PRIOR PRINTER'S NO. 2429 PRINTER'S NO. 2507
No. 1733 Session of 1990
INTRODUCED BY ROCKS AND SALVATORE, JULY 10, 1990
SENATOR GREENWOOD, URBAN AFFAIRS AND HOUSING, AS AMENDED,
SEPTEMBER 26, 1990
AN ACT
1 Providing for certain debt reports to be submitted by cities of
2 the first class to the Department of Community Affairs. STATE <--
3 TREASURER.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the First Class
8 City Debt Reporting Law.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Borrowing base." The annual arithmetic average of the total
14 revenues for the three full fiscal years ended next preceding
15 the date of the incurring of nonelectoral debt or lease rental
16 debt as set forth in a certificate stating the total revenues in
17 each of such years and stating such average, executed by the
1 authorized officials of the city or by an independent
2 accountant. If, within the three-year period, there has been an
3 expansion or contraction of the territorial or functional
4 jurisdiction of the city through transfer, merger, annexation or
5 assumption, in whole or in part, in relation to another local
6 government unit or an authority, the borrowing base shall be
7 calculated as if the expansion or contraction had occurred
8 within or prior to the commencement of the three-year period in
9 such manner as the statutes, charter provisions or court decree
10 shall provide or direct or, in the absence of such provisions,
11 as the department STATE TREASURER shall approve. <--
12 "City." A city of the first class.
13 "Department." The Department of Community Affairs of the <--
14 Commonwealth.
15 "School district." A school district of the first class.
16 Section 3. Annual debt report.
17 On or before March 15 JANUARY 1 of every year, the director <--
18 of finance for the city shall submit to the department STATE <--
19 TREASURER an annual debt report for the previous calendar year
20 that includes the following information:
21 (1) Gross indebtedness of the city, including any debt
22 incurred by or for the school district and any municipal
23 authority created by the city. The indebtedness of the school
24 district and any municipal authority created by the city
25 shall be listed separately.
26 (2) A list of each outstanding bond with its purpose,
27 the interest rate and repayment schedule for each bond and
28 the extent to which each bond is self-liquidating or
29 subsidized.
30 (3) The borrowing base for the city.
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1 (4) The debt limit of the city according to section 12
2 of Article IX of the Constitution of Pennsylvania.
3 (5) A projection of debt requirements for the following
4 two calendar years.
5 Section 4. Independent evaluation.
6 The department STATE TREASURER shall evaluate or arrange to <--
7 have outside experts evaluate the city's debt situation and, if
8 applicable, make recommendations that might improve the city's
9 debt rating and financial condition.
10 Section 5. First report.
11 The first debt statement shall be submitted to the department <--
12 STATE TREASURER on or before March 15 JANUARY 1, 1991. <--
13 Section 6. Effective date.
14 This act shall take effect immediately.
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