Default Budget Clause Samples
Default Budget. (a) If on November 1 of any Fiscal Year no Annual Budget has been approved for the following Fiscal Year, then the Annual Budget for the then current Fiscal Year, adjusted (without duplication) to reflect increases or decreases resulting from the following events, shall govern the Fiscal Year beginning on the January 1 following the aforesaid November 1, subject to the limitations set forth in Section 8.6(b) below:
(i) the operation of escalation or de-escalation provisions in contracts in effect at the time of approval of the then current Fiscal Year's Annual Budget solely as a result of the passage of time or the occurrence of events beyond the control of the Company to the extent such contracts are still in effect;
(ii) elections made in any current or prior Fiscal Year under contracts contemplated by the Annual Budget for the then current Fiscal Year regardless of which party to such contracts made such elections;
(iii) increases or decreases in expenses attributable to the annualized effect of employee additions or reductions during the then current Fiscal Year contemplated by the Annual Budget for the then current Fiscal Year;
(iv) changes in interest expense attributable to any loans made to or retired by the Company;
(v) increases in overhead expenses in an amount equal to the total of overhead expenses reflected in the Annual Budget for the then current Fiscal Year multiplied by the increase in the Consumer Price Index for the then current year, but in no event more than five percent (5%);
(vi) the anticipated incurrence of costs during such following Fiscal Year for any legal, accounting and other professional fees or disbursements in connection with events or changes not contemplated at the time of preparation of the Annual Budget for the then current Fiscal Year; and
(b) Any Annual Budget established pursuant to this Section 8.6 is herein referred to as a "Default Budget." Default Budgets shall not be in effect for more than two consecutive Fiscal Years. In the event a new Annual Budget is not approved by the time such two-year period shall have expired, the Company shall have no Annual Budget, and no Capital Contributions shall be required to be made thereafter.
Default Budget. 24 8.7 Resignation..........................................................25 8.8 Removal..............................................................25 8.9 Vacancies............................................................25 8.10 Meetings.............................................................25
Default Budget. If on January 1 of any fiscal year the Company no Proposed Budget has been approved by the Company Board for such fiscal year and a Default Budget was in effect for the prior fiscal year, then such Default Budget, adjusted (without duplication) to reflect increases or decreases resulting from the events listed above (as if the references in the first sentence of this Section 6.07(b) to "Budget" referred to such "Default Budget") shall govern until the Company Board approves a new Proposed Budget.
Default Budget. In the event that the Members’ Committee fails to approve a budget for any two (2) year period pursuant to Sections 7.01 and 7.02 hereof, then the Approved Budget for the next ensuing year shall be the budget for the second year of the two (2) year period as was contemplated within the then effective Approved Budget (for the avoidance of doubt, 2010 being the second year of the initial Approved Budget) and if the two (2) year period covered by the most recent Approved Budget expires and no further budget is approved by the Members’ Committee, there shall be a Default Budget (as defined below) for the next ensuing year. The default budget (a “Default Budget”) shall be equal to the annualized operating expenditures of the Company for the most recent three months.
Default Budget. In the event the LIPA Board of Trustees has not approved a Consolidated LIPA Budget by the beginning of a Contract Year, the approved Consolidated LIPA Budget for the immediately preceding Contract Year (as the same may have been amended) as adjusted for inflation (such Consolidated LIPA Budget, a “Default Budget”) will remain in effect until such time as a Consolidated LIPA Budget for that Contract Year is so approved by the Parties or effected in accordance with Section 8.6(G)(3) hereof. Expenditures made pursuant to a Default Budget, and any related Excess Expenditures, shall be deemed as if made in accordance with an approved Consolidated LIPA Budget.
Default Budget. In the event the Board of Directors fails to pass a resolution approving a Final Budget, the Default Budget for the upcoming fiscal year shall be capped at a three percent annual inflation increase of the current budget.
Default Budget. In the event that the Members’ Committee fails to approve a budget for any two (2) year period pursuant to Sections 7.01 and 7.02 hereof, then the Approved Budget for the next ensuing year shall be the budget for the second year of the two (2) year period as was contemplated within the then effective Approved Budget (for the avoidance of doubt, 2008 being the second year of the initial Approved Budget) and if the two (2) year period covered by the most recent Approved Budget expires and no further budget is approved by the Members’ Committee, there shall be a Default Budget (as defined below) for the next ensuing year. The default budget (a “Default Budget”) shall be equal to the annualized actual net cash for the most recent three months (expressed in termsof revenue, operating expenditures and capital spending) escalated by four percent (4%) . The Members’ monthly funding of the Default Budget will be based on the monthly average of the total annual Default Budget, unless the Members agree to allocate the annual Default Budget in another manner..
Default Budget. In the event any Budget for a given Contract Year has not been finalized in accordance with Section 7.3(a)
Default Budget. In the event any O&M Budget for a given Contract Year has not been finalized in accordance with Section 7.3(c) (O&M Budgets – Administrator Review of O&M Budgets) by July 1 of such Contract Year, the applicable approved O&M Budget for the immediately preceding Contract Year (as the same may have been amended) (such O&M Budget as it relates to the given Contract Year, a “Default Budget”) shall remain in effect until such time as the applicable O&M Budget for such Contract Year is so finalized; provided that any such Default Budget shall be compliant with the then applicable Rate Order.