§ 6. (a) For each fiscal year occurring during the time bonds and/or
bond anticipation notes issued pursuant to this act are outstanding, the
chief executive officer and the chief fiscal officer, as such terms are
defined in paragraphs 5 and 5-a of section 2.00 of the local finance
law, of the city of Troy, shall monitor all budgets and, for each such
budget, such chief fiscal officer shall prepare a quarterly report of
summarized budget data depicting overall trends of actual revenues and
budget expenditures for the entire budget rather than individual line
items. Such reports shall compare revenue estimates and appropriations
as set forth in such budget with the actual revenues and expenditures
made to date. All quarterly reports shall be accompanied by a
recommendation from the chief executive officer or the chief fiscal
officer to the city council setting forth any remedial action necessary
to resolve any unfavorable budget variance including the overestimation
of revenues and the underestimation of appropriations. The chief fiscal
officer shall also prepare a quarterly trial balance of general ledger
accounts. The above quarterly budgetary report and trial balance shall
be prepared in accordance with generally accepted accounting principles
and shall include the general, water, sewer, and general debt service
funds. These reports shall be completed within sixty days after the end
of each quarter and shall be submitted to the chief executive officer,
each member of the city council, the supervisory board, the state
comptroller, the director of the budget, the chair of the assembly ways
and means committee and the chair of the senate finance committee.

(b) The state comptroller shall examine such quarterly reports in a
timely fashion and make recommendations thereon to the chief executive
officer, the chief fiscal officer and the city council. The state
comptroller shall be required to submit a copy of any such
recommendations to the director of the budget, the chair of the senate
finance committee, the chair of the assembly ways and means committee,
and the supervisory board. The chief executive officer shall be required
to submit, within fifteen days, a written response to any
recommendations made by the state comptroller, to the city council, the
state comptroller, the director of the budget, the chair of the senate
finance committee, the chair of the assembly ways and means committee,
and the supervisory board. If the city of Troy does not provide any
report as specified above, or respond to the recommendations made by the
state comptroller, the state comptroller shall notify the chief
executive officer, the chief fiscal officer and the city council of such
noncompliance. If said report or response is not submitted to the state
comptroller within fifteen days after such notification, the city of
Troy shall not issue any bonds or notes until such information is
provided.

(c) Except during an emergency period, for each fiscal year occurring
during the time bonds and/or bond anticipation notes issued pursuant to
this act are outstanding, the chief fiscal officer shall submit a
tentative budget to the supervisory board within five days after its
preparation, and shall submit the adopted budget to the supervisory
board within five days after its adoption. During an emergency period, a
financial plan shall be submitted to the supervisory board in accordance
with subdivision (d) of this section.

(d) Pursuant to the procedures contained in this subdivision, each
year during any emergency period the city of Troy shall develop, and may
from time to time modify, with the approval of the supervisory board, a
four year financial plan covering the city of Troy and the covered
organizations. Each such financial plan and financial plan modification
shall conform to the requirements of paragraph (i) of this subdivision
and shall provide that the operating and capital funds of the city of
Troy will be balanced in accordance with generally accepted accounting
principles. The financial plan shall be developed and approved, and may
from time to time be modified, with the approval of the supervisory
board, in accordance with the following procedures:

(i) Commencing with the city of Troy's fiscal year beginning January
1, 1996, and not later than fifty days prior to the beginning of such
fiscal year and each fiscal year thereafter during any emergency period,
or such other date as the supervisory board may approve at the request
of the city of Troy, the city of Troy shall prepare and submit a
financial plan to the supervisory board covering the four year period
beginning with such fiscal year. On such dates, the chief executive
officer shall also submit to the supervisory board the city of Troy's
proposed operating and capital budgets for the ensuing fiscal year and a
certificate of the chief executive officer stating that such budgets are
consistent with the financial plan submitted therewith and that
operation within the budgets is feasible.

(ii) Not more than forty-five days after submission of a financial
plan or more than thirty days after submission of a financial plan
modification, the supervisory board shall determine whether the
financial plan or financial plan modification is complete and complies
with the provisions of this subdivision and shall approve or disapprove
the financial plan or financial plan modification in accordance with the
provisions of this subdivision.

(iii) If the supervisory board determines that the financial plan or
financial plan modification is complete and compiles with the standards
set forth in this paragraph, the supervisory board shall approve the
financial plan or financial plan modification. Upon making such
determination, the supervisory board shall make a certification to the
city of Troy setting forth revenue estimates approved by the supervisory
board in accordance with such determination.

