The proposed legislation, General Assembly Raised Bill No. 7005, aims to amend Section 7-576a of the general statutes regarding the designation of municipalities as tier I municipalities by the Municipal Finance Advisory Commission. The bill stipulates that any municipality with a population of less than twenty-five thousand, as determined by the most recent decennial census, shall be designated as a tier I municipality. Additionally, municipalities with a population of twenty-five thousand or more may also be designated as tier I based on an evaluation of their financial condition and practices.

The bill modifies the application process for municipalities that do not meet the specified conditions to seek tier I designation. It replaces the previous requirement for the chief elected official to expect that the municipality will meet the conditions within the next twenty-four months with a new requirement to submit a report confirming that such conditions will be met. Furthermore, it mandates that each designated tier I municipality must prepare and present a five-year financial plan to the Municipal Finance Advisory Commission for review and approval. The changes will take effect on July 1, 2025.

Statutes affected:
Raised Bill: 7-576a