(a) The chief elected official of a municipality may apply to the secretary to request designation as a tier I municipality if any of the following conditions exist: (1) The municipality has no bond rating, or its highest bond rating is A or above, provided the municipality has no rating that is not investment grade, receives less than thirty per cent of its current fiscal year general fund budget revenues in the form of municipal aid from the state, has a positive fund balance percentage, and has a municipal revenue increase in fiscal year ending June 30, 2018, as a per cent of revenues of two per cent or more, (2) the municipality has no bond rating or its highest bond rating is A, provided the municipality has no rating that is not investment grade, receives less than thirty per cent of its current fiscal year general fund budget revenues in the form of municipal aid from the state, and had a positive fund balance percentage of less than five per cent, or (3) the municipality's highest bond rating is AA or above, provided the municipality has no rating that is not investment grade, receives thirty per cent or more of its current fiscal year general fund budget revenues in the form of municipal aid from the state, has an equalized mill rate of less than thirty, has a positive fund balance percentage, and has a municipal revenue increase in the fiscal year ending June 30, 2018, as a per cent of revenues of two per cent or more.
(b) The secretary shall refer any municipality which has requested designation as a tier I municipality to the Municipal Finance Advisory Commission, pursuant to the provisions of section 7-395. In addition to the requirements of section 7-394b, such municipality shall prepare and present a three-year financial plan to the Municipal Finance Advisory Commission for its review and approval.
(June Sp. Sess. P.A. 17-2, S. 360.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.