PRIOR PRINTER'S NO. 2804 PRINTER'S NO. 3291
No. 2006 Session of 2003
INTRODUCED BY TURZAI, T. STEVENSON, MUSTIO, HABAY, BARRAR, BOYD, CAPPELLI, CRAHALLA, DAILEY, DALLY, DENLINGER, J. EVANS, FLICK, HORSEY, HUTCHINSON, LEWIS, McILHATTAN, METCALFE, PAYNE, REED, REICHLEY, SAYLOR, SCHRODER, R. STEVENSON, WILT, RUBLEY, SCAVELLO AND CLYMER, OCTOBER 16, 2003
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, FEBRUARY 4, 2004
AN ACT 1 Providing for intergovernmental cooperation in cities of the <-- 2 second class; establishing an intergovernmental authority; 3 providing for financing, for bankruptcy and for sovereign 4 immunity; making an appropriation; and making a repeal. 5 TABLE OF CONTENTS 6 Chapter 1. General Provisions 7 Section 101. Short title. 8 Section 102. Purpose and legislative intent. 9 Section 103. Legislative findings. 10 Section 104. Definitions. 11 Chapter 2. Intergovernmental Cooperation Authority for Cities 12 of the Second Class 13 Section 201. Authority established. 14 Section 202. Governing board. 15 Section 203. Powers and duties. 16 Section 204. Term of existence. 17 Section 205. Fiscal year.
1 Section 206. Annual budget of authority. 2 Section 207. Annual report to be filed; annual audits. 3 Section 208. Limit on city borrowing. 4 Section 209. Budget proposal by authority. 5 Section 210. Financial plan of an assisted city. 6 Section 211. Powers and duties of authority with respect to 7 financial plans. 8 Section 212. Limitation on assisted cities to file petition 9 for relief under Federal bankruptcy law. 10 Section 213. Investment of funds. 11 Section 214. Sovereign immunity. 12 Chapter 7. Miscellaneous Provisions 13 Section 701. Appropriation. 14 Section 702. General rights and prohibitions. 15 Section 703. Nondiscrimination. 16 Section 704. Construction of act. 17 Section 705. Limitation of authority powers. 18 Section 706. Repeals and suspensions. 19 Section 707. Effective date. 20 PROVIDING FOR INTERGOVERNMENTAL COOPERATION IN CITIES OF THE <-- 21 SECOND CLASS; ESTABLISHING AN INTERGOVERNMENTAL AUTHORITY; 22 PROVIDING FOR FINANCING, FOR BANKRUPTCY AND FOR SOVEREIGN 23 IMMUNITY; AND MAKING AN APPROPRIATION. 24 TABLE OF CONTENTS 25 CHAPTER 1. GENERAL PROVISIONS 26 SECTION 101. SHORT TITLE. 27 SECTION 102. PURPOSE AND LEGISLATIVE INTENT. 28 SECTION 103. LEGISLATIVE FINDINGS. 29 SECTION 104. DEFINITIONS. 30 CHAPTER 2. INTERGOVERNMENTAL COOPERATION AUTHORITY FOR CITIES 31 OF THE SECOND CLASS 20030H2006B3291 - 2 -
1 SECTION 201. AUTHORITY ESTABLISHED. 2 SECTION 202. GOVERNING BOARD. 3 SECTION 203. POWERS AND DUTIES. 4 SECTION 204. TERM OF EXISTENCE. 5 SECTION 205. FISCAL YEAR. 6 SECTION 206. ANNUAL BUDGET OF AUTHORITY. 7 SECTION 207. ANNUAL REPORT TO BE FILED; ANNUAL AUDITS. 8 SECTION 208. LIMIT ON CITY BORROWING. 9 SECTION 209. FINANCIAL PLAN OF AN ASSISTED CITY. 10 SECTION 210. POWERS AND DUTIES OF AUTHORITY WITH RESPECT TO 11 FINANCIAL PLANS. 12 SECTION 211. LIMITATION ON AUTHORITY AND ON ASSISTED CITIES TO 13 FILE PETITION FOR RELIEF UNDER FEDERAL 14 BANKRUPTCY LAW. 15 SECTION 212. INVESTMENT OF FUNDS. 16 SECTION 213. SOVEREIGN IMMUNITY. 17 CHAPTER 7. MISCELLANEOUS PROVISIONS 18 SECTION 701. APPROPRIATION. 19 SECTION 702. GENERAL RIGHTS AND PROHIBITIONS. 20 SECTION 703. NONDISCRIMINATION. 21 SECTION 704. CONSTRUCTION OF ACT. 22 SECTION 705. LIMITATION OF AUTHORITY POWERS. 23 SECTION 706. REPEAL. 24 SECTION 707. EFFECTIVE DATE. 25 The General Assembly of the Commonwealth of Pennsylvania 26 hereby enacts as follows: 27 CHAPTER 1 <-- 28 GENERAL PROVISIONS 29 Section 101. Short title. 30 This act shall be known and may be cited as the 20030H2006B3291 - 3 -
1 Intergovernmental Cooperation Authority Act for Cities of the 2 Second Class. 3 Section 102. Purpose and legislative intent. 4 (a) Policy.--It is hereby declared to be a public policy of 5 the Commonwealth to exercise its retained sovereign powers with 6 regard to taxation and matters of Statewide concern in a manner 7 calculated to foster the fiscal integrity of cities of the 8 second class to assure that these cities provide for the health, 9 safety and welfare of their citizens; pay principal and interest 10 owed on their debt obligations when due; meet financial 11 obligations to their employees, vendors and suppliers; and 12 provide for proper financial planning procedures and budgeting 13 practices. The inability of a city of the second class to 14 provide essential services to its citizens as a result of a 15 fiscal emergency is hereby determined to affect adversely the 16 health, safety and welfare not only of the citizens of that 17 municipality but also of other citizens in this Commonwealth. 18 (b) Legislative intent.-- 19 (1) It is the intent of the General Assembly to: 20 (i) provide cities of the second class with the 21 legal tools with which such cities can perform essential 22 municipal services; and 23 (ii) foster sound financial planning and budgetary 24 practices for cities of the second class, which cities 25 shall be charged with the responsibility to exercise 26 efficient and accountable fiscal practices, such as: 27 (A) increased managerial accountability; 28 (B) consolidation or elimination of inefficient 29 city programs and authorities; 30 (C) reevaluation of tax-exemption policies with 20030H2006B3291 - 4 -
1 regard to real property taxes; 2 (D) increased collection of existing tax 3 revenues; 4 (E) privatization of appropriate city services; 5 (F) sale of city assets as appropriate; 6 (G) improvement of procurement practices, 7 including competitive bidding procedures; and 8 (H) review of compensation and benefits of city 9 employees; and 10 (iv) exercise its powers consistent with the rights 11 of citizens to home rule and self-government. 12 (2) The General Assembly further declares that this 13 legislation is intended to remedy the apparent fiscal 14 emergency confronting cities of the second class through the 15 implementation of sovereign powers of the Commonwealth. To 16 safeguard the rights of the citizens to the electoral process 17 and home rule, the General Assembly intends to exercise its 18 power in an appropriate manner with the elected officers of 19 cities of the second class. 20 Section 103. Legislative findings. 21 It is hereby determined and declared as a matter of 22 legislative finding that: 23 (1) Cities of the second class have encountered 24 recurring financial difficulties which may affect the 25 performance of necessary municipal services to the detriment 26 of the health, safety and general welfare of residents of 27 such cities. 28 (2) It is critically important that cities of the second 29 class maintain their creditworthiness. 30 (3) Due to the economic and social interrelationship 20030H2006B3291 - 5 -
1 among all citizens in our economy, the fiscal integrity of 2 cities of the second class is a matter of concern to 3 residents of the entire Commonwealth, and the financial 4 problems of such cities have a direct and negative effect on 5 the entire Commonwealth. 6 (4) Because cities of the second class consume a 7 substantial proportion of the products of Pennsylvania's 8 farms, factories, manufacturing plants and service 9 enterprises, economic difficulties confronting cities of the 10 second class detrimentally affect the economy of the 11 Commonwealth as a whole and become a matter of Statewide 12 concern. 13 (5) Because residents of cities of the second class 14 contribute a substantial proportion of all Commonwealth tax 15 revenues, a disruption of the economic and social life of 16 such cities may have a significant detrimental effect upon 17 Commonwealth revenues. 18 (6) The financial difficulties of cities of the second 19 class can best be addressed and resolved by cooperation 20 between governmental entities. 21 (7) The Constitution of Pennsylvania grants 22 municipalities authority to cooperate with other governmental 23 entities in the exercise of any function or responsibility. 24 (8) The Commonwealth retains certain sovereign powers 25 with respect to cities of the second class, among them the 26 powers to authorize and levy taxes, to authorize the 27 incurring of indebtedness and to provide financial assistance 28 that may be necessary to assist cities in solving their 29 financial problems. 30 (9) The Commonwealth may attach conditions to grants of 20030H2006B3291 - 6 -
1 authority to incur indebtedness or assistance to cities of 2 the second class in order to ensure that deficits are 3 eliminated and access to capital markets is achieved and 4 maintained. 5 (10) Such conditions shall be incorporated into 6 intergovernmental cooperation agreements between the 7 Commonwealth or its instrumentalities and cities of the 8 second class. 9 (11) Cities of the second class and the Commonwealth 10 will benefit from the creation of an independent authority 11 composed of members experienced in finance and management 12 which may advise such cities, the General Assembly and the 13 Governor concerning solutions to fiscal problems cities of 14 the second class may face. 15 (12) The creation of such an authority will allow such 16 cities to continue to provide the necessary municipal 17 services for their residents and to contribute to the economy 18 of the Commonwealth. 19 Section 104. Definitions. 20 The following words and phrases when used in this act shall 21 have the meanings given to them in this section unless the 22 context clearly indicates otherwise: 23 "Assisted city." A city of the second class which receives 24 assistance from the Intergovernmental Cooperation Authority for 25 Cities of the Second Class. The term includes any municipal 26 authority, other authority or other corporate entity which 27 performs a governmental function on behalf of the city or to 28 which the city has power of appointment or has pledged or 29 designated revenues. 30 "Authority." The Intergovernmental Cooperation Authority for 20030H2006B3291 - 7 -
1 Cities of the Second Class established in section 201. 2 "Board." The governing board of the Intergovernmental 3 Cooperation Authority for Cities of the Second Class. 4 "City." A city of the second class. 5 "City account." A trust fund held for the exclusive benefit 6 of an assisted city. 7 "Corporate entity." A municipal authority, other authority 8 or other corporate entity which performs a governmental function 9 on behalf of the city or to which the city has power of 10 appointment or has pledged or designated revenues. 11 "Deficit." Such negative fund balance in any principal 12 operating fund or funds of a city or corporate entity existing 13 or projected to exist as of the close of a fiscal year, as may 14 be more specifically identified, calculated and set forth in an 15 intergovernmental cooperation agreement or financial plan of an 16 assisted city described in section 210. 17 "Federal agency." The United States, the President of the 18 United States and any department or corporation, agency or 19 instrumentality created, designated or established by the United 20 States. 21 "Governing body." The legislative body of a city. 22 "Government agency." The Governor, departments, boards, 23 commissions, authorities and other officers and agencies of 24 State government, including those which are not subject to the 25 policy supervision and control of the Governor, any political 26 subdivision, municipal or other local authority, and any officer 27 or agency of any such political subdivision or local authority, 28 but the term does not include any court or other officer or 29 agency of the unified judicial system or the General Assembly or 30 its officers and agencies. 20030H2006B3291 - 8 -
1 "Intergovernmental cooperation agreement." Any agreement 2 made by the authority and a city under the provisions of section 3 203(d). 4 "Party officer." The following members or officers of any 5 political party: 6 (1) a member of a national committee; 7 (2) a chairman, vice chairman, secretary, treasurer or 8 counsel of a State committee or member of the executive 9 committee of a State committee; 10 (3) a county chairman, vice chairman, counsel, secretary 11 or treasurer of a county committee; or 12 (4) a chairman, vice chairman, counsel, secretary, 13 treasurer or ward leader of a city or municipal committee. 14 "Public official." Any elected or appointed official or 15 employee in the executive, legislative or judicial branch of the 16 Commonwealth or any political subdivision thereof, provided that 17 it shall not include members of advisory boards that have no 18 authority to expend public funds other than reimbursement for 19 personal expense or to otherwise exercise the power of the 20 Commonwealth or any political subdivision thereof. The term 21 shall not include any appointed official who receives no 22 compensation other than reimbursement for actual expenses. 23 CHAPTER 2 24 INTERGOVERNMENTAL COOPERATION AUTHORITY FOR 25 CITIES OF THE SECOND CLASS 26 Section 201. Authority established. 27 A body corporate and politic to be known as the 28 Intergovernmental Cooperation Authority for Cities of the Second 29 Class is established as a public authority and instrumentality 30 of the Commonwealth, exercising public powers of the 20030H2006B3291 - 9 -
1 Commonwealth as an agency and instrumentality. The exercise by 2 the authority of the powers conferred by this act is hereby 3 declared to be and shall for all purposes be deemed and held to 4 be the performance of an essential public function. 5 Section 202. Governing board. 6 (a) Composition of board.-- 7 (1) The powers and duties of the authority shall be 8 exercised by a governing board composed of five members: 9 (i) One member shall be appointed by the President 10 pro tempore of the Senate. 11 (ii) One member shall be appointed by the Minority 12 Leader of the Senate. 13 (iii) One member shall be appointed by the Speaker 14 of the House of Representatives. 15 (iv) One member shall be appointed by the Minority 16 Leader of the House of Representatives. 17 (v) One member shall be selected by majority vote of 18 the members appointed under subparagraphs (i) through 19 (iv). 20 (vi) The Secretary of the Budget and the director of 21 finance of each assisted city shall serve as ex officio 22 members of the board. The ex officio members may not 23 vote, shall not be counted for purposes of establishing a 24 quorum and may designate in writing a representative of 25 their respective offices to attend meetings of the board 26 on their behalf. 27 (2) All members and designees must have substantial 28 experience in finance or management. 29 (3) All members of the board must be residents of this 30 Commonwealth and, except the Secretary of the Budget or his 20030H2006B3291 - 10 -
