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New York City of Troy Issuance of Serial Bonds

Section  1.  (a)  The  city  of  Troy,  Rensselaer  county,  is hereby
  authorized to issue serial bonds on or before December 31,  1995  in  an
  aggregate  principal  amount  not  to  exceed  four  million two hundred
  fifty-five thousand dollars  for  the  specific  object  or  purpose  of
  liquidating   the   cumulative  deficit  of  four  million  two  hundred
  fifty-five thousand dollars in its general fund  at  the  close  of  its
  fiscal  year  ended  December  31,  1993, including any tax anticipation
  notes which may be part of said deficit. In anticipation of the issuance
  of the serial bonds authorized to be issued in  this  subdivision,  bond
  anticipation  notes  are  hereby authorized to be issued, subject to the
  provisions of subdivision (a) of section two of this act.
    (b) Further, the city of Troy is hereby  authorized  to  issue  serial
  bonds  in  an  aggregate principal amount not to exceed fourteen million
  three  hundred  seventy-five  thousand  dollars  for  the   purpose   of
  liquidating  a  projected  deficit  to  be  incurred in its general fund
  during the 1994 fiscal year, together with  preliminary  costs,  due  to
  overestimates   of  revenues  and  underestimates  of  expenditures.  In
  anticipation of the issuance of the serial bonds authorized to be issued
  in this subdivision, bond anticipation notes are hereby authorized to be
  issued, subject to the provisions of subdivision (b) of section  two  of
  this act.
    (c)  Further,  the  city  of Troy is hereby authorized to issue serial
  bonds or term bonds in an  aggregate  principal  amount  not  to  exceed
  $40,000,000  for the purpose of acquiring or causing to be acquired, all
  or a portion of real property leased by the city of Troy pursuant to one
  or more lease agreements between the city of Troy  and  the  Troy  local
  development  corporation,  including  the  payment  of  any judgments or
  compromised or settled claims against  the  city  relating  thereto  and
  together with preliminary costs plus such amount of serial bonds or term
  bonds   necessary  to  fund  the  bond  reserve  fund  required  by  the
  corporation.  In anticipation of the issuance of  the  serial  bonds  or
  term   bonds   authorized   to  be  issued  in  this  subdivision,  bond
  anticipation notes are hereby authorized to be issued.
    (d) Further, the city of Troy is hereby  authorized  to  issue  serial
  bonds  or  term bonds in an aggregate principal amount not to exceed six
  million seventy-six thousand dollars for the purpose  of  liquidating  a
  projected  deficit  to  be  incurred in its general fund during the 1995
  fiscal year, together with preliminary costs, due  to  overestimates  of
  revenues  and  underestimates  of expenditures.   In anticipation of the
  issuance  of  the  serial  bonds  authorized  to  be  issued   in   this
  subdivision, bond anticipation notes are hereby authorized to be issued,
  subject to the provisions of subdivision (b) of section two of this act.
    (e)  Whenever this section establishes a limit on the principal amount
  of bonds or notes that the city is authorized to issue, there shall  not
  be  counted  against such limit (i) amounts determined by the city to be
  used to pay the costs of issuing such bonds or notes, (ii) the amount of
  bonds or notes that would constitute interest under the Internal Revenue
  Code of 1986, as amended, and (iii) the portion of any  bonds  or  notes
  issued  to  accomplish the purposes described in subdivision (c) of this
  section to  the  extent  necessary  to  pay  interest  to  the  date  of
  redemption  or  maturity,  redemption  premium, if any, or other similar
  costs relating to the accomplishment of such purposes.
    (f) Notwithstanding the bond authorizations contained in this section,
  the city shall not issue any bonds in excess of the amount authorized by
  section 104.00 of the local finance law.
    § 1-a. Definitions. As used in this act, the following words and terms
  shall have the following meanings  unless  the  context  shall  indicate
  another or different meaning or intent.

    (a) "Available funds" means at any date the amounts in the supervisory
  board  fund  which  are then available, as determined by the supervisory
  board, to be applied to the purposes  stated  in  subparagraph  (ii)  of
  paragraph (d) of section eight of this act after provision has been made
  for  the  application  of  amounts in the supervisory board fund for the
  purposes stated in subparagraph (i) of paragraph (d) of section eight of
  this act.
    (b) "Chief executive officer" means the chief executive officer of the
  city of Troy as defined in paragraph 5-a of section 2.00  of  the  local
  finance law.
    (c) "Covered  organization"  means  any  governmental  agency,  public
  authority or public benefit corporation which receives  or  may  receive
  moneys directly, indirectly or contingently, (other than moneys received
  for the sale of goods or the rendering of services or the loan of moneys
  to  the  city of Troy) from the city of Troy but excluding the municipal
  assistance corporation for the city of Troy created pursuant to title  4
  of article 10 of the public authorities law.
    (d) "Emergency  period"  means  the  period of time from the effective
  date of this act until the date when  (a)  the  board  shall  determine,
  based  on  annual  audit  reports furnished in accordance with this act,
  that for each of the three immediately preceding fiscal years, the  city
  has adopted and adhered to budgets covering all expenditures the results
  of  which  did  not  show  a  deficit  when  reported in accordance with
  generally accepted accounting principles subject to  the  provisions  of
  this  act  and  (b)  the  comptroller  of the state and the chief fiscal
  officer jointly shall certify that securities sold by or for the benefit
  of the city during the fiscal year immediately preceding such  date  and
  the  then current fiscal year in the general public market satisfied the
  financing requirements of the city during such period and that there  is
  a substantial likelihood that such securities can be sold in the general
  public  market  from  such  date  through the end of the next succeeding
  fiscal year in amounts which  will  satisfy  substantially  all  of  the
  capital  and  seasonal  financing  requirements  of the city during such
  period in accordance with the financial plan then in effect.  The  board
  shall reimpose an emergency period upon a determination at any time that
  any  of the following events has occurred or that there is a substantial
  likelihood and imminence of such occurrence: (i)  the  city  shall  have
  failed  to pay the principal of or interest on any of its bonds or notes
  when due or payable (other than notes held by the  municipal  assistance
  corporation for the city of Troy to the extent that such corporation has
  evidenced its intention not to present such notes for payment during the
  fiscal  year  in  which  the determination is made), (ii) the city shall
  have incurred a budget deficit of one percent or more during its  fiscal
  year  in  the  results  of  operations  covered by a budget covering all
  expenditures  as  reported  in  accordance   with   generally   accepted
  accounting  principles, subject to the provisions of this act, (iii) the
  city shall have otherwise violated any provision of this  act  and  such
  violation substantially impairs the ability of the city to pay principal
  of or interest on its bonds or notes when due and payable or its ability
  to  adopt  or  adhere  to a budget covering all expenditures balanced in
  accordance with this act or (iv) the comptroller's and the chief  fiscal
  officer's  joint  certification at any time, at the request of the board
  or on the comptroller's and the chief fiscal officer's joint initiative,
  which joint certification shall be made from time to time as promptly as
  circumstances warrant and reported to the board, that on  the  basis  of
  facts  existing at such time they could not make the joint certification
  described by clause (b) of  the  preceding  sentence.  The  board  shall
  terminate  any  such  reimposed emergency period when it determines that

  none of the conditions which would  permit  the  board  to  reimpose  an
  emergency  period  exist.  After  termination of an emergency period the
  board shall annually consider items (i) through (iv) above and determine
  whether, in its judgment, any of the events described in such items have
  occurred  and the board shall publish each such determination. Each such
  joint certification made by the comptroller  and  chief  fiscal  officer
  hereunder  shall be based on their separate written determinations which
  shall take into account a report and opinion of an independent expert in
  the marketing of municipal securities selected by the board as  well  as
  any  other  information  which  may be available to each comptroller and
  each such separate written determination by the comptrollers shall  have
  annexed  thereto  the  report  and  opinion of such expert and any other
  information taken into account and shall be made public  when  delivered
  to the board. Notwithstanding any part of the foregoing to the contrary,
  in  no  event  shall any emergency period continue beyond (a) January 1,
  2030 or (b) the date when all bonds and notes are  refunded,  discharged
  or otherwise defeased.
    (e) "Financial  plan" means the financial plan of the city of Troy and
  the covered organizations to be developed during  any  emergency  period
  pursuant to section six of this act, as from time to time amended.
    (f) "Revenues"  means  all  taxes, federal and state aid, rents, fees,
  charges, payments, all proceeds from borrowings  and  other  income  and
  receipts  paid  or  payable to or for the account of the city of Troy or
  any of the covered organizations.
    (g) "Supervisory board fund" means the supervisory board fund for  the
  city of Troy established pursuant to subdivision (a) of section eight of
  this act, as from time to time amended.
    (h) "Fund" means the general debt service fund established pursuant to
  section eight-a of this act.
    (i) "State   financing   agency"   means   the   municipal  assistance
  corporation for the city of Troy or its successor.
    § 1-b. Legislative declaration of financial emergency. The legislature
  hereby finds and declares that a state  of  financial  emergency  exists
  within the city of Troy.
    §  1-c.  General rights and prohibitions. (a) Neither the city of Troy
  nor any covered organization shall borrow or expend any  moneys,  or  in
  any  way,  directly  or  indirectly,  expressly or implicitly engage its
  credit during  any  emergency  period  except  in  compliance  with  the
  provisions of this act.
    (b) Nothing contained in this act shall limit the right of the city of
  Troy  or  any  covered organization to comply with the provisions of any
  existing contract with or for the benefit of the holders of any bonds or
  notes of the city of Troy or such covered organization.
    § 1-d. Power of city of Troy or covered organization to determine  the
  expenditure  of available funds.  Nothing contained in this act shall be
  construed to  limit  the  power  of  the  city  of  Troy  or  a  covered
  organization  during  any  emergency  period  to determine, from time to
  time, within available funds for the city of Troy or  for  such  covered
  organization,  the purposes for which expenditures are to be made by the
  city of Troy or such  covered  organization  and  the  amounts  of  such
  expenditures,  consistent with the aggregate expenditures then permitted
  under  the  financial  plan  for  the  city  of  Troy  or  such  covered
  organization.
    §  2.  (a)  Notwithstanding  anything in this act to the contrary, the
  city of Troy, Rensselaer county, shall not authorize the issuance of any
  bonds or bond anticipation notes for  the  purpose  of  liquidating  the
  cumulative  deficit  in its general fund at the close of the fiscal year
  ended December 31, 1993 until the amount of such deficit  is  determined

