2. A "fiscally eligible municipality" shall mean any county, city, excluding a city with a population greater than one million, town, or village that the board, on a case by case basis, determines would benefit from the services and assistance which the board has legal authority to offer. In evaluating whether a municipality is a fiscally eligible municipality, the board shall consider the average full value property tax rate of such public employer and the average fund balance percentage of such public employer and such other criteria as the board deems relevant. For purposes of this section, "full value property tax rate" shall mean the amount to be raised by tax on real estate by a local government in a given fiscal year divided by the full valuation of taxable real estate for that same fiscal year as reported to the office of the state comptroller; "average full value property tax rate" shall mean the sum of the full value property tax rates for the five most recent fiscal years divided by five; "fund balance percentage" shall mean the total fund balance in the general fund of a local government in a given fiscal year divided by the total expenditures from the general fund for that same fiscal year as reported to the office of the state comptroller; and "average fund balance percentage" shall mean the sum of the fund balance percentages for the five most recently completed fiscal years divided by five.

1. (a) If the average full value property tax rate of such municipality is greater than the average full value property tax rate of seventy-five percent of counties, cities, towns, and villages, with local fiscal years ending in the same calendar year as of the most recently available information, the board must find that such municipality is a fiscally eligible municipality. The office of the state comptroller shall make publicly available the list of counties, cities, towns, and villages that have an average full value property tax rate that meets such criteria in each local fiscal year. If a municipality has not reported to the office of the state comptroller the information necessary to calculate its average full value property tax rate, such municipality may not be deemed a fiscally eligible municipality and the provisions of this section shall not apply.
2. (b) If the average fund balance percentage of such municipality is less than five percent, the board must find that such municipality is a fiscally eligible municipality. The office of the state comptroller shall make publicly available the list of counties, cities, towns, and villages that have an average fund balance percentage that meets such criteria in each local fiscal year. If a municipality has not reported to the office of the state comptroller the information necessary to calculate its average fund balance percentage, such municipality may not be deemed a fiscally eligible municipality and the provisions of this section shall not apply.

3.

1. (a) Upon the request of a fiscally eligible municipality, by resolution of the governing body of such municipality with the concurrence of the chief executive of such municipality, the financial restructuring board for local governments may undertake a comprehensive review of the operations, finances, management practices, economic base and any other factors that in its sole discretion it deems relevant to be able to make findings and recommendations on reforming and restructuring the operations of the fiscally eligible municipality. As part of such recommendations, the board may propose that such municipality agree to fiscal accountability measures, as determined by the board, including, but not limited to, multi-year financial planning. It may also identify cost-saving measures, recommend consolidation of functions or agencies within such municipality or between such municipality and other municipalities, consistent with existing law, identify and make available, to the extent otherwise permitted by law, grants and loans on such terms and conditions as it deems appropriate, and make such other recommendations as the board may deem just and proper but in no event shall the sum of all awards made by the board to a single fiscally eligible municipality be greater than five million dollars. If such award is a loan, it may not be for a term longer than ten years. In the event a grant or loan is made, the board may condition such award on the fiscally eligible municipality submitting a report or reports on such actions taken by the fiscally eligible municipality pursuant to the board's recommendations, and the board shall require that the eligible municipality must adopt and implement all the board's recommendations as a condition to receiving an award or awards. Before making final recommendations, the board shall consult with the fiscally eligible municipality. Such recommendations shall not be final and binding on a fiscally eligible municipality unless it formally agrees to abide by and implement such recommendations in which event such recommendations and the terms provided thereunder shall be final and binding on such municipality.
2. (b) Notwithstanding paragraph t of subdivision ten of section fifty-four of the state finance law and irrespective of whether there has been a determination or finding of fiscal eligibility under this section, upon the request of any county, city, excluding a city with a population of greater than one million, town, or village which (1) has elected to engage in multi-year planning with the assistance of an external financial advisor, and (2) has been identified as experiencing fiscal stress, the financial restructuring board for local governments may determine that all or part of the cost to the county, city, town, or village for such external advisor shall be subject to reimbursement from monies appropriated to such board for the making of grants and loans.