New York Laws
Title 12 - Miscellaneous Provisions
160.05 - Financial Restructuring Board for Local Governments.

(a) If the average full value property tax rate of such municipality
is greater than the average full value property tax rate of seventy-five
percent of counties, cities, towns, and villages, with local fiscal
years ending in the same calendar year as of the most recently available
information, the board must find that such municipality is a fiscally
eligible municipality. The office of the state comptroller shall make
publicly available the list of counties, cities, towns, and villages

that have an average full value property tax rate that meets such
criteria in each local fiscal year. If a municipality has not reported
to the office of the state comptroller the information necessary to
calculate its average full value property tax rate, such municipality
may not be deemed a fiscally eligible municipality and the provisions of
this section shall not apply.
(b) If the average fund balance percentage of such municipality is
less than five percent, the board must find that such municipality is a
fiscally eligible municipality. The office of the state comptroller
shall make publicly available the list of counties, cities, towns, and
villages that have an average fund balance percentage that meets such
criteria in each local fiscal year. If a municipality has not reported
to the office of the state comptroller the information necessary to
calculate its average fund balance percentage, such municipality may not
be deemed a fiscally eligible municipality and the provisions of this
section shall not apply.
3. (a) Upon the request of a fiscally eligible municipality, by
resolution of the governing body of such municipality with the
concurrence of the chief executive of such municipality, the financial
restructuring board for local governments may undertake a comprehensive
review of the operations, finances, management practices, economic base
and any other factors that in its sole discretion it deems relevant to
be able to make findings and recommendations on reforming and
restructuring the operations of the fiscally eligible municipality. As
part of such recommendations, the board may propose that such
municipality agree to fiscal accountability measures, as determined by
the board, including, but not limited to, multi-year financial planning.
It may also identify cost-saving measures, recommend consolidation of
functions or agencies within such municipality or between such
municipality and other municipalities, consistent with existing law,
identify and make available, to the extent otherwise permitted by law,
grants and loans on such terms and conditions as it deems appropriate,
and make such other recommendations as the board may deem just and
proper but in no event shall the sum of all awards made by the board to
a single fiscally eligible municipality be greater than five million
dollars. If such award is a loan, it may not be for a term longer than
ten years. In the event a grant or loan is made, the board may condition
such award on the fiscally eligible municipality submitting a report or
reports on such actions taken by the fiscally eligible municipality
pursuant to the board's recommendations, and the board shall require
that the eligible municipality must adopt and implement all the board's
recommendations as a condition to receiving an award or awards. Before
making final recommendations, the board shall consult with the fiscally
eligible municipality. Such recommendations shall not be final and
binding on a fiscally eligible municipality unless it formally agrees to
abide by and implement such recommendations in which event such
recommendations and the terms provided thereunder shall be final and
binding on such municipality.
(b) Notwithstanding paragraph t of subdivision ten of section
fifty-four of the state finance law and irrespective of whether there
has been a determination or finding of fiscal eligibility under this
section, upon the request of any county, city, excluding a city with a
population of greater than one million, town, or village which (1) has
elected to engage in multi-year planning with the assistance of an
external financial advisor, and (2) has been identified as experiencing
fiscal stress, the financial restructuring board for local governments
may determine that all or part of the cost to the county, city, town, or

village for such external advisor shall be subject to reimbursement from
monies appropriated to such board for the making of grants and loans.
4. The board may hold hearings and shall have authority to require the
production of any information that it deems necessary to undertake its
comprehensive review. The board shall post on a publicly available
website all recommendations and findings made pursuant to this section.
5. The board shall also be authorized to resolve an impasse pursuant
to subdivision four-a of section two hundred nine of the civil service
law.