  by  the state comptroller. The city shall prepare a report detailing the
  amount and cause of such deficit within thirty days from  the  effective
  date  of this act and shall submit such report to the state comptroller.
  Within  thirty  days  after receiving such report, the state comptroller
  shall perform such reviews as may be necessary to determine  the  amount
  of  such  deficit.  Bonds  or  bond anticipation notes to liquidate such
  deficit shall not be issued in an amount exceeding the  amount  of  such
  deficit as determined by the state comptroller.
    (b)  Notwithstanding  anything in this act to the contrary the city of
  Troy, Rensselaer county, shall not authorize the issuance of  any  bonds
  for  the  purpose of liquidating the projected deficit to be incurred in
  its general fund during the fiscal year ending December 31,  1994  until
  the  existence  of  such  deficit  is  identified and the amount of such
  deficit is determined by the state comptroller. The city shall prepare a
  report detailing the amount and cause of such deficit within thirty days
  after the end of its fiscal year ending December  31,  1994,  and  shall
  submit  such  report  to the state comptroller. Within thirty days after
  receiving such report, the state comptroller shall perform such  reviews
  as  may  be  necessary  to  determine  the  existence and amount of such
  deficit. Bonds to liquidate such deficit  shall  not  be  issued  in  an
  amount  exceeding  the amount of such deficit as determined by the state
  comptroller.   Nothing herein provided  shall  prevent  such  city  from
  authorizing  the issuance of bond anticipation notes in an amount not to
  exceed fourteen million three hundred seventy-five thousand dollars  for
  the  purpose of liquidating such deficit prior to a determination by the
  state comptroller of the amount of such deficit. In the event that  bond
  anticipation  notes  are  issued in an amount in excess of the amount of
  such deficit as determined by the state  comptroller,  such  city  shall
  redeem, from funds other than the proceeds of bonds or bond anticipation
  notes, such bond anticipation notes in the amount by which the amount of
  such  bond  anticipation  notes  exceeds  the  amount of such deficit as
  determined by the state comptroller.
    § 3. The state comptroller shall not confirm the amount of any deficit
  unless and until the chief executive officer, as such term is defined in
  paragraph 5-a of section 2.00 of the local finance law, of the  city  of
  Troy,  shall  have provided an independently-audited financial statement
  for the applicable year  for  which  the  associated  deficit  is  being
  financed  to  the  state  comptroller.  The state comptroller shall then
  certify the deficit amount and  notify  such  chief  executive  officer,
  chief  fiscal  officer,  the  city  council,  the  supervisory  board as
  established pursuant to section ten of this act,  the  director  of  the
  budget,  the chair of the senate finance committee, and the chair of the
  assembly ways and means committee of the certified amount.
    § 4. (a) It is hereby determined that the financing  of  the  deficits
  hereinbefore  described  in  section  one  of  this  act is an object or
  purpose of said city of Troy which is a public purpose which the city of
  Troy is hereby authorized to accomplish and for which  indebtedness  may
  be  incurred,  the  period  of  probable  usefulness  of which is hereby
  determined to be twenty-five years, computed from the date of such bonds
  or from the  date  of  the  first  bond  anticipation  notes  issued  in
  anticipation of the sale of such bonds, whichever date is earlier.
    (b)  It  is hereby determined that the acquisition of all or a portion
  of real or personal property leased by the city of Troy pursuant to  one
  or  more  lease  agreements  between the city of Troy and the Troy local
  development corporation, including  the  payment  of  any  judgments  or
  compromised  or  settled  claims  against  the  city  relating  thereto,
  described in subdivision (c) of section one of this act, the closure  of
  the  city's  landfill  and  funding  of  capital projects are objects or

  purposes of said city of Troy which are public purposes which  the  city
  of  Troy  is  hereby authorized to accomplish and for which indebtedness
  may be incurred, the period of probable usefulness of  which  is  hereby
  determined  to  be thirty years, computed from the date of such bonds or
  from  the  date  of  the  first  bond  anticipation  notes   issued   in
  anticipation  of  the  sale  of  such bonds, whichever is earlier.  Such
  bonds and/or bond anticipation notes shall be general obligations of the
  city of Troy, to which the faith and credit of the city is pledged,  and
  such  city  shall  make  an  annual  appropriation sufficient to pay the
  principal of and interest on such obligations as the same  shall  become
  due.
    (c)  In  lieu of issuing its general obligations, the city of Troy may
  enter  into  one  or  more  agreements  for  any  municipal   assistance
  corporation created on behalf of said city pursuant to article 10 of the
  public  authorities  law  to  pay  all  or  a  portion  of  the  cost of
  accomplishing any purpose described in subdivisions (a) and (b) of  this
  section  or  in  section  3057  of  the public authorities law. Any such
  agreements shall provide that any payments from the city of Troy to said
  municipal assistance corporation not represented by  general  obligation
  bonds  or  notes  shall  be  subject to annual appropriation by the city
  council of the city of Troy in an amount corresponding to the  scheduled
  principal  and  interest  payments  on  the corporation's bonds or notes
  issued to provide the amount paid by the corporation to the city of Troy
  pursuant to such agreement.
    (d) (i) If an authorization for the issuance of obligations to finance
  the purpose or purposes accomplished pursuant to an agreement would have
  been required by  law  to  be  subject  to  a  permissive  or  mandatory
  referendum, then the authorization to enter into such agreement shall be
  subject  to a permissive or mandatory referendum, as the case may be, in
  the same manner as provided for  such  referendum  on  the  issuance  of
  obligations.
    (ii)  If  the authorization for the issuance of obligations to finance
  the purpose or purposes accomplished pursuant to an agreement would have
  been required by law to be subject to:
    (A) a certain supermajority vote of the governing board,
    (B) a mandatory or permissive referendum, or
    (C) both,
  then the authorization to enter into such agreement shall be subject  to
  such  vote,  referendum or such referendum and vote, as the case may be,
  in the same manner as provided for such vote and/or  referendum  on  the
  issuance of obligations.
    (iii)  If the authorization for the issuance of obligations would have
  been subject to a referendum only if the obligations had a  maturity  of
  more  than  five  years or not less than some other minimum period, then
  the authorization to enter  into  the  agreement  shall  be  subject  to
  referendum  only  if  the  term of the contract is equal to or more than
  such minimum period of maturity.
    Provided, however, that the provisions of this subdivision  shall  not
  apply  to  any  agreements  for repayment of amounts paid to the city in
  accordance with paragraph  (d)  of  subdivision  one  of  section  three
  thousand fifty-seven of the public authorities law.
    (e) Any resolution of the city council of the city of Troy authorizing
  the  chief  fiscal  officer (as defined in the local finance law) of the
  city of Troy to execute and deliver such an agreement  may  delegate  to
  such  chief  fiscal  officer  the power to prescribe the terms, form and
  contents of any  such  agreement  and  any  amendments  or  replacements
  thereof.

