(a) A municipality designated as a tier III municipality in accordance with section 7-576c or designated as a 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, or until, in the fiscal years following its most current designation: (1) There have been no annual operating budgetary deficits in the general fund of the municipality for three consecutive fiscal years, (2) the municipality's bond rating has either improved or remained unchanged since its most current designation, provided it has no bond ratings that are below investment grade, (3) the municipality has presented and the board has approved a financial plan that projects a positive unreserved fund balance for the three succeeding consecutive fiscal years covered by such financial plan, and (4) the audits for the aforementioned consecutive fiscal years have been completed and contain no general fund deficit. The board may give consideration to the fiscal year preceding the municipality's designation in determining the number of sufficient fiscal years pursuant to subdivision (1) of this subsection.
(b) Notwithstanding any other provisions of sections 7-560 to 7-565, inclusive, sections 7-568 to 7-579, inclusive, the municipality shall remain undesignated for purposes of a tier designation, unless it has an annual operating budgetary deficit in its general fund equal to one per cent or more of its most recently completed annual general fund budget or if it experiences an annual operating budgetary deficit in its general fund in consecutive years of any amount or if it has one or more bond ratings that are below investment grade.
(June Sp. Sess. P.A. 17-2, S. 371.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.