrow.
(27) “Projected fiscal year deficit” means, with respect to the general fund of any municipality during any fiscal year, the excess of estimated expenditures and uses of funds for the fiscal year over estimated revenues and any cumulative unassigned general fund balance from the prior fiscal year. For purposes of determining such excess, estimated revenues shall not include the proceeds of tax anticipation notes and estimated expenditures shall not include any principal payment of tax anticipation notes.
(28) “Property taxes” means all taxes on real and personal property levied by the municipality in accordance with the general statutes including any interest, penalties and other related charges, and shall not mean any rent, rate, fee, special assessment or other charge based on benefit or use.
(29) “Property tax intercept procedure” means a procedure where a municipality provides for the collection and deposit in a debt service payment fund maintained with a trustee of all property taxes needed to meet the debt service payment fund requirement and which meets all the requirements of section 7-562.
(30) “Property tax levy” means the mill rate of the municipality multiplied by the net taxable grand list of the municipality.
(31) “Revenues” means, with respect to the general fund for any municipality for any fiscal year, property taxes and other moneys that are generally available for, accounted for and deposited in the municipality's general fund.
(32) “Secretary” means the Secretary of the Office of Policy and Management.
(33) “Special capital reserve fund” means the fund established pursuant to section 7-571 to secure the timely payment of principal and interest on general obligations issued by a certified municipality approved by the Treasurer pursuant to section 7-573.
(34) “State” means the state of Connecticut.
(35) “Tier I municipality” means any municipality which has applied to and been certified by the secretary as a tier I municipality.
(36) “Tier II municipality” means any municipality which has applied to and been certified by the secretary as a tier II municipality.
(37) “Treasurer” means the Treasurer of the state of Connecticut.
(38) “Trustee” means any trust company or bank having the powers of a trust company within or without the state, appointed by the municipality as trustee for the municipality's tax intercept procedure or special capital reserve fund and approved by the Treasurer, as well as any successor trust company or bank having the powers of a trust company within or without the state succeeding a prior trust company or bank as trustee, so appointed and approved.
(P.A. 93-421, S. 1, 22; P.A. 17-147, S. 49; June Sp. Sess. P.A. 17-2, S. 349; P.A. 22-35, S. 6.)
History: P.A. 93-421 effective July 1, 1993; P.A. 17-147 amended Subdivs. (6), (14) and (16) to redefine “deficit”, “obligation” and “projected fiscal year deficit”, respectively, effective July 7, 2017; June Sp. Sess. P.A. 17-2 redefined “certified municipality” in Subdiv. (2), added Subdiv. (8) defining “designated tier I municipality”, added Subdiv. (9) defining “designated tier II municipality”, added Subdiv. (10) defining “designated tier III municipality”, added Subdiv. (11) defining “designated tier IV municipality”, added Subdiv. (12) defining “equalized mill rate”, added Subdiv. (13) defining “fund balance”, added Subdiv. (14) defining “fund balance percentage”, redesignated existing Subdivs. (8) to (11) as Subdivs. (15) to (18), added Subdiv. (19) defining “Municipal Accountability Review Board”, added Subdiv. (20) defining “municipal aid”, redesignated existing Subdiv. (12) as Subdiv. (21), added Subdiv. (22) defining “municipal revenue increase in fiscal year ending June 30, 2018, as a per cent of revenues”, redesignated existing Subdivs. (13) to (18) as Subdivs. (23) to (28), added Subdiv. (29) defining “property tax levy”, redesignated existing Subdivs. (19) to (26) as Subdivs. (30) to (37), and made technical changes, effective October 31, 2017; P.A. 22-35 added new Subdiv. (22) defining “municipal restructuring loan fund” and redesignated existing Subdivs. (22) to (37) as Subdivs. (23) to (38).