Assembly Bill A5425

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5425
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2023
                                ___________
 
 Introduced  by  M.  of  A.  BRAUNSTEIN  -- read once and referred to the
   Committee on Cities
 
 AN ACT to amend the general municipal law, in relation to  monies  with-
   drawn from the revenue stabilization fund of the city of New York
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3 of section 25 of the general  municipal  law,
 as  added  by  chapter  118  of  the laws of 2020, is amended to read as
 follows:
   3. The city of New York may establish and maintain a revenue  stabili-
 zation  fund pursuant to section fifteen hundred twenty-eight of the New
 York city charter AND THIS CHAPTER.  A TARGET AMOUNT OF FISCAL  RESERVES
 TO  BE MAINTAINED IN SUCH FUND SHALL BE DESIGNATED AT AN AMOUNT ADEQUATE
 TO FULFILL THE PURPOSE OF THE FUND WITH THE GOAL OF REPRESENTING NO LESS
 THAN TWELVE PERCENT AND NO MORE THAN EIGHTEEN PERCENT OF  THE  OPERATING
 BUDGET.    THE  ADEQUACY OF THE FUND'S TARGET RESERVES SHALL BE REVIEWED
 PERIODICALLY AND BE DETERMINED BASED ON AN ANALYSIS OF REVENUE  SOURCES,
 REVENUE  VOLATILITY  AND OTHER RELEVANT RISK FACTORS. Except as required
 by subdivision two of this section with respect to  surpluses,  deposits
 into  and  withdrawals from such fund may be made by means of the proce-
 dures set forth in such charter for  adoption  or  modification  of  the
 expense  budget of such city, as applicable, provided that [no more than
 fifty percent of the total amount of such fund] MONIES SHALL BE DEPOSIT-
 ED ANNUALLY UNTIL THE TARGET AMOUNT OF FISCAL RESERVES  IS  REACHED  AND
 SUCH DEPOSITS SHALL BE INCLUDED AS APPROPRIATIONS IN THE ADOPTED EXPENSE
 BUDGET  OF  THE CITY OF NEW YORK, AND MONIES may NOT be withdrawn in any
 fiscal year unless the mayor has certified IN WRITING that  there  is  a
 compelling  fiscal  need[,  which may] AND THE WITHDRAWAL OF SUCH MONIES
 HAS BEEN APPROVED BY A TWO-THIRDS VOTE OF THE CITY COUNCIL. A COMPELLING
 FISCAL NEED SHALL be based  on  circumstances  including[,  but  not  be
 limited  to,]  a national or regional recession OF AT LEAST TWO QUARTERS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10117-01-3
              

 A. 5425                             2
 
 OF DECLINING REAL GROSS CITY PRODUCT, [a  reduction  in  total  revenues
 from the preceding fiscal year as projected in the financial plan of the
 city  of  New  York,]  a  natural or other disaster, INCLUDING TERRORIST
 ATTACKS, or a declared state of emergency in the city of New York or the
 state  of  New York.  WITHDRAWALS SHALL COMMENCE WITHIN TWELVE MONTHS OF
 THE UNANTICIPATED EVENT TRIGGERING SUCH WITHDRAWAL AND SHALL NOT  EXCEED
 FIFTY  PERCENT OF THE TOTAL AMOUNT OF SUCH FUND IN ANY FISCAL YEAR.  ANY
 WITHDRAWALS FROM THE FUND SHALL BE REPLENISHED WITHIN THE SHORTEST PRAC-
 TICABLE PERIOD OF TIME. The authority to establish a revenue  stabiliza-
 tion  fund  set  forth  in  this subdivision shall be in addition to any
 other authorization set forth in this article or other applicable law.
   § 2. Section  25 of the general municipal law is amended by  adding  a
 new subdivision 4 to read as follows:
   4. FOR AS LONG AS A REVENUE STABILIZATION FUND IS MAINTAINED, THE CITY
 OF  NEW  YORK  SHALL  PUBLISH ON ITS OFFICIAL WEBSITE A STATEMENT OF ITS
 BUDGET RESERVE POLICY AS IT RELATES TO  SUCH  FUND  AND  THE  PROCEDURES
 GOVERNING  THE OPERATION OF THE FUND.  AT A MINIMUM SUCH STATEMENT SHALL
 DESCRIBE:
   (A) THE PURPOSE OF THE REVENUE STABILIZATION FUND;
   (B) THE TARGET AMOUNT OF FISCAL RESERVES TO BE MAINTAINED IN THE  FUND
 AND  THE  RATIONALE  AS TO WHY THE TARGET AMOUNT IS ADEQUATE TO MEET THE
 PURPOSES OF THE FUND;
   (C) THE PROCEDURES FOR DEPOSITING  AND  WITHDRAWING  MONIES  FROM  THE
 FUND;
   (D)  THE  PROCESS  FOR  BUDGETING  ANNUAL DEPOSITS TO THE FUND AND THE
 ANALYSIS USED TO DETERMINE THE AMOUNT OF ANNUAL DEPOSITS; AND
   (E) THE POLICY FOR REPLENISHING WITHDRAWALS FROM THE FUND  WITHIN  THE
 SHORTEST PRACTICABLE PERIOD OF TIME.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.