§ 10. (a) Supervisory board; created. There shall be created for the
city of Troy a supervisory board for the purpose of reviewing, directing
and supervising the financial management of the city of Troy during any
emergency period and following termination of any emergency period for
the purpose of overseeing and advising 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 and
making recommendations regarding the city's budget. The supervisory
board shall continue in existence until the later of (i) the date on
which all the bonds or bond anticipation notes authorized by this act no
longer remain outstanding or (ii) the date on which the municipal
assistance corporation for the city of Troy created pursuant to article
10 of the public authorities law is terminated.

(b) The supervisory board shall consist of five members who shall be
initially appointed not later than sixty days after the effective date
of this act; one appointed by the city council, one appointed by the
chief executive officer, as defined in subdivision 5-a of section 2.00
of the local finance law, of the city of Troy and two appointed by the
governor. The state comptroller shall also serve on the supervisory
board as its chair. The state comptroller shall be entitled to designate
a representative to attend meetings, vote or otherwise act in his
behalf. The supervisory board members shall have knowledge and expertise
in financial matters. Each member of the supervisory board shall serve
at the pleasure of the appointing official. The board shall act by
majority vote of the entire board. The board shall maintain a record of
its proceedings in such form as it may determine, but such record shall
indicate attendance and all votes cast by each member. The supervisory
board shall convene as frequently as it deems necessary to accomplish
its purposes, but no less than quarterly.

(c) Notwithstanding any inconsistent provisions of general, special or
local law, no officer or employee of the state or of any political
subdivision of the state, any governmental entity operating any public
school or college or other public agency or instrumentality which
exercises governmental powers under the laws of the state, shall forfeit
office or employment by reason of acceptance or appointment as a member,
representative, officer, employee or agent of the board, nor shall
service as such member, representative, officer, employee or agent of
the board be deemed incompatible or in conflict with such office or
employment.

(d) The members of the supervisory board and all representatives
designated to serve on the supervisory board shall serve without salary
or per diem allowance but shall be entitled to reimbursement for actual
and necessary expenses incurred in the performance of official duties
under this section, provided however, that such members and
representatives are not, at the time such expenses are incurred, public
employees otherwise entitled to such reimbursement.

(e) The supervisory board may delegate to one or more of its officers,
employees or agents, such powers and duties as the board may deem
proper, except any duties inconsistent with the duties and functions
prescribed by any other office or position any such person may hold.

(f) Expenses of the supervisory board shall be a charge of the city of
Troy and shall be reimbursed by the city pursuant to an agreement signed
by the state comptroller and the chief executive officer of the city.

(g) The supervisory board shall so long as no emergency period is then
in effect: (i) conduct public meetings at least annually whereby minutes
shall be taken of such proceedings and the chief executive officer shall
provide for public access to such minutes within two weeks from the date
of such meeting, and copies of such minutes shall be submitted 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 established pursuant to
this section;

(ii) receive from the city all information required pursuant to this
act, and such other financial statements and projections, budgetary data
and information, and management reports and materials as the supervisory
board deems necessary or desirable to accomplish the purposes of this
section;

(iii) recommend to the city such measures relating to their operation,
management, efficiency and productivity as the supervisory board deems
appropriate to reduce costs and improve services so as to advance the
purposes of this act;

(iv) consult with the city in the preparation of the budget of the
city;

(v) review the terms and comment, within thirty days after
notification by the city of Troy of a proposed borrowing, on the
affordability of each proposed issuance of bonds or notes to be issued
by the city of Troy during the time the supervisory board is in
existence and no such borrowing shall be made unless first reviewed and
commented upon by the supervisory board. The supervisory board shall
provide such comments within thirty days after notification by the city
of Troy of a proposed borrowing to the chief executive officer, the
chief fiscal officer, each member of the city council, the director of
the budget, the state comptroller, the chair of the senate finance
committee and the chair of the assembly ways and means committee. The
supervisory board shall consult and coordinate with the state
comptroller with respect to any borrowing by the city of Troy and shall
consider any reports from the state comptroller detailing the state
comptroller's review of such borrowing; and

(vi) have the ability to perform such audits and reviews of the city
of Troy and any agency thereof as its deems necessary and such findings
shall be a matter of public record.

(g-1) In carrying out the purposes of this act, the supervisory board
shall during any emergency period:

(i) As set forth in subdivision (d) of section six of this act, the
supervisory board shall (A) consult with the city of Troy and the
covered organizations in the preparation of the financial plan, and
certify to the city of Troy the revenue estimates approved therein, (B)
prescribe the form of the financial plan and the supporting information
required in connection therewith, and (C) exercise the rights of
approval, disapproval and modification with respect to the financial
plan, including but not limited to the revenue estimates contained
therein.