    §  5.  Except  as  hereinafter provided, all proceedings in connection
  with  the  authorization  and  issuance  of  such  bonds   and/or   bond
  anticipation notes authorized to be issued pursuant to this act shall be
  had  and  taken  in  accordance with the provisions of the local finance
  law,  except that any resolution or resolutions authorizing the issuance
  of such serial bonds shall not be subject  to  either  a  permissive  or
  mandatory  referendum  and the provisions of section 107.00 of the local
  finance law shall not apply to  the  issuance  of  such  bonds  or  bond
  anticipation notes.
    §  6.  (a) For each fiscal year occurring during the time bonds and/or
  bond anticipation notes issued pursuant to this act are outstanding, the
  chief executive officer and the chief fiscal officer, as such terms  are
  defined  in  paragraphs  5  and 5-a of section 2.00 of the local finance
  law, of the city of Troy, shall monitor all budgets and, for  each  such
  budget,  such  chief  fiscal officer shall prepare a quarterly report of
  summarized budget data depicting overall trends of actual  revenues  and
  budget  expenditures  for  the entire budget rather than individual line
  items. Such reports shall compare revenue estimates  and  appropriations
  as  set  forth  in such budget with the actual revenues and expenditures
  made  to  date.  All  quarterly  reports  shall  be  accompanied  by   a
  recommendation  from  the  chief  executive  officer or the chief fiscal
  officer to the city council setting forth any remedial action  necessary
  to  resolve any unfavorable budget variance including the overestimation
  of revenues and the underestimation of appropriations. The chief  fiscal
  officer  shall  also prepare a quarterly trial balance of general ledger
  accounts. The above quarterly budgetary report and trial  balance  shall
  be  prepared in accordance with generally accepted accounting principles
  and shall include the general, water, sewer, and  general  debt  service
  funds.  These reports shall be completed within sixty days after the end
  of each quarter and shall be submitted to the chief  executive  officer,
  each  member  of  the  city  council,  the  supervisory board, the state
  comptroller, the director of the budget, the chair of the assembly  ways
  and means committee and the chair of the senate finance committee.
    (b)  The  state  comptroller shall examine such quarterly reports in a
  timely fashion and make recommendations thereon to the  chief  executive
  officer,  the  chief  fiscal  officer  and  the  city council. The state
  comptroller  shall  be  required  to  submit  a   copy   of   any   such
  recommendations  to  the director of the budget, the chair of the senate
  finance committee, the chair of the assembly ways and  means  committee,
  and the supervisory board. The chief executive officer shall be required
  to   submit,   within   fifteen   days,   a   written  response  to  any
  recommendations made by the state comptroller, to the city council,  the
  state  comptroller,  the director of the budget, the chair of the senate
  finance committee, the chair of the assembly ways and  means  committee,
  and  the  supervisory  board.  If  the city of Troy does not provide any
  report as specified above, or respond to the recommendations made by the
  state  comptroller,  the  state  comptroller  shall  notify  the   chief
  executive officer, the chief fiscal officer and the city council of such
  noncompliance.  If said report or response is not submitted to the state
  comptroller within fifteen days after such  notification,  the  city  of
  Troy  shall  not  issue  any  bonds  or  notes until such information is
  provided.
    (c) Except during an emergency period, for each fiscal year  occurring
  during  the time bonds and/or bond anticipation notes issued pursuant to
  this act are outstanding,  the  chief  fiscal  officer  shall  submit  a
  tentative  budget  to  the  supervisory board within five days after its
  preparation, and shall submit the  adopted  budget  to  the  supervisory
  board within five days after its adoption. During an emergency period, a

  financial plan shall be submitted to the supervisory board in accordance
  with subdivision (d) of this section.
    (d)  Pursuant  to  the  procedures contained in this subdivision, each
  year during any emergency period the city of Troy shall develop, and may
  from time to time modify, with the approval of the supervisory board,  a
  four  year  financial  plan  covering  the  city of Troy and the covered
  organizations. Each such financial plan and financial plan  modification
  shall  conform  to the requirements of paragraph (i) of this subdivision
  and shall provide that the operating and capital funds of  the  city  of
  Troy  will  be balanced in accordance with generally accepted accounting
  principles. The financial plan shall be developed and approved, and  may
  from  time  to  time  be  modified, with the approval of the supervisory
  board, in accordance with the following procedures:
    (i) Commencing with the city of Troy's fiscal year  beginning  January
  1,  1996,  and  not later than fifty days prior to the beginning of such
  fiscal year and each fiscal year thereafter during any emergency period,
  or such other date as the supervisory board may approve at  the  request
  of  the  city  of  Troy,  the  city  of  Troy shall prepare and submit a
  financial plan to the supervisory board covering the  four  year  period
  beginning  with  such  fiscal  year.  On such dates, the chief executive
  officer shall also submit to the supervisory board the  city  of  Troy's
  proposed operating and capital budgets for the ensuing fiscal year and a
  certificate of the chief executive officer stating that such budgets are
  consistent   with  the  financial  plan  submitted  therewith  and  that
  operation within the budgets is feasible.
    (ii) Not more than forty-five days after  submission  of  a  financial
  plan  or  more  than  thirty  days  after submission of a financial plan
  modification,  the  supervisory  board  shall  determine   whether   the
  financial  plan  or financial plan modification is complete and complies
  with the provisions of this subdivision and shall approve or  disapprove
  the financial plan or financial plan modification in accordance with the
  provisions of this subdivision.
    (iii)  If  the supervisory board determines that the financial plan or
  financial plan modification is complete and compiles with the  standards
  set  forth  in  this  paragraph, the supervisory board shall approve the
  financial  plan  or  financial  plan  modification.  Upon  making   such
  determination,  the  supervisory board shall make a certification to the
  city of Troy setting forth revenue estimates approved by the supervisory
  board in accordance with such determination.
    (iv) The  supervisory  board  shall  disapprove,  by  resolution,  the
  financial  plan  proposed by the city of Troy if, in the judgment of the
  supervisory board, such plan:
    (A) is incomplete;
    (B) fails to contain projections of revenues and expenditures that are
  based  on  reasonable  and  appropriate  assumptions  and   methods   of
  estimation;
    (C)  fails  to  provide  that  operations  of the city of Troy and the
  covered organizations  will  be  conducted  within  the  cash  resources
  available according to the supervisory board's revenue estimates; or
    (D) fails to comply with the provisions of this subdivision;
    (v)  In  disapproving  a financial plan or financial plan modification
  proposed by the city of Troy, the supervisory board  shall  direct  that
  the  aggregate  expenditures  in  any  period  conform  to  the  revenue
  estimates certified by the supervisory board to achieve  the  objectives
  set forth in this subdivision.
    (vi) In the event that the city of Troy shall, for any reason, fail to
  submit  a  financial plan, as required pursuant to paragraph (i) of this
  subdivision, or to adopt a financial plan approved  by  the  supervisory

  board,  or  in  the  event  that  the supervisory board has not, for any
  reason permitted under this act, approved a financial plan submitted  by
  the city of Troy, the supervisory board, after enactment of a resolution
  so  finding,  shall formulate and adopt a financial plan to be effective
  until the supervisory board approves a financial plan submitted  by  the
  city  of  Troy.  All  budgets  and  operations  of the city of Troy or a
  covered organization shall be in conformance  and  compliance  with  the
  financial plan then in effect.
    (vii)  After  the  initial adoption of the financial plan, the revenue
  estimates certified by the supervisory  board  and  the  financial  plan
  shall  be  regularly reexamined by the supervisory board in consultation
  with the city of Troy and the covered organizations and the city of Troy
  shall provide a modified financial plan in such detail and  within  such
  time  periods  as  the  supervisory  board  may require. In the event of
  reductions in such revenue estimates, or in the event the city  of  Troy
  or a covered organization shall expend funds at a rate that would exceed
  the  aggregate  expenditure  limitation  for the city of Troy or covered
  organization prior to the expiration of the fiscal  year,  the  city  of
  Troy   shall  submit  a  financial  plan  modification  to  effect  such
  adjustments in revenue estimates and reductions in total expenditures as
  may be necessary  to  conform  to  such  revised  revenue  estimates  or
  aggregate expenditure limitations. If, within a time period specified by
  the supervisory board, the city of Troy fails to make such modifications
  after  reductions in revenue estimates, or to provide a modified plan in
  detail and within such time period required by  the  supervisory  board,
  the  supervisory  board, after enactment of a resolution so finding, may
  formulate and adopt such  modifications  to  the  financial  plan,  such
  modifications to become effective on their adoption.
    (viii)  The city of Troy may, from time to time, submit financial plan
  modifications for review by the supervisory board. The supervisory board
  shall  approve  such  modifications  unless,  in  the  judgment  of  the
  supervisory  board,  such  modifications  would  constitute  grounds for
  disapproval of a financial plan  pursuant  to  paragraph  (iv)  of  this
  subdivision.
    (e)  The  financial  plan shall be in such form and shall contain such
  information for each year during which the financial plan is  in  effect
  as the supervisory board may specify, and shall include the city of Troy
  and  all  the  covered  organizations,  and shall, in such detail as the
  supervisory board from time to time prescribe, include statements of all
  estimated revenues and of all expenditures and cash flow projections  of
  the city of Troy and each of the covered organizations.
    (f)  The  financial  plan  shall,  except  to the extent waived by the
  supervisory board with  respect  to  any  limited  period,  include  any
  information  which  the  supervisory board may request to satisfy itself
  that (i) projected employment levels, collective  bargaining  agreements
  and  other  action  relating to employee costs, capital construction and
  such other matters as the supervisory board may specify, are  consistent
  with  the  provisions  made  for such obligations in the financial plan,
  (ii) the city of Troy and the covered organizations are taking  whatever
  action  is  necessary  with  respect  to  programs mandated by state and
  federal law to ensure that expenditures for such programs are limited to
  and covered by the expenditures stated in the financial plan, and  (iii)
  adequate  reserves  are  provided  to maintain essential programs in the
  event revenues have been overestimated  or  expenditures  underestimated
  for any period.
    (g)  For  each  financial  plan  and financial plan modification to be
  prepared and submitted by the city of  Troy  to  the  supervisory  board
  pursuant  to  the  provisions of this section, the covered organizations

