General Election
New York CityProposal 5
Rainy-day reserves
Adds a reserve target, a process for calculating deposits and a city-law withdrawal limit aligned with state law.
What changes
3 provisions1Reserve target
Set a target of at least 12% of the preceding ’s tax revenue, counting the and other reserve funds identified in the .
Reserve target
Set a target of at least 12% of the preceding ’s tax revenue, counting the and other reserve funds identified in the .
Today
There is no specified charter target for the amount held in reserves.
What stays in place
The Charter continues to say the City “may maintain” a rainy-day fund.
When: Upon certification of voter approval
Conditions and exceptions
- This is a balance target, not a requirement to deposit 12% of annual revenue every year.
2Deposit methodology
Require a published calculation method considering revenue trends, operating surplus and other relevant factors; update it by May 1, 2030 and at least every four years thereafter.
Deposit methodology
Require a published calculation method considering revenue trends, operating surplus and other relevant factors; update it by May 1, 2030 and at least every four years thereafter.
Today
Deposits depend on annual budget decisions without this required .
What stays in place
The Mayor and City Council still approve each deposit in the budget. prepares the methodology in consultation with the Comptroller, with public notice, a comment period and a hearing.
When: First methodology: 2027-05-01; annual deposit provision applies from fiscal years beginning 2027-07-01
Conditions and exceptions
- The methodology can spread deposits over several years, or skip them in years of financial hardship, even while reserves are below the target.
3Withdrawal limit
Add the corresponding 50% annual withdrawal limit to the charter.
Withdrawal limit
Add the corresponding 50% annual withdrawal limit to the charter.
Today
State law already limits withdrawals without a mayoral fiscal-need certification.
What stays in place
Withdrawals still follow the expense-budget adoption or modification process.
When: Upon certification of voter approval
Conditions and exceptions
- The mayor may certify a to exceed 50%.