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Borough of Homestead, PA
Allegheny County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Borough Council of the Borough of Homestead 3-10-1988 by Ord. No. 987. Amendments noted where applicable.]
As used herein the following terms shall be defined as herein set forth:
CAPITAL
As used in conjunction with "purpose" or "expenditure" shall have the same meaning generally ascribed to the term "capital" by generally accepted accounting principles, but shall not include any automobile, truck or other vehicle, nor any depreciable tangible personal property.
ECONOMIC DEVELOPMENT
Any project enumerated in the Municipality Authorities Act of 1945.[1]
[1]
Editor's Note: See 53 P.S. § 301 et seq.
The Borough of Homestead hereby establishes a separate fund, to be known as the "Homestead Borough Special Reserve Fund" (the "fund"). The fund shall consist of those specific accounts and investments as are identified for the purposes of this chapter. The fund shall not be commingled with any other funds of the Borough or any other entity.
The Authority for this chapter is Section 1202(32) of the Borough Code, Act of February 1, 1966 (1965 P.L. 1656, No. 581), as amended.[1]
[1]
Editor's Note: See 53 P.S. § 46202(32).
The initial deposit into the fund shall be the sum of $850,000, which are the proceeds of sale received from the Western Pennsylvania Water Company for the Borough's waterworks. The Borough may, from time to time, make additional deposits into the fund from any sale, lease or other disposition of Borough property, or from any sums received from any source other than taxation, unless said sums referred to were received for a particular purpose inconsistent with this fund. Other than this initial deposit, all deposits shall be made by motion or resolution of Council, duly enacted at a meeting lawfully assembled. Any unexpended and unappropriated interest shall be deemed a part of the principal of the fund and shall be further deposited as principal into the fund.
The principal (and any unexpended and unappropriated interest, which has been deemed to be principal pursuant to § 78-4 hereof) shall be invested and reinvested in funds, accounts and other investments which are lawful for boroughs to make, as Council may from time to time direct by motion or resolution duly enacted at a meeting lawfully assembled, unless otherwise appropriated or expended by Council as set forth in this chapter. The motion or resolution directing the investment of the fund shall be continuing, unless otherwise stated, or limited by the terms or nature of the investment, or unless otherwise abrogated by Council.
The Borough may make appropriations from the fund, only upon the following terms:
A. 
Council may from time to time by motion or resolution duly enacted at a meeting lawfully assembled, authorize the appropriation and expenditure of all or any part of the interest earned or to be earned for any lawful purpose. If Council has not acted to authorize the appropriation and expenditure of interest as stated aforesaid, or does not act within 60 days from the payment or crediting of any interest to the fund, then said interest shall be deemed to be unexpended and unappropriated and made a part of the principal of the fund, subject to §§ 78-4 and 78-5 hereof. It is expressly understood that a motion or resolution for the purpose of this § 78-6A may be enacted in advance of the payment or crediting of fund interest.
B. 
Once per every fiscal year, Council may, by resolution passed by at least 2/3 of the number of Councilpersons comprising Council, authorize the appropriation and expenditure of not more than $100,000 of the principal from the fund for, and only for, the specific purposes set forth in § 78-7 of this chapter. In the event the Borough desires to expend and appropriate more than $100,000 per fiscal year, or if Council, after already exercising the once per fiscal year appropriation and expenditure, desires to exercise another appropriation of principal from the fund; the same may be so undertaken provided that a resolution is adopted without dissenting vote cast by any member of Council present at a meeting lawfully assembled.
C. 
Council may from time to time, by motion or resolution duly adopted at a meeting lawfully assembled, authorize any borrowing from the principal of the fund as it deems appropriate, at any rate of interest and for any length of time the Borough deems appropriate, for any lawful propose or expenditure of the Borough.
[Added 12-13-1990 by Ord. No. 1003; amended 3-14-1991 by Ord. No. 1011]
A. 
Any and all appropriations and expenditures of principal from the fund shall be limited to the following:
(1) 
As part of a plan of economic development for all or any part of the Borough of Homestead.
(2) 
In conjunction with, or as security for, any loan or bond issue which is for capital purposes.
(3) 
For tax anticipation borrowing purposes, provided that the moneys so appropriated are subject to the same constraints and repayment provisions as are standard and customary for tax anticipation borrowings within the Commonwealth of Pennsylvania; and provided, further, that no moneys from the fund shall be used for tax anticipation borrowing purposes until all outstanding sums for such purposes have been first repayed.
(4) 
For any capital expenditure lawfully undertaken by the Borough.[1]
[1]
Editor's Note: Original Section 11, Amendment and Termination, which immediately followed this subsection, was repealed 12-13-1991 by Ord. No. 1003. See now 53 P.S. §§ 46006 and 46007 of the Borough Code.
(5) 
Any borrowing from the principal of the fund, at any rate of interest and for any length of time the Borough deems appropriate for any lawful purpose or expenditure of the Borough.
[Added 12-13-1990 by Ord. No. 1003; amended 3-14-1991 by Ord. No. 1011]
B. 
Notwithstanding any provision in this chapter to the contrary, no part of fund principal may be used, directly or indirectly, for the payment of any item which is lawfully or traditionally a charge to the Borough's general fund, except for a borrowing pursuant to §§ 78-6C and 78-7A(5) above, including but not limited to the following: salaries or other compensation to any employees, officials, representatives, agents or independent contractors; any debt, charge, claim or damage sought against the Borough; or any other sum which may be owed by the Borough and not expressly listed in Subsection A(1) through (5) of this section.
[Amended 12-13-1990 by Ord. No. 1003]
[Amended 3-14-1991 by Ord. No. 1011]
In addition to the provisions of § 78-7 hereof, each and every appropriation and expenditure of principal of the fund must include, as part of the authorizing resolution, a written plan of repayment consented to and approved by the person or entity charged by the Borough with primary responsibility for its financial management.