  shall submit to the city of Troy such information with respect to  their
  projected  expenditures,  revenues and cash flows for each years covered
  by such financial plan  or  modification  as  the  city  of  Troy  shall
  determine.  Notwithstanding  any  other  provision  of  law limiting the
  authority of the city of Troy with respect to any covered  organization,
  the  city  of  Troy,  in the preparation and submission of the financial
  plan and modifications thereof, shall (except for debt  service  or  for
  other  expenditures to the extent that such expenditures are required by
  law) have the power  to  determine  the  aggregate  expenditures  to  be
  allocated  to  any  covered  organization  in the financial plan and any
  modifications thereto.
    §  7.  To  facilitate  the  marketing  of  such  bonds   and/or   bond
  anticipation  notes  authorized  to  be issued pursuant to this act, the
  city of Troy may, notwithstanding any limitations on the  private  sales
  of  bonds  provided  by  law  and  subject  to the approval by the state
  comptroller of the terms and conditions of such sales: (a)  arrange  for
  the underwriting of such bonds and/or bond anticipation notes at private
  sale  through  negotiated  fees  or  by  sale  of such bonds and/or bond
  anticipation notes to an underwriter at a price of less than the sum  of
  par  value  of,  and  the  accrued interest on, such obligations; or (b)
  arrange for the private sale of  such  bonds  and/or  bond  anticipation
  notes  through negotiated agreement, with compensation for such sales to
  be provided by negotiated agreement and/or negotiated fee, if  required.
  The  cost  of  such  underwriting or private placement shall be deemed a
  preliminary cost for purposes of paragraph a of  section  11.00  of  the
  local finance law.
    §  8.  Establishment and application of supervisory board fund for the
  city of Troy. (a) There is hereby  established  a  fund  designated  the
  supervisory board fund for the city of Troy. Commencing on the effective
  date of the initial financial plan approved by the supervisory board and
  for the duration of the emergency period, all revenues received or to be
  received  by  the city of Troy or any covered organization shall, unless
  exempted  by  order  of  the  supervisory  board  be  revenues  of   the
  supervisory  board fund and shall be for the account of the city of Troy
  and the appropriate covered organizations,  but  disbursement  from  the
  supervisory  board  fund  shall  be  made  by  the  supervisory board in
  accordance with the  approved  financial  plan,  except  to  the  extent
  expressly  prohibited  by federal law or where such revenues are pledged
  to the payment of any outstanding bonds, notes or other  obligations  of
  covered  organizations.   Notwithstanding the foregoing, the supervisory
  board shall authorize the city of Troy to make all disbursements of city
  of Troy revenues from the supervisory board  fund,  which  disbursements
  shall  be made in accordance with the approved financial plan; provided,
  that the  supervisory  board  may  withdraw  such  authorization  if  it
  determines  that (i) any disbursements made or to be made by the city of
  Troy have not been or are likely  not  to  be  in  compliance  with  the
  approved  financial  plan,  (ii) the city of Troy has violated any other
  provisions of this act, or (iii)  the  city  of  Troy  has  violated  an
  agreement  with  any holder or guarantor of bonds or notes issued by the
  city of Troy or a state financing agency. Commencing  on  the  effective
  date  of  the  initial financial plan approved by the supervisory board,
  and for the duration of any emergency period,  all  funds  and  accounts
  established or thereafter established by the city of Troy of the covered
  organizations  shall, unless exempted by order of the supervisory board,
  thereafter be funds and accounts of the supervisory board fund except to
  the extend  expressly  prohibited  by  federal  law  or  to  the  extent
  prohibited by covenants or agreements relating to any outstanding bonds,
  notes  or other obligations of covered organizations.  All such accounts

  of the supervisory board shall have such captions  and  entries  as  the
  supervisory  board  shall  determine  to  be  necessary  to  credit  the
  foregoing revenues and receipts  to  the  supervisory  board  fund.  The
  moneys  of the supervisory board fund shall not be deemed to be money of
  the state or money under its control.
    (b) The deposit of revenues into the supervisory board  fund  and  the
  investment or deposit of moneys therein shall be made in accordance with
  and pursuant to procedures established by the supervisory board.
    (c)  In  order  to  assure  compliance  with  the  financial plan, the
  supervisory board shall from time to time adopt  procedures  controlling
  the disbursement of moneys from the supervisory board fund.
    (d)  If  at  any time the supervisory board determines that the amount
  then held in the supervisory board fund or the amount estimated  by  the
  supervisory board to be held in the supervisory board fund is or will be
  insufficient  to  meet  the expenditures in the amounts and at the times
  required by the financial plan,  the  supervisory  board  shall  require
  disbursements  from  the  supervisory  board  fund  to  be  made  in the
  following order or priority unless otherwise  required  by  law  of  the
  United  States  of  America:    (i)  to  the  payment  of  debt  service
  requirements on all bonds and notes of the city of Troy and the  covered
  organizations  whose  money  are included in the supervisory board fund,
  (ii) to the payment of other liabilities having statutory or contractual
  priority over remaining liabilities of the city of Troy and the  covered
  organizations  whose  moneys are included in the supervisory board fund,
  and (iii) to the payment of other obligations on an allocated  basis  as
  specified  by  the  city of Troy for expenditures in accordance with the
  financial plan provided that, in the event that the city of  Troy  fails
  to so specify, the supervisory board may withhold payment of any of such
  other obligations or may direct their payment pro rata.
    (e)  Notwithstanding  anything  to  the contrary in subdivision (a) of
  this section, so long as any bonds or notes issued pursuant to this  act
  are  outstanding,  all  revenues  pledged as additional security for any
  bonds or notes in accordance with subdivision (a)  of  section  nine  of
  this  act  shall  be revenues of the supervisory board fund and shall be
  for the account of the city of Troy, but disbursement shall be  made  by
  the  supervisory  board  to the municipal assistance corporation for the
  city of Troy or to such other person in accordance with  the  terms  and
  conditions of any pledge of such revenues to the payment of principal of
  and  interest  on  any bonds or notes as permitted by subdivision (a) of
  section nine of this act.
    (f) The supervisory board shall cause to be performed  such  pre-audit
  and  post-audit  reviews of the supervisory board fund and disbursements
  therefrom as it may determine.
    § 8-a. Establishment and application of a general debt  service  fund.
  (a) The city shall establish a general debt service fund for the purpose
  of  paying  debt  service due or becoming due in the then current fiscal
  year and in subsequent fiscal years  and  for  making  payments  to  the
  county of Rensselaer in accordance with section eight-b of this act. All
  monies  in  the  fund  shall  be  held  by  the  comptroller,  who shall
  administer and maintain the fund in accordance with  the  provisions  of
  this section and section eight-b.
    (b)  All payments of or on account of real estate taxes or assessments
  collected by the city on its own behalf or on behalf of  the  county  of
  Rensselaer  shall be immediately upon receipt deposited in such fund. On
  or before the fifth business day of each month, the city  shall  certify
  to  the  comptroller  the  amount  of  deposits  during  the immediately
  preceding month that constitute collections of or  on  account  of  real
  estate  taxes  or  assessments  on  behalf  of the county of Rensselaer.

