CT HB05427

Extends municipal pension deficit funding bond financial planning requirements from a three-year to a five-year financial plan effective October 1, 2022.

Modifies municipal financial crisis referral criteria, replacing declining fund balance trends and operating budget deficit thresholds with specific triggers including negative fund balances, low fund balance percentages, failure to file timely audit reports, and material audit findings in consecutive years.

Restructures municipal tier designations (I-IV) by eliminating rigid qualifying conditions and instead allowing automatic referral to the Municipal Finance Advisory Commission based on the new crisis criteria, with expanded authority for the Municipal Accountability Review Board over tier III and IV municipalities.

Changes audit reporting deadlines and penalties, clarifying that municipalities failing to file required audits within twelve months shall be referred to the Municipal Finance Advisory Commission and assessed civil penalties of $1,000 to $10,000.

Requires municipalities to file audited financial statements and data electronically with the Office of Policy and Management by January 31 annually, and repeals Section 7-576g relating to a prior municipal tier designation provision.