(iv) The supervisory board shall disapprove, by resolution, the
financial plan proposed by the city of Troy if, in the judgment of the
supervisory board, such plan:

(A) is incomplete;

(B) fails to contain projections of revenues and expenditures that are
based on reasonable and appropriate assumptions and methods of
estimation;

(C) fails to provide that operations of the city of Troy and the
covered organizations will be conducted within the cash resources
available according to the supervisory board's revenue estimates; or

(D) fails to comply with the provisions of this subdivision;

(v) In disapproving a financial plan or financial plan modification
proposed by the city of Troy, the supervisory board shall direct that
the aggregate expenditures in any period conform to the revenue
estimates certified by the supervisory board to achieve the objectives
set forth in this subdivision.

(vi) In the event that the city of Troy shall, for any reason, fail to
submit a financial plan, as required pursuant to paragraph (i) of this
subdivision, or to adopt a financial plan approved by the supervisory
board, or in the event that the supervisory board has not, for any
reason permitted under this act, approved a financial plan submitted by
the city of Troy, the supervisory board, after enactment of a resolution
so finding, shall formulate and adopt a financial plan to be effective
until the supervisory board approves a financial plan submitted by the
city of Troy. All budgets and operations of the city of Troy or a
covered organization shall be in conformance and compliance with the
financial plan then in effect.

(vii) After the initial adoption of the financial plan, the revenue
estimates certified by the supervisory board and the financial plan
shall be regularly reexamined by the supervisory board in consultation
with the city of Troy and the covered organizations and the city of Troy
shall provide a modified financial plan in such detail and within such
time periods as the supervisory board may require. In the event of
reductions in such revenue estimates, or in the event the city of Troy
or a covered organization shall expend funds at a rate that would exceed
the aggregate expenditure limitation for the city of Troy or covered
organization prior to the expiration of the fiscal year, the city of
Troy shall submit a financial plan modification to effect such
adjustments in revenue estimates and reductions in total expenditures as
may be necessary to conform to such revised revenue estimates or
aggregate expenditure limitations. If, within a time period specified by
the supervisory board, the city of Troy fails to make such modifications
after reductions in revenue estimates, or to provide a modified plan in
detail and within such time period required by the supervisory board,
the supervisory board, after enactment of a resolution so finding, may
formulate and adopt such modifications to the financial plan, such
modifications to become effective on their adoption.

(viii) The city of Troy may, from time to time, submit financial plan
modifications for review by the supervisory board. The supervisory board
shall approve such modifications unless, in the judgment of the
supervisory board, such modifications would constitute grounds for
disapproval of a financial plan pursuant to paragraph (iv) of this
subdivision.

(e) The financial plan shall be in such form and shall contain such
information for each year during which the financial plan is in effect
as the supervisory board may specify, and shall include the city of Troy
and all the covered organizations, and shall, in such detail as the
supervisory board from time to time prescribe, include statements of all
estimated revenues and of all expenditures and cash flow projections of
the city of Troy and each of the covered organizations.

(f) The financial plan shall, except to the extent waived by the
supervisory board with respect to any limited period, include any
information which the supervisory board may request to satisfy itself
that (i) projected employment levels, collective bargaining agreements
and other action relating to employee costs, capital construction and
such other matters as the supervisory board may specify, are consistent
with the provisions made for such obligations in the financial plan,
(ii) the city of Troy and the covered organizations are taking whatever
action is necessary with respect to programs mandated by state and
federal law to ensure that expenditures for such programs are limited to
and covered by the expenditures stated in the financial plan, and (iii)
adequate reserves are provided to maintain essential programs in the
event revenues have been overestimated or expenditures underestimated
for any period.

(g) For each financial plan and financial plan modification to be
prepared and submitted by the city of Troy to the supervisory board
pursuant to the provisions of this section, the covered organizations
shall submit to the city of Troy such information with respect to their
projected expenditures, revenues and cash flows for each years covered
by such financial plan or modification as the city of Troy shall
determine. Notwithstanding any other provision of law limiting the
authority of the city of Troy with respect to any covered organization,
the city of Troy, in the preparation and submission of the financial
plan and modifications thereof, shall (except for debt service or for
other expenditures to the extent that such expenditures are required by
law) have the power to determine the aggregate expenditures to be
allocated to any covered organization in the financial plan and any
modifications thereto.