PRINTER'S NO. 2700
No. 2093 Session of 1976
INTRODUCED BY RAPPAPORT AND LEDERER, FEBRUARY 3, 1976
REFERRED TO COMMITTEE ON URBAN AFFAIRS, FEBRUARY 3, 1976
AN ACT
1 Amending the act of June 25, 1919 (P.L.581, No.274), entitled
2 "An act for the better government of cities of the first
3 class of this Commonwealth," further providing for the
4 borrowing of money for capital purposes and for the planning,
5 promotion and conduct of the celebration of the bicentennial
6 anniversary of the founding of the United States.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 8 of Article XVII, act of June 25, 1919
10 (P.L.581, No.274), entitled "An act for the better government of
11 cities of the first class of this Commonwealth," amended
12 December 19, 1975 (No.154), is amended to read:
13 ARTICLE XVII
14 Finance
15 [Section 8. It shall be lawful for such city to borrow money
16 or incur debt, in accordance with the terms of existing law for
17 the purpose of acquiring property, erecting buildings, bridges,
18 or other structures (but not for the repair of the same), paving
19 and repaving streets (but not repairing the same), or for any
20 other improvements of a permanent or a temporary kind, or for
1 capital outlay of any kind: Provided, however, That it shall be
2 lawful for any such city to borrow money or incur debt, in
3 accordance with the terms of the existing law, for any public
4 exposition celebrating the sesquicentennial or bicentennial
5 anniversary, and that such debt may be incurred for permanent or
6 temporary purposes, but only directly in connection with the
7 celebration of the sesquicentennial or bicentennial anniversary,
8 and for no other purpose, and that repayment thereof shall be
9 made within five years after any such money shall be borrowed
10 for these purposes: Provided, That all of such proposed
11 expenditures or for repaving or improvements of a temporary kind
12 are certified to the council by the city controller to be
13 capital expenditures as distinguished from current expenses,
14 prior to the authorization of such debt: And provided further,
15 That, in cases of loans for repaving and improvements of a
16 temporary kind, the estimated or guaranteed life to the city of
17 such repaving or such improvements of a temporary kind, for
18 which the money is proposed to be borrowed, shall also be
19 certified by the city controller. The certificate of the city
20 controller shall be final and conclusive as to the character of
21 the proposed expenditures and as to the estimated or guaranteed
22 life to the city of such repaving or improvements of a temporary
23 kind. It shall be unlawful for the city to borrow money or incur
24 debt for any purposes other than above specified, except in the
25 case of loans for periods not to exceed one year as provided in
26 this act: Provided, however, That if during the preceding year
27 current funds have been used for purposes for which it would
28 have been lawful to borrow money as herein provided, and the
29 city controller shall so certify, the current funds may be
30 reimbursed out of loan funds borrowed for that purpose: And
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1 provided further, That all money borrowed and all debts
2 otherwise incurred, under the provisions of this section, for
3 repaving or improvements of a temporary kind shall be payable
4 within the estimated or guaranteed life to the city of such
5 repaving or such improvements as certified to the council by the
6 city controller: And provided further, That the total amount of
7 money borrowed under the provisions of this section in
8 connection with the celebration of the bicentennial anniversary
9 shall not exceed $15,000,000: And provided further, That this
10 amendment shall in nowise affect or pertain to loans authorized
11 or issued before the passage thereof.]
12 Section 8. A city of the first class may incur debt, in the
13 manner provided by then existing law, for capital purposes but,
14 except as provided in this section, not for the purpose of
15 paying current expenses. Prior to the authorization of such debt
16 by council, the city controller shall certify to the council
17 that the purposes for which the debt is to be authorized as
18 stated in the authorizing ordinance are capital purposes as
19 opposed to current expenses. The ordinance authorizing such debt
20 shall require that the obligations evidencing such debt
21 allocated to the capital asset or assets to be acquired shall
22 mature or be amortized by sinking fund payments within the
23 useful life of such capital asset or assets all as fixed and
24 determined by the ordinance or as fixed and determined by
25 administrative decision at the time of the issuance of the
26 obligations pursuant to the ordinance. For the purpose of
27 determining the useful life of capital assets, personal
28 property, fixtures and equipment acquired in connection with or
29 as a part of a larger project shall be deemed to have the useful
30 life of the larger project and the useful life of multiple
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1 capital assets or projects simultaneously financed may be
2 expressed as a weighted average useful life. For the purpose of
3 compliance with this section, the determination of the council,
4 or of an officer of the city authorized by council, of the
5 allocation of obligations to capital assets and of the useful
6 life of the capital assets shall be final and conclusive. A city
7 of the first class may also incur debt, in addition to all other
8 authorized debt, subject to constitutional debt limitations, not
9 exceeding, in the aggregate, the sum of $15,000,000, for the
10 purpose of planning, promoting, and conducting the celebration
11 of the bicentennial anniversary of the founding of the United
12 States of America, including permanent or temporary
13 improvements, without regard to the nature of the expenditures
14 as capital or current expenses and without regard to the useful
15 life of any permanent or temporary improvements financed
16 thereby: Provided, That prior to the authorization of any such
17 bicentennial debt, the city controller shall certify to the
18 council that the amount of such authorization together with all
19 prior authorizations does not exceed $15,000,000. Loans made for
20 bicentennial purposes under the special authorization of this
21 section shall be repaid not later than five years from the date
22 thereof and the net proceeds thereof after payment of the costs
23 of the financing shall be separately accounted for and disbursed
24 only for such purposes, including reimbursement of other city
25 funds previously expended for such purposes, as certified by the
26 director of finance of such city whose determination that the
27 expenditure is within the purpose of the special bicentennial
28 authorization of this section shall be final and conclusive.
29 Temporary loans authorized pursuant to section 5 of this article
30 XVII, as from time to time amended, and obligations authorized
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1 under the act of October 18, 1972 (P.L.955, No.234), known as
2 "The First Class City Revenue Bond Act" are not subject to the
3 provisions of this section.
4 Section 2. This amending act shall apply only prospectively
5 and shall not affect or pertain to debt authorized, incurred or
6 issued prior to the effective date of this act.
7 Section 3. This act shall take effect immediately.
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