1 designee, must either be residents of the assisted city or 2 have their primary places of business or employment in that 3 city. 4 (b) Term.--Appointing authorities shall appoint the initial 5 members of the board within ten days of the effective date of 6 this act, and the appointed members shall select a member under 7 subsection (a)(1)(v) at the initial organizational meeting of 8 the board. The term of a board member shall begin on the date of 9 the appointment or selection. A member's term shall be 10 coterminous with that of the appointing authority, and the term 11 of the member selected under subsection (a)(1)(v) shall be two 12 years from the date of selection, provided that a member's term 13 shall continue until a replacement is appointed or selected. An 14 appointed board member shall serve at the pleasure of the 15 member's appointing authority, and the member selected under 16 subsection (a)(1)(v) may be removed upon a majority vote of the 17 appointed members. Whenever a vacancy occurs among the appointed 18 members on the board, whether prior to or on the expiration of a 19 term, the appointing authority who originally appointed the 20 board member whose seat has become vacant shall appoint a 21 successor member within 30 days of the vacancy. If a vacancy 22 occurs with respect to the board member selected under 23 subsection (a)(1)(v), the appointing members of the board shall 24 select a successor member within 30 days of the vacancy. A 25 member appointed by an appointing authority, or selected under 26 subsection (a)(1)(v), to fill a vacancy occurring prior to the 27 expiration of a term shall serve the unexpired term. 28 (c) Organization.--The appointees of the President pro 29 tempore of the Senate and the Speaker of the House of 30 Representatives shall set a date, time and place for the initial 20030H2006B3291 - 11 -
1 organizational meeting of the board within five days of the 2 appointment of the initial members of the board. The initial 3 organizational meeting shall be held within ten days of the 4 appointment of the initial members of the board. The member 5 selected under subsection (a)(1)(v) shall serve as chairperson. 6 The members shall elect such other officers as they may 7 determine. A member may hold more than one office of the board 8 at any time. 9 (d) Meetings.--After the initial organizational meeting, the 10 board shall meet as frequently as it deems appropriate but at 11 least once during each quarter of the fiscal year. In addition, 12 a meeting of the board shall be called by the chairperson if a 13 request for a meeting is submitted to the chairperson by at 14 least two members of the board. A majority of the board shall 15 constitute a quorum for the purpose of conducting the business 16 of the board and for all other purposes. All actions of the 17 board shall be taken by a majority of the board. The provisions 18 of 65 Pa.C.S. Ch. 7 (relating to open meetings) shall apply to 19 the board. 20 (e) Expenses.--A member shall not receive compensation or 21 remuneration, but shall be entitled to reimbursement for all 22 reasonable and necessary actual expenses. 23 (f) Employees and agents.--The board shall fix and determine 24 the number of employees of the authority and their respective 25 compensation and duties. The board may contract for or receive 26 the loan of services of persons in the employ of other 27 government agencies, and other government agencies shall be 28 authorized to make such employees available. The board may 29 retain an executive director. The board may hire an independent 30 general counsel to the authority and may engage consultants and 20030H2006B3291 - 12 -
1 contract for other professional services. The board may delegate 2 to the executive director such powers of the board as the board 3 deems necessary to carry out the purposes of the authority, 4 subject in every case to the supervision and control of the 5 board. 6 (g) Public officials and party officers.-- 7 (1) Except for the Secretary of the Budget and the 8 director of finance of an assisted city, neither members of 9 the board nor the executive director shall seek or hold a 10 position as any other public official within this 11 Commonwealth or as a party officer while in the service of 12 the authority. Members of the board and the executive 13 director shall not seek election as public officials or party 14 officers for one year after their service with the authority. 15 Members of the board and the executive director may serve as 16 appointive public officials any time after their periods of 17 service with the authority. 18 (2) Employees and agents of the authority shall not seek 19 or hold other positions as public officials or party officers 20 while in the employ of the authority. The authority may 21 receive the loan of services of persons in other government 22 agencies in accordance with subsection (f), notwithstanding 23 that such persons are public officials. Employees of the 24 authority shall not seek election as public officials or 25 party officers for one year after leaving the employ of the 26 authority. 27 (h) Statutes applying to authority.-- 28 (1) The provisions of the following acts shall apply to 29 the authority: 30 (i) The act of June 21, 1957 (P.L.390, No.212), 20030H2006B3291 - 13 -
1 referred to as the Right-to-Know Law. 2 (ii) Except as set forth in paragraph (2), the act 3 of July 19, 1957 (P.L.1017, No.451), known as the State 4 Adverse Interest Act. 5 (iii) The act of October 4, 1978 (P.L.883, No.170), 6 referred to as the Public Official and Employee Ethics 7 Law. 8 (iv) The provisions of 65 Pa.C.S. Ch. 7 (relating to 9 open meetings). 10 (2) Notwithstanding the provisions of the State Adverse 11 Interest Act, the Secretary of the Budget and the director of 12 finance of each assisted city shall, while serving as ex 13 officio members of the board, also serve in their official 14 capacities with respect to the negotiation and execution of 15 intergovernmental cooperation agreements and other agreements 16 between an assisted city and the authority. 17 (i) Advisory committees.--To assist in the performance of 18 its duties, the board may appoint advisory committees comprised 19 of professionals engaged in municipal management and finance or 20 other experts as it may deem necessary. The members of any 21 advisory committee must reside within an assisted city or a 22 county within the statistical metropolitan area in which the 23 assisted city is located. The provisions of subsection (g) shall 24 be applicable to members of an advisory committee; however, the 25 board may allow city council to designate a liaison from city 26 council to serve on an advisory committee. 27 Section 203. Powers and duties. 28 (a) General powers and duties.--The authority is established 29 for the purposes, without limitation, by itself or by agreement 30 in cooperation with others, of assisting cities in solving their 20030H2006B3291 - 14 -
1 budgetary and financial problems. 2 (b) Specific duties.--The authority shall have the powers 3 and its duties shall be: 4 (1) To assist cities in achieving financial stability in 5 any manner consistent with the purposes and powers described 6 by this act. 7 (2) To assist cities in avoiding defaults, eliminating 8 and financing deficits, maintaining sound budgetary practices 9 and avoiding the interruption of municipal services. 10 (3) To negotiate intergovernmental cooperation 11 agreements with cities containing such terms and conditions 12 as will enable such cities to eliminate and avoid deficits, 13 maintain sound budgetary practices and avoid interruption of 14 municipal services. 15 (4) To make annual reports within 120 days after the 16 close of the assisted city's fiscal year, commencing with the 17 fiscal year ending December 31, 2003, to the Governor and the 18 General Assembly describing the city's financial condition 19 and the authority's progress with respect to restoring the 20 financial stability of assisted cities and achieving balanced 21 budgets for assisted cities. Such reports shall be filed with 22 the Governor, with the presiding officers of the Senate and 23 the House of Representatives, with the chairperson and 24 minority chairperson of the Appropriations Committee of the 25 Senate and the chairperson and the minority chairperson of 26 the Appropriations Committee of the House of Representatives 27 and with the governing body, mayor and controller of the 28 assisted city. 29 (c) Specific powers.--In addition to the powers and duties 30 set forth elsewhere in this act, the authority shall have the 20030H2006B3291 - 15 -
1 specific powers: 2 (1) To obtain copies of all reports regarding the 3 revenues, expenditures, budgets, deficits, costs, plans, 4 operations, estimates and any other financial or budgetary 5 matters of an assisted city. 6 (2) To obtain additional reports on the above matters in 7 such form as are deemed necessary by the authority. 8 (3) To make factual findings concerning an assisted 9 city's budgetary and fiscal affairs. 10 (4) To make recommendations to an assisted city 11 concerning its budgetary and fiscal affairs. Recommendations 12 under this paragraph may include: 13 (i) Consolidation or merger of services performed by 14 an assisted city, school, county or other surrounding 15 municipality. 16 (ii) Consolidation of public safety services. 17 (iii) Appropriate staffing levels of city 18 departments and corporate entities. 19 (iv) Cooperative agreements or contractual 20 arrangements between health care facilities licensed by 21 the Department of Health. 22 (v) Financial or contractual obligations of the 23 assisted city. 24 (vi) Contributions of nonprofit or charitable 25 organizations which receive the benefit of municipal 26 services provided by the assisted city. 27 (vii) Reduction or restructuring of debt 28 obligations. 29 (viii) Cooperative agreements between the assisted 30 city and the county in which it is located or 20030H2006B3291 - 16 -
1 municipalities which border on the assisted city. 2 (ix) Cooperative agreements between the assisted 3 city and the school district serving the residents of the 4 assisted city. 5 (x) Collective bargaining agreements and other 6 contracts of the assisted city. 7 (xi) Elimination, sale or transfer of assisted city 8 services or property. 9 (xii) Implementation of cost-saving measures by the 10 assisted city. 11 (xiii) Increased managerial accountability. 12 (xiv) Performance of government operations and 13 delivery of municipal services. 14 (xv) Reevaluation of tax-exemption policies and 15 practices with regard to real property taxation within 16 the assisted city. 17 (xvi) Improvements in procurement practices. 18 (xvii) Implementation of user fees for services, 19 including sewage, water treatment and refuse collection. 20 (xviii) Privatization and competitive bidding of 21 appropriate assisted city services. 22 (xix) Increased collection of fines and costs 23 relating to parking violations or violations of other 24 city ordinances. 25 (xx) To recommend, when appropriate, filing for 26 bankruptcy under 11 U.S.C. Ch. 9 (relating to adjustment 27 of debts of municipalities). 28 (xxi) Consideration of reports and proposals 29 published and made available to the public. 30 (5) To make recommendations to the Governor and the 20030H2006B3291 - 17 -
1 General Assembly regarding legislation or resolutions which 2 relate to an assisted city's fiscal stability. 3 (6) To exercise powers of review concerning the 4 budgetary and fiscal affairs of the assisted city consistent 5 with this act and the city's home rule charter or other 6 optional plan of government. 7 (7) To receive revenues from any source, directly or by 8 assignment, pledge or otherwise. 9 (8) To sue and be sued, implead and be impleaded, 10 interplead, complain and defend in all courts. 11 (9) To adopt, use and alter at will a corporate seal. 12 (10) To make bylaws for the management and regulation of 13 its affairs and adopt rules, regulations and policies in 14 connection with the performance of its functions and duties 15 which, notwithstanding any other provision of law to the 16 contrary, shall not be subject to review pursuant to the act 17 of June 25, 1982 (P.L.633, No.181), known as the Regulatory 18 Review Act. 19 (11) To make and enter into contracts and other 20 instruments necessary or convenient for the conduct of its 21 business and the exercise of the powers of the authority. 22 (12) To appoint officers, agents, employees and servants 23 and to prescribe their duties and to fix their compensation 24 as set forth in section 202(f). 25 (13) To retain counsel and auditors to render such 26 professional services as the authority deems appropriate. The 27 authority shall not be considered either an executive agency 28 or an independent agency for the purpose of the act of 29 October 15, 1980 (P.L.950, No.164), known as the Commonwealth 30 Attorneys Act, but shall possess the same status for such 20030H2006B3291 - 18 -
1 purpose as the Auditor General, State Treasurer and the 2 Pennsylvania Public Utility Commission, except that the 3 provisions of section 204(b) and (f) of the Commonwealth 4 Attorneys Act shall not apply to the authority; 5 notwithstanding 42 Pa.C.S. Ch. 85 (relating to matters 6 affecting government units), the authority, through its legal 7 counsel, shall defend actions brought against the authority 8 or its members, officers, officials and employees when acting 9 within the scope of their official duties. 10 (14) To cooperate with any Federal agency or government 11 agency. 12 (15) To acquire, by gift or otherwise, purchase, hold, 13 receive, lease, sublease and use any franchise, license, 14 property, real, personal or mixed, tangible or intangible or 15 any interest therein. However, the authority shall be 16 absolutely limited in its power to acquire real property 17 under this act to real property that will be used only for 18 the office space in which the authority will conduct its 19 daily business. An assisted city may provide office space to 20 the authority at no cost as part of an intergovernmental 21 cooperation agreement. 22 (16) To sell, transfer, convey and dispose of any 23 property, real, personal or mixed, tangible or intangible or 24 any interest therein. 25 (17) To enter into contracts for group insurance and to 26 contribute to retirement plans for the benefit of its 27 employees and to enroll its employees in an existing 28 retirement system of a government agency. 29 (18) To accept, purchase or borrow equipment, supplies, 30 services or other things necessary or convenient to the work 20030H2006B3291 - 19 -
1 of the authority from other government agencies, and all 2 government agencies are authorized to sell, lend or grant to 3 the authority such equipment, supplies, services or other 4 things necessary or convenient to the work of the authority. 5 (19) To invest any funds held by the authority as set 6 forth in section 213. 7 (20) To receive and hold assets, moneys and funds from 8 any source, including, but not limited to, appropriations, 9 grants, gifts. 10 (21) To procure insurance, guarantees and sureties the 11 authority determines necessary or desirable for its purposes. 12 (22) To pledge the credit of the authority as the 13 authority determines necessary or desirable for its purposes. 14 (23) To do all acts and things necessary or convenient 15 for the promotion of its purposes and the general welfare of 16 the authority and to carry out the powers granted to it by 17 this act or any other acts. 18 (d) Intergovernmental cooperation agreements.--The authority 19 shall have the power and its duty shall be to enter into and to 20 implement fully such intergovernmental cooperation agreements 21 with cities as are approved by a majority of the board. The 22 following shall apply: 23 (1) A city may enter into an intergovernmental 24 cooperation agreement in which it, consistent with this act, 25 covenants to cooperate or agree in the exercise of any 26 function, power or responsibility with, or delegate or 27 transfer any function, power or responsibility to, the 28 authority upon the adoption by the governing body of such 29 city of an ordinance authorizing and approving the 30 intergovernmental cooperation agreement. 20030H2006B3291 - 20 -
