Any tier II certified municipality or any designated tier II, III or IV municipality that meets the eligibility requirements of subdivisions (1) to (5), inclusive, of section 7-574 or any designated tier IV municipality that does not meet such eligibility requirements but receives approval by the Municipal Accountability Review Board pursuant to subdivision (7) of subsection (a) of section 7-576e, may issue general obligations with a term of more than one year which are supported by a special capital reserve fund, including general obligations to fund a deficit, as provided in sections 7-560 to 7-579, inclusive, provided no municipality shall issue an obligation with a term of more than one year to fund a projected fiscal year deficit. Any such certified or designated tier II municipality shall, within the time and in the manner prescribed by written standards established by the secretary, after consulting with the Treasurer: (1) Notify the secretary of its intent to issue such obligations, (2) provide the secretary with the documentation required under sections 7-560 to 7-579, inclusive, (3) establish a property tax intercept procedure and debt service payment fund in accordance with the provisions of sections 7-560 to 7-579, inclusive, and (4) comply with sections 7-569 to 7-571, inclusive. The secretary shall refer to the Municipal Finance Advisory Commission, pursuant to the provisions of section 7-395, any certified tier II municipality which notifies the secretary that it intends to issue obligations under this section. A municipality that issues a deficit obligation pursuant to this section shall be a designated tier III municipality.
(P.A. 93-421, S. 17, 22; June Sp. Sess. P.A. 17-2, S. 364.)
History: P.A. 93-421 effective July 1, 1993; June Sp. Sess. P.A. 17-2 added provision re issuance of obligations by certified tier II municipality or designated tier II, III or IV municipality, deleted references to Sec. 7-394b(a), added references to certified or designated tier II municipality, replaced provision re establishing standards by regulation with provision re establishing written standards, added provision re municipality that issues deficit obligation to be designated tier III municipality, and made technical changes, effective October 31, 2017.
Structure Connecticut General Statutes
Chapter 117 - Municipal Deficit Financing
Section 7-561. - Establishment of property tax intercept procedure and debt service payment fund.
Section 7-563. - Indenture or other agreements.
Section 7-564. - Rights and remedies of holders of general obligations.
Section 7-565. - State pledge to holders of general obligations.
Section 7-566. - Municipal petition to become a debtor.
Section 7-567. - Additional property tax to pay current year's expenses.
Section 7-570. - Issuance of additional general obligations.
Section 7-571. - Establishment of special capital reserve fund to secure general obligations.
Section 7-576h. - Property tax levy by tier II, III or IV municipality. Limitation. Exception.
Section 7-577. - Attorney General to apply for writ of mandamus.
Section 7-578. - Municipal comprehensive economic development plan to increase tax base.
Section 7-579. - Definition of deficit obligation re town and city of New Haven.