[[1]HISTORY: Adopted by the Borough Council of the Borough
of Middletown as indicated in article histories. Amendments noted
where applicable.]
[1]
Editor's Note: Former Ch. 84, Shade Tree Commission, was adopted
12-12-1960 by Ord. No. 407 and amended 4-6-1987 by Ord. No. 943. The
Shade Tree Commission was abolished 3-2-2015 by Ord. No. 1312.
[Adopted 4-2-2019 by Ord.
No. 1360, approved 4-2-2019]
There shall be established in the Borough of Middletown (hereinafter
the "Borough") a stabilization fund pursuant to the authority set
forth in 8 Pa.C.S.A. § 1202(23) for the creation of an operating
reserve fund and 8 Pa.C.S.A. § 1313.1 for the creation of
special funds and investments. The Borough shall set aside money in
the stabilization fund for the payment of unforeseen and unfunded
emergency expenses of the Borough related to the health, safety and
welfare of Borough residents. The administration, control, investment
and expenditure of the stabilization fund by Borough Council shall
be in accordance with this chapter.
A.
Deposits.
(1)
The stabilization fund shall be funded by annual contributions from
the Borough's general fund and electric fund. Transfers shall
be made to the stabilization fund from the general fund and electric
fund each year that there is an end-of-year surplus in either or both
contributing funds. A transfer equal to 10% of each fund's surplus
shall be made after receipt by the Borough of the audited financial
statements for the fiscal year for which there was a year-end surplus.
(2)
There shall be no maximum placed on the total stabilization fund
balance. Notwithstanding the foregoing, pursuant to 8 Pa.C.S.A. § 1202(23),
no appropriation may be made to the stabilization fund if said appropriation
would cause the stabilization fund balance to exceed 25% of the estimated
revenues of the Borough's general fund in the current fiscal
year.
B.
Expenditures. Payments out of the stabilization fund shall be for
unforeseen and unfunded emergency expenses of the Borough related
to the health, safety and welfare of Borough residents. Such expenditures
are those that would result in significant unanticipated revenue shortfalls
if paid out of the general fund. Stabilization funds may also be used
for any lawful municipal purpose under the Pennsylvania Borough Code,
8 Pa.C.S.A. § 101 et seq. Consistent with Council's
authority set forth in 8 Pa.C.S.A. § 1313.1 to expend funds
in the manner as may be determined by action of Council under this
article, a majority vote of all elected Borough Council members plus
one is required to spend money out of the stabilization fund for the
payment of authorized expenses.
C.
Investments. Money deposited into the stabilization fund shall be
subject to the investment rules governing Borough funds set forth
under 8 Pa.C.S.A. § 1316, Investment of funds.