  Except as otherwise  provided  in  section  eight-b  of  this  act,  the
  comptroller  shall  retain, disburse and apply monies in the fund during
  each month as follows:
    1.  During  the  first  month  of  each fiscal quarter, there shall be
  retained in the fund, subject to the provisions of  subdivision  (c)  of
  this  section,  all real estate tax payments deposited in the fund until
  there shall have been retained from  monies  so  deposited  during  such
  month  an amount equal to the total monthly debt service, computed as of
  the date of any disbursement of money from the fund, for the second  and
  third  months of such fiscal quarter; provided that such amount shall be
  reduced by any amount already on deposit in the fund which may  be  used
  to pay the monthly debt service for such months.
    For   purposes   of  this  section,  fiscal  quarter  shall  mean  the
  three-month period beginning January first, April first, July  first  or
  October  first,  and  monthly debt service shall mean, as of any date of
  computation, the amount of monies equal to  the  aggregate  of  (i)  all
  interest  payable during such month on bonds and notes of the city, plus
  (ii) the amount of principal (including  payments  into  sinking  funds)
  maturing  or  otherwise coming due during such month on all bonds of the
  city (excluding principal payments made from sinking funds  required  by
  the  terms of certain city bonds), plus (iii) the amount of principal to
  be paid on notes of the city during such month from sources  other  than
  the   proceeds   of   bonds  or  renewal  notes  (exclusive  of  revenue
  anticipation notes and tax anticipation notes or renewals thereof issued
  less than two years prior to the date of computation).
    2. During the second and third months of each  fiscal  quarter,  there
  shall  be retained in the fund, subject to the provisions of subdivision
  (c) of this section, all real estate tax payments deposited in the  fund
  until  there  shall  have  been retained from monies so deposited during
  such month an amount equal to the total monthly debt  service,  computed
  as  of  the  date  of  any disbursement of monies from the fund, for the
  first month of the next succeeding fiscal quarter;  provided  that  such
  amount  shall  be  reduced  by any amount already on deposit in the fund
  which may be used to pay the monthly debt service for such month.
    3. The city may at any time pay into the fund any monies  required  by
  law  to  be  used  to  pay  monthly  debt  service  and any other monies
  available for such purpose.
    (c) The board may approve, subject to agreements made with the holders
  or guarantors of outstanding notes or bonds issued by or for the benefit
  of the  city  after  the  effective  date  of  this  act,  criteria  for
  calculating  a  proportion of real estate tax receipts to be retained in
  the fund in order to provide for the retention of  amounts  required  by
  the  provisions  of  subdivision  (b)  of  this  section  in lieu of the
  retention of all initial  receipts  as  required  by  such  subdivision;
  provided,  that  if  the board at any time determines that retentions in
  the fund pursuant to the provisions  of  such  subdivision  are  or  are
  likely  to  be  insufficient  to provide for the payment of monthly debt
  service when due, in order to ensure that the amounts on deposit in  the
  fund  will be sufficient to pay monthly debt service when due, the board
  shall require (i) that real estate tax receipts be retained in the  fund
  in  greater  amounts  or  at  earlier  dates than the provisions of such
  subdivision require, or (ii) that other revenues or  cash  resources  of
  the city be paid into the fund. Prior to the issuance by the city of any
  bonds or notes, the board shall review any criteria then in effect which
  determine  the  proportion of real estate tax receipts to be retained in
  the fund to determine whether the proposed  debt  service  schedule  for
  such  bonds  or  notes  is  consistent  with  the  monies  which will be
  available therefor or whether such criteria should be revised. The board

  shall from time to time take such action as it determines is  necessary,
  including  disapproval of a proposed issue pursuant to paragraph (vi) of
  subdivision (g-1) of section 10 of this act, so that the monies  in  the
  fund shall be adequate to meet debt service requirements.
    (d)  The  board  may  approve criteria for calculating a proportion of
  real estate tax receipts to be retained in the fund in order to  provide
  for  the  retention  of amounts required by section eight-b of this act,
  but only in accordance with the real property tax law,  the  charter  of
  the city, and any agreement concerning such matters between the city and
  the county of Rensselaer.
    (e) The comptroller shall invest the monies in the fund in permissible
  investments under sections 98 and 98-a of the state finance law, subject
  in  all  respects  to  any agreements made with holders or guarantors of
  outstanding notes or bonds issued by or for  the  benefit  of  the  city
  after  the  effective date of this subdivision. Any earnings accruing on
  such investment shall inure to the benefit of the  city.  At  least  one
  business day prior to the beginning of each month the city shall provide
  the  comptroller with a detailed schedule of cash flow requirements from
  the fund under this section and section eight-b  of  this  act  for  the
  ensuing  three  month period. Notwithstanding any other provision of law
  to the contrary, the decisions of the comptroller as to the  investments
  purchased from monies in the fund shall be conclusive.
    (f) Notwithstanding any other provision of this section, the city may,
  at  any  time, subject to approval by the comptroller, designate a trust
  company or bank having its principal place of business in the  state  of
  New  York  and  having the powers of a trust company in the state of New
  York to hold all or any part of the monies in the fund and to administer
  and maintain the monies  so  held  in  accordance  with  the  applicable
  provisions of this section and any agreements made pursuant thereto.
    §  8-b.  Certain  taxes collected by the city of Troy on behalf of the
  county  of  Rensselaer.  (a)  As  long  as  the   municipal   assistance
  corporation  for  the city of Troy shall exist, the county of Rensselaer
  shall have a statutory first lien upon all monies paid as or on  account
  of  taxes  or assessments on real property collected by the city of Troy
  on behalf of such county. Such lien shall not require any segregation of
  funds, physical delivery or any other action,  filing  or  agreement  in
  order to evidence, perfect, or preserve its priority and shall be valid,
  binding,  and  perfected  as against all parties, with or without notice
  thereof, having claims of  any  kind  in  tort,  contract  or  otherwise
  against such city.
    (b)  In  addition to amounts retained in the general debt service fund
  pursuant to section eight-a of this act for the payment of debt service,
  monies in the fund  constituting  real  property  taxes  or  assessments
  collected on behalf of the county of Rensselaer shall be retained in the
  fund  until  paid  to  the  county  in  accordance  with  the  following
  procedure: not less than five business days prior to the  date  required
  by  the  real property tax law, the charter of the city, or an agreement
  between the city and the county for the payment to the  county  of  real
  property  taxes  and  assessments  collected on behalf of the county and
  deposited pursuant to subdivision (b) of section eight-a  of  this  act,
  the  city shall certify to the comptroller the amount of the payment due
  and owing to the  county.    On  the  date  such  payment  is  due,  the
  comptroller shall pay to such county:
    (i) the amount certified as due and owing to the county, or
    (ii)  in the event no such certification has been made by the city, an
  amount equal to the payment which was due for the equivalent period  one
  year  prior  to  the  date for which no certification was made.  In such
  event, upon subsequent certification by the city,  not  less  than  five

  business days following the date of such certification, the county shall
  pay  to  the  comptroller for deposit into the general debt service fund
  the positive remainder, if any, resulting when the amount  certified  as
  due  and  owing  to  the  county is deducted from the amount paid to the
  county pursuant to this paragraph or, the comptroller shall pay to  such
  county the balance of such payment due and owing to the county.
    No  certification  by  the city shall be deemed conclusive and binding
  upon the county.
    (c)  Failure  by  the  city  to  provide  the  comptroller  with   any
  certification required by this section or by section eight-a of this act
  shall,   except   in   extraordinary  circumstances  determined  by  the
  comptroller and for not more than sixty days, preclude  the  comptroller
  from  releasing  any  amounts  in the fund which may be available to the
  city, after amounts retained for debt service and amounts  paid  to  the
  county  pursuant  to  the provisions of subdivision (b) of this section,
  pursuant to such section eight-a, until such certification is provided.
    (d) Nothing in this section or in section eight-a of this act shall be
  deemed to affect any right  of  the  county  of  Rensselaer  to  receive
  interest  from the city of Troy related to any payments of or on account
  of taxes or assessments on real  property  collected  by  such  city  on
  behalf of such county and not remitted to the county when due.
    (e) Nothing in this section or in section eight-a of this act shall be
  deemed  to alter, modify, amend, change or supersede any term, provision
  or condition of any agreement between the city and the  county  for  the
  collection of real property taxes.
    §  9.  (a)  As  additional security for any issue of bonds and/or bond
  anticipation notes authorized to be  issued  by  the  city  of  Troy  in
  accordance  with  the  local  finance  law  or  pursuant  to this act or
  pursuant to title 4 of article 10 of  the  public  authorities  law  and
  issued prior to December 31, 1999, the city council of the city of Troy,
  is  hereby  authorized  to  irrevocably  pledge  to  the  payment of the
  principal of and interest on such bonds and/or bond  anticipation  notes
  (i)  the city's share of the net collections, as such term is defined in
  section 1262 of the tax law, from taxes imposed by the city  or  by  the
  county  of  Rensselaer  pursuant to the authority of section 1210 of the
  tax law, as amended, or any successor law thereto, and (ii)  the  city's
  share  of  any  moneys received by such city from payments authorized by
  subdivision (c) of section 1262 of the tax law made by Rensselaer county
  pursuant to a written agreement by and between the city and said county,
  or such portion of such net collections or  moneys  determined  by  said
  city  council  with the approval of the board at the time of issuance of
  said bonds  and/or  bond  anticipation  notes  to  be  necessary  to  so
  additionally  secure  such bonds and/or bond anticipation notes, subject
  to the following limitations and conditions: (i) any such  pledge  shall
  become  effective  on  the  date  of  issue  of  any  bonds  and/or bond
  anticipation notes the payment of which is secured by such pledge,  (ii)
  any  such  pledge  may be made subject to such terms and conditions, not
  inconsistent  with  this  act,  as  may  be  determined   necessary   or
  appropriate  by  such city council, subject however, to any prior rights
  to holders or owners of outstanding bonds and/or bond anticipation notes
  secured by a pledge of such net collections or  moneys,  and  (iii)  any
  such  pledge  shall  not  be authorized by such city council unless such
  city council shall have determined that such pledge is necessary and  in
  the  public  interest  and such determination by such city council shall
  have been approved by the board. Moneys  to  be  received  by  the  city
  pursuant  to  paragraphs  (i)  and  (ii)  of  this  subdivision shall be
  deposited, prior  to  receipt  by  the  city,  in  the  special  account
  established  in  the  municipal  assistance tax fund pursuant to section

