2023 Connecticut General Statutes › Title 7 - Municipalities › Chapter 117 - Municipal Deficit Financing › Section 7-576b. - Application by municipality to Secretary of Office of Policy and Management for designation as tier II municipality. Conditions. Referral to Municipal Accountability Review Board.

(a) The chief elected official of a municipality designated as a tier I municipality pursuant to section 7-576a may apply to the secretary to request designation as a tier II municipality if the municipality has held one or more meetings with the Municipal Finance Advisory Committee, and (1) has an equalized mill rate of not less than thirty, or (2) received thirty per cent or more of its most recent audited financial statement revenues in the form of municipal aid from the state. Any such official that applies for such designation pursuant to this subsection shall provide a copy of such application to the Municipal Finance Advisory Committee not later than ten days after making such application.
(b) The secretary shall (1) designate any tier I municipality as a tier II municipality at the request of such municipality, if the secretary determines that the fiscal condition of the municipality warrants such designation, based on the secretary's review of the reports and findings of the Municipal Finance Advisory Commission concerning such municipality, and (2) refer such municipality to the Municipal Accountability Review Board established pursuant to section 7-576d. Said board shall have the same authority and responsibilities possessed by the Municipal Finance Advisory Commission with respect to tier II certified municipalities referred to it, including, but not limited to, requiring that such municipalities prepare and present to said board for its review and approval a five-year financial plan and monthly financial reports, in a manner prescribed by said board. In preparing and adopting its annual budgets, such municipality shall only include assumptions respecting state revenues and property tax revenues as approved by such board and such board shall approve or disapprove all obligations issued by a designated tier II municipality pursuant to section 7-575 and this section, provided it shall only approve such obligations which in its judgment improve the financial condition of such municipality.
(c) The Municipal Finance Advisory Commission may, after holding at least one meeting with a designated tier I municipality, recommend to the secretary that such municipality be designated as a tier II municipality. Any such recommendation shall be made on the basis of such municipality's financial condition, which shall be documented by the commission in a report submitted to the secretary. A copy of such report shall be provided to such municipality not later than ten days after such submission. Not later than forty-five days after such submission, the secretary may approve or reject such recommendation. If the secretary does not approve or reject such recommendation during such forty-five-day period, such recommendation shall be deemed rejected.
(June Sp. Sess. P.A. 17-2, S. 363; P.A. 22-35, S. 8.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017; P.A. 22-35 amended Subsec. (a) by adding “designated as a tier I municipality pursuant to section 7-576a”, deleting provisions re conditions precedent concerning municipal bond ratings for application to request designation as tier II municipality, adding provision re one or more meetings with Municipal Finance Committee to make such application, designating existing provision re equalized mill rate of less than 30 as Subdiv. (1) and substituting “not less than thirty” for “less than thirty” in said Subdiv. (1), and adding Subdiv. (2) re receipt of 30 per cent or more of audited financial statement revenues in form of municipal aid and provision of copy of application to Municipal Finance Advisory Commission, amended Subsec. (b) by deleting “refer any municipality which has requested designation as a tier II”, adding Subdiv. (1) re designating tier I municipality as tier II municipality, adding Subdiv. (2) requiring referral of municipality designated as tier II municipality pursuant to Subdiv. (1) to Municipal Accountability Review Board, and substituting “five-year” for “three-year” re financial plan, and added Subsec. (c) re recommendation by Municipal Finance Advisory Commission to designate tier I municipality as tier II municipality, report of municipal financial condition, and approval or rejection of recommendation.