(ii) The supervisory board, to the extent it deems necessary or
appropriate in order to accomplish the purposes of this act, shall
establish and adopt procedures with respect to (A) proper maintenance of
the board fund, (B) the deposit and investment of revenues in such fund,
and (C) the disbursement of moneys from the supervisory board fund.

(iii) The supervisory board shall, from time to time and to the extent
it deems necessary or desirable in order to accomplish the purposes of
this act, (A) review the operations, management, efficiency and
productivity of such city of Troy operations and of such covered
organizations or portions thereof as the supervisory board may
determine, and make reports thereon; (B) audit compliance with the
financial plan in such areas as the supervisory board may determine; (C)
recommend to the city of Troy and the covered organizations such
measures relating to their operations, management, efficiency and
productivity as it deems appropriate to reduce costs and improve
services so as to advance the purposes of this act; and (D) obtain
information on the financial condition and needs of the city of Troy and
the covered organizations. Nothing herein shall diminish the powers of
the state comptroller otherwise provided by law and the supervisory
board may request the assistance of the state comptroller in the
performance of the above functions.

(iv) The supervisory board shall (A) receive from the city of Troy and
the covered organizations and from the state comptroller, and review,
such financial statements and projections, budgetary data and
information, and management reports and materials as the supervisory
board deems necessary or desirable to accomplish the purposes of this
act, and (B) inspect, copy and audit such books and records of the city
of Troy and the covered organizations as the supervisory board deems
necessary or desirable to accomplish the purposes of this act.

(v) All contracts entered into by the city of Troy or any covered
organization during any emergency period must be consistent with the
provisions of this act and must comply with the requirements of the
financial plan as approved by the supervisory board. With respect to all
contracts or other obligations to be entered into by the city of Troy or
any covered organization during any emergency period and after July 1,
1995, requiring the payment of funds or the incurring of costs by the
city of Troy or any covered organizations:

(A) Within twenty days from the effective date of this subdivision,
the chief executive officer shall present to the supervisory board
proposed regulations respecting the categories and types of contracts
and other obligations required to be reviewed by the supervisory board
pursuant to this subdivision. Within thirty days from the effective date
of this subdivision, the supervisory board shall approve or modify and
approve such proposed regulations or promulgate its own in the event
that such proposed regulations are not submitted to it within the twenty
days as provided for herein. Such regulation may thereafter be modified
by the supervisory board from time to time on not less than thirty days
notice to the chief executive officer and the chief executive officer
may from time to time propose modifications to the supervisory board.
Unless expressly disapproved or modified by the supervisory board within
thirty days from the date of submission by the chief executive officer,
any such proposed regulations or modifications shall be deemed approved
by the supervisory board;

(B) Prior to entering into any contract or other obligation subject to
review of the supervisory board under its regulations, the city of Troy
or any covered organization shall submit a copy of such contract or
other obligation to the supervisory board accompanied by an analysis of
the projected costs of such contract or other obligation and a
certification that performance thereof will be in accordance with the
financial plan, all in such form and with such additional information as
the supervisory board may prescribe. The supervisory board shall
promptly review the terms of such contract or other obligation and the
supporting information in order to determine compliance with the
financial plan;

(C) The supervisory board shall, by order, disapprove any contract or
other obligation reviewed by it only after enactment of a resolution
determining that, in its judgment, the performance of such contract or
other obligation would be inconsistent with the financial plan, and upon
such order the city of Troy or covered organization shall not enter into
such contract or other obligation;

(D) If the supervisory board approves the terms of a reviewed contract
or other obligation, the city of Troy or covered organization may enter
into such contract or other obligation upon the terms submitted to the
supervisory board. Failure of the supervisory board to notify the city
of Troy or covered organization within thirty days (or such additional
time, not exceeding thirty days, as the supervisory board shall have
notified the city of Troy or covered organization that it requires to
complete its review and analysis) after submission to it of a contract
or other obligation that such contract or other obligation has been
disapproved shall be deemed to constitute supervisory board approval
thereof;

(vi) The supervisory board shall review the terms of each proposed
long-term and short-term borrowing by the city of Troy and any covered
organization to be effected during any emergency period after July 1,
1995, and no such borrowing shall be made during any emergency period
unless it is approved by the supervisory board. The supervisory board
shall consult and coordinate with the state comptroller with respect to
the borrowings of the city of Troy and any covered organization and
shall receive reports from the state comptroller on his review of
borrowings by the city of Troy. Neither the city of Troy nor any covered
organization shall be prohibited from issuing bonds or notes to pay
outstanding bonds or notes.

