A municipality designated as a tier I municipality in accordance with section 7-576a or designated as a tier II municipality in accordance with section 7-576b shall retain such designation, notwithstanding any positive changes in the factors leading to its current designation, or until, in the fiscal years following such designation,

1. (1) there have been no annual operating budgetary deficits in the general fund of the municipality for two consecutive fiscal years,
2. (2) the municipality's bond rating has either improved or remained unchanged since its most current designation,
3. (3) the municipality has presented and the commission or board has approved a financial plan that projects a positive unreserved fund for the three succeeding consecutive fiscal years covered by such financial plan, and
4. (4) the municipality's audits for such consecutive fiscal years have been completed and contain no general fund deficit. Notwithstanding any other provisions of sections 7-560 to 7-575, inclusive, sections 7-568 to 7-579, inclusive, the municipality shall remain undesignated for purposes of a tier designation, unless circumstances would result in the municipality being designated as a tier numerically higher than its most recent designation.

(June Sp. Sess. P.A. 17-2, S. 369.)

History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.