PRINTER'S NO. 284
No. 264 Session of 1977
INTRODUCED BY ZEARFOSS, FREIND, MORRIS AND RUGGIERO,
FEBRUARY 9, 1977
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 9, 1977
AN ACT
1 Amending the act of June 24, 1931 (P.L.1206, No.331), entitled
2 "An act concerning townships of the first class; amending,
3 revising, consolidating and changing the law relating
4 thereto," providing for voter approval on certain capital
5 expenditures.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Clause LVIII. of section 1502, act of June 24,
9 1931 (P.L.1206, No.331), known as "The First Class Township
10 Code," reenacted and amended May 27, 1949 (P.L.1955, No.569),
11 added May 20, 1957 (P.L.180, No.88) is amended to read:
12 Section 1502. The corporate power of a township of the first
13 class shall be vested in the board of township commissioners.
14 The board shall have power--
15 * * *
16 LVIII. Creation of Capital Reserve Fund for Anticipated
17 Capital Expenditures. To create and maintain a separate capital
18 reserve fund for any anticipated legal capital expenditures,
19 which fund shall be designated for a specific purpose or
1 purposes at the time of its creation. The money in the fund
2 shall be used, from time to time, for the construction, purchase
3 or replacement of or addition to municipal buildings, equipment,
4 machinery, motor vehicles or other capital assets of the
5 township as specified at the time of the creation of the fund
6 and for no other purpose: Provided, That it may be used for
7 capital expenditure other than the purpose or purposes specified
8 at the time it was created, if the commissioners by a four-
9 fifths vote shall declare that the original purpose or purposes
10 have become impracticable, inadvisable or impossible, or that
11 conditions have arisen in the township which make other capital
12 expenditures more urgent than those for which the fund was
13 created :And, provided further, That the commissioners shall not
14 expend more than three hundred thousand ($300,000) dollars in
15 any one year on any one capital project or expenditure without
16 first receiving the approval of the township electorate in the
17 manner set forth in the act of July 12, 1972 (P.L.781, No.185),
18 known as the "Local Government Unit Debt Act."
19 The township commissioners may appropriate moneys from the
20 general township funds to be paid into the capital reserve fund,
21 or place in the fund any moneys received from the sale, lease or
22 other disposition of any township property or from any other
23 source unless received or acquired for a particular purpose. The
24 fund shall be controlled, invested, reinvested and administered
25 and the moneys therein and income from such moneys expended for
26 the specific purpose or purposes for which the fund is created
27 in such manner as may be determined by the township
28 commissioners. The money in the fund, when invested, shall be
29 invested in securities designated by law as legal investments
30 for sinking funds of municipalities.
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1 * * *
2 Section 2. This act shall take effect immediately and apply
3 to the fiscal year 1978 and each year thereafter.
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