Connecticut General Statutes
Chapter 117 - Municipal Deficit Financing
Section 7-576f. - Retention of designation as tier I, II, III or IV municipality. Requirements for ending designation. Municipal Finance Advisory Commission authority to end tier I designation.

(a) A municipality designated as a tier I municipality in accordance with section 7-576a, 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, (1) there have been no audited operating deficits in the general fund of the municipality for two consecutive fiscal years, (2) the municipality's bond rating has either improved or remained unchanged since its most current designation, (3) the municipality has presented and the commission or board has approved a financial plan that projects a positive fund balance for the three succeeding consecutive fiscal years covered by such financial plan, where a positive fund balance of at least five per cent is projected in the third such fiscal year, and (4) the municipality's audits for such consecutive fiscal years have been completed and contain no general fund deficit.

(b) Notwithstanding subsection (a) of this section, the Municipal Finance Advisory Commission may, by unanimous vote, end the designation of a municipality designated as a tier I municipality, based on an evaluation of such municipality's financial condition.
(June Sp. Sess. P.A. 17-2, S. 369; P.A. 22-35, S. 13.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017; P.A. 22-35 redesignated existing provisions re retention of designation as tier I or tier II as Subsec. (a) and in same added references to tier III and tier IV municipalities, in Subsec. (a)(1), substituted “no audited operating deficits” for “no annual operating budgetary deficits”, and in Subsec. (a)(3), substituted “positive fund balance” for “positive unreserved fund” and added provision re positive fund balance of at least 5 per cent, deleted provision re undesignated municipality, added Subsec. (b) authorizing Municipal Finance Advisory Commission to end designation as tier I municipality, and made technical changes.

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