§ 9. Development of the financial plan. 1. Pursuant to the procedures
contained in subdivision two of this section, each year the city shall
develop, and may from time to time modify, with the approval of the
board, a four year financial plan covering the city and the covered
organizations. Each such financial plan and financial plan modification
shall conform to the requirements of subdivision three of this section
and shall (a) provide that the operating and capital funds of the city
will be balanced in accordance with the accounting system and procedures
prescribed by the comptroller pursuant to section thirty-six of the
general municipal law, and (b) comply with the requirements of the
special fiscal act.

2. The financial plan shall be developed and approved, and may from
time to time be modified, with the approval of the board, in accordance
with the following procedures:

a. Commencing with the city's fiscal year beginning July first,
nineteen hundred eighty-four, and not later than fifty days prior to the
beginning of such fiscal year and each fiscal year thereafter, or such
other date as the board may approve at the request of the city, the city
shall prepare and submit a financial plan to the board covering the four
year period beginning with such fiscal year. On such dates, the mayor
shall also submit to the board the city's proposed operating and capital
budgets for the ensuing fiscal year and a certificate of the mayor
stating that such budgets are consistent with the financial plan
submitted therewith, that the budgets conform in all respects to the
requirements of the special fiscal act, and that operation within the
budgets is feasible.

b. 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 board shall determine whether the financial plan or
financial plan modification is complete and complies with the provisions
of subdivision one of this section and shall approve or disapprove the
financial plan or financial plan modification in accordance with the
provisions of this section.

c. If the board determines that the financial plan or financial plan
modification is complete and complies with the standards set forth in
subdivision one of this section, the board shall approve the financial
plan or financial plan modification. Upon making such determination, the
board shall make a certification to the city setting forth revenue
estimates approved by the board in accordance with such determination.

d. The board shall disapprove, by resolution, the financial plan
proposed by the city if, in the judgment of the board, such plan:

(i) is incomplete;

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

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

(iv) fails to comply with the provisions of subdivision one of this
section.

e. In disapproving a financial plan or financial plan modification
proposed by the city, the board may direct that the aggregate
expenditures in any period be reduced to conform to the revenue
estimates certified by the board to achieve the objectives set forth in
subdivision one of this section.

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

g. After the initial adoption of the financial plan, the revenue
estimates certified by the board and the financial plan shall be
regularly reexamined by the board in consultation with the city and the
covered organizations and the city shall provide a modified financial
plan in such detail and within such time period as the board may
require. In the event of reductions in such revenue estimates, or in the
event the city or a covered organization shall expend funds at a rate
that would exceed the aggregate expenditure limitation for the city or
covered organization prior to the expiration of the fiscal year, the
city 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 board, the city 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 board, the 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.

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

3. 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 board may specify, shall include the city and all the covered
organizations, and shall, in such detail as the board may from time to
time prescribe, include statements of all estimated revenues and of all
expenditures and cash flow projections of the city and each of the
covered organizations.

4. The financial plan shall, except to the extent waived by the board
with respect to any limited period, include any information which the
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 board
may specify, are consistent with the provisions made for such
obligations in the financial plan, (ii) the city 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.

5. For each financial plan and financial plan modification to be
prepared and submitted by the city to the board pursuant to the
provisions of this section, the covered organizations shall submit to
the city such information with respect to their projected expenditures,
revenues and cash flows for each year covered by such financial plan or
modification as the city shall determine. Notwithstanding any other
provision of law limiting the authority of the city with respect to any
covered organization, the city, 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.