US Laws, Codes, Statutes & Cases

 
    §  258.  Standards for budget and financial plan. a. The operations of
  the city shall be such that, at the end of the fiscal year, the  results
  thereof  shall  not  show  a  deficit  when  reported in accordance with
  generally accepted accounting  principles.  The  mayor  shall  take  all
  actions  necessary  in  accordance  with  the provisions of the charter,
  including  but  not  limited  to  section  one  hundred  six,  or  other
  applicable  law  to  ensure  that  the  city  is in compliance with this
  subdivision.
    b. Pursuant to the procedures  contained  in  subdivision  c  of  this
  section,  each  year  the  mayor  shall  develop,  and from time to time
  modify, a four  year  financial  plan.  Each  such  financial  plan  and
  financial  plan  modification  shall  comply  with  the  requirements of
  subdivision d of  this  section  and  shall  conform  to  the  following
  standards:
    (1)  For each fiscal year, the city's budget covering all expenditures
  other than capital items shall be prepared  and  balanced  so  that  the
  results  thereof  would  not  show a deficit when reported in accordance
  with  generally  accepted  accounting  principles   and   would   permit
  comparison  of  the  budget  with the report of actual financial results
  prepared in accordance with generally accepted accounting principles.
    (2) The city shall issue no obligations which  shall  be  inconsistent
  with the financial plan prepared in accordance with this section.
    (3)  Provision  shall  be  made  for  the  payment in full of the debt
  service on all bonds and notes of the city and for the adequate  funding
  of  programs  of the city which are mandated by state or federal law and
  for which obligations are going to be incurred during the fiscal year.
    (4) All projections of revenues  and  expenditures  contained  in  the
  financial  plan shall be based on reasonable and appropriate assumptions
  and methods of estimation. All cash flow projections shall be based upon
  reasonable and appropriate assumptions as to sources and  uses  of  cash
  (including but not limited to the timing thereof), and shall provide for
  operations  of  the  city  to  be conducted within the cash resources so
  projected.
    (5) A general reserve shall be provided for each fiscal year to  cover
  potential  reductions  in  projected  revenues or increases in projected
  expenditures during each such fiscal year. The amount provided for  such
  general  reserve shall be estimated in accordance with paragraph four of
  this subdivision, but in no event shall it  be  less  than  one  hundred
  million dollars at the beginning of any fiscal year.
    (6)  In the event that the results of the city's operations during the
  preceding fiscal year have not comported  with  subdivision  a  of  this
  section, the first fiscal year included in any financial plan shall make
  provision  for  the repayment of any deficit incurred by the city during
  the preceding fiscal year.
    c. The financial plan shall be developed and may from time to time  be
  modified, in accordance with the following procedures:
    (1)  The  mayor  shall,  in  conjunction  with  the preliminary budget
  prepared pursuant to section one hundred one, prepare a  financial  plan
  covering  the  four ensuing fiscal years (the first year of which is the
  year for which such preliminary budget is being  prepared)  as  well  as
  updating the current fiscal year.
    (2)  After  the  preparation  by  the  mayor  of  a  financial plan in
  accordance with the preceding paragraph, the mayor shall  reexamine,  at
  least on a quarterly basis, the projections of revenues and expenditures
  and  other  estimates contained in the financial plan, and shall prepare
  modifications in accordance with the following procedures:
    (a) The budget message, issued pursuant to section two  hundred  fifty
  of  this chapter, shall include an update of the financial plan covering

  the four ensuing fiscal years (the first year of which is the  year  for
  which  such  budget  message is being prepared) as well as an update for
  the current fiscal year.
    (b)  Not  later  than thirty days after the budget is finally adopted,
  the mayor shall issue an update of the financial plan covering the  four
  ensuing  fiscal  years  (the  first  year of which shall be the year for
  which such budget has been adopted) as well as an update for the  fiscal
  year that is ending or has just ended. Such update shall reflect changes
  which  were  made  in the budget in accordance with sections two hundred
  fifty-four and two  hundred  fifty-five;  provided,  however,  that  the
  budget adopted in accordance with such sections shall be consistent with
  the  standards  applicable  to  the  financial  plan  set  forth in this
  section.
    (c) During the second quarter of the  fiscal  year,  the  mayor  shall
  issue  an update of the financial plan covering the fiscal year in which
  such quarter occurs and the three ensuing fiscal years.
    (d) In addition, on such schedule as the mayor deems appropriate,  the
  mayor  may issue further updates of the financial plan during the fiscal
  year.
    d. The financial plan  shall  include  projections  of  all  revenues,
  expenditures  and  cash  flows  (including  but not limited to projected
  capital expenditures and debt issuances) and  a  schedule  of  projected
  capital  commitments  of  the city. In addition, each financial plan and
  financial plan modification shall include a statement of the significant
  assumptions  and  methods  of  estimation  used  in  arriving   at   the
  projections contained therein.
    e.  Notwithstanding any inconsistent provision of this charter, in the
  event of any change in  generally  accepted  accounting  principles,  or
  change in the application of generally accepted accounting principles to
  the  city,  if  the mayor determines that immediate compliance with such
  change will have a material effect on the  city's  budget  over  a  time
  period  insufficient  to  accommodate  the  effect without a substantial
  adverse impact on the delivery of  essential  services,  the  mayor  may
  authorize  and  approve  a  method  of  phasing the requirements of such
  change into the budget over such reasonably expeditious time  period  as
  the mayor deems appropriate.
    f. The powers, duties, and obligations set forth in this section shall
  be  subject to the powers, duties, and obligations placed upon any state
  or local officer or agency, including but not limited to  the  New  York
  state  financial  control  board,  by  or pursuant to the New York State
  Financial Emergency Act for the City of New York, while such act remains
  in effect.