§ 18-9. Debt Management Policy., Chapter 18. Capital Budget System, Code of Ordinances, Brookhaven

Requirements.

(1)

Maximum budgeted debt service expenditures. Budgeted debt service expenditures in the Town-Wide General Fund shall not exceed 15% of Town-Wide General Fund revenues, excluding any application of surplus, or 15% of Town-Wide General Fund expenditures, whichever is less. The 15% shall be calculated based upon the actual Town-Wide General Fund revenues or expenses of the last prior completed fiscal year.

(a)

In the event that the Commissioner of Finance issues a written statement that the Town was in compliance with Subsection A(1) of this section in the last prior completed fiscal year, the Commissioner of Finance shall then recommend a total dollar amount for the capital budget in the next fiscal year that will ensure the Town's continued compliance with Subsection A(1) of this section.

(b)

In the event that the Commissioner of Finance issues a written statement that the Town was not in compliance with Subsection A(1) of this section in the last prior completed fiscal year, the Commissioner of Finance shall then recommend a total dollar amount for the capital budget in the next fiscal year that will ensure the Town's compliance with Subsection A(1) of this section.

(2)

Commencing on June 1, 2011, and June 1 of each year thereafter, the Commissioner of Finance shall submit in writing to the Supervisor an estimate of the total dollar amount of capital projects spending that may be included in the following year's budget in order to comply with the provisions of Subsection A(1) of this section.

(a)

The statement from the Commissioner of Finance shall include an analysis of expected revenues and expenditures and a calculation of the current and projected Town-Wide General Fund debt service levels. For those years where the Town is not in compliance with Subsection A(1), the analysis shall also include a projected schedule of the total maximum capital budget expenditures that will be permitted in future years, and any additional action that may be necessary to ensure the Town comes into or remains in compliance with the provisions of Subsection A(1). The Commissioner's analysis shall be included in the following year's Town adopted budget document.

(3)

Notwithstanding the provisions of Subsection A(1) above, in the event of an emergency as declared by the Supervisor pursuant to Article 2-B of the New York State Executive Law, the budgeted debt service expenditures in the Town-Wide General Fund may be increased upon a two-thirds majority vote of the Town Board in order to provide funding to respond to such emergency.

(4)

The Town shall take all necessary action to ensure compliance with the provisions of Subsection A(1) no later than December 31, 2015, and each year thereafter.

(5)

Notwithstanding any provision of this chapter, the Town shall not be obligated to incur the maximum amount of allowable debt service within any given year.