Common use of Ability to Pay Clause in Contracts

Ability to Pay. In the event of an unanticipated catastrophic decline in revenues or an increase in expenditures, defined as a single event which changes revenues or expenditures by twenty percent or more in a single fiscal year, City and Union agree to meet and confer regarding methods to weather the event by means of including, but not limited to, layoffs, deferral of implementation of one or more provisions of the contract, increased revenue generation, etc.