The proposed legislation, General Assembly Raised Bill No. 7005, aims to amend Section 7-576a of the general statutes by establishing criteria for 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 also modifies the application process for municipalities that do not meet the specified conditions. The chief elected official of such municipalities can apply for tier I designation if they anticipate meeting the conditions within the next twenty-four months and submit a report confirming this expectation. The previous requirement that each designation decision be based solely on an evaluation of financial conditions and practices has been removed. Furthermore, all designated tier I municipalities will be required to prepare and present a five-year financial plan for review and approval by the Municipal Finance Advisory Commission. The act is set to take effect on July 1, 2025.

Statutes affected:
Raised Bill: 7-576a