  92-d of the state finance law. Notwithstanding  the  previous  sentence,
  any bond anticipation notes outstanding as of the effective date of this
  act  which  have  the  irrevocable pledge of moneys received by the city
  pursuant  to paragraphs (i) and (ii) of this subdivision for the payment
  of principal and interest shall continue to  have  first  lien  on  such
  notes until principal and interest have been fully paid.
    (b)  Any  pledge  made  pursuant  to  this  section shall be valid and
  binding from the time  when  such  pledge  takes  effect,  and  the  net
  collections  or  moneys  so  pledged and thereafter received by the city
  shall be deposited in a segregated account  in  the  debt  service  fund
  established  in  section  eight  of  this  act  and shall immediately be
  subject to the lien of such pledge without any further act. The lien  of
  any such pledge shall be valid and binding as against all parties having
  claims  of  any  kind  in  tort,  contract or otherwise against the city
  irrespective of whether such parties have notice thereof.
    (c) The state does hereby pledge and agree with the holders or  owners
  of  any  issue of bonds and/or bond anticipation notes secured by such a
  pledge that the state will not limit or alter the rights  hereby  vested
  in  the city to fulfill the terms of any agreements made with said hold-
  ers or owners pursuant to this act, or in any way impair the rights  and
  remedies of such holders or owners or the security for said bonds and/or
  bond anticipation notes until such bonds and/or bond anticipation notes,
  together  with  the  interest  thereon  and  all  costs  and expenses in
  connection with any action or proceeding by or on behalf of such holders
  or owners are fully paid and discharged;  provided  however,  that  this
  pledge  shall be subject to the reserved right of the state to alter the
  base, rate, method of taxation  and  exemptions  from  taxation  or  the
  method  of distribution of the taxes which may be imposed by the city of
  Troy or by Rensselaer county and the  net  collections  or  moneys  from
  which  may  be  pledged pursuant to this act, as additional security for
  any issue of bonds and/or bond anticipation notes of such city. The city
  is authorized to include this pledge and agreement of the state, subject
  to the state's reserved right, in any  agreement  with  the  holders  or
  owners of such bonds and/or bond anticipation notes.
    §  10.  (a) Supervisory board; created. There shall be created for the
  city of Troy a supervisory board for the purpose of reviewing, directing
  and supervising the financial management of the city of Troy during  any
  emergency  period  and following termination of any emergency period for
  the purpose of overseeing and advising the chief executive  officer  and
  the  chief fiscal officer, as such terms are defined in paragraphs 5 and
  5-a of section 2.00 of the local finance law, of the city  of  Troy  and
  making  recommendations  regarding  the  city's  budget. The supervisory
  board shall continue in existence until the later of  (i)  the  date  on
  which all the bonds or bond anticipation notes authorized by this act no
  longer  remain  outstanding  or  (ii)  the  date  on which the municipal
  assistance corporation for the city of Troy created pursuant to  article
  10 of the public authorities law is terminated.
    (b)  The  supervisory board shall consist of five members who shall be
  initially appointed not later than sixty days after the  effective  date
  of  this  act;  one  appointed by the city council, one appointed by the
  chief executive officer, as defined in subdivision 5-a of  section  2.00
  of  the  local finance law, of the city of Troy and two appointed by the
  governor. The state comptroller shall  also  serve  on  the  supervisory
  board as its chair. The state comptroller shall be entitled to designate
  a  representative  to  attend  meetings,  vote  or  otherwise act in his
  behalf. The supervisory board members shall have knowledge and expertise
  in financial matters. Each member of the supervisory board  shall  serve
  at  the  pleasure  of  the  appointing  official. The board shall act by

  majority vote of the entire board. The board shall maintain a record  of
  its  proceedings in such form as it may determine, but such record shall
  indicate attendance and all votes cast by each member.  The  supervisory
  board  shall  convene  as frequently as it deems necessary to accomplish
  its purposes, but no less than quarterly.
    (c) Notwithstanding any inconsistent provisions of general, special or
  local law, no officer or employee of  the  state  or  of  any  political
  subdivision  of  the state, any governmental entity operating any public
  school or college  or  other  public  agency  or  instrumentality  which
  exercises governmental powers under the laws of the state, shall forfeit
  office or employment by reason of acceptance or appointment as a member,
  representative,  officer,  employee  or  agent  of  the board, nor shall
  service as such member, representative, officer, employee  or  agent  of
  the  board  be  deemed  incompatible  or in conflict with such office or
  employment.
    (d) The members of  the  supervisory  board  and  all  representatives
  designated  to serve on the supervisory board shall serve without salary
  or per diem allowance but shall be entitled to reimbursement for  actual
  and  necessary  expenses  incurred in the performance of official duties
  under  this  section,  provided   however,   that   such   members   and
  representatives  are not, at the time such expenses are incurred, public
  employees otherwise entitled to such reimbursement.
    (e) The supervisory board may delegate to one or more of its officers,
  employees or agents, such powers  and  duties  as  the  board  may  deem
  proper,  except  any  duties  inconsistent with the duties and functions
  prescribed by any other office or position any such person may hold.
    (f) Expenses of the supervisory board shall be a charge of the city of
  Troy and shall be reimbursed by the city pursuant to an agreement signed
  by the state comptroller and the chief executive officer of the city.
    (g) The supervisory board shall so long as no emergency period is then
  in effect: (i) conduct public meetings at least annually whereby minutes
  shall be taken of such proceedings and the chief executive officer shall
  provide for public access to such minutes within two weeks from the date
  of such meeting, and copies of such minutes shall be  submitted  to  the
  city  council,  the  state  comptroller, the director of the budget, the
  chair of the senate finance committee, the chair of  the  assembly  ways
  and  means  committee  and the supervisory board established pursuant to
  this section;
    (ii) receive from the city all information required pursuant  to  this
  act, and such other financial statements and projections, budgetary data
  and information, and management reports and materials as the supervisory
  board  deems  necessary  or desirable to accomplish the purposes of this
  section;
    (iii) recommend to the city such measures relating to their operation,
  management, efficiency and productivity as the supervisory  board  deems
  appropriate  to  reduce  costs and improve services so as to advance the
  purposes of this act;
    (iv) consult with the city in the preparation of  the  budget  of  the
  city;
    (v)   review   the   terms  and  comment,  within  thirty  days  after
  notification by the city  of  Troy  of  a  proposed  borrowing,  on  the
  affordability  of  each proposed issuance of bonds or notes to be issued
  by the city of  Troy  during  the  time  the  supervisory  board  is  in
  existence  and no such borrowing shall be made unless first reviewed and
  commented upon by the supervisory board.  The  supervisory  board  shall
  provide  such comments within thirty days after notification by the city
  of Troy of a proposed borrowing to  the  chief  executive  officer,  the
  chief  fiscal  officer, each member of the city council, the director of

  the budget, the state comptroller,  the  chair  of  the  senate  finance
  committee  and  the  chair of the assembly ways and means committee. The
  supervisory  board  shall  consult  and  coordinate   with   the   state
  comptroller  with respect to any borrowing by the city of Troy and shall
  consider any reports from the  state  comptroller  detailing  the  state
  comptroller's review of such borrowing; and
    (vi)  have  the ability to perform such audits and reviews of the city
  of Troy and any agency thereof as its deems necessary and such  findings
  shall be a matter of public record.
    (g-1)  In carrying out the purposes of this act, the supervisory board
  shall during any emergency period:
    (i) As set forth in subdivision (d) of section six of  this  act,  the
  supervisory  board  shall  (A)  consult  with  the  city of Troy and the
  covered organizations in the preparation  of  the  financial  plan,  and
  certify  to the city of Troy the revenue estimates approved therein, (B)
  prescribe the form of the financial plan and the supporting  information
  required  in  connection  therewith,  and  (C)  exercise  the  rights of
  approval, disapproval and modification with  respect  to  the  financial
  plan,  including  but  not  limited  to  the revenue estimates contained
  therein.
    (ii) The supervisory board,  to  the  extent  it  deems  necessary  or
  appropriate  in  order  to  accomplish  the  purposes of this act, shall
  establish and adopt procedures with respect to (A) proper maintenance of
  the board fund, (B) the deposit and investment of revenues in such fund,
  and (C) the disbursement of moneys from the supervisory board fund.
    (iii) The supervisory board shall, from time to time and to the extent
  it deems necessary or desirable in order to accomplish the  purposes  of
  this   act,  (A)  review  the  operations,  management,  efficiency  and
  productivity of such  city  of  Troy  operations  and  of  such  covered
  organizations   or   portions  thereof  as  the  supervisory  board  may
  determine, and make reports  thereon;  (B)  audit  compliance  with  the
  financial plan in such areas as the supervisory board may determine; (C)
  recommend  to  the  city  of  Troy  and  the  covered organizations such
  measures  relating  to  their  operations,  management,  efficiency  and
  productivity  as  it  deems  appropriate  to  reduce  costs  and improve
  services so as to advance the purposes  of  this  act;  and  (D)  obtain
  information on the financial condition and needs of the city of Troy and
  the  covered  organizations. Nothing herein shall diminish the powers of
  the state comptroller otherwise provided  by  law  and  the  supervisory
  board  may  request  the  assistance  of  the  state  comptroller in the
  performance of the above functions.
    (iv) The supervisory board shall (A) receive from the city of Troy and
  the covered organizations and from the state  comptroller,  and  review,
  such   financial   statements   and   projections,  budgetary  data  and
  information, and management reports and  materials  as  the  supervisory
  board  deems  necessary  or desirable to accomplish the purposes of this
  act, and (B) inspect, copy and audit such books and records of the  city
  of  Troy  and  the  covered organizations as the supervisory board deems
  necessary or desirable to accomplish the purposes of this act.
    (v) All contracts entered into by the city  of  Troy  or  any  covered
  organization  during  any  emergency  period must be consistent with the
  provisions of this act and must comply  with  the  requirements  of  the
  financial plan as approved by the supervisory board. With respect to all
  contracts or other obligations to be entered into by the city of Troy or
  any  covered  organization during any emergency period and after July 1,
  1995, requiring the payment of funds or the incurring of  costs  by  the
  city of Troy or any covered organizations:

    (A)  Within  twenty  days from the effective date of this subdivision,
  the chief executive officer  shall  present  to  the  supervisory  board
  proposed  regulations  respecting  the categories and types of contracts
  and other obligations required to be reviewed by the  supervisory  board
  pursuant to this subdivision. Within thirty days from the effective date
  of  this  subdivision, the supervisory board shall approve or modify and
  approve such proposed regulations or promulgate its  own  in  the  event
  that such proposed regulations are not submitted to it within the twenty
  days  as provided for herein. Such regulation may thereafter be modified
  by the supervisory board from time to time on not less than thirty  days
  notice  to  the  chief executive officer and the chief executive officer
  may from time to time propose modifications to  the  supervisory  board.
  Unless expressly disapproved or modified by the supervisory board within
  thirty  days from the date of submission by the chief executive officer,
  any such proposed regulations or modifications shall be deemed  approved
  by the supervisory board;
    (B) Prior to entering into any contract or other obligation subject to
  review  of the supervisory board under its regulations, the city of Troy
  or any covered organization shall submit a  copy  of  such  contract  or
  other  obligation to the supervisory board accompanied by an analysis of
  the  projected  costs  of  such  contract  or  other  obligation  and  a
  certification  that  performance  thereof will be in accordance with the
  financial plan, all in such form and with such additional information as
  the  supervisory  board  may  prescribe.  The  supervisory  board  shall
  promptly  review  the terms of such contract or other obligation and the
  supporting  information  in  order  to  determine  compliance  with  the
  financial plan;
    (C)  The supervisory board shall, by order, disapprove any contract or
  other obligation reviewed by it only after  enactment  of  a  resolution
  determining  that,  in its judgment, the performance of such contract or
  other obligation would be inconsistent with the financial plan, and upon
  such order the city of Troy or covered organization shall not enter into
  such contract or other obligation;
    (D) If the supervisory board approves the terms of a reviewed contract
  or other obligation, the city of Troy or covered organization may  enter
  into  such  contract or other obligation upon the terms submitted to the
  supervisory board. Failure of the supervisory board to notify  the  city
  of  Troy  or covered organization within thirty days (or such additional
  time, not exceeding thirty days, as the  supervisory  board  shall  have
  notified  the  city  of Troy or covered organization that it requires to
  complete its review and analysis) after submission to it of  a  contract
  or  other  obligation  that  such  contract or other obligation has been
  disapproved shall be deemed to  constitute  supervisory  board  approval
  thereof;
    (vi)  The  supervisory  board  shall review the terms of each proposed
  long-term and short-term borrowing by the city of Troy and  any  covered
  organization  to  be  effected during any emergency period after July 1,
  1995, and no such borrowing shall be made during  any  emergency  period
  unless  it  is  approved by the supervisory board. The supervisory board
  shall consult and coordinate with the state comptroller with respect  to
  the  borrowings  of  the  city  of Troy and any covered organization and
  shall receive reports from  the  state  comptroller  on  his  review  of
  borrowings by the city of Troy. Neither the city of Troy nor any covered
  organization  shall  be  prohibited  from  issuing bonds or notes to pay
  outstanding bonds or notes.
    (vii) The supervisory board shall receive quarterly reports  from  the
  state  comptroller  setting  forth  the debt service requirements on all
  bonds and notes of the city of Troy and covered  organizations  for  the

  following  quarter, which reports shall be in such form and contain such
  information as the board shall determine.
    (viii)  The supervisory board shall issue, to the appropriate official
  of the city of Troy and the covered  organization,  such  orders  as  it
  deems  necessary  to  accomplish the purposes of this act, including but
  not limited to, timely and satisfactory implementation  of  an  approved
  financial  plan.  Any order so issued shall be binding upon the official
  to whom it was issued and  failure  to  comply  with  such  order  shall
  subject the official to the penalties described in section ten-b of this
  act.
    (ix)  The  supervisory  board  shall  coordinate  with  the  municipal
  assistance corporation with respect to the performance of its review and
  monitoring of the revenues and expenditures of  the  city  of  Troy  and
  covered organizations.
    (x)  The  supervisory board may employ such consultants as it may deem
  necessary to assist it in performing its functions required  under  this
  act.
    (xi)  The  supervisory  board  shall  have  the  authority to make and
  execute agreements and all  other  instruments  which  the  board  deems
  necessary  for  the  exercise  of its powers and functions including, in
  connection with any agreement to guarantee the payment of the  principal
  of  or  interest  on  bonds  or  notes  issued by the city or by a state
  financing agency.
    (xii) The supervisory  board  may  appoint  qualified  individuals  to
  participate as members of such audit, productivity or similar committees
  or  councils as the city may from time to time establish in consultation
  with the board. Such individuals, however, shall not  be  deemed  to  be
  officers,  employees  or agents of the board. The board shall review and
  report on, not less than annually, the development and implementation of
  methods for  enhancing  the  productivity  of  the  city's  labor  force
  proposed by any such committee or council.
    (xiii) Not later than January 1, 1996 the city shall issue a report to
  the  board  on  its  program  designed to enable the city (i) during its
  fiscal years ending December 31, 1996 and December 31, 1997, to minimize
  its dependence upon the state financing agency to  the  extent  that  it
  shall  be  prudent  to satisfy the city's financing needs by the sale of
  obligations of the city or its agencies in the public markets, and  (ii)
  thereafter  to  satisfy its financing needs entirely by the sale of such
  obligations. The report  shall  describe  such  actions  that  the  city
  proposes  to  take,  in  addition  to  those actions required by law, to
  implement the program and shall contain such further information as  the
  board may reasonably specify. After the issuance of such initial report,
  the  city  shall  report  to  the  board  at least semi-annually through
  December 31, 1996 and thereafter at least quarterly on  the  actions  it
  has  taken to implement the program and on the results thereof. The city
  may revise the program from time to time but shall promptly describe any
  revisions and the reasons therefor to the board.  The  city  may  comply
  with  the  requirements  of this subdivision by submitting the necessary
  information as supplementary material to a financial plan  or  financial
  plan  modification  in  accordance  with the standards and procedures of
  this act.
    (h)  Within   thirty   days   after   the   board   has   communicated
  recommendations  or  findings  to  the city of Troy, the chief executive
  officer shall respond in writing to such recommendations. A copy of such
  response shall be distributed to the chief fiscal officer,  all  members
  of  the city council, the supervisory board established pursuant to this
  section, the state comptroller, the director of the budget, the chair of
  the senate finance committee and the chair  of  the  assembly  ways  and