(vii) The supervisory board shall receive quarterly reports from the
state comptroller setting forth the debt service requirements on all
bonds and notes of the city of Troy and covered organizations for the
following quarter, which reports shall be in such form and contain such
information as the board shall determine.

(viii) The supervisory board shall issue, to the appropriate official
of the city of Troy and the covered organization, such orders as it
deems necessary to accomplish the purposes of this act, including but
not limited to, timely and satisfactory implementation of an approved
financial plan. Any order so issued shall be binding upon the official
to whom it was issued and failure to comply with such order shall
subject the official to the penalties described in section ten-b of this
act.

(ix) The supervisory board shall coordinate with the municipal
assistance corporation with respect to the performance of its review and
monitoring of the revenues and expenditures of the city of Troy and
covered organizations.

(x) The supervisory board may employ such consultants as it may deem
necessary to assist it in performing its functions required under this
act.

(xi) The supervisory board shall have the authority to make and
execute agreements and all other instruments which the board deems
necessary for the exercise of its powers and functions including, in
connection with any agreement to guarantee the payment of the principal
of or interest on bonds or notes issued by the city or by a state
financing agency.

(xii) The supervisory board may appoint qualified individuals to
participate as members of such audit, productivity or similar committees
or councils as the city may from time to time establish in consultation
with the board. Such individuals, however, shall not be deemed to be
officers, employees or agents of the board. The board shall review and
report on, not less than annually, the development and implementation of
methods for enhancing the productivity of the city's labor force
proposed by any such committee or council.

(xiii) Not later than January 1, 1996 the city shall issue a report to
the board on its program designed to enable the city (i) during its
fiscal years ending December 31, 1996 and December 31, 1997, to minimize
its dependence upon the state financing agency to the extent that it
shall be prudent to satisfy the city's financing needs by the sale of
obligations of the city or its agencies in the public markets, and (ii)
thereafter to satisfy its financing needs entirely by the sale of such
obligations. The report shall describe such actions that the city
proposes to take, in addition to those actions required by law, to
implement the program and shall contain such further information as the
board may reasonably specify. After the issuance of such initial report,
the city shall report to the board at least semi-annually through
December 31, 1996 and thereafter at least quarterly on the actions it
has taken to implement the program and on the results thereof. The city
may revise the program from time to time but shall promptly describe any
revisions and the reasons therefor to the board. The city may comply
with the requirements of this subdivision by submitting the necessary
information as supplementary material to a financial plan or financial
plan modification in accordance with the standards and procedures of
this act.

(h) Within thirty days after the board has communicated
recommendations or findings to the city of Troy, the chief executive
officer shall respond in writing to such recommendations. A copy of such
response shall be distributed to the chief fiscal officer, all members
of the city council, the supervisory board established pursuant to this
section, the state comptroller, the director of the budget, the chair of
the senate finance committee and the chair of the assembly ways and
means committee. The supervisory board shall have the power to require
all officers, employees or agents of the city or any agency thereof to
respond to all inquiries made by the supervisory board.

(i) For any instance in which the city of Troy or any officer,
employee or agent thereof does not respond to an inquiry made by the
supervisory board, the supervisory board shall notify the chief
executive officer, the chief fiscal officer and the city council of such
city of such noncompliance. If such response is not submitted to the
supervisory board within fifteen days after notification, the city of
Troy shall not issue bonds or notes until such information is provided.

(j) No officer, employee or agent of the city of Troy shall take any
action in violation of any valid request of the board or shall fail or
refuse to take any valid action requested or shall prepare or present
any information (including any projections or estimates) or report for
the board or any of its agents that is false or misleading, or, upon
learning that any such information is false or misleading, shall fail to
advise the board or its agents thereof in a timely manner.

