Sec. 7-576f. Retention of designation as tier I, II, III or IV municipality. Requirements for ending designation. Termination of tier designation or redesignation to lower tier.
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/ct/title-7/chapter-117-municipal-deficit-financing/7-576f·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)(1) A municipality designated as a tier I municipality in accordance with section 7-576a shall retain such designation, notwithstanding any positive changes in the factors leading to its current designation, until the Municipal Finance Advisory Commission, by unanimous vote, terminates such designation based on an evaluation of such municipality's financial condition and financial practices.
(2)A municipality designated as a tier II municipality in accordance with section 7-576b , tier III municipality in accordance with section 7-576c , or tier IV municipality in accordance with section 7-576e shall retain such designation, notwithstanding any positive changes in the factors leading to its current designation, until, in the fiscal years following such designation, the Municipal Accountability Review Board determines that
(A)there have been no audited operating deficits in the general fund of the municipality for two consecutive fiscal years,
(B)the municipality has a long-term bond rating from one or more bond rating agencies that is investment grade or higher and such bond rating has either improved or remained unchanged since its most current designation,
(C)the municipality has presented and the board has approved a financial plan that projects a positive fund balance for the three succeeding consecutive fiscal years covered by such financial plan, provided
(i)each fiscal year of such plan is based upon recurring revenue and expenses,
(ii)a positive fund balance of at least five per cent is projected in the third such fiscal year, and
(iii)such plan does not include funding received pursuant to section 7-576i or 7-576j ,
(D)the municipality's audits for such consecutive fiscal years have been completed and the General Fund reports an audited fund balance of at least five per cent, and
(E)there is no evidence that the municipality has engaged in unsound or irregular financial practices in relation to commonly accepted standards in municipal finance. The board may undertake the determination described in this subdivision at its discretion or upon the request of a municipality.
(1)If the Municipal Accountability Review Board determines that a municipality has satisfied the criteria listed in subdivision
(2)of subsection
(a)of this section, the secretary shall, at the secretary's discretion and in consideration of the fiscal condition of the municipality and best interests of the state, terminate such municipality's tier designation or redesignate such municipality to a lower tier, provided no such municipality shall be redesignated as a tier I municipality. Not later than sixty days after the board makes such determination, the secretary shall notify the municipality of the secretary's decision to terminate such municipality's tier designation or redesignate such municipality to a lower tier. A municipality shall retain its existing tier designation until such notice is received. If the secretary fails to provide such notice prior to the expiration of said sixty-day period, the municipality's tier designation shall be deemed terminated on the sixty-first day following such determination.
(2)A municipality redesignated to a lower tier pursuant to subdivision
(1)of this subsection shall
(A)meet the requirements of this chapter pertaining to such lower tier, and
(B)not request a determination from the Municipal Accountability Review Board pursuant to subdivision
(2)of subsection
(a)of this section during the one-year period following such redesignation.