1 (2) An ordinance that authorizes a city to enter into an 2 intergovernmental cooperation agreement with the authority 3 shall specify: 4 (i) the purpose and objectives of the agreement; 5 (ii) the conditions of the agreement; and 6 (iii) the term of the agreement, including 7 provisions relating to its termination. 8 (e) Limitation.--Notwithstanding any purpose or general or 9 specific power granted by this act or any other act, whether 10 express or implied, the authority shall have no power to pledge 11 the credit or taxing powers of the Commonwealth. 12 Section 204. Term of existence. 13 The authority shall exist for a term of at least seven years. 14 If, after seven years, an assisted city has had annual operating 15 budgets and five-year financial plans approved by the board for 16 at least the three immediately preceding years, the Secretary of 17 Community and Economic Development shall certify that the 18 authority is no longer needed; and the provisions of this 19 chapter will no longer be in effect 90 days following that 20 certification. Upon termination of the authority, records and 21 documents of the authority shall be transferred to the director 22 of finance of the city. The authority shall submit a final 23 report on its activities and the financial condition of the city 24 and its corporate entities to the Governor and General Assembly 25 within 60 days of its termination. 26 Section 205. Fiscal year. 27 The fiscal year of the authority shall be the same as the 28 fiscal year of the Commonwealth. 29 Section 206. Annual budget of authority. 30 (a) Budget.--Before March 1 of each year, the authority 20030H2006B3291 - 21 -
1 shall adopt a budget by a majority of the board setting forth in 2 reasonable detail the projected expenses of operation of the 3 authority for the ensuing fiscal year, including the salary and 4 benefits of the executive director and any other employees of 5 the authority, and the projected revenues of the authority to be 6 derived from investment earnings and any other moneys of the 7 authority which are estimated to be available to pay the 8 operating expenses set forth in the budget. A copy of the 9 authority's budget shall be submitted to the Governor and to the 10 General Assembly. The authority or its designated 11 representatives may be afforded an opportunity to appear before 12 the Governor and the Appropriations Committee of the Senate and 13 the Appropriations Committee of the House of Representatives 14 regarding the authority's budget. 15 (b) Limit on operating expenses.--Following the submission 16 of the authority's budget to the Governor and the General 17 Assembly and any hearing held by an appropriations committee 18 under subsection (a), the General Assembly, by concurrent 19 resolution with presentment to the Governor, in accordance with 20 section 9 of Article III of the Constitution of Pennsylvania, 21 may limit the operating expenses of the authority. In that 22 event, it shall be unlawful for the authority to spend more for 23 operating expenses than the limit established for that fiscal 24 year by the concurrent resolution. If the General Assembly does 25 not adopt a concurrent resolution prior to May 30, the 26 authority's budget shall be deemed approved for that fiscal 27 year. 28 (c) Funding.--After July 1, 2005, upon request of the 29 authority and pursuant to the limits established in subsection 30 (b), the city shall annually fund the budget of the authority, 20030H2006B3291 - 22 -
1 including its reasonable and necessary expenses and costs 2 incurred for consultants engaged by the board to carry out its 3 duties. 4 (d) Examination of books.--The chairperson and minority 5 chairperson of the Appropriations Committee of the Senate and 6 the chairperson and minority chairperson of the Appropriations 7 Committee of the House of Representatives shall have the right 8 at any time to examine the books, accounts and records of the 9 authority. 10 Section 207. Annual report to be filed; annual audits. 11 The authority shall file an annual report with the 12 chairperson and the minority chairperson of the Appropriations 13 Committee of the Senate and chairperson and the minority 14 chairperson of the Appropriations Committee of the House of 15 Representatives, which shall make provisions for the accounting 16 of revenues and expenses. The authority shall have its books, 17 accounts and records audited annually in accordance with 18 generally accepted auditing standards by an independent auditor 19 who shall be a certified public accountant, and a copy of his 20 audit report shall be attached to and be made a part of the 21 authority's annual report. A concise financial statement shall 22 be published annually in the Pennsylvania Bulletin. 23 Section 208. Limit on city borrowing. 24 The city and its corporate entities may not borrow or receive 25 funds for any lawful purpose unless the city has entered into an 26 intergovernmental cooperation agreement with the authority and 27 there is an approved financial plan in effect. 28 Section 209. Budget proposal by authority. 29 For any fiscal year beginning after December 31, 2004, the 30 authority shall submit a proposal for a balanced operating 20030H2006B3291 - 23 -
1 budget and capital budget to the mayor or chief executive 2 officer and the governing body of the assisted city at least 100 3 days prior to the beginning of the fiscal year of the assisted 4 city. The budget and finance departments of the assisted city 5 shall work in cooperation with the authority to formulate the 6 proposal. The mayor or chief executive officer and the governing 7 body of the assisted city shall not pass a budget prior to the 8 receipt of a balanced budget proposal from the authority. 9 Section 210. Financial plan of an assisted city. 10 (a) Requirement of a financial plan.--An assisted city shall 11 develop, implement and periodically revise a financial plan as 12 described in this section. 13 (b) Elements of plan.--The financial plan shall include: 14 (1) Projected revenues and expenditures of the principal 15 operating fund or funds of the assisted city for five fiscal 16 years consisting of the current fiscal year and the next four 17 fiscal years. 18 (2) Plan components that will: 19 (i) eliminate any projected deficit for the current 20 fiscal year and for subsequent fiscal years; 21 (ii) restore to special fund accounts money from 22 those accounts used for purposes other than those 23 specifically authorized; 24 (iii) balance the current fiscal year budget and 25 subsequent budgets in the financial plan through sound 26 budgetary practices, including, but not limited to, 27 reductions in expenditures, improvements in productivity, 28 increases in revenues or a combination of these steps; 29 (iv) provide procedures to avoid a fiscal emergency 30 condition in the future; and 20030H2006B3291 - 24 -
1 (v) enhance the ability of the assisted city to 2 access short-term and long-term credit markets. 3 (c) Standards for formulation of plan.-- 4 (1) All projections of revenues and expenditures in a 5 financial plan shall be based on reasonable and appropriate 6 assumptions and methods of estimation, all such assumptions 7 and methods to be consistently applied. The financial plan of 8 an assisted city shall not include projected revenue that in 9 order to be collected requires the enactment by the General 10 Assembly of new taxing powers for the assisted city. 11 (2) All revenue and appropriation estimates shall be in 12 accordance with accounting standards applicable to cities as 13 promulgated by the Government Accounting Standards Board. 14 Revenue estimates shall recognize revenues in the accounting 15 period in which they become both measurable and available. 16 Estimates of city-generated revenues shall be based on 17 current or proposed tax rates, historical collection patterns 18 and generally recognized econometric models. Estimates of 19 revenues to be received from the State government shall be 20 based on historical patterns, currently available levels or 21 on levels proposed in a budget by the Governor. Estimates of 22 revenues to be received from the Federal Government shall be 23 based on historical patterns, currently available levels or 24 on levels proposed in a budget by the President or in a 25 congressional budget resolution. Nontax revenues shall be 26 based on current or proposed rates, charges or fees, 27 historical patterns and generally recognized econometric 28 models. Appropriation estimates shall include, at a minimum, 29 all obligations incurred during the fiscal year and estimated 30 to be payable during the fiscal year or in the 24-month 20030H2006B3291 - 25 -
1 period following the close of the current fiscal year and all 2 obligations of prior fiscal years not covered by encumbered 3 funds from prior fiscal years. Any deviations from these 4 standards of estimating revenues and appropriations proposed 5 to be used by an assisted city shall be specifically 6 disclosed and shall be approved by a majority of the board. 7 (3) All cash flow projections shall be based upon 8 reasonable and appropriate assumptions as to sources and uses 9 of cash, including, but not limited to, reasonable and 10 appropriate assumptions as to the timing of receipt and 11 expenditure thereof, and shall provide for operations of the 12 assisted city to be conducted within the resources so 13 projected. All estimates shall take due account of the past 14 and anticipated collection, expenditure and service demand 15 experience of the assisted city and of current and projected 16 economic conditions. 17 (d) Form of plan.--Each financial plan shall, consistent 18 with the requirements of an assisted city's home rule charter or 19 optional plan of government: 20 (1) be in such form and shall contain: 21 (i) for each of the first two fiscal years covered 22 by the financial plan, such information as shall reflect 23 an assisted city's total expenditures by fund and by lump 24 sum amount for each board, commission, department or 25 office of an assisted city; and 26 (ii) for the remaining three fiscal years of the 27 financial plan, such information as shall reflect an 28 assisted city's total expenditures by fund and by lump 29 sum amount for major object classification; 30 (2) include projections of all revenues and expenditures 20030H2006B3291 - 26 -
1 for five fiscal years, including, but not limited to, 2 projected capital expenditures and short-term and long-term 3 debt incurrence and cash flow forecasts by fund for the first 4 year of the financial plan; 5 (3) include a schedule of projected capital commitments 6 of the assisted city and proposed sources of funding for such 7 commitments; and 8 (4) be accompanied by a statement describing, in 9 reasonable detail, the significant assumptions and methods of 10 estimation used in arriving at the projections contained in 11 such plan. 12 (e) Annual submission of plan.--An assisted city shall 13 develop, and the authority shall review and act upon, an initial 14 five-year financial plan as soon as practicable after the 15 effective date of this act. During each subsequent fiscal year, 16 the mayor or chief executive officer of each assisted city 17 shall, at least 70 days prior to the beginning of its fiscal 18 year or on such other date as the authority may approve upon the 19 request of the assisted city, prepare and submit its proposed 20 five-year plan. At the same time the plan is submitted, the 21 mayor or chief executive officer shall also submit to the 22 authority: 23 (1) the mayor's or chief executive officer's proposed 24 annual operating budget and capital budget which shall be 25 consistent with the first year of the financial plan and 26 which shall be prepared in accordance with the assisted 27 city's home rule charter or other optional plan of 28 government; and 29 (2) a statement by the mayor or chief executive officer 30 that such budget: 20030H2006B3291 - 27 -
1 (i) is consistent with the financial plan; 2 (ii) contains funding adequate for debt service 3 payments, legally mandated services and lease payments 4 securing bonds of other government agencies; and 5 (iii) is based upon reasonable and appropriate 6 assumptions and methods of estimation. 7 (f) Authority review and approval of plan.-- 8 (1) The authority shall promptly review each financial 9 plan, proposed operating budget and capital budget submitted 10 by the assisted city. In conducting such review, the 11 authority shall request from the city controller of the 12 assisted city an opinion or certification prepared in 13 accordance with generally accepted auditing standards, with 14 respect to the reasonableness of the assumptions and 15 estimates in the financial plan. The city controller and 16 other elected officials shall comply with any such request 17 from the authority. Not more than 30 days after submission of 18 a financial plan and proposed operating budget, the authority 19 shall determine whether: 20 (i) the financial plan projects balanced budgets, 21 based upon reasonable assumptions as described in this 22 section, for each year of the plan; and 23 (ii) the proposed operating budget and capital 24 budget are consistent with the proposed financial plan. 25 If the authority determines that these criteria are 26 satisfied, the authority shall approve such financial plan by 27 a majority vote. 28 (2) The authority shall not be bound by any opinions or 29 certifications of the city controller of the assisted city 30 issued pursuant to this subsection. 20030H2006B3291 - 28 -
1 (3) If the authority fails to take any action within 30 2 days on a financial plan, the financial plan as submitted 3 shall be deemed approved. However, if during the 30 days a 4 written request by two members of the authority board for a 5 meeting and vote on the question of approval of the financial 6 plan has been submitted to the chairperson and a meeting and 7 vote do not take place, the financial plan shall be deemed 8 disapproved. 9 (g) Authority disapproval of plan.-- 10 (1) If the authority disapproves the proposed financial 11 plan, the authority shall, when it notifies an assisted city 12 of its decision, state in writing in reasonable detail the 13 reasons for such disapproval, including the amount of any 14 estimated budget imbalance. 15 (2) The assisted city shall submit a revised financial 16 plan to the authority within 15 days of such disapproval, 17 which revised plan eliminates the budget imbalance. Not more 18 than 15 days after the submission of such revised financial 19 plan, the authority shall determine whether the revised plan 20 satisfies the criteria set forth in subsection (f)(1). If the 21 authority determines that these criteria are satisfied, the 22 authority shall approve such financial plan by a majority 23 vote. If the authority shall not so approve the financial 24 plan, then the authority shall, in accordance with section 25 211(e), certify the assisted city's noncompliance with the 26 financial plan to the Secretary of the Budget, the President 27 pro tempore of the Senate and the Speaker of the House of 28 Representatives. 29 (h) Revisions to plan.-- 30 (1) The plan shall be revised on an annual basis to 20030H2006B3291 - 29 -
1 include the operating budget for the next fiscal year and to 2 extend the plan for an additional fiscal year. In addition, 3 the mayor or chief executive officer of a city shall, within 4 90 days of assuming office, propose revisions to the 5 financial plan or certify to the authority that he or she 6 adopts the existing plan. An assisted city may, during the 7 course of a fiscal year, submit proposed revisions to the 8 financial plan and shall submit a proposed revision for any 9 amendment to the city's operating or capital budget. 10 (2) The authority shall review each proposed revision 11 within 20 days of its submission. The authority shall approve 12 the revision if it will not, based on reasonable assumptions, 13 cause the plan to become imbalanced. Proposed revisions shall 14 become part of the financial plan upon the approval of a 15 majority of the authority board, unless some other method of 16 approval is permitted by authority rules and regulations 17 approved by a majority or pursuant to an agreement with the 18 city contained in an intergovernmental cooperation agreement. 19 If the authority fails to take action within 20 days on a 20 proposed revision, such submission shall be deemed approved 21 unless a written request for a meeting and vote has been made 22 in accordance with subsection (f)(3) in which event, if a 23 meeting and vote does not take place, the proposed revision 24 shall be deemed disapproved. 25 (3) If the governing body of a city adopts a budget 26 inconsistent with an approved financial plan, the assisted 27 city shall submit the enacted budget to the authority as a 28 proposed revision to the plan. The authority shall review the 29 proposed revision within 30 days of its submission, in 30 accordance with the criteria set forth in subsection (f) and 20030H2006B3291 - 30 -
1 the approval process set forth in paragraph (2). 2 (i) Supplemental reports.--Within 45 days of the end of each 3 fiscal quarter, or monthly if a variation from the financial 4 plan has been determined in accordance with section 211(c), the 5 mayor or chief executive officer of an assisted city shall 6 provide the authority with reports describing actual or current 7 estimates of revenues and expenditures compared to budgeted 8 revenues and expenditures for such period reflected in its cash 9 flow forecast. Each report required under this section shall 10 indicate any variance between actual or current estimates and 11 budgeted revenues, expenditures and cash for the period covered 12 by such report. An assisted city shall also provide periodic 13 reports on debt service requirements in conformity with section 14 211(b). 15 (j) Effect of plan upon contracts and collective bargaining 16 agreements.-- 17 (1) A contract or collective bargaining agreement in 18 existence in an assisted city prior to the approval by the 19 authority of a financial plan submitted pursuant to this 20 section shall remain effective after approval of such plan 21 until such contract or agreement expires. 22 (2) After the approval by the authority of a financial 23 plan submitted pursuant to this section, an assisted city 24 shall execute contracts and collective bargaining agreements 25 in compliance with such plan. If an assisted city executes a 26 contract or a collective bargaining agreement which is not in 27 compliance with the plan, the contract or agreement shall not 28 be void or voidable solely by reason of such noncompliance, 29 but the assisted city shall submit to the authority a 30 proposed revision to the plan which demonstrates that 20030H2006B3291 - 31 -
1 revenues sufficient to pay the costs of the contract or 2 collective bargaining agreement will be available in the 3 affected fiscal years of the plan. 4 (k) Effect of plan upon certain arbitration awards.-- 5 (1) After the approval by the authority of a financial 6 plan submitted pursuant to this section, any determination of 7 a board of arbitration established pursuant to the provisions 8 of the act of June 24, 1968 (P.L.237, No.111), referred to as 9 the Policemen and Firemen Collective Bargaining Act, 10 providing for an increase in wages or fringe benefits of any 11 employee of an assisted city under the plan, in addition to 12 considering any standard or factor required to be considered 13 by applicable law, shall take into consideration and accord 14 substantial weight to: 15 (i) the approved financial plan; and 16 (ii) relevant market factors, such as the financial 17 situation of the assisted city, inflation, productivity, 18 size of work force and pay and benefit levels in 19 economically and demographically comparable political 20 subdivisions. 21 (2) Such determination shall be in writing and a copy 22 thereof shall be forwarded to each party to the dispute and 23 the authority. Any determination of the board of arbitration 24 which provides for an increase in wages or fringe benefits of 25 any employee of an assisted city shall state with specificity 26 in writing all factors which the board of arbitration took 27 into account in considering and giving substantial weight to 28 the factors referred to in paragraph (1). 29 (3) Any party to a proceeding before a board of 30 arbitration may appeal to the court of common pleas to 20030H2006B3291 - 32 -
1 review: 2 (i) consideration under paragraph (1); or 3 (ii) failure of the board of arbitration to issue a 4 determination under paragraph (2). 5 (4) An appeal under paragraph (3) must be commenced not 6 later than 30 days after the issuance of a final 7 determination by the board of arbitration. 8 (5) The decision of the board of arbitration shall be 9 vacated and remanded to the board of arbitration if the court 10 finds: 11 (i) that the board of arbitration failed to take 12 into consideration and accord substantial weight to the 13 factors referred to in paragraph (1); or 14 (ii) that the board of arbitration has failed to 15 issue a determination under paragraph (2). 16 (6) If, after the exhaustion of all appeals, the final 17 arbitration award is not in compliance with the approved 18 financial plan, the award shall not be void or voidable 19 solely by reason of such noncompliance, but the assisted city 20 shall submit to the authority a proposed revision to the plan 21 which demonstrates that revenues sufficient to pay the costs 22 of the award will be available in the affected fiscal years 23 of the plan. 24 Section 211. Powers and duties of authority with respect to 25 financial plans. 26 (a) Formulation and approval of plan.--To advance the 27 financial recovery of each assisted city, the authority shall 28 require the assisted city to submit a five-year financial plan 29 in accordance with section 210. With regard to the formulation 30 of such plan, the authority shall: 20030H2006B3291 - 33 -
1 (1) Consult with an assisted city as it prepares the 2 financial plan. 3 (2) Prescribe the form of the financial plan. 4 (3) Prescribe the supporting information required in 5 connection with such plan, such information to include at a 6 minimum: 7 (i) debt service payments due or projected to be due 8 during the relevant fiscal years; 9 (ii) payments for legally mandated services included 10 in the plan and due or projected to be due during the 11 relevant fiscal years; and 12 (iii) a statement in reasonable detail of the 13 significant assumptions and methods of estimation used in 14 arriving at the projections in the plan. 15 (4) Exercise any rights of approval or disapproval and 16 issue such recommendations as are authorized by this act in 17 accordance with the standards for formulation of the plan set 18 forth in section 210(c). 19 (b) Authority functions after plan is approved.--After a 20 financial plan has been approved, the authority shall: 21 (1) Receive and review: 22 (i) the financial reports submitted by the mayor or 23 chief executive officer of a city under section 210(i); 24 (ii) reports concerning the debt service 25 requirements on all bonds, notes of the assisted city and 26 lease payments of the assisted city securing bonds or 27 other government agencies for the following quarter, 28 which reports shall be in such form and contain such 29 information as the authority shall determine, and which 30 shall be issued no later than 60 days prior to the 20030H2006B3291 - 34 -
1 beginning of the quarter to which they pertain, and shall 2 be updated immediately upon each issuance of bonds or 3 notes, by the assisted city or execution of a lease 4 securing bonds of another government agency, after the 5 date of such report to reflect any change in debt service 6 requirements as a result of such issuance; and 7 (iii) any additional information provided by the 8 assisted city concerning changed conditions or unexpected 9 events which may affect the assisted city's adherence to 10 the financial plan. The reports described in subparagraph 11 (ii) shall be certified by the city controller. 12 (2) Determine, on the basis of information and reports 13 described in paragraph (1), whether an assisted city has 14 adhered to the financial plan. 15 (c) Variation from the plan.--If the authority determines, 16 based upon reports submitted by an assisted city under 17 subsection (b) or independent audits, examinations or studies of 18 the assisted city's finances obtained under subsection (i)(3), 19 that an assisted city's actual revenues and expenditures vary 20 from those estimated in the financial plan, the authority shall 21 require the city to provide such additional information as the 22 authority deems necessary to explain the variation. The 23 authority shall take no action with respect to an assisted city 24 for departures from the financial plan in a fiscal quarter if: 25 (1) the city provides a written explanation for the 26 variation that the authority deems reasonable; 27 (2) the city proposes remedial action which the 28 authority believes will restore the assisted city's overall 29 compliance with the financial plan; 30 (3) information provided by the city in the immediately 20030H2006B3291 - 35 -
1 succeeding quarterly financial report demonstrates that the 2 assisted city is taking such remedial action and otherwise 3 complying with the plan; and 4 (4) the assisted city submits monthly supplemental 5 reports in accordance with section 210(i) until it regains 6 compliance with the financial plan. 7 (d) Authority may make recommendations.--The authority may 8 at any time issue recommendations as to how an assisted city may 9 achieve compliance with the financial plan and shall provide 10 copies of such recommendations to the mayor or chief executive 11 officer and the governing body of the city and to the officials 12 named in section 203(b)(5). 13 (e) When Commonwealth shall withhold funds.-- 14 (1) The authority shall certify to the Secretary of the 15 Budget an assisted city's noncompliance with the financial 16 plan during any period when the authority has determined by 17 the vote of a majority that the assisted city has not adhered 18 to the plan and has not taken acceptable remedial action 19 during the next quarter following such departure from the 20 plan. 21 (2) The authority shall certify to the Secretary of the 22 Budget that an assisted city is not in compliance with the 23 plan if the assisted city: 24 (i) has no financial plan approved by the authority, 25 or has failed to provide requested documents or has 26 failed to file a financial plan with the authority; 27 (ii) has failed to file mandatory revisions to the 28 plan or reports as required by section 210(h), (i), (j) 29 or (k); or 30 (iii) has not been compelled to file a financial 20030H2006B3291 - 36 -
1 plan, a mandatory revision to the plan or a report 2 through a mandamus action authorized under subsection 3 (j). 4 (3) If the authority certifies that an assisted city is 5 not in compliance with the financial plan under paragraph (1) 6 or (2), the Secretary of the Budget shall notify the city 7 that such certification has been made and that each grant, 8 loan, entitlement or payment to the assisted city by the 9 Commonwealth shall be suspended pending compliance with the 10 financial plan. Funds withheld shall be held in escrow by the 11 Commonwealth until compliance with the plan is restored as 12 set forth in paragraph (4). Funds held in escrow pursuant to 13 this subsection shall not lapse pursuant to section 621 of 14 the act of April 9, 1929 (P.L.177, No.175), known as The 15 Administrative Code of 1929, or any other law. 16 (4) The authority shall, by majority vote, determine 17 when the conditions which caused an assisted city to be 18 certified as not in compliance with the financial plan have 19 ceased to exist and shall promptly notify the Secretary of 20 the Budget of such vote. The Secretary of the Budget shall 21 thereupon release all funds held in escrow, together with all 22 interest and income earned thereon during the period held in 23 escrow, and the disbursements of amounts in the city account 24 shall resume. 25 (f) Exemptions.--Notwithstanding the provisions of 26 subsection (e), the following shall not be withheld from an 27 assisted city: 28 (1) funds granted or allocated to an assisted city 29 directly from an agency of the Commonwealth or from the 30 Federal Government for distribution by the Commonwealth after 20030H2006B3291 - 37 -
1 the declaration of a disaster resulting from a catastrophe; 2 and 3 (2) pension fund payments required by law. 4 (g) Effect of Commonwealth's failure to disburse funds.--The 5 provisions of subsection (e) shall not apply and an assisted 6 city shall not be found to have departed from the financial plan 7 due to the Commonwealth's failure to pay any money, including 8 payment of Federal funds distributed by or through the 9 Commonwealth, due to the assisted city from moneys appropriated 10 by the General Assembly. 11 (h) Assisted city to determine expenditure of available 12 funds.--Nothing in this act shall be construed to limit the 13 power of an assisted city to determine, from time to time, 14 within available funds of the assisted city, the purposes for 15 which expenditures are to be made by the assisted city and the 16 amounts of such expenditures then permitted under the financial 17 plan of the assisted city. 18 (i) Documents and examinations to be reviewed or undertaken 19 by the authority.--The authority shall: 20 (1) receive from an assisted city and review the 21 reports, documents, budgetary and financial planning data and 22 other information prepared by or on behalf of such assisted 23 city and which are to be made available to the authority 24 under this act; 25 (2) inspect and copy such books, records and information 26 of an assisted city as the authority deems necessary to 27 accomplish the purposes of this act; and 28 (3) conduct or cause to be conducted such independent 29 audits, examinations or studies of an assisted city's 30 finances as the authority deems appropriate. 20030H2006B3291 - 38 -
1 (j) Remedies of authority for failure of an assisted city to 2 file financial plans and reports.--In the event that an assisted 3 city shall fail to file with the authority any financial plan, 4 revision to a financial plan, report or other information 5 required to be filed with the authority pursuant to this act, 6 the authority, in addition to all other rights which the 7 authority may have at law or in equity, shall have the right by 8 mandamus to compel the assisted city and the officers, employees 9 and agents thereof to file with the authority the financial 10 plan, revision to a financial plan, report or other information 11 which the assisted city has failed to file. The authority shall 12 give the assisted city written notice of the failure of the 13 assisted city to file and of the authority's intention to 14 initiate an action under this subsection and shall not initiate 15 such an action earlier than ten days after the giving of such 16 notice. 17 Section 212. Limitation on assisted cities to file petition for 18 relief under Federal bankruptcy law. 19 (a) Bankruptcy filing approval.--Notwithstanding any other 20 provision of law, no city or assisted city shall be authorized 21 to file a petition for relief under 11 U.S.C. Ch. 9 (relating to 22 adjustment of debts of a municipality), unless such petition has 23 been submitted to, and such filing has been approved in writing 24 by the Governor. The Governor is designated, in accordance with 25 11 U.S.C. § 109(c)(2) (relating to who may be a debtor), as the 26 organization of the Commonwealth which shall have power to 27 approve or disapprove the filing of any such petition of a city 28 or assisted city, and to approve or disapprove any plan of 29 readjustment of the debts of such city or assisted city 30 prepared, filed and submitted with the petition to the court, as 20030H2006B3291 - 39 -
1 provided under 11 U.S.C. Ch. 9. 2 (b) Review of bankruptcy petition.-- 3 (1) When any such petition shall be submitted to the 4 Governor for approval, accompanied with a proposed plan of 5 readjustment of the debts of a city, the Governor shall make 6 a careful and thorough investigation of the financial 7 condition of such city, of its assets and liabilities, of its 8 sinking fund, and whether the affairs thereof are managed in 9 a careful, prudent and economic manner in order to ascertain 10 whether the presentation of such petition is justified, or 11 represents an unjust attempt by such city to evade payment of 12 some of its contractual obligations, and, if the Governor 13 believes that such petition should be approved, whether the 14 plan of readjustment submitted will be helpful to the 15 financial condition of the city and is feasible and, at the 16 same time, fair and equitable to all creditors. 17 (2) The Governor shall also, prior to giving his 18 approval, ascertain the amount, if any, of the obligations of 19 any such petitioning city which is held by any agency or 20 agencies of the State government as trust funds and shall, 21 before approving any such petition and plan of readjustment, 22 consult with and give every such agency an opportunity to be 23 heard and the privilege to examine the findings of the 24 Governor resulting from the investigation required to be made 25 under this act, and shall likewise hear any other creditor of 26 such city, whether resident in or outside this Commonwealth, 27 who shall apply therefor. 28 (3)The Governor, if he approves a petition, shall, before 29 giving his approval, require such modification in the 30 proposed plan for readjusting the debts as to him appears 20030H2006B3291 - 40 -
1 proper. 2 Section 213. Investment of funds. 3 Funds of the authority which are not required for immediate 4 use may be invested in obligations of an assisted city or in 5 obligations of the Federal Government or of the Commonwealth or 6 obligations which are legal investments for Commonwealth funds. 7 However, no money may be invested in obligations issued by or 8 obligations guaranteed by an assisted city without the approval 9 of a majority of the board. 10 Section 214. Sovereign immunity. 11 Members of the board shall not be liable personally for any 12 obligations of the authority. It is hereby declared to be the 13 intent of the General Assembly that the authority created by 14 this act and its members, officers, officials and employees 15 shall enjoy sovereign and official immunity, as provided in 1 16 Pa.C.S. § 2310 (relating to sovereign immunity reaffirmed; 17 specific waiver), and shall remain immune from suit except as 18 provided by and subject to the provisions of 42 Pa.C.S. §§ 8501 19 (relating to definitions) through 8528 (relating to limitations 20 on damages). 21 CHAPTER 7 22 MISCELLANEOUS PROVISIONS 23 Section 701. Appropriation. 24 The sum of $500,000 is hereby appropriated from the General 25 Fund to the Intergovernmental Cooperation Authority for Cities 26 of the Second Class as a continuing appropriation for the 27 purpose of providing operating funds for the Intergovernmental 28 Cooperation Authority for Cities of the Second Class. This 29 appropriation shall lapse June 30, 2005. 30 Section 702. General rights and prohibitions. 20030H2006B3291 - 41 -
1 Nothing in this act shall limit the rights or impair the 2 obligations of any assisted city to comply with the provisions 3 of any contract in effect on the effective date of this act or 4 shall in any way impair the rights of the obligees of any 5 assisted city with respect to any such contract. 6 Section 703. Nondiscrimination. 7 The authority shall comply in all respects with the 8 nondiscrimination and contract compliance plans used by the 9 Department of General Services to assure that all persons are 10 accorded equality of opportunity in employment and contracting 11 by the authority and its contractors, subcontractors, assignees, 12 lessees, agents, vendors and suppliers. 13 Section 704. Construction of act. 14 (a) Liberal construction.--The provisions of this act 15 providing for security for and rights and remedies of obligees 16 of the authority shall be liberally construed to achieve the 17 purposes stated and provided for by this act. 18 (b) Severability.--If any provision of the title or any 19 chapter, section or clause of this act, or the application 20 thereof to any person, party, corporation, public or private, 21 shall be judged invalid by a court of competent jurisdiction, 22 such order or judgment shall be confined in its operation to the 23 controversy in which it was rendered and shall not affect or 24 invalidate the remainder of any provision of the title or any 25 chapter or any section or clause of this act, or the application 26 of any part thereof to any other person, party, corporation, 27 public or private, or circumstance, and, to this end, the 28 provisions of the title or any chapter, section or clause of 29 this act hereby are declared to be severable. It is hereby 30 declared as the legislative intent that this act would have been 20030H2006B3291 - 42 -
1 adopted had any provision declared unconstitutional not been 2 included herein. 3 Section 705. Limitation of authority powers. 4 Except as provided in section 211(i), nothing contained in 5 this act shall be construed to confer upon the authority any 6 powers with respect to a school district. 7 Section 706. Repeals and suspensions. 8 (a) Partial.--The provisions of the Municipalities Financial 9 Recovery Act are suspended as to cities of the second class 10 until the termination of the authority established by this act. 11 (b) General.--All other acts or parts of acts are repealed 12 insofar as they are inconsistent with this act. 13 Section 707. Effective date. 14 This act shall take effect immediately. 15 CHAPTER 1 <-- 16 GENERAL PROVISIONS 17 SECTION 101. SHORT TITLE. 18 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE 19 INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR CITIES OF THE 20 SECOND CLASS. 21 SECTION 102. PURPOSE AND LEGISLATIVE INTENT. 22 (A) POLICY.--IT IS HEREBY DECLARED TO BE A PUBLIC POLICY OF 23 THE COMMONWEALTH TO EXERCISE ITS RETAINED SOVEREIGN POWERS WITH 24 REGARD TO TAXATION AND MATTERS OF STATEWIDE CONCERN IN A MANNER 25 CALCULATED TO FOSTER THE FISCAL INTEGRITY OF CITIES OF THE 26 SECOND CLASS TO ASSURE THAT THESE CITIES PROVIDE FOR THE HEALTH, 27 SAFETY AND WELFARE OF THEIR CITIZENS; PAY PRINCIPAL AND INTEREST 28 OWED ON THEIR DEBT OBLIGATIONS WHEN DUE; MEET FINANCIAL 29 OBLIGATIONS TO THEIR EMPLOYEES, VENDORS AND SUPPLIERS; AND 30 PROVIDE FOR PROPER FINANCIAL PLANNING PROCEDURES AND BUDGETING 20030H2006B3291 - 43 -
1 PRACTICES. THE INABILITY OF A CITY OF THE SECOND CLASS TO 2 PROVIDE ESSENTIAL SERVICES TO ITS CITIZENS AS A RESULT OF A 3 FISCAL EMERGENCY IS HEREBY DETERMINED TO AFFECT ADVERSELY THE 4 HEALTH, SAFETY AND WELFARE NOT ONLY OF THE CITIZENS OF THAT 5 MUNICIPALITY BUT ALSO OF OTHER CITIZENS IN THIS COMMONWEALTH. 6 (B) LEGISLATIVE INTENT.-- 7 (1) IT IS THE INTENT OF THE GENERAL ASSEMBLY TO: 8 (I) PROVIDE CITIES OF THE SECOND CLASS WITH THE 9 LEGAL TOOLS WITH WHICH SUCH CITIES CAN PERFORM ESSENTIAL 10 MUNICIPAL SERVICES; AND 11 (II) FOSTER SOUND FINANCIAL PLANNING AND BUDGETARY 12 PRACTICES FOR CITIES OF THE SECOND CLASS, WHICH CITIES 13 SHALL BE CHARGED WITH THE RESPONSIBILITY TO EXERCISE 14 EFFICIENT AND ACCOUNTABLE FISCAL PRACTICES, SUCH AS: 15 (A) INCREASED MANAGERIAL ACCOUNTABILITY; 16 (B) CONSOLIDATION OR ELIMINATION OF INEFFICIENT 17 CITY PROGRAMS AND AUTHORITIES; 18 (C) REEVALUATION OF TAX-EXEMPTION POLICIES WITH 19 REGARD TO REAL PROPERTY TAXES; 20 (D) INCREASED COLLECTION OF EXISTING TAX 21 REVENUES; 22 (E) PRIVATIZATION OR OUTSOURCING OF APPROPRIATE 23 CITY SERVICES; 24 (F) SALE OF CITY ASSETS AS APPROPRIATE; 25 (G) IMPROVEMENT OF PROCUREMENT PRACTICES, 26 INCLUDING COMPETITIVE BIDDING PROCEDURES; AND 27 (H) REVIEW OF COMPENSATION AND BENEFITS OF CITY 28 EMPLOYEES; AND 29 (III) EXERCISE ITS POWERS CONSISTENT WITH THE RIGHTS 30 OF CITIZENS TO HOME RULE AND SELF-GOVERNMENT. 20030H2006B3291 - 44 -
1 (2) THE GENERAL ASSEMBLY FURTHER DECLARES THAT THIS 2 LEGISLATION IS INTENDED TO REMEDY THE APPARENT FISCAL 3 EMERGENCY CONFRONTING CITIES OF THE SECOND CLASS THROUGH THE 4 IMPLEMENTATION OF SOVEREIGN POWERS OF THE COMMONWEALTH. TO 5 SAFEGUARD THE RIGHTS OF THE CITIZENS TO THE ELECTORAL PROCESS 6 AND HOME RULE, THE GENERAL ASSEMBLY INTENDS TO EXERCISE ITS 7 POWER IN AN APPROPRIATE MANNER WITH THE ELECTED OFFICERS OF 8 CITIES OF THE SECOND CLASS. 9 (3) IT IS FURTHER DECLARED THAT THIS LEGISLATION IS 10 INTENDED TO OPERATE CONCURRENTLY AND EQUALLY WITH THE ACT OF 11 JULY 10, 1987 (P.L.246, NO.47), KNOWN AS THE MUNICIPALITIES 12 FINANCIAL RECOVERY ACT. 13 SECTION 103. LEGISLATIVE FINDINGS. 14 IT IS HEREBY DETERMINED AND DECLARED AS A MATTER OF 15 LEGISLATIVE FINDING THAT: 16 (1) CITIES OF THE SECOND CLASS HAVE ENCOUNTERED 17 RECURRING FINANCIAL DIFFICULTIES WHICH MAY AFFECT THE 18 PERFORMANCE OF NECESSARY MUNICIPAL SERVICES TO THE DETRIMENT 19 OF THE HEALTH, SAFETY AND GENERAL WELFARE OF RESIDENTS OF 20 SUCH CITIES. 21 (2) IT IS CRITICALLY IMPORTANT THAT CITIES OF THE SECOND 22 CLASS MAINTAIN THEIR CREDITWORTHINESS. 23 (3) DUE TO THE ECONOMIC AND SOCIAL INTERRELATIONSHIP 24 AMONG ALL CITIZENS IN OUR ECONOMY, THE FISCAL INTEGRITY OF 25 CITIES OF THE SECOND CLASS IS A MATTER OF CONCERN TO 26 RESIDENTS OF THE ENTIRE COMMONWEALTH, AND THE FINANCIAL 27 PROBLEMS OF SUCH CITIES HAVE A DIRECT AND NEGATIVE EFFECT ON 28 THE ENTIRE COMMONWEALTH. 29 (4) BECAUSE CITIES OF THE SECOND CLASS CONSUME A 30 SUBSTANTIAL PROPORTION OF THE PRODUCTS OF PENNSYLVANIA'S 20030H2006B3291 - 45 -
1 FARMS, FACTORIES, MANUFACTURING PLANTS AND SERVICE 2 ENTERPRISES, ECONOMIC DIFFICULTIES CONFRONTING CITIES OF THE 3 SECOND CLASS DETRIMENTALLY AFFECT THE ECONOMY OF THE 4 COMMONWEALTH AS A WHOLE AND BECOME A MATTER OF STATEWIDE 5 CONCERN. 6 (5) BECAUSE RESIDENTS OF CITIES OF THE SECOND CLASS 7 CONTRIBUTE A SUBSTANTIAL PROPORTION OF ALL COMMONWEALTH TAX 8 REVENUES, A DISRUPTION OF THE ECONOMIC AND SOCIAL LIFE OF 9 SUCH CITIES MAY HAVE A SIGNIFICANT DETRIMENTAL EFFECT UPON 10 COMMONWEALTH REVENUES. 11 (6) THE FINANCIAL DIFFICULTIES OF CITIES OF THE SECOND 12 CLASS CAN BEST BE ADDRESSED AND RESOLVED BY COOPERATION 13 BETWEEN GOVERNMENTAL ENTITIES. 14 (7) THE CONSTITUTION OF PENNSYLVANIA GRANTS 15 MUNICIPALITIES AUTHORITY TO COOPERATE WITH OTHER GOVERNMENTAL 16 ENTITIES IN THE EXERCISE OF ANY FUNCTION OR RESPONSIBILITY. 17 (8) THE COMMONWEALTH RETAINS CERTAIN SOVEREIGN POWERS 18 WITH RESPECT TO CITIES OF THE SECOND CLASS, AMONG THEM THE 19 POWERS TO AUTHORIZE AND LEVY TAXES, TO AUTHORIZE THE 20 INCURRING OF INDEBTEDNESS AND TO PROVIDE FINANCIAL ASSISTANCE 21 THAT MAY BE NECESSARY TO ASSIST CITIES IN SOLVING THEIR 22 FINANCIAL PROBLEMS. 23 (9) THE COMMONWEALTH MAY ATTACH CONDITIONS TO GRANTS OF 24 AUTHORITY TO INCUR INDEBTEDNESS OR ASSISTANCE TO CITIES OF 25 THE SECOND CLASS IN ORDER TO ENSURE THAT DEFICITS ARE 26 ELIMINATED AND ACCESS TO CAPITAL MARKETS IS ACHIEVED AND 27 MAINTAINED. 28 (10) SUCH CONDITIONS SHALL BE INCORPORATED INTO 29 INTERGOVERNMENTAL COOPERATION AGREEMENTS BETWEEN THE 30 COMMONWEALTH OR ITS INSTRUMENTALITIES AND CITIES OF THE 20030H2006B3291 - 46 -
1 SECOND CLASS. 2 (11) CITIES OF THE SECOND CLASS AND THE COMMONWEALTH 3 WILL BENEFIT FROM THE CREATION OF AN INDEPENDENT AUTHORITY 4 COMPOSED OF MEMBERS EXPERIENCED IN FINANCE AND MANAGEMENT 5 WHICH MAY ADVISE SUCH CITIES, THE GENERAL ASSEMBLY AND THE 6 GOVERNOR CONCERNING SOLUTIONS TO FISCAL PROBLEMS CITIES OF 7 THE SECOND CLASS MAY FACE. 8 (12) THE CREATION OF SUCH AN AUTHORITY WILL ALLOW SUCH 9 CITIES TO CONTINUE TO PROVIDE THE NECESSARY MUNICIPAL 10 SERVICES FOR THEIR RESIDENTS AND TO CONTRIBUTE TO THE ECONOMY 11 OF THE COMMONWEALTH. 12 (13) SEVERAL TASK FORCES HAVE STUDIED THE FISCAL 13 CONDITION OF A CITY OF THE SECOND CLASS AND HAVE PUBLISHED 14 FINDINGS AND SUGGESTIONS REGARDING THE FISCAL STRUCTURE OF 15 THE CITY AND ACTIONS THAT COULD BE TAKEN CONCERNING 16 PRESERVATION OF THE FINANCIAL VIABILITY OF THE CITY INTO THE 17 FUTURE. THOSE REPORTS, WIDELY KNOWN AS THE COMPETITIVE 18 PITTSBURGH REPORT, THE PGH 21 REPORT AND THE GOVERNOR'S 19 PITTSBURGH ECONOMIC IMPROVEMENT TASK FORCE REPORT SHOULD BE 20 EVALUATED BY THE AUTHORITY IN MAKING ITS RECOMMENDATIONS TO 21 THE CITY. HOWEVER, IT IS INTENDED THAT THE AUTHORITY 22 ESTABLISHED BY THIS ACT EXAMINE THE FISCAL AFFAIRS OF THE 23 ENTIRE CITY OF THE SECOND CLASS, INCLUDING ALL OF ITS 24 AUTHORITIES AND RELATED CORPORATE ENTITIES. 25 SECTION 104. DEFINITIONS. 26 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL 27 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 28 CONTEXT CLEARLY INDICATES OTHERWISE: 29 "ASSISTED CITY." A CITY OF THE SECOND CLASS WHICH RECEIVES 30 ASSISTANCE FROM THE INTERGOVERNMENTAL COOPERATION AUTHORITY FOR 20030H2006B3291 - 47 -
1 CITIES OF THE SECOND CLASS. THE TERM INCLUDES ANY MUNICIPAL 2 AUTHORITY, OTHER AUTHORITY OR OTHER CORPORATE ENTITY WHICH 3 DIRECTLY OR INDIRECTLY PERFORMS A GOVERNMENTAL FUNCTION ON 4 BEHALF OF THE CITY, IS DIRECTLY OR INDIRECTLY CONTROLLED BY THE 5 CITY OR TO WHICH THE CITY HAS DIRECT OR INDIRECT POWER OF 6 APPOINTMENT OR HAS DIRECTLY OR INDIRECTLY PLEDGED OR DESIGNATED 7 THE CITY'S REVENUES OR THE CITY'S CREDIT. 8 "AUTHORITY." THE INTERGOVERNMENTAL COOPERATION AUTHORITY FOR 9 CITIES OF THE SECOND CLASS ESTABLISHED IN SECTION 201. 10 "BOARD." THE GOVERNING BOARD OF THE INTERGOVERNMENTAL 11 COOPERATION AUTHORITY FOR CITIES OF THE SECOND CLASS. 12 "CITY." A CITY OF THE SECOND CLASS. 13 "CITY ACCOUNT." A TRUST FUND HELD FOR THE EXCLUSIVE BENEFIT 14 OF AN ASSISTED CITY. 15 "CORPORATE ENTITY." A MUNICIPAL AUTHORITY, OTHER AUTHORITY 16 OR OTHER CORPORATE ENTITY WHICH PERFORMS A GOVERNMENTAL FUNCTION 17 ON BEHALF OF THE CITY OR TO WHICH THE CITY HAS POWER OF 18 APPOINTMENT OR HAS PLEDGED OR DESIGNATED REVENUES. 19 "DEFICIT." SUCH NEGATIVE FUND BALANCE IN ANY PRINCIPAL 20 OPERATING FUND OR FUNDS OF A CITY OR CORPORATE ENTITY EXISTING 21 AT THE BEGINNING OF A FISCAL YEAR OR PROJECTED TO EXIST AS OF 22 THE CLOSE OF A FISCAL YEAR, AS MAY BE MORE SPECIFICALLY 23 IDENTIFIED, CALCULATED AND SET FORTH IN AN INTERGOVERNMENTAL 24 COOPERATION AGREEMENT OR FINANCIAL PLAN OF AN ASSISTED CITY 25 DESCRIBED IN SECTION 209. 26 "FEDERAL AGENCY." THE UNITED STATES, THE PRESIDENT OF THE 27 UNITED STATES AND ANY DEPARTMENT OR CORPORATION, AGENCY OR 28 INSTRUMENTALITY CREATED, DESIGNATED OR ESTABLISHED BY THE UNITED 29 STATES. 30 "GOVERNING BODY." THE LEGISLATIVE BODY OF A CITY. 20030H2006B3291 - 48 -
1 "GOVERNMENT AGENCY." THE GOVERNOR, DEPARTMENTS, BOARDS, 2 COMMISSIONS, AUTHORITIES AND OTHER OFFICERS AND AGENCIES OF 3 STATE GOVERNMENT, INCLUDING THOSE WHICH ARE NOT SUBJECT TO THE 4 POLICY SUPERVISION AND CONTROL OF THE GOVERNOR, ANY POLITICAL 5 SUBDIVISION, MUNICIPAL OR OTHER LOCAL AUTHORITY, AND ANY OFFICER 6 OR AGENCY OF ANY SUCH POLITICAL SUBDIVISION OR LOCAL AUTHORITY, 7 BUT THE TERM DOES NOT INCLUDE ANY COURT OR OTHER OFFICER OR 8 AGENCY OF THE UNIFIED JUDICIAL SYSTEM OR THE GENERAL ASSEMBLY OR 9 ITS OFFICERS AND AGENCIES. 10 "INTERGOVERNMENTAL COOPERATION AGREEMENT." ANY AGREEMENT 11 MADE BY THE AUTHORITY AND A CITY UNDER THE PROVISIONS OF SECTION 12 203(D). 13 "PARTY OFFICER." THE FOLLOWING MEMBERS OR OFFICERS OF ANY 14 POLITICAL PARTY: 15 (1) A MEMBER OF A NATIONAL COMMITTEE; 16 (2) A CHAIRMAN, VICE CHAIRMAN, SECRETARY, TREASURER OR 17 COUNSEL OF A STATE COMMITTEE OR MEMBER OF THE EXECUTIVE 18 COMMITTEE OF A STATE COMMITTEE; 19 (3) A COUNTY CHAIRMAN, VICE CHAIRMAN, COUNSEL, SECRETARY 20 OR TREASURER OF A COUNTY COMMITTEE; OR 21 (4) A CHAIRMAN, VICE CHAIRMAN, COUNSEL, SECRETARY, 22 TREASURER OR WARD LEADER OF A CITY OR MUNICIPAL COMMITTEE. 23 "PUBLIC OFFICIAL." ANY ELECTED OR APPOINTED OFFICIAL OR 24 EMPLOYEE IN THE EXECUTIVE, LEGISLATIVE OR JUDICIAL BRANCH OF THE 25 COMMONWEALTH OR ANY POLITICAL SUBDIVISION THEREOF, PROVIDED THAT 26 IT SHALL NOT INCLUDE MEMBERS OF ADVISORY BOARDS THAT HAVE NO 27 AUTHORITY TO EXPEND PUBLIC FUNDS OTHER THAN REIMBURSEMENT FOR 28 PERSONAL EXPENSE OR TO OTHERWISE EXERCISE THE POWER OF THE 29 COMMONWEALTH OR ANY POLITICAL SUBDIVISION THEREOF. THE TERM 30 SHALL NOT INCLUDE ANY APPOINTED OFFICIAL WHO RECEIVES NO 20030H2006B3291 - 49 -
1 COMPENSATION OTHER THAN REIMBURSEMENT FOR ACTUAL EXPENSES. 2 CHAPTER 2 3 INTERGOVERNMENTAL COOPERATION AUTHORITY FOR 4 CITIES OF THE SECOND CLASS 5 SECTION 201. AUTHORITY ESTABLISHED. 6 A BODY CORPORATE AND POLITIC TO BE KNOWN AS THE 7 INTERGOVERNMENTAL COOPERATION AUTHORITY FOR CITIES OF THE SECOND 8 CLASS IS ESTABLISHED AS A PUBLIC AUTHORITY AND INSTRUMENTALITY 9 OF THE COMMONWEALTH, EXERCISING PUBLIC POWERS OF THE 10 COMMONWEALTH AS AN AGENCY AND INSTRUMENTALITY THEREOF. THE 11 EXERCISE BY THE AUTHORITY OF THE POWERS CONFERRED BY THIS ACT IS 12 HEREBY DECLARED TO BE AND SHALL FOR ALL PURPOSES BE DEEMED AND 13 HELD TO BE THE PERFORMANCE OF AN ESSENTIAL PUBLIC FUNCTION. 14 SECTION 202. GOVERNING BOARD. 15 (A) COMPOSITION OF BOARD.-- 16 (1) THE POWERS AND DUTIES OF THE AUTHORITY SHALL BE 17 EXERCISED BY A GOVERNING BOARD COMPOSED OF FIVE MEMBERS: 18 (I) ONE MEMBER SHALL BE APPOINTED BY THE PRESIDENT 19 PRO TEMPORE OF THE SENATE. 20 (II) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY 21 LEADER OF THE SENATE. 22 (III) ONE MEMBER SHALL BE APPOINTED BY THE SPEAKER 23 OF THE HOUSE OF REPRESENTATIVES. 24 (IV) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY 25 LEADER OF THE HOUSE OF REPRESENTATIVES. 26 (V) ONE MEMBER SHALL BE APPOINTED BY THE GOVERNOR. 27 (VI) THE SECRETARY OF THE BUDGET AND THE DIRECTOR OF 28 FINANCE OF EACH ASSISTED CITY SHALL SERVE AS EX OFFICIO 29 MEMBERS OF THE BOARD. THE BOARD AND ANY APPOINTED 30 COORDINATOR SHALL COOPERATE IN THE SHARING OF REPORTS, 20030H2006B3291 - 50 -
1 INFORMATION AND RECOMMENDATIONS WITH REGARD TO THE 2 ASSISTED CITY. THE EX OFFICIO MEMBERS MAY NOT VOTE AND 3 SHALL NOT BE COUNTED FOR PURPOSES OF ESTABLISHING A 4 QUORUM. THE SECRETARY OF THE BUDGET AND THE DIRECTOR OF 5 FINANCE OF EACH ASSISTED CITY MAY DESIGNATE IN WRITING A 6 REPRESENTATIVE OF THEIR RESPECTIVE OFFICES TO ATTEND 7 MEETINGS OF THE BOARD ON THEIR BEHALF. 8 (2) ALL MEMBERS AND DESIGNEES MUST HAVE SUBSTANTIAL 9 EXPERIENCE IN FINANCE OR MANAGEMENT. 10 (3) ALL MEMBERS OF THE BOARD MUST BE RESIDENTS OF THIS 11 COMMONWEALTH AND, EXCEPT THE SECRETARY OF THE BUDGET, MUST 12 EITHER BE RESIDENTS OF THE ASSISTED CITY OR HAVE THEIR 13 PRIMARY PLACES OF BUSINESS OR EMPLOYMENT IN THAT CITY. 14 (B) TERM.--APPOINTING AUTHORITIES SHALL APPOINT THE INITIAL 15 MEMBERS OF THE BOARD WITHIN SEVEN DAYS OF THE EFFECTIVE DATE OF 16 THIS ACT, AND THE APPOINTED MEMBERS SHALL SELECT A CHAIRPERSON 17 FROM AMONG THEMSELVES AT THE INITIAL ORGANIZATIONAL MEETING OF 18 THE BOARD AND UPON ANY SUBSEQUENT VACANCY IN THE OFFICE OF 19 CHAIRPERSON. THE TERM OF A BOARD MEMBER SHALL BEGIN ON THE DATE 20 OF THE APPOINTMENT. A MEMBER'S TERM SHALL BE COTERMINOUS WITH 21 THAT OF THE APPOINTING AUTHORITY. THE MEMBER SELECTED AS 22 CHAIRPERSON SHALL SERVE IN THAT CAPACITY FOR TWO YEARS FROM THE 23 DATE OF SELECTION OR FOR THE DURATION OF HIS TERM ON THE BOARD, 24 WHICHEVER IS LESS, AND MAY BE REELECTED TO SUBSEQUENT TWO-YEAR 25 TERMS. AN APPOINTED BOARD MEMBER SHALL SERVE AT THE PLEASURE OF 26 THE MEMBER'S APPOINTING AUTHORITY. WHENEVER A VACANCY OCCURS 27 AMONG THE APPOINTED MEMBERS ON THE BOARD, WHETHER PRIOR TO OR ON 28 THE EXPIRATION OF A TERM, THE APPOINTING AUTHORITY WHO 29 ORIGINALLY APPOINTED THE BOARD MEMBER WHOSE SEAT HAS BECOME 30 VACANT SHALL APPOINT A SUCCESSOR MEMBER WITHIN 30 DAYS OF THE 20030H2006B3291 - 51 -
1 VACANCY. A MEMBER APPOINTED BY AN APPOINTING AUTHORITY TO FILL A 2 VACANCY OCCURRING PRIOR TO THE EXPIRATION OF A TERM SHALL SERVE 3 THE UNEXPIRED TERM. 4 (C) ORGANIZATION.--THE APPOINTEES OF THE PRESIDENT PRO 5 TEMPORE OF THE SENATE AND THE SPEAKER OF THE HOUSE OF 6 REPRESENTATIVES SHALL SET A DATE, TIME AND PLACE FOR THE INITIAL 7 ORGANIZATIONAL MEETING OF THE BOARD WITHIN FIVE DAYS OF THE 8 APPOINTMENT OF THE INITIAL MEMBERS OF THE BOARD. THE INITIAL 9 ORGANIZATIONAL MEETING SHALL BE HELD WITHIN 15 DAYS OF THE 10 EFFECTIVE DATE OF THIS ACT. IN ADDITION TO CHAIRPERSON, THE 11 MEMBERS SHALL ELECT SUCH OTHER OFFICERS AS THEY MAY DETERMINE. A 12 MEMBER MAY HOLD MORE THAN ONE OFFICE OF THE BOARD AT ANY TIME. 13 (D) MEETINGS.--AFTER THE INITIAL ORGANIZATIONAL MEETING, THE 14 BOARD SHALL MEET AS FREQUENTLY AS IT DEEMS APPROPRIATE BUT AT 15 LEAST ONCE DURING EACH QUARTER OF THE FISCAL YEAR. IN ADDITION, 16 A MEETING OF THE BOARD SHALL BE CALLED BY THE CHAIRPERSON IF A 17 REQUEST FOR A MEETING IS SUBMITTED TO THE CHAIRPERSON BY AT 18 LEAST TWO MEMBERS OF THE BOARD. A MAJORITY OF THE BOARD SHALL 19 CONSTITUTE A QUORUM FOR THE PURPOSE OF CONDUCTING THE BUSINESS 20 OF THE BOARD AND FOR ALL OTHER PURPOSES. ALL ACTIONS OF THE 21 BOARD SHALL BE TAKEN BY A MAJORITY OF THE BOARD, EXCEPT AS 22 OTHERWISE SPECIFICALLY NOTED. THE PROVISIONS OF 65 PA.C.S. CH. 7 23 (RELATING TO OPEN MEETINGS) SHALL APPLY TO THE BOARD. 24 (E) EXPENSES.--A MEMBER SHALL NOT RECEIVE COMPENSATION OR 25 REMUNERATION, BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ALL 26 REASONABLE AND NECESSARY ACTUAL EXPENSES. 27 (F) EMPLOYEES AND AGENTS.--THE BOARD SHALL FIX AND DETERMINE 28 THE NUMBER OF EMPLOYEES OF THE AUTHORITY AND THEIR RESPECTIVE 29 COMPENSATION AND DUTIES. THE BOARD MAY CONTRACT FOR OR RECEIVE 30 THE LOAN OF SERVICES OF PERSONS IN THE EMPLOY OF OTHER 20030H2006B3291 - 52 -
1 GOVERNMENT AGENCIES, AND OTHER GOVERNMENT AGENCIES SHALL BE 2 AUTHORIZED TO MAKE SUCH EMPLOYEES AVAILABLE. THE BOARD MAY 3 RETAIN AN EXECUTIVE DIRECTOR UPON A MAJORITY VOTE. THE BOARD 4 MAY, BY A MAJORITY VOTE, HIRE AN INDEPENDENT GENERAL COUNSEL TO 5 THE AUTHORITY AND MAY ENGAGE CONSULTANTS AND CONTRACT FOR OTHER 6 PROFESSIONAL SERVICES UPON A MAJORITY VOTE. THE BOARD MAY, UPON 7 THE APPROVAL OF A MAJORITY, DELEGATE TO THE EXECUTIVE DIRECTOR 8 SUCH POWERS OF THE BOARD AS THE BOARD DEEMS NECESSARY TO CARRY 9 OUT THE PURPOSES OF THE AUTHORITY, SUBJECT IN EVERY CASE TO THE 10 SUPERVISION AND CONTROL OF THE BOARD. 11 (G) PUBLIC OFFICIALS AND PARTY OFFICERS; CONFLICTS OF 12 INTEREST PROHIBITED.-- 13 (1) EXCEPT FOR THE SECRETARY OF THE BUDGET, NEITHER 14 MEMBERS OF THE BOARD NOR THE EXECUTIVE DIRECTOR SHALL SEEK OR 15 HOLD A POSITION AS ANY OTHER PUBLIC OFFICIAL WITHIN THIS 16 COMMONWEALTH OR AS A PARTY OFFICER WHILE IN THE SERVICE OF 17 THE AUTHORITY. MEMBERS OF THE BOARD AND THE EXECUTIVE 18 DIRECTOR SHALL NOT SEEK ELECTION AS PUBLIC OFFICIALS OR PARTY 19 OFFICERS FOR ONE YEAR AFTER THEIR SERVICE WITH THE AUTHORITY. 20 MEMBERS OF THE BOARD AND THE EXECUTIVE DIRECTOR MAY SERVE AS 21 APPOINTIVE PUBLIC OFFICIALS ANY TIME AFTER THEIR PERIODS OF 22 SERVICE WITH THE AUTHORITY. 23 (2) EMPLOYEES AND AGENTS OF THE AUTHORITY SHALL NOT SEEK 24 OR HOLD OTHER POSITIONS AS PUBLIC OFFICIALS OR PARTY OFFICERS 25 WHILE IN THE EMPLOY OF THE AUTHORITY. THE AUTHORITY MAY 26 RECEIVE THE LOAN OF SERVICES OF PERSONS IN OTHER GOVERNMENT 27 AGENCIES IN ACCORDANCE WITH SUBSECTION (F), NOTWITHSTANDING 28 THAT SUCH PERSONS ARE PUBLIC OFFICIALS. EMPLOYEES OF THE 29 AUTHORITY SHALL NOT SEEK ELECTION AS PUBLIC OFFICIALS OR 30 PARTY OFFICERS FOR ONE YEAR AFTER LEAVING THE EMPLOY OF THE 20030H2006B3291 - 53 -
1 AUTHORITY. 2 (3) NO MEMBER OF THE BOARD OR EMPLOYEE OF THE AUTHORITY 3 MAY DIRECTLY OR INDIRECTLY BE A PARTY TO OR BE INTERESTED IN 4 ANY CONTRACT OR AGREEMENT WITH THE AUTHORITY OR WITH THE 5 ASSISTED CITY. NO MEMBER OR EMPLOYEE MAY USE HIS OFFICE OR 6 EMPLOYMENT OR ANY CONFIDENTIAL INFORMATION RECEIVED THROUGH 7 HIS OFFICE OR EMPLOYMENT FOR THE PRIVATE PECUNIARY BENEFIT OF 8 HIMSELF, A MEMBER OF HIS IMMEDIATE FAMILY, OR A BUSINESS WITH 9 WHICH HE OR A MEMBER OF HIS IMMEDIATE FAMILY IS ASSOCIATED. 10 ANY MEMBER OR EMPLOYEE WHO SHALL WILLFULLY VIOLATE THIS 11 PROVISION SHALL FORFEIT HIS OFFICE OR EMPLOYMENT AND SHALL BE 12 SUBJECT TO SUCH OTHER CRIMINAL AND CIVIL SANCTIONS AS MAY BE 13 IMPOSED BY LAW. ANY CONTRACT OR AGREEMENT KNOWINGLY MADE IN 14 CONTRAVENTION OF THIS PROVISION IS VOID. 15 (H) STATUTES APPLYING TO AUTHORITY.-- 16 (1) THE PROVISIONS OF THE FOLLOWING ACTS SHALL APPLY TO 17 THE AUTHORITY: 18 (I) 65 PA.C.S. CH. 7 (RELATING TO OPEN MEETINGS). 19 (II) THE ACT OF JUNE 21, 1957 (P.L.390, NO.212), 20 REFERRED TO AS THE RIGHT-TO-KNOW LAW. 21 (III) EXCEPT AS SET FORTH IN PARAGRAPH (2), THE ACT 22 OF JULY 19, 1957 (P.L.1017, NO.451), KNOWN AS THE STATE 23 ADVERSE INTEREST ACT. 24 (IV) THE ACT OF OCTOBER 4, 1978 (P.L.883, NO.170), 25 REFERRED TO AS THE PUBLIC OFFICIAL AND EMPLOYEE ETHICS 26 LAW. 27 (2) NOTWITHSTANDING THE PROVISIONS OF THE STATE ADVERSE 28 INTEREST ACT, THE SECRETARY OF THE BUDGET AND THE DIRECTOR OF 29 FINANCE OF EACH ASSISTED CITY SHALL, WHILE SERVING AS EX 30 OFFICIO MEMBERS OF THE BOARD, ALSO SERVE IN THEIR OFFICIAL 20030H2006B3291 - 54 -
1 CAPACITIES WITH RESPECT TO THE NEGOTIATION AND EXECUTION OF 2 INTERGOVERNMENTAL COOPERATION AGREEMENTS AND OTHER AGREEMENTS 3 BETWEEN AN ASSISTED CITY AND THE AUTHORITY. 4 (I) ADVISORY COMMITTEE.-- 5 (1) THE BOARD MAY APPOINT BY MAJORITY VOTE ONE ADVISORY 6 COMMITTEE COMPRISED OF PROFESSIONALS ENGAGED IN MUNICIPAL 7 MANAGEMENT AND FINANCE OR OTHER EXPERTS AS IT MAY DEEM 8 NECESSARY. THE MEMBERS OF AN ADVISORY COMMITTEE SHALL RESIDE 9 WITHIN AN ASSISTED CITY OR A COUNTY WITHIN THE STATISTICAL 10 METROPOLITAN AREA IN WHICH THE ASSISTED CITY IS LOCATED. 11 (2) THE PROVISIONS OF SUBSECTION (G) SHALL BE APPLICABLE 12 TO MEMBERS OF AN ADVISORY COMMITTEE; HOWEVER, THE BOARD MAY 13 ALLOW CITY COUNCIL TO DESIGNATE A LIAISON FROM CITY COUNCIL 14 TO SERVE ON AN ADVISORY COMMITTEE. 15 (3) THE ADVISORY COMMITTEE SHALL CONSIST OF NO MORE THAN 16 SIX MEMBERS, EXCLUDING ANY COUNCIL LIAISON. 17 SECTION 203. POWERS AND DUTIES. 18 (A) GENERAL POWERS AND DUTIES.--THE AUTHORITY IS ESTABLISHED 19 FOR THE PURPOSES, WITHOUT LIMITATION, BY ITSELF OR BY AGREEMENT 20 IN COOPERATION WITH OTHERS, OF ASSISTING CITIES IN SOLVING THEIR 21 BUDGETARY AND FINANCIAL PROBLEMS. 22 (B) SPECIFIC DUTIES.--THE AUTHORITY SHALL HAVE THE POWERS 23 AND ITS DUTIES SHALL BE: 24 (1) TO ASSIST CITIES IN ACHIEVING FINANCIAL STABILITY IN 25 ANY MANNER CONSISTENT WITH THE PURPOSES AND POWERS DESCRIBED 26 BY THIS ACT. 27 (2) TO ASSIST CITIES IN AVOIDING DEFAULTS, ELIMINATING 28 AND FINANCING DEFICITS AND DEBTS, MAINTAINING SOUND BUDGETARY 29 PRACTICES AND AVOIDING THE INTERRUPTION OF MUNICIPAL 30 SERVICES. 20030H2006B3291 - 55 -
1 (3) TO NEGOTIATE INTERGOVERNMENTAL COOPERATION 2 AGREEMENTS WITH CITIES CONTAINING SUCH TERMS AND CONDITIONS 3 AS WILL ENABLE SUCH CITIES TO ELIMINATE AND AVOID DEFICITS, 4 MAINTAIN SOUND BUDGETARY PRACTICES AND AVOID INTERRUPTION OF 5 MUNICIPAL SERVICES. 6 (4) TO MAKE ANNUAL SIGNED REPORTS WITHIN 120 DAYS AFTER 7 THE CLOSE OF THE ASSISTED CITY'S FISCAL YEAR, COMMENCING WITH 8 THE FISCAL YEAR ENDING DECEMBER 31, 2003, TO THE GOVERNOR AND 9 THE GENERAL ASSEMBLY DESCRIBING THE CITY'S FINANCIAL 10 CONDITION AND THE AUTHORITY'S PROGRESS WITH RESPECT TO 11 RESTORING THE FINANCIAL STABILITY OF ASSISTED CITIES AND 12 ACHIEVING BALANCED BUDGETS FOR ASSISTED CITIES. SUCH REPORTS 13 SHALL BE FILED WITH THE GOVERNOR, WITH THE PRESIDING OFFICERS 14 OF THE SENATE AND THE HOUSE OF REPRESENTATIVES, WITH THE 15 CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS 16 COMMITTEE OF THE SENATE AND THE CHAIRPERSON AND THE MINORITY 17 CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF 18 REPRESENTATIVES AND WITH THE GOVERNING BODY, MAYOR AND 19 CONTROLLER OF THE ASSISTED CITY AND BE PUBLICLY AVAILABLE IN 20 THE ASSISTED CITY DURING NORMAL BUSINESS HOURS FOR PUBLIC 21 INSPECTION, AND MAY BE REPRODUCED BY ANY MEMBER OF THE PUBLIC 22 AT COMMERCIAL COSTS OF REPRODUCTION. SUCH REPORT SHALL 23 CLEARLY SHOW BY CONSISTENT CATEGORY THE LAST FIVE YEARS OF 24 OPERATING REVENUES AND EXPENDITURES, CAPITAL EXPENDITURES, 25 GROSS AND NET INDEBTEDNESS TRANSACTIONS, INCLUDING A SCHEDULE 26 OF PRINCIPAL AND INTEREST, FIVE-YEAR PROJECTIONS OF THE 27 ASSISTED CITY'S OPERATING AND CAPITAL BUDGETS, AND THE ENTIRE 28 PROJECTED INDEBTEDNESS TRANSACTIONS, INCLUDING A SCHEDULE OF 29 PRINCIPAL AND INTEREST OF SUCH INDEBTEDNESS UNTIL ANY AND ALL 30 DEBT HAS BEEN COMPLETELY RETIRED. SUCH REPORT SHALL CONTAIN A 20030H2006B3291 - 56 -
1 NARRATIVE EXPLAINING PROGRESS OF THE ASSISTED CITY IN MEETING 2 ITS ANNUAL AND FIVE-YEAR BUDGETARY OBJECTIVES, AN APPRAISAL 3 BY THE AUTHORITY OF THE PROGRESS THE ASSISTED CITY IS MAKING 4 TO ACHIEVE ITS GOALS, AND AN APPRAISAL OF THE EXTENT TO WHICH 5 THE ASSISTED CITY IS MAKING A GOOD FAITH EFFORT TO ACHIEVE 6 ITS GOALS. SUCH REPORT SHALL DISCLOSE ANY VIOLATIONS OF 7 FEDERAL AND STATE LAW THAT THE AUTHORITY MAY HAVE DISCOVERED. 8 SUCH REPORT SHALL INCLUDE AS APPENDIXES ALL HISTORICAL LOANS 9 OR OTHER CONTRACTS ENTERED INTO BY THE ASSISTED CITY AND ITS 10 AUTHORITIES. 11 (C) SPECIFIC POWERS.--IN ADDITION TO THE POWERS AND DUTIES 12 SET FORTH ELSEWHERE IN THIS ACT, THE AUTHORITY SHALL HAVE THE 13 SPECIFIC POWERS: 14 (1) TO OBTAIN COPIES OF ALL REPORTS AND DOCUMENTS 15 REGARDING THE REVENUES, EXPENDITURES, BUDGETS, DEFICITS, 16 DEBTS, COSTS, PLANS, OPERATIONS, ESTIMATES AND ANY OTHER 17 FINANCIAL OR BUDGETARY MATTERS OF AN ASSISTED CITY. 18 (2) TO OBTAIN ADDITIONAL REPORTS AND INFORMATION ON THE 19 ABOVE MATTERS IN SUCH FORM AS ARE DEEMED NECESSARY BY THE 20 AUTHORITY. 21 (3) TO MAKE FACTUAL FINDINGS CONCERNING AN ASSISTED 22 CITY'S BUDGETARY AND FISCAL AFFAIRS. 23 (4) TO MAKE RECOMMENDATIONS TO AN ASSISTED CITY AND THE 24 GENERAL ASSEMBLY CONCERNING THE BUDGETARY AND FISCAL AFFAIRS 25 OF THE ASSISTED CITY, WHICH SHALL INCLUDE CONSIDERATION OF 26 THE FOLLOWING ISSUES AND OTHER ISSUES AT THE DISCRETION OF 27 THE AUTHORITY: 28 (I) CONSOLIDATION OR MERGER OF SERVICES PERFORMED BY 29 AN ASSISTED CITY, SCHOOL, COUNTY OR OTHER SURROUNDING 30 MUNICIPALITY. 20030H2006B3291 - 57 -
1 (II) CONSOLIDATION OF PUBLIC SAFETY SERVICES. 2 (III) APPROPRIATE STAFFING LEVELS OF CITY 3 DEPARTMENTS AND CORPORATE ENTITIES. 4 (IV) COOPERATIVE AGREEMENTS OR CONTRACTUAL 5 ARRANGEMENTS BETWEEN HEALTH CARE FACILITIES LICENSED BY 6 THE DEPARTMENT OF HEALTH. 7 (V) FINANCIAL OR CONTRACTUAL OBLIGATIONS OF THE 8 ASSISTED CITY. 9 (VI) CONTRIBUTIONS OF NONPROFIT OR CHARITABLE 10 ORGANIZATIONS WHICH RECEIVE THE BENEFIT OF MUNICIPAL 11 SERVICES PROVIDED BY THE ASSISTED CITY. 12 (VII) REDUCTION OR RESTRUCTURING OF DEBT 13 OBLIGATIONS. 14 (VIII) COOPERATIVE AGREEMENTS BETWEEN THE ASSISTED 15 CITY AND THE COUNTY IN WHICH IT IS LOCATED OR 16 MUNICIPALITIES WHICH BORDER THE ASSISTED CITY. 17 (IX) COOPERATIVE AGREEMENTS BETWEEN THE ASSISTED 18 CITY AND THE SCHOOL DISTRICT IN WHICH IT IS LOCATED. 19 (X) COLLECTIVE BARGAINING AGREEMENTS AND OTHER 20 CONTRACTS OF THE ASSISTED CITY. 21 (XI) ELIMINATION, SALE OR TRANSFER OF ASSISTED CITY 22 SERVICES OR PROPERTY. 23 (XII) IMPLEMENTATION OF COST-SAVING MEASURES BY THE 24 ASSISTED CITY. 25 (XIII) INCREASED MANAGERIAL ACCOUNTABILITY. 26 (XIV) PERFORMANCE OF GOVERNMENT OPERATIONS AND 27 DELIVERY OF MUNICIPAL SERVICES. 28 (XV) REEVALUATION OF TAX-EXEMPTION POLICIES AND 29 PRACTICES WITH REGARD TO REAL PROPERTY TAXATION WITHIN 30 THE ASSISTED CITY. 20030H2006B3291 - 58 -
1 (XVI) IMPROVEMENTS IN PROCUREMENT PRACTICES. 2 (XVII) IMPLEMENTATION OF USER FEES FOR SERVICES, 3 INCLUDING SEWAGE, WATER TREATMENT AND REFUSE COLLECTION. 4 (XVIII) PRIVATIZATION AND OUTSOURCING OF APPROPRIATE 5 ASSISTED CITY SERVICES. 6 (XIX) INCREASED COLLECTION OF FINES AND COSTS 7 RELATING TO PARKING VIOLATIONS OR VIOLATIONS OF OTHER 8 CITY ORDINANCES. 9 (XX) COMPETITIVE BIDDING OF APPROPRIATE ASSISTED 10 CITY SERVICES, AND COMPETITIVE BIDDING PRACTICES. 11 (XXI) THE USE OF TECHNOLOGY TO ACHIEVE COST SAVINGS. 12 (XXII) A STUDY OF HEALTH CARE AND OTHER BENEFITS 13 OFFERED BY THE ASSISTED CITY TO ITS EMPLOYEES. 14 (XXIII) THE SALE OF THE ASSISTED CITY'S WORKER'S 15 COMPENSATION FUND. 16 (XXIV) THE SALE OF UNENCUMBERED ASSETS OF THE 17 ASSISTED CITY OR ITS AUTHORITIES. 18 (XXV) THE ELIMINATION OR REORGANIZATION OF 19 AUTHORITIES OR DEPARTMENTS. 20 (XXVI) THE USE BY THE ASSISTED CITY OF TAX AND OTHER 21 REVENUES RECEIVED, INCLUDING THOSE RECEIVED UNDER THE ACT 22 OF JULY 28, 1953 (P.L.723, NO.230), KNOWN AS THE SECOND 23 CLASS COUNTY CODE, AND THE PROPER USE OF SUCH REVENUES. 24 (XXVII) THE USE OF BUDGETARY PRACTICES AND 25 PRINCIPLES AS THEY RELATE TO FORECASTING, PUBLIC 26 OPENNESS, PROJECTIONS, ESTIMATES, TAX POLICY, LENDING, 27 BORROWING AND STRATEGIC PLANNING. 28 (XXVIII) THE TRANSFERS OF EMPLOYEES AND ASSETS BY 29 AND BETWEEN BUREAUS, DEPARTMENTS AND AUTHORITIES OF THE 30 ASSISTED CITY. 20030H2006B3291 - 59 -
1 (XXIX) PRIOR SUGGESTIONS PUBLISHED BY OTHERS PRIOR 2 TO THE ENACTMENT OF THIS ACT WITH REGARD TO THE ASSISTED 3 CITY. 4 (XXX) A REVIEW OF THE TAXING AUTHORITY OF THE CITY AS 5 COMPARED WITH THE TAXING AUTHORITY OF SCHOOL DISTRICTS OF 6 THE FIRST CLASS A. 7 (XXXI) A REVIEW OF THE RATIO OF DEBT SERVICE TO 8 GENERAL FUND OUTLAYS OF THE ASSISTED CITY, THE 9 APPROPRIATE RATIO AND THE MEANS TO ACHIEVE IT. 10 (XXXII) A REVIEW OF OUTSTANDING DEBT, DEBT PAYMENTS 11 AND THE ABILITY TO PREPAY SUCH DEBT. 12 (5) TO MAKE RECOMMENDATIONS TO THE GOVERNOR AND THE 13 GENERAL ASSEMBLY REGARDING LEGISLATION OR RESOLUTIONS WHICH 14 RELATE TO AN ASSISTED CITY'S FISCAL STABILITY. THE AUTHORITY 15 SHALL SUBMIT A PRELIMINARY REPORT OF THE RECOMMENDATIONS TO 16 THE GOVERNOR AND THE GENERAL ASSEMBLY WITHIN 60 DAYS OF THE 17 EFFECTIVE DATE OF THIS ACT. THE REPORT SHALL INCLUDE, BUT NOT 18 BE LIMITED TO, RECOMMENDATIONS AS TO WHETHER OR NOT THE CITY 19 NEEDS ADDITIONAL REVENUES, THE BEST SOURCES OF SUCH REVENUES 20 AND WAYS FOR THE CITY TO REDUCE EXPENDITURES. ANY 21 RECOMMENDATIONS FOR NEW REVENUE, IF WARRANTED, SHALL STATE 22 WHETHER SUCH REVENUES SHOULD BE EARMARKED FOR SPECIFIC 23 EXPENDITURES, INCLUDING BUT NOT LIMITED TO PREPAYMENT OF 24 DEBT, AND WHETHER SUCH REVENUES SHOULD BE SUBJECT TO SUNSET 25 PROVISIONS. 26 (6) TO EXERCISE POWERS OF REVIEW CONCERNING THE 27 BUDGETARY AND FISCAL AFFAIRS OF THE ASSISTED CITY CONSISTENT 28 WITH THIS ACT AND THE CITY'S HOME RULE CHARTER OR OTHER 29 OPTIONAL PLAN OF GOVERNMENT. 30 (7) TO RECEIVE REVENUES FROM ANY SOURCE, DIRECTLY OR BY 20030H2006B3291 - 60 -
1 ASSIGNMENT, PLEDGE OR OTHERWISE. 2 (8) TO SUE AND BE SUED, IMPLEAD AND BE IMPLEADED, 3 INTERPLEAD, COMPLAIN AND DEFEND IN ALL COURTS. 4 (9) TO ADOPT, USE AND ALTER AT WILL A CORPORATE SEAL. 5 (10) TO MAKE BYLAWS FOR THE MANAGEMENT AND REGULATION OF 6 ITS AFFAIRS AND ADOPT RULES, REGULATIONS AND POLICIES IN 7 CONNECTION WITH THE PERFORMANCE OF ITS FUNCTIONS AND DUTIES 8 WHICH, NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE 9 CONTRARY, SHALL NOT BE SUBJECT TO REVIEW PURSUANT TO THE ACT 10 OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY 11 REVIEW ACT. 12 (11) TO MAKE AND ENTER INTO CONTRACTS AND OTHER 13 INSTRUMENTS NECESSARY OR CONVENIENT FOR THE CONDUCT OF ITS 14 BUSINESS AND THE EXERCISE OF THE POWERS OF THE AUTHORITY. 15 (12) TO APPOINT OFFICERS, AGENTS, EMPLOYEES AND SERVANTS 16 AND TO PRESCRIBE THEIR DUTIES AND TO FIX THEIR COMPENSATION 17 AS SET FORTH IN SECTION 202(F). 18 (13) TO RETAIN COUNSEL AND AUDITORS TO RENDER SUCH 19 PROFESSIONAL SERVICES AS THE AUTHORITY DEEMS APPROPRIATE. THE 20 AUTHORITY SHALL NOT BE CONSIDERED EITHER AN EXECUTIVE AGENCY 21 OR AN INDEPENDENT AGENCY FOR THE PURPOSE OF THE ACT OF 22 OCTOBER 15, 1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH 23 ATTORNEYS ACT, BUT SHALL POSSESS THE SAME STATUS FOR SUCH 24 PURPOSE AS THE AUDITOR GENERAL, STATE TREASURER AND THE 25 PENNSYLVANIA PUBLIC UTILITY COMMISSION, EXCEPT THAT THE 26 PROVISIONS OF SECTION 204(B) AND (F) OF THE COMMONWEALTH 27 ATTORNEYS ACT SHALL NOT APPLY TO THE AUTHORITY; 28 NOTWITHSTANDING 42 PA.C.S. CH. 85 (RELATING TO MATTERS 29 AFFECTING GOVERNMENT UNITS), THE AUTHORITY, THROUGH ITS LEGAL 30 COUNSEL, SHALL DEFEND ACTIONS BROUGHT AGAINST THE AUTHORITY 20030H2006B3291 - 61 -
1 OR ITS MEMBERS, OFFICERS, OFFICIALS AND EMPLOYEES WHEN ACTING 2 WITHIN THE SCOPE OF THEIR OFFICIAL DUTIES. 3 (14) TO COOPERATE WITH ANY FEDERAL AGENCY OR GOVERNMENT 4 AGENCY. 5 (15) TO ACQUIRE, BY GIFT OR OTHERWISE, PURCHASE, HOLD, 6 RECEIVE, LEASE, SUBLEASE AND USE ANY FRANCHISE, LICENSE, 7 PROPERTY, REAL, PERSONAL OR MIXED, TANGIBLE OR INTANGIBLE OR 8 ANY INTEREST THEREIN. HOWEVER, THE AUTHORITY SHALL BE 9 ABSOLUTELY LIMITED IN ITS POWER TO ACQUIRE REAL PROPERTY 10 UNDER THIS ACT TO REAL PROPERTY THAT WILL BE USED ONLY FOR 11 THE OFFICE SPACE IN WHICH THE AUTHORITY WILL CONDUCT ITS 12 DAILY BUSINESS IF NECESSARY. IF POSSIBLE, AN ASSISTED CITY 13 SHALL PROVIDE OFFICE SPACE TO THE AUTHORITY AT NO COST TO THE 14 AUTHORITY AS PART OF AN INTERGOVERNMENTAL COOPERATION 15 AGREEMENT. 16 (16) TO SELL, TRANSFER, CONVEY AND DISPOSE OF ANY 17 PROPERTY, REAL, PERSONAL OR MIXED, TANGIBLE OR INTANGIBLE OR 18 ANY INTEREST THEREIN. 19 (17) TO ENTER INTO CONTRACTS FOR GROUP INSURANCE AND TO 20 CONTRIBUTE TO RETIREMENT PLANS FOR THE BENEFIT OF ITS 21 EMPLOYEES AND TO ENROLL ITS EMPLOYEES IN AN EXISTING 22 RETIREMENT SYSTEM OF A GOVERNMENT AGENCY. 23 (18) TO ACCEPT, PURCHASE OR BORROW EQUIPMENT, SUPPLIES, 24 SERVICES OR OTHER THINGS NECESSARY OR CONVENIENT TO THE WORK 25 OF THE AUTHORITY FROM OTHER GOVERNMENT AGENCIES, AND ALL 26 GOVERNMENT AGENCIES ARE AUTHORIZED TO SELL, LEND OR GRANT TO 27 THE AUTHORITY SUCH EQUIPMENT, SUPPLIES, SERVICES OR OTHER 28 THINGS NECESSARY OR CONVENIENT TO THE WORK OF THE AUTHORITY. 29 (19) TO INVEST ANY FUNDS HELD BY THE AUTHORITY AS SET 30 FORTH IN SECTION 212. 20030H2006B3291 - 62 -
1 (20) TO RECEIVE AND HOLD ASSETS, MONEYS AND FUNDS FROM 2 ANY SOURCE, INCLUDING, BUT NOT LIMITED TO, APPROPRIATIONS, 3 GRANTS, GIFTS. 4 (21) TO PROCURE INSURANCE, GUARANTEES AND SURETIES THE 5 AUTHORITY DETERMINES NECESSARY OR DESIRABLE FOR ITS PURPOSES. 6 (22) TO PLEDGE THE CREDIT OF THE AUTHORITY AS THE 7 AUTHORITY DETERMINES NECESSARY OR DESIRABLE FOR ITS PURPOSES. 8 (23) TO DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT 9 FOR THE PROMOTION OF ITS PURPOSES AND THE GENERAL WELFARE OF 10 THE AUTHORITY AND TO CARRY OUT THE POWERS GRANTED TO IT BY 11 THIS ACT OR ANY OTHER ACTS. 12 (D) INTERGOVERNMENTAL COOPERATION AGREEMENTS.--THE AUTHORITY 13 SHALL HAVE THE POWER AND ITS DUTY SHALL BE TO ENTER INTO AND TO 14 IMPLEMENT FULLY SUCH INTERGOVERNMENTAL COOPERATION AGREEMENTS 15 WITH CITIES AS ARE APPROVED BY A MAJORITY OF THE BOARD. THE 16 FOLLOWING SHALL APPLY: 17 (1) A CITY MAY ENTER INTO AN INTERGOVERNMENTAL 18 COOPERATION AGREEMENT IN WHICH IT, CONSISTENT WITH THIS ACT, 19 COVENANTS TO COOPERATE OR AGREE IN THE EXERCISE OF ANY 20 FUNCTION, POWER OR RESPONSIBILITY WITH, OR DELEGATE OR 21 TRANSFER ANY FUNCTION, POWER OR RESPONSIBILITY TO, THE 22 AUTHORITY UPON THE ADOPTION BY THE GOVERNING BODY OF SUCH 23 CITY OF AN ORDINANCE AUTHORIZING AND APPROVING THE 24 INTERGOVERNMENTAL COOPERATION AGREEMENT. 25 (2) AN ORDINANCE THAT AUTHORIZES A CITY TO ENTER INTO AN 26 INTERGOVERNMENTAL COOPERATION AGREEMENT WITH THE AUTHORITY 27 SHALL SPECIFY: 28 (I) THE PURPOSE AND OBJECTIVES OF THE AGREEMENT; 29 (II) THE CONDITIONS OF THE AGREEMENT; AND 30 (III) THE TERM OF THE AGREEMENT, INCLUDING 20030H2006B3291 - 63 -
1 PROVISIONS RELATING TO ITS TERMINATION. 2 (E) LIMITATION.--NOTWITHSTANDING ANY PURPOSE OR GENERAL OR 3 SPECIFIC POWER GRANTED BY THIS ACT OR ANY OTHER ACT, WHETHER 4 EXPRESS OR IMPLIED, THE AUTHORITY SHALL HAVE NO POWER TO PLEDGE 5 THE CREDIT OR TAXING POWERS OF THE COMMONWEALTH. 6 SECTION 204. TERM OF EXISTENCE. 7 THE AUTHORITY SHALL EXIST FOR A TERM OF AT LEAST SEVEN YEARS. 8 IF, AFTER SEVEN YEARS, AN ASSISTED CITY HAS HAD ANNUAL OPERATING 9 BUDGETS AND FIVE-YEAR FINANCIAL PLANS APPROVED BY THE BOARD FOR 10 AT LEAST THE THREE IMMEDIATELY PRECEDING YEARS, THE SECRETARY OF 11 COMMUNITY AND ECONOMIC DEVELOPMENT SHALL CERTIFY THAT THE 12 AUTHORITY IS NO LONGER NEEDED; AND THE PROVISIONS OF THIS 13 CHAPTER WILL NO LONGER BE IN EFFECT 90 DAYS FOLLOWING THAT 14 CERTIFICATION. UPON TERMINATION OF THE AUTHORITY, RECORDS AND 15 DOCUMENTS OF THE AUTHORITY SHALL BE TRANSFERRED TO THE DIRECTOR 16 OF FINANCE OF THE ASSISTED CITY. THE AUTHORITY SHALL SUBMIT A 17 FINAL REPORT ON ITS ACTIVITIES AND THE CITY'S FISCAL CONDITION 18 TO THE GOVERNOR AND THE GENERAL ASSEMBLY WITHIN 60 DAYS OF ITS 19 TERMINATION. 20 SECTION 205. FISCAL YEAR. 21 THE FISCAL YEAR OF THE AUTHORITY SHALL BE THE SAME AS THE 22 FISCAL YEAR OF THE COMMONWEALTH. 23 SECTION 206. ANNUAL BUDGET OF AUTHORITY. 24 (A) BUDGET.--BEFORE MARCH 1, 2004, FOR THE FISCAL YEAR JULY 25 1, 2004, TO JUNE 30, 2005, AND BEFORE OCTOBER 15, 2005, AND EACH 26 OCTOBER 15 THEREAFTER, THE AUTHORITY SHALL ADOPT A BUDGET BY A 27 MAJORITY OF THE BOARD SETTING FORTH IN REASONABLE DETAIL THE 28 PROJECTED EXPENSES OF OPERATION OF THE AUTHORITY FOR THE ENSUING 29 FISCAL YEAR, INCLUDING THE SALARY AND BENEFITS OF THE EXECUTIVE 30 DIRECTOR AND ANY OTHER EMPLOYEES OF THE AUTHORITY, AND THE 20030H2006B3291 - 64 -
1 PROJECTED REVENUES OF THE AUTHORITY TO BE DERIVED FROM 2 INVESTMENT EARNINGS AND ANY OTHER MONEYS OF THE AUTHORITY WHICH 3 ARE ESTIMATED TO BE AVAILABLE TO PAY THE OPERATING EXPENSES SET 4 FORTH IN THE BUDGET. A COPY OF THE AUTHORITY'S BUDGET SHALL BE 5 SUBMITTED TO THE GOVERNOR AND TO THE GENERAL ASSEMBLY. THE 6 AUTHORITY OR ITS DESIGNATED REPRESENTATIVES MAY BE AFFORDED AN 7 OPPORTUNITY TO APPEAR BEFORE THE GOVERNOR AND THE APPROPRIATIONS 8 COMMITTEE OF THE SENATE AND THE APPROPRIATIONS COMMITTEE OF THE 9 HOUSE OF REPRESENTATIVES REGARDING THE AUTHORITY'S BUDGET. 10 (B) LIMIT ON OPERATING EXPENSES.--FOLLOWING THE SUBMISSION 11 OF THE AUTHORITY'S BUDGET TO THE GOVERNOR AND THE GENERAL 12 ASSEMBLY AND ANY HEARING HELD BY AN APPROPRIATIONS COMMITTEE 13 UNDER SUBSECTION (A), THE GENERAL ASSEMBLY, BY CONCURRENT 14 RESOLUTION WITH PRESENTMENT TO THE GOVERNOR, IN ACCORDANCE WITH 15 SECTION 9 OF ARTICLE III OF THE CONSTITUTION OF PENNSYLVANIA, 16 MAY LIMIT THE OPERATING EXPENSES OF THE AUTHORITY. IN THAT 17 EVENT, IT SHALL BE UNLAWFUL FOR THE AUTHORITY TO SPEND MORE FOR 18 OPERATING EXPENSES THAN THE LIMIT ESTABLISHED FOR THAT FISCAL 19 YEAR BY THE CONCURRENT RESOLUTION. IF THE GENERAL ASSEMBLY DOES 20 NOT ADOPT A CONCURRENT RESOLUTION PRIOR TO MAY 30, THE 21 AUTHORITY'S BUDGET SHALL BE DEEMED APPROVED FOR THAT FISCAL 22 YEAR. 23 (C) FUNDING.--AFTER JULY 1, 2005, UPON REQUEST OF THE 24 AUTHORITY AND PURSUANT TO THE LIMITS ESTABLISHED IN SUBSECTION 25 (B), THE CITY SHALL ANNUALLY FUND ANY PORTION OF THE BUDGET OF 26 THE AUTHORITY WHICH EXCEEDS THE AUTHORITY'S STATE APPROPRIATION, 27 INCLUDING ITS REASONABLE AND NECESSARY EXPENSES AND COSTS 28 INCURRED FOR CONSULTANTS ENGAGED BY THE BOARD TO CARRY OUT ITS 29 DUTIES. 30 (D) EXAMINATION OF BOOKS.--THE CHAIRPERSON AND MINORITY 20030H2006B3291 - 65 -
1 CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE SENATE AND 2 THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS 3 COMMITTEE OF THE HOUSE OF REPRESENTATIVES SHALL HAVE THE RIGHT 4 AT ANY TIME TO EXAMINE THE BOOKS, ACCOUNTS AND RECORDS OF THE 5 AUTHORITY. 6 SECTION 207. ANNUAL REPORT TO BE FILED; ANNUAL AUDITS. 7 THE AUTHORITY SHALL FILE A SIGNED ANNUAL REPORT WITH THE 8 CHAIRPERSON AND THE MINORITY CHAIRPERSON OF THE APPROPRIATIONS 9 COMMITTEE OF THE SENATE AND CHAIRPERSON AND THE MINORITY 10 CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF 11 REPRESENTATIVES, WHICH SHALL MAKE PROVISIONS FOR THE ACCOUNTING 12 OF REVENUES AND EXPENSES. THE AUTHORITY SHALL HAVE ITS BOOKS, 13 ACCOUNTS AND RECORDS AUDITED ANNUALLY IN ACCORDANCE WITH 14 GENERALLY ACCEPTED AUDITING STANDARDS BY AN INDEPENDENT AUDITOR 15 WHO SHALL BE A CERTIFIED PUBLIC ACCOUNTANT, AND A COPY OF HIS 16 AUDIT REPORT SHALL BE ATTACHED TO AND BE MADE A PART OF THE 17 AUTHORITY'S ANNUAL REPORT. A CONCISE FINANCIAL STATEMENT SHALL 18 BE PUBLISHED ANNUALLY IN THE PENNSYLVANIA BULLETIN. 19 SECTION 208. LIMIT ON CITY BORROWING. 20 A CITY AND ITS CORPORATE ENTITIES MAY NOT BORROW OR RECEIVE 21 FUNDS FOR ANY LAWFUL PURPOSE UNLESS THE CITY HAS ENTERED INTO AN 22 INTERGOVERNMENTAL COOPERATION AGREEMENT WITH THE AUTHORITY AND 23 THERE IS AN APPROVED FINANCIAL PLAN IN EFFECT. 24 SECTION 209. FINANCIAL PLAN OF AN ASSISTED CITY. 25 (A) REQUIREMENT OF A FINANCIAL PLAN.--AN ASSISTED CITY SHALL 26 DEVELOP, IMPLEMENT AND PERIODICALLY REVISE A FINANCIAL PLAN AS 27 DESCRIBED IN THIS SECTION. 28 (B) ELEMENTS OF PLAN.--THE FINANCIAL PLAN SHALL INCLUDE: 29 (1) PROJECTED REVENUES AND EXPENDITURES OF THE PRINCIPAL 30 OPERATING FUND OR FUNDS OF THE ASSISTED CITY FOR FIVE FISCAL 20030H2006B3291 - 66 -
1 YEARS CONSISTING OF THE CURRENT FISCAL YEAR AND THE NEXT FOUR 2 FISCAL YEARS. 3 (2) PLAN COMPONENTS THAT WILL: 4 (I) ELIMINATE ANY PROJECTED DEFICIT FOR THE CURRENT 5 FISCAL YEAR AND FOR SUBSEQUENT FISCAL YEARS; 6 (II) RESTORE TO SPECIAL FUND ACCOUNTS MONEY FROM 7 THOSE ACCOUNTS USED FOR PURPOSES OTHER THAN THOSE 8 SPECIFICALLY AUTHORIZED; 9 (III) BALANCE THE CURRENT FISCAL YEAR BUDGET AND 10 SUBSEQUENT BUDGETS IN THE FINANCIAL PLAN THROUGH SOUND 11 BUDGETARY PRACTICES, INCLUDING, BUT NOT LIMITED TO, 12 REDUCTIONS IN EXPENDITURES, IMPROVEMENTS IN PRODUCTIVITY, 13 INCREASES IN REVENUES OR A COMBINATION OF THESE STEPS; 14 (IV) PROVIDE PROCEDURES TO AVOID A FISCAL EMERGENCY 15 CONDITION IN THE FUTURE; AND 16 (V) ENHANCE THE ABILITY OF THE ASSISTED CITY TO 17 ACCESS SHORT-TERM AND LONG-TERM CREDIT MARKETS. 18 (C) STANDARDS FOR FORMULATION OF PLAN.-- 19 (1) ALL PROJECTIONS OF REVENUES AND EXPENDITURES IN A 20 FINANCIAL PLAN SHALL BE BASED ON PRUDENT, REASONABLE AND 21 APPROPRIATE ASSUMPTIONS AND METHODS OF ESTIMATION, ALL SUCH 22 ASSUMPTIONS AND METHODS TO BE CONSISTENTLY APPLIED AND 23 REPORTED IN THE FINANCIAL PLAN. THE FINANCIAL PLAN OF AN 24 ASSISTED CITY SHALL NOT INCLUDE PROJECTED REVENUE THAT IN 25 ORDER TO BE COLLECTED REQUIRES THE ENACTMENT BY THE GENERAL 26 ASSEMBLY OF NEW TAXING POWERS. 27 (2) ALL REVENUE AND APPROPRIATION ESTIMATES SHALL BE ON 28 A MODIFIED ACCRUAL BASIS IN ACCORDANCE WITH GENERALLY 29 ACCEPTED STANDARDS AGREED TO BY THE AUTHORITY SUCH AS THOSE 30 PROMULGATED BY THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD. 20030H2006B3291 - 67 -
1 REVENUE ESTIMATES SHALL RECOGNIZE REVENUES IN THE ACCOUNTING 2 PERIOD IN WHICH THEY BECOME BOTH MEASURABLE AND AVAILABLE. 3 ESTIMATES OF CITY-GENERATED REVENUES SHALL BE BASED ON 4 CURRENT OR PROPOSED TAX RATES, HISTORICAL COLLECTION PATTERNS 5 AND GENERALLY RECOGNIZED ECONOMETRIC MODELS. ESTIMATES OF 6 REVENUES TO BE RECEIVED FROM THE STATE GOVERNMENT SHALL BE 7 BASED ON HISTORICAL PATTERNS, CURRENTLY AVAILABLE LEVELS OR 8 ON LEVELS PROPOSED IN A BUDGET BY THE GOVERNOR. ESTIMATES OF 9 REVENUES TO BE RECEIVED FROM THE FEDERAL GOVERNMENT SHALL BE 10 BASED ON HISTORICAL PATTERNS, CURRENTLY AVAILABLE LEVELS OR 11 ON LEVELS PROPOSED IN A BUDGET BY THE PRESIDENT OR IN A 12 CONGRESSIONAL BUDGET RESOLUTION. NONTAX REVENUES SHALL BE 13 BASED ON CURRENT OR PROPOSED RATES, CHARGES OR FEES, 14 HISTORICAL PATTERNS AND GENERALLY RECOGNIZED ECONOMETRIC 15 MODELS. APPROPRIATION ESTIMATES SHALL INCLUDE, AT A MINIMUM, 16 ALL OBLIGATIONS INCURRED DURING THE FISCAL YEAR AND ESTIMATED 17 TO BE PAYABLE DURING THE FISCAL YEAR OR IN THE 24-MONTH 18 PERIOD FOLLOWING THE CLOSE OF THE CURRENT FISCAL YEAR AND ALL 19 OBLIGATIONS OF PRIOR FISCAL YEARS NOT COVERED BY ENCUMBERED 20 FUNDS FROM PRIOR FISCAL YEARS. ANY DEVIATIONS FROM THESE 21 STANDARDS OF ESTIMATING REVENUES AND APPROPRIATIONS PROPOSED 22 TO BE USED BY AN ASSISTED CITY SHALL BE SPECIFICALLY 23 DISCLOSED AND SHALL BE APPROVED BY A MAJORITY OF THE BOARD. 24 (3) ALL CASH FLOW PROJECTIONS SHALL BE BASED UPON 25 PRUDENT, REASONABLE AND APPROPRIATE ASSUMPTIONS AS TO SOURCES 26 AND USES OF CASH, INCLUDING, BUT NOT LIMITED TO, PRUDENT, 27 REASONABLE AND APPROPRIATE ASSUMPTIONS AS TO THE TIMING OF 28 RECEIPT AND EXPENDITURE THEREOF, AND SHALL PROVIDE FOR 29 OPERATIONS OF THE ASSISTED CITY TO BE CONDUCTED WITHIN THE 30 RESOURCES SO PROJECTED. ALL ESTIMATES SHALL TAKE DUE ACCOUNT 20030H2006B3291 - 68 -
1 OF THE PAST AND ANTICIPATED COLLECTION, EXPENDITURE AND 2 SERVICE DEMAND EXPERIENCE OF THE ASSISTED CITY AND OF CURRENT 3 AND PROJECTED ECONOMIC CONDITIONS. 4 (D) FORM OF PLAN.--EACH FINANCIAL PLAN SHALL, CONSISTENT 5 WITH THE REQUIREMENTS OF AN ASSISTED CITY'S HOME RULE CHARTER OR 6 OPTIONAL PLAN OF GOVERNMENT: 7 (1) BE IN SUCH FORM AND SHALL CONTAIN: 8 (I) FOR EACH OF THE FIRST TWO FISCAL YEARS COVERED 9 BY THE FINANCIAL PLAN, SUCH INFORMATION AS SHALL REFLECT 10 AN ASSISTED CITY'S TOTAL EXPENDITURES BY FUND AND BY LUMP 11 SUM AMOUNT FOR EACH BOARD, COMMISSION, DEPARTMENT OR 12 OFFICE OF AN ASSISTED CITY; AND 13 (II) FOR THE REMAINING THREE FISCAL YEARS OF THE 14 FINANCIAL PLAN, SUCH INFORMATION AS SHALL REFLECT AN 15 ASSISTED CITY'S TOTAL EXPENDITURES BY FUND AND BY LUMP 16 SUM AMOUNT FOR MAJOR OBJECT CLASSIFICATION; 17 (2) INCLUDE PROJECTIONS OF ALL REVENUES AND EXPENDITURES 18 FOR FIVE FISCAL YEARS, INCLUDING, BUT NOT LIMITED TO, 19 PROJECTED CAPITAL EXPENDITURES AND SHORT-TERM AND LONG-TERM 20 DEBT INCURRENCE AND CASH FLOW FORECASTS BY FUND FOR THE FIRST 21 YEAR OF THE FINANCIAL PLAN; 22 (3) INCLUDE A SCHEDULE OF PROJECTED CAPITAL COMMITMENTS 23 OF THE ASSISTED CITY AND PROPOSED SOURCES OF FUNDING FOR SUCH 24 COMMITMENTS; AND 25 (4) BE ACCOMPANIED BY A STATEMENT DESCRIBING, IN 26 REASONABLE DETAIL, THE SIGNIFICANT ASSUMPTIONS AND METHODS OF 27 ESTIMATION USED IN ARRIVING AT THE PROJECTIONS CONTAINED IN 28 SUCH PLAN. 29 (E) ANNUAL SUBMISSION OF PLAN.--WITHIN 90 DAYS OF THE 30 EFFECTIVE DATE OF THIS SECTION, AN ASSISTED CITY SHALL DEVELOP, 20030H2006B3291 - 69 -
1 AND THE AUTHORITY SHALL REVIEW AND ACT UPON, AN INITIAL FIVE- 2 YEAR FINANCIAL PLAN WHICH INCLUDES A REPORT ON THE STATUS OF 3 IMPLEMENTATION OF PRIOR PUBLISHED SUGGESTIONS REGARDING 4 CONSOLIDATION AND COST SAVINGS. DURING EACH SUBSEQUENT FISCAL 5 YEAR, THE MAYOR OR CHIEF EXECUTIVE OFFICER OF EACH ASSISTED CITY 6 SHALL, AT LEAST 100 DAYS PRIOR TO THE BEGINNING OF ITS FISCAL 7 YEAR OR ON SUCH OTHER DATE AS THE AUTHORITY MAY APPROVE UPON THE 8 REQUEST OF THE ASSISTED CITY, PREPARE AND SUBMIT ITS PROPOSED 9 FIVE-YEAR PLAN. AT THE SAME TIME THE PLAN IS SUBMITTED, THE 10 MAYOR OR CHIEF EXECUTIVE OFFICER SHALL ALSO SUBMIT TO THE 11 AUTHORITY: 12 (1) THE MAYOR'S OR CHIEF EXECUTIVE OFFICER'S PROPOSED 13 ANNUAL OPERATING BUDGET AND CAPITAL BUDGET WHICH SHALL BE 14 CONSISTENT WITH THE FIRST YEAR OF THE FINANCIAL PLAN AND 15 WHICH SHALL BE PREPARED IN ACCORDANCE WITH THE ASSISTED 16 CITY'S HOME RULE CHARTER OR OTHER OPTIONAL PLAN OF 17 GOVERNMENT; AND 18 (2) A STATEMENT BY THE MAYOR OR CHIEF EXECUTIVE OFFICER 19 THAT SUCH BUDGET: 20 (I) IS CONSISTENT WITH THE FINANCIAL PLAN; 21 (II) CONTAINS FUNDING ADEQUATE FOR DEBT SERVICE 22 PAYMENTS, LEGALLY MANDATED SERVICES AND LEASE PAYMENTS 23 SECURING BONDS OF OTHER GOVERNMENT AGENCIES; 24 (III) IS BASED UPON PRUDENT, REASONABLE AND 25 APPROPRIATE ASSUMPTIONS AND METHODS OF ESTIMATION; AND 26 (IV) COMPLIES WITH ANY BALANCED BUDGET REQUIREMENTS 27 CONTAINED IN THE CHARTER AND ORDINANCES OF THE CITY OR 28 STATE LAW. 29 (F) BALANCED BUDGET REQUIREMENT.--THE MAYOR OF EVERY CITY 30 AND ASSISTED CITY SHALL SUBMIT, AND THE CITY COUNCIL OF EVERY 20030H2006B3291 - 70 -
1 CITY AND ASSISTED CITY SHALL ADOPT, A BALANCED BUDGET EACH YEAR 2 CONSISTENT WITH THE REQUIREMENTS OF 53 PA.C.S. § 3016 (RELATING 3 TO FORM AND ADOPTION OF BUDGET), AND THE CITY'S OR ASSISTED 4 CITY'S HOME RULE CHARTER OR OTHER OPTIONAL PLAN OF GOVERNMENT. A 5 BALANCED BUDGET OF A CITY OR ASSISTED CITY SHALL NOT INCLUDE 6 PROJECTED REVENUES THAT IN ORDER TO BE COLLECTED REQUIRE THE 7 ENACTMENT BY THE GENERAL ASSEMBLY OF NEW TAXING POWERS OR THE 8 APPROVAL OF A COURT OF COMMON PLEAS OF THE COUNTY IN WHICH THE 9 CITY OR ASSISTED CITY IS LOCATED. THE FAILURE OF A CITY OR 10 ASSISTED CITY TO COMPLY WITH THIS SUBSECTION SHALL RESULT IN THE 11 WITHHOLDING OF COMMONWEALTH FUNDS PURSUANT TO SECTION 210(E) AND 12 (F). 13 (G) AUTHORITY REVIEW AND APPROVAL OF PLAN.-- 14 (1) THE AUTHORITY SHALL PROMPTLY REVIEW EACH FINANCIAL 15 PLAN, PROPOSED OPERATING BUDGET AND CAPITAL BUDGET SUBMITTED 16 BY THE ASSISTED CITY. IN CONDUCTING SUCH REVIEW, THE 17 AUTHORITY SHALL REQUEST FROM THE CITY CONTROLLER OF THE 18 ASSISTED CITY AN OPINION OR CERTIFICATION PREPARED IN 19 ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, WITH 20 RESPECT TO THE REASONABLENESS OF THE ASSUMPTIONS AND 21 ESTIMATES IN THE FINANCIAL PLAN. THE CITY CONTROLLER AND 22 OTHER ELECTED OFFICIALS SHALL COMPLY WITH ANY SUCH REQUEST 23 FROM THE AUTHORITY. NOT MORE THAN 30 DAYS AFTER SUBMISSION OF 24 A FINANCIAL PLAN AND PROPOSED OPERATING BUDGET, THE AUTHORITY 25 SHALL DETERMINE WHETHER: 26 (I) THE FINANCIAL PLAN PROJECTS BALANCED BUDGETS, 27 BASED UPON PRUDENT, REASONABLE AND APPROPRIATE 28 ASSUMPTIONS AS DESCRIBED IN THIS SECTION, FOR EACH YEAR 29 OF THE PLAN; AND 30 (II) THE PROPOSED OPERATING BUDGET AND CAPITAL 20030H2006B3291 - 71 -
1 BUDGET ARE CONSISTENT WITH THE PROPOSED FINANCIAL PLAN. 2 IF THE AUTHORITY DETERMINES THAT THESE CRITERIA ARE 3 SATISFIED, THE AUTHORITY SHALL APPROVE SUCH FINANCIAL PLAN BY 4 A MAJORITY VOTE. 5 (2) THE AUTHORITY SHALL NOT BE BOUND BY ANY OPINIONS OR 6 CERTIFICATIONS OF THE CITY CONTROLLER OF THE ASSISTED CITY 7 ISSUED PURSUANT TO THIS SUBSECTION. 8 (3) IF THE AUTHORITY FAILS TO TAKE ANY ACTION WITHIN 30 9 DAYS ON A FINANCIAL PLAN, THE FINANCIAL PLAN AS SUBMITTED 10 SHALL BE DEEMED APPROVED. HOWEVER, IF DURING THE 30 DAYS A 11 WRITTEN REQUEST BY TWO MEMBERS OF THE AUTHORITY BOARD FOR A 12 MEETING AND VOTE ON THE QUESTION OF APPROVAL OF THE FINANCIAL 13 PLAN HAS BEEN SUBMITTED TO THE CHAIRPERSON AND A MEETING AND 14 VOTE DO NOT TAKE PLACE, THE FINANCIAL PLAN SHALL BE DEEMED 15 DISAPPROVED. 16 (H) AUTHORITY DISAPPROVAL OF PLAN.-- 17 (1) IF THE AUTHORITY DISAPPROVES THE PROPOSED FINANCIAL 18 PLAN, THE AUTHORITY SHALL, WHEN IT NOTIFIES AN ASSISTED CITY 19 OF ITS DECISION, STATE IN WRITING IN REASONABLE DETAIL THE 20 REASONS FOR SUCH DISAPPROVAL, INCLUDING THE AMOUNT OF ANY 21 ESTIMATED BUDGET IMBALANCE. 22 (2) THE ASSISTED CITY SHALL SUBMIT A REVISED FINANCIAL 23 PLAN TO THE AUTHORITY WITHIN 15 DAYS OF SUCH DISAPPROVAL, 24 WHICH REVISED PLAN ELIMINATES THE BUDGET IMBALANCE. NOT MORE 25 THAN 15 DAYS AFTER THE SUBMISSION OF SUCH REVISED FINANCIAL 26 PLAN, THE AUTHORITY SHALL DETERMINE WHETHER THE REVISED PLAN 27 SATISFIES THE CRITERIA SET FORTH IN SUBSECTION (G)(1). IF THE 28 AUTHORITY DETERMINES THAT THESE CRITERIA ARE SATISFIED, THE 29 AUTHORITY SHALL APPROVE SUCH FINANCIAL PLAN BY A MAJORITY 30 VOTE. IF THE AUTHORITY SHALL NOT SO APPROVE THE FINANCIAL 20030H2006B3291 - 72 -
1 PLAN, THEN THE AUTHORITY SHALL, IN ACCORDANCE WITH SECTION 2 210(E), CERTIFY THE ASSISTED CITY'S NONCOMPLIANCE WITH THE 3 FINANCIAL PLAN TO THE SECRETARY OF THE BUDGET, THE PRESIDENT 4 PRO TEMPORE OF THE SENATE AND THE SPEAKER OF THE HOUSE OF 5 REPRESENTATIVES. 6 (I) REVISIONS TO PLAN.-- 7 (1) THE PLAN SHALL BE REVISED ON AN ANNUAL BASIS TO 8 INCLUDE THE OPERATING BUDGET FOR THE NEXT FISCAL YEAR AND TO 9 EXTEND THE PLAN FOR AN ADDITIONAL FISCAL YEAR. IN ADDITION, 10 THE MAYOR OR CHIEF EXECUTIVE OFFICER OF A CITY SHALL, WITHIN 11 90 DAYS OF ASSUMING OFFICE, PROPOSE REVISIONS TO THE 12 FINANCIAL PLAN OR CERTIFY TO THE AUTHORITY THAT HE OR SHE 13 ADOPTS THE EXISTING PLAN. AN ASSISTED CITY MAY, DURING THE 14 COURSE OF A FISCAL YEAR, SUBMIT PROPOSED REVISIONS TO THE 15 FINANCIAL PLAN AND SHALL SUBMIT A PROPOSED REVISION FOR ANY 16 AMENDMENT TO THE CITY'S OPERATING OR CAPITAL BUDGET. 17 (2) THE AUTHORITY SHALL REVIEW EACH PROPOSED REVISION 18 WITHIN 20 DAYS OF ITS SUBMISSION. THE AUTHORITY SHALL APPROVE 19 THE REVISION IF IT WILL NOT, BASED ON PRUDENT, REASONABLE AND 20 APPROPRIATE ASSUMPTIONS, CAUSE THE PLAN TO BECOME IMBALANCED. 21 PROPOSED REVISIONS SHALL BECOME PART OF THE FINANCIAL PLAN 22 UPON THE APPROVAL OF A MAJORITY OF THE AUTHORITY BOARD, 23 UNLESS SOME OTHER METHOD OF APPROVAL IS PERMITTED BY 24 AUTHORITY RULES AND REGULATIONS APPROVED BY A MAJORITY OR 25 PURSUANT TO AN AGREEMENT WITH THE CITY CONTAINED IN AN 26 INTERGOVERNMENTAL COOPERATION AGREEMENT. IF THE AUTHORITY 27 FAILS TO TAKE ACTION WITHIN 20 DAYS ON A PROPOSED REVISION, 28 SUCH SUBMISSION SHALL BE DEEMED APPROVED UNLESS A WRITTEN 29 REQUEST FOR A MEETING AND VOTE HAS BEEN MADE IN ACCORDANCE 30 WITH SUBSECTION (G)(3) IN WHICH EVENT, IF A MEETING AND VOTE 20030H2006B3291 - 73 -
1 DOES NOT TAKE PLACE, THE PROPOSED REVISION SHALL BE DEEMED 2 DISAPPROVED. 3 (3) IF THE GOVERNING BODY OF A CITY ADOPTS A BUDGET 4 INCONSISTENT WITH AN APPROVED FINANCIAL PLAN, THE ASSISTED 5 CITY SHALL SUBMIT THE ENACTED BUDGET TO THE AUTHORITY AS A 6 PROPOSED REVISION TO THE PLAN. THE AUTHORITY SHALL REVIEW THE 7 PROPOSED REVISION WITHIN 30 DAYS OF ITS SUBMISSION, IN 8 ACCORDANCE WITH THE CRITERIA SET FORTH IN SUBSECTION (G) AND 9 THE APPROVAL PROCESS SET FORTH IN PARAGRAPH (2). 10 (J) SUPPLEMENTAL REPORTS.--WITHIN 45 DAYS OF THE END OF EACH 11 FISCAL QUARTER, OR MONTHLY IF A VARIATION FROM THE FINANCIAL 12 PLAN HAS BEEN DETERMINED IN ACCORDANCE WITH SECTION 210(C), THE 13 MAYOR OR CHIEF EXECUTIVE OFFICER OF AN ASSISTED CITY SHALL 14 PROVIDE THE AUTHORITY WITH REPORTS DESCRIBING ACTUAL OR CURRENT 15 ESTIMATES OF REVENUES AND EXPENDITURES COMPARED TO BUDGETED 16 REVENUES AND EXPENDITURES FOR SUCH PERIOD REFLECTED IN ITS CASH 17 FLOW FORECAST. EACH REPORT REQUIRED UNDER THIS SECTION SHALL 18 INDICATE ANY VARIANCE BETWEEN ACTUAL OR CURRENT ESTIMATES AND 19 BUDGETED REVENUES, EXPENDITURES AND CASH FOR THE PERIOD COVERED 20 BY SUCH REPORT. AN ASSISTED CITY SHALL ALSO PROVIDE PERIODIC 21 REPORTS ON DEBT SERVICE REQUIREMENTS IN CONFORMITY WITH SECTION 22 210(B). 23 (K) EFFECT OF PLAN UPON CONTRACTS AND COLLECTIVE BARGAINING 24 AGREEMENTS.-- 25 (1) A CONTRACT OR COLLECTIVE BARGAINING AGREEMENT IN 26 EXISTENCE IN AN ASSISTED CITY PRIOR TO THE APPROVAL BY THE 27 AUTHORITY OF A FINANCIAL PLAN SUBMITTED PURSUANT TO THIS 28 SECTION SHALL REMAIN EFFECTIVE AFTER APPROVAL OF SUCH PLAN 29 UNTIL SUCH CONTRACT OR AGREEMENT EXPIRES. 30 (2) AFTER THE APPROVAL BY THE AUTHORITY OF A FINANCIAL 20030H2006B3291 