§ 10.10 Municipalities and school districts authorized to incur debt\nto liquidate operating deficits; requirements and procedures; period of\nprobable usefulness. In the case of a municipality or school district\nthat is authorized by a special or general law to incur debt to\nliquidate an operating deficit:\n a. no bonds to fund the liquidation of such a deficit may be issued\nunless and until the state comptroller shall first review and confirm\nthe existence of the deficit, as well as certify the amount of the\ndeficit. As soon as practicable after the effective date of the law\nauthorizing the incurrence of debt to fund the deficit, but in no event\nprior to the close of the then current fiscal year of the municipality\nin the case of a projected deficit, the municipality or school district\nshall prepare a report detailing the amount and cause of the deficit and\nsubmit to the state comptroller such report, together with the\nmunicipality's or school district's independent audit report for its\nlast completed fiscal year, if any such audit report has been or is to\nbe prepared, and such other information as the state comptroller may\ndeem necessary. Within thirty days after receiving all necessary reports\nand information, the state comptroller shall:\n 1. perform such reviews as may be necessary;\n 2. confirm the existence and certify the amount of the deficit; and\n 3. provide notification to the finance board of the municipality or\nschool district as to the existence and amount of any such deficit.\n b. bonds to liquidate such deficit may not be issued in an amount\nexceeding the amount of such deficit as certified by the state\ncomptroller. If the municipality or school district issues bond\nanticipation notes for the purpose of liquidating such deficit prior to\na determination by the state comptroller pursuant to paragraph a of this\nsection in an amount in excess of the amount of such deficit as\nconfirmed by the state comptroller, the municipality or school district\nshall, from funds other than proceeds of bonds or bond anticipation\nnotes, either redeem such bond anticipation notes in the amount by which\nthe amount of such bond anticipation notes exceeds the amount of such\ndeficit as confirmed by the comptroller or deposit a sum equal to the\namount by which such bond anticipation notes exceed the amount of such\ndeficit as confirmed by the comptroller into a reserve fund for the\npayment of bonded indebtedness that shall be established pursuant to\nsection six-h of the general municipal law.\n c. for each fiscal year occurring during the time deficit bonds or\nbond anticipation notes issued in anticipation of the sale of such bonds\nare outstanding, up to and including the last fiscal year during which\nsuch debt or debt issued to refund such debt is outstanding, the chief\nfiscal officer of the municipality or school district on whose behalf\nsuch deficit bonds or notes have been issued shall monitor budgets of\nthe municipality or school district and for each budget, prepare a\nquarterly report of summarized budget data depicting overall trends of\nactual revenues and budget expenditures for the entire budget rather\nthan individual line items. Such reports shall compare revenue estimates\nand appropriations as set forth in such budget with the actual revenues\nand expenditures made to date. All quarterly reports shall be\naccompanied by a recommendation by the chief executive officer of the\nmunicipality or school district setting forth any remedial action\nnecessary to resolve any unfavorable budget variance including the\noverestimation of revenues and the underestimation of appropriations,\nand shall be completed within thirty days of the end of each quarter.\nThe chief fiscal officer shall also prepare, as part of such report, a\nquarterly trial balance of general ledger accounts. The above quarterly\nbudgetary reports and quarterly trial balances shall be prepared in\naccordance with generally
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