(k) Authorization for wage freeze. 1. During an emergency period, upon
a finding by the supervisory board that a wage freeze is essential to
the adoption or maintenance of a city budget that is in compliance with
this act, the supervisory board, after enactment of a resolution so
finding, may declare a fiscal crisis. Upon making such a declaration,
the supervisory board shall be empowered to order that all increases in
salary or wages of employees of the city and employees of covered
organizations which will take effect after the date of the order
pursuant to collective bargaining agreements or other analogous
contracts, now in existence or hereafter entered into, requiring such
salary increases as of any date thereafter are suspended. Such order may
also provide that all increased payments for holiday and vacation
differentials, shift differentials, salary adjustments according to plan
and step-ups or increments for employees of the city and employees of
covered organizations which will take effect after the date of the order
pursuant to collective bargaining agreements or other analogous
contracts requiring such increased payments as of any date thereafter
are, in the same manner, suspended. For the purposes of computing the
pension base of retirement allowances, any suspended salary or wage
increases and any suspended other payments shall not be considered as
part of compensation or final compensation or of annual salary earned or
earnable. The suspensions authorized hereunder shall continue until one
year after the date of the order and, to the extent of any determination
of the board that a continuation of such suspensions, to a date
specified by the board, is necessary in order to achieve the objectives
of the financial plan, such suspensions shall be continued to the date
specified by such board, which date shall in no event be later than the
end of the emergency period, provided that such suspensions shall
terminate with respect to employees who have agreed to a deferral of
salary or wage increase upon the certification of the agreement by the
board pursuant to paragraph two of this subdivision.

2. This subdivision shall not be applicable to employees of the city
or employees of a covered organization covered by a collective
bargaining agreement or an employee of the city or a covered
organization not covered by a collective bargaining agreement where the
collective bargaining representative or such unrepresented employee has
agreed to a deferment of salary or wage increase, by an instrument in
writing which has been certified by the supervisory board as being an
acceptable and appropriate contribution toward alleviating the fiscal
crisis of the city. Any such agreement to a deferment of salary or wage
increase may provide that for the purposes of computing the pension base
of retirement allowances, any deferred salary or wage increase may be
considered as part of compensation or final compensation or of annual
salary earned or earnable.

3. The supervisory board may, if it finds that the fiscal crisis has
been sufficiently alleviated or for any other appropriate reason, direct
that the suspensions of salary or wage increases or suspensions of other
increased payments or benefits shall, in whole or in part, be
terminated.

(l) 1. Notwithstanding the provisions or limitations of any law,
general, special or local, including the charter of the city of Troy, an
impasse panel, arbitrator, collective bargaining board, fact finding or
similar type of panel, body or individual which is authorized to
recommend or award an increase in wages or fringe benefits to any
employee of the city or covered organization shall, in addition to
considering any standard or factor required to be considered by
applicable law, also take into consideration and accord substantial
weight to the financial ability of the city or covered organization to
pay the cost of such increase in wages or fringe benefits.

2. Any determination pursuant to article 8 of the labor law or any
agreement or stipulation entered into in lieu thereof which provides for
an increase in wages or fringe benefits of any employee of the city or
covered organization shall, in addition to considering any standard or
factor required to be considered by applicable law, also take into
consideration and accord substantial weight to the financial ability of
the city or covered organization to pay the cost of such increase in
wages or fringe benefits.

3. Any party to a proceeding before a panel, body or individual as
described in paragraph one or two of this subdivision may commence a
special proceeding in the appellate division, third department, supreme
court, state of New York, to review the determination as to the city or
covered organization's financial ability to pay. Such proceeding shall
be commenced not later than thirty days after the final determination
has been made by the panel, body or individual. Such proceeding shall
have preference over all other cases in such appellate division, other
than cases relating to the election law.

4. The court shall make a de novo review of the record solely for the
purpose of determining whether an award of an increase in wages or
fringe benefits was within the city's or covered organization's
financial ability to pay. The court's findings as to such issue shall be
based upon a preponderance of all the evidence set forth in the record.
Unless the parties stipulate otherwise, arguments or submission shall be
had within fifteen days after commencement of the special proceeding and
the court shall render its decision within fifteen days thereafter. All
questions, other than the question relating to the determination, shall
be reviewed by the appellate division in the same proceeding in the
manner provided by article 75 or 78 of the civil practice law and rules
as may be appropriate, notwithstanding that the issue would otherwise
have been cognizable in the first instance before a special or trial
term of the supreme court. If an appeal shall otherwise lie from such
determination of the appellate division to the court of appeals, notice
of such appeal shall be filed within thirty days after the entry of the
final order or judgment of the appellate division if such appeal is of
right or within ten days after entry of an order granting leave to
appeal, and such appeal shall have preference over all other appeals
other than appeals relating to the election law.

5. At any stage of any proceeding under paragraph one, two or three of
this subdivision or any appeal from an order or judgment therefrom the
supervisory board may intervene as a party on the issue of the financial
ability of the city or covered organization to pay the cost of an
increase in wages or fringe benefits.

6. For the purposes of this subdivision, financial ability to pay
shall mean the financial ability of the city or covered organization to
pay the cost of any increase in wages or fringe benefits without
requiring an increase in the level of city taxes as approved in the
financial plan of the city in effect at the time of the commencement of
a proceeding under paragraph one or two of this subdivision.