  means  committee.  The supervisory board shall have the power to require
  all officers, employees or agents of the city or any agency  thereof  to
  respond to all inquiries made by the supervisory board.
    (i)  For  any  instance  in  which  the  city  of Troy or any officer,
  employee or agent thereof does not respond to an  inquiry  made  by  the
  supervisory   board,  the  supervisory  board  shall  notify  the  chief
  executive officer, the chief fiscal officer and the city council of such
  city of such noncompliance. If such response is  not  submitted  to  the
  supervisory  board  within  fifteen days after notification, the city of
  Troy shall not issue bonds or notes until such information is provided.
    (j) No officer, employee or agent of the city of Troy shall  take  any
  action  in  violation of any valid request of the board or shall fail or
  refuse to take any valid action requested or shall  prepare  or  present
  any  information  (including any projections or estimates) or report for
  the board or any of its agents that is false  or  misleading,  or,  upon
  learning that any such information is false or misleading, shall fail to
  advise the board or its agents thereof in a timely manner.
    (k) Authorization for wage freeze. 1. During an emergency period, upon
  a  finding  by  the supervisory board that a wage freeze is essential to
  the adoption or maintenance of a city budget that is in compliance  with
  this  act,  the  supervisory  board,  after enactment of a resolution so
  finding, may declare a fiscal crisis. Upon making  such  a  declaration,
  the  supervisory board shall be empowered to order that all increases in
  salary or wages of employees  of  the  city  and  employees  of  covered
  organizations  which  will  take  effect  after  the  date  of the order
  pursuant  to  collective  bargaining  agreements  or   other   analogous
  contracts,  now  in  existence or hereafter entered into, requiring such
  salary increases as of any date thereafter are suspended. Such order may
  also provide that  all  increased  payments  for  holiday  and  vacation
  differentials, shift differentials, salary adjustments according to plan
  and  step-ups  or  increments for employees of the city and employees of
  covered organizations which will take effect after the date of the order
  pursuant  to  collective  bargaining  agreements  or   other   analogous
  contracts  requiring  such  increased payments as of any date thereafter
  are, in the same manner, suspended. For the purposes  of  computing  the
  pension  base  of  retirement  allowances,  any suspended salary or wage
  increases and any suspended other payments shall not  be  considered  as
  part of compensation or final compensation or of annual salary earned or
  earnable.  The suspensions authorized hereunder shall continue until one
  year after the date of the order and, to the extent of any determination
  of the board  that  a  continuation  of  such  suspensions,  to  a  date
  specified  by the board, is necessary in order to achieve the objectives
  of the financial plan, such suspensions shall be continued to  the  date
  specified  by such board, which date shall in no event be later than the
  end of the  emergency  period,  provided  that  such  suspensions  shall
  terminate  with  respect  to  employees who have agreed to a deferral of
  salary or wage increase upon the certification of the agreement  by  the
  board pursuant to paragraph two of this subdivision.
    2.  This  subdivision shall not be applicable to employees of the city
  or  employees  of  a  covered  organization  covered  by  a   collective
  bargaining   agreement   or  an  employee  of  the  city  or  a  covered
  organization not covered by a collective bargaining agreement where  the
  collective  bargaining representative or such unrepresented employee has
  agreed to a deferment of salary or wage increase, by  an  instrument  in
  writing  which  has  been certified by the supervisory board as being an
  acceptable and appropriate contribution toward  alleviating  the  fiscal
  crisis  of the city. Any such agreement to a deferment of salary or wage
  increase may provide that for the purposes of computing the pension base

  of retirement allowances, any deferred salary or wage  increase  may  be
  considered  as  part  of compensation or final compensation or of annual
  salary earned or earnable.
    3.  The  supervisory board may, if it finds that the fiscal crisis has
  been sufficiently alleviated or for any other appropriate reason, direct
  that the suspensions of salary or wage increases or suspensions of other
  increased  payments  or  benefits  shall,  in  whole  or  in  part,   be
  terminated.
    (l)  1.  Notwithstanding  the  provisions  or  limitations of any law,
  general, special or local, including the charter of the city of Troy, an
  impasse panel, arbitrator, collective bargaining board, fact finding  or
  similar  type  of  panel,  body  or  individual  which  is authorized to
  recommend or award an increase  in  wages  or  fringe  benefits  to  any
  employee  of  the  city  or  covered  organization shall, in addition to
  considering  any  standard  or  factor  required  to  be  considered  by
  applicable  law,  also  take  into  consideration and accord substantial
  weight to the financial ability of the city or covered  organization  to
  pay the cost of such increase in wages or fringe benefits.
    2.  Any  determination  pursuant  to article 8 of the labor law or any
  agreement or stipulation entered into in lieu thereof which provides for
  an increase in wages or fringe benefits of any employee of the  city  or
  covered  organization  shall, in addition to considering any standard or
  factor required to be considered  by  applicable  law,  also  take  into
  consideration  and accord substantial weight to the financial ability of
  the city or covered organization to pay the cost  of  such  increase  in
  wages or fringe benefits.
    3.  Any  party  to  a proceeding before a panel, body or individual as
  described in paragraph one or two of this  subdivision  may  commence  a
  special  proceeding in the appellate division, third department, supreme
  court, state of New York, to review the determination as to the city  or
  covered  organization's  financial ability to pay. Such proceeding shall
  be commenced not later than thirty days after  the  final  determination
  has  been  made  by the panel, body or individual. Such proceeding shall
  have preference over all other cases in such appellate  division,  other
  than cases relating to the election law.
    4.  The court shall make a de novo review of the record solely for the
  purpose of determining whether an award  of  an  increase  in  wages  or
  fringe   benefits  was  within  the  city's  or  covered  organization's
  financial ability to pay. The court's findings as to such issue shall be
  based upon a preponderance of all the evidence set forth in the  record.
  Unless the parties stipulate otherwise, arguments or submission shall be
  had within fifteen days after commencement of the special proceeding and
  the  court shall render its decision within fifteen days thereafter. All
  questions, other than the question relating to the determination,  shall
  be  reviewed  by  the  appellate  division in the same proceeding in the
  manner provided by article 75 or 78 of the civil practice law and  rules
  as  may  be  appropriate, notwithstanding that the issue would otherwise
  have been cognizable in the first instance before  a  special  or  trial
  term  of  the  supreme court. If an appeal shall otherwise lie from such
  determination of the appellate division to the court of appeals,  notice
  of  such appeal shall be filed within thirty days after the entry of the
  final order or judgment of the appellate division if such appeal  is  of
  right  or  within  ten  days  after  entry of an order granting leave to
  appeal, and such appeal shall have preference  over  all  other  appeals
  other than appeals relating to the election law.
    5. At any stage of any proceeding under paragraph one, two or three of
  this  subdivision  or any appeal from an order or judgment therefrom the
  supervisory board may intervene as a party on the issue of the financial

  ability of the city or covered  organization  to  pay  the  cost  of  an
  increase in wages or fringe benefits.
    6.  For  the  purposes  of  this subdivision, financial ability to pay
  shall mean the financial ability of the city or covered organization  to
  pay  the  cost  of  any  increase  in  wages  or fringe benefits without
  requiring an increase in the level of city  taxes  as  approved  in  the
  financial  plan of the city in effect at the time of the commencement of
  a proceeding under paragraph one or two of this subdivision.
    § 10-a. Prohibition; penalties. (a) During any emergency period (i) no
  officer or employee of the city  of  Troy  or  of  any  of  the  covered
  organizations  shall  make or authorize an obligation or other liability
  in excess of the amount available therefor under the financial  plan  as
  then  in  effect;  (ii) no officer or employee of the city of Troy or of
  any of the covered organizations shall involve the city of Troy  or  any
  of  the  covered  organizations  in  any contract or other obligation or
  liability for the payment of  money  for  any  purpose  required  to  be
  approved  by  the  supervisory  board  unless  such contract has been so
  approved and unless such contract  or  obligation  or  liability  is  in
  compliance with the financial plan as then in effect.
    (b)  No  officer or employee of the city of Troy or any of the covered
  organizations shall take any action in violation of any valid  order  of
  the  supervisory  board  or  shall  fail  or  refuse  to take any action
  required by any such order or shall  prepare,  present  or  certify  any
  information  (including  any projections or estimates) or report for the
  supervisory board or any of its agents that is false or misleading,  or,
  upon  learning  that  any such information is false or misleading, shall
  fail promptly to advise the supervisory board or its agents thereof.
    (c) In addition to any penalty or liability under any other  law,  any
  officer  or  employees  of  the  city  of  Troy  or  any  of the covered
  organizations who shall violate subdivision (a) or (b) of  this  section
  shall  be  subject  to appropriate administrative discipline, including,
  when circumstances warrant, suspension from duty without pay or  removal
  from  office  by  order  of  either  the governor or the chief executive
  officer; and any officer or employee of the city of Troy or any  of  the
  covered   organizations   who  shall  knowingly  and  willfully  violate
  subdivision (a) or (b) of this section shall, upon conviction, be guilty
  of a misdemeanor.
    (d) In the case of a violation of  subdivision  (a)  or  (b)  of  this
  section  by  an  officer  or  employee of the city of Troy or any of the
  covered  organizations,  the  chief  executive  officer  or  the   chief
  executive  officer of such covered organization shall immediately report
  to the supervisory board all pertinent facts together with  a  statement
  of the action taken thereon.
    § 11. If any clause, sentence, subdivision, paragraph, section or part
  of  this  act  be  adjudged by any court of competent jurisdiction to be
  invalid, such judgment  shall  not  affect,  impair  or  invalidate  the
  remainder thereof, but shall be confined in its operation to the clause,
  sentence,  subdivision,  paragraph,  section  or  part  thereof directly
  involved in the controversy in  which  such  judgment  shall  have  been
  rendered.

  
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Last modified: September 11, 2016