(a) The chief elected official of a municipality may apply to the secretary to request designation as a tier II municipality if any of the following conditions exist: (1) The municipality has no bond rating from a bond rating agency, or, if its highest bond rating is A, provided the municipality has no rating that is not investment grade, receives thirty per cent or more of its current or prior fiscal year general fund budget revenues were or are in the form of municipal aid from the state, has a positive fund balance percentage of five per cent or more, has an equalized mill rate of less than thirty, 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 from a bond rating agency, or, if its highest bond rating is A, provided the municipality has no rating that is not investment grade, receives thirty per cent or more of its current or prior fiscal year general fund budget revenues were or are in the form of municipal aid from the state, has an equalized mill rate of less than thirty, and has a positive fund balance percentage of less than five per cent, (3) the municipality's highest bond rating is AA or higher, provided the municipality has no rating that is not investment grade, receives thirty per cent or more of its current or prior fiscal year general fund budget revenues were or are in the form of municipal aid from the state, and has an equalized mill rate of thirty or more, (4) the municipality's highest bond rating is AA or higher, provided the municipality has no rating that is not investment grade, and has a negative fund balance percentage, or (5) the municipality's highest bond rating is Baa or BBB, provided the municipality has no rating that is not investment grade, has a positive fund balance percentage and an equalized mill rate of less than thirty.
(b) The secretary shall refer any municipality which has requested designation as a tier II municipality to the Municipal Accountability Review Board established pursuant to section 7-576d. Said board shall have the same authority and responsibilities possessed by the Municipal Finance Advisory Commission with respect to tier II certified municipalities referred to it, including, but not limited to, requiring that such municipalities prepare and present to said board for its review and approval a three-year financial plan and monthly financial reports, in a manner prescribed by said board. In preparing and adopting its annual budgets, such municipality shall only include assumptions respecting state revenues and property tax revenues as approved by such board and such board shall approve or disapprove all obligations issued by a designated tier II municipality pursuant to section 7-575 and this section, provided it shall only approve such obligations which in its judgment improve the financial condition of such municipality.
(June Sp. Sess. P.A. 17-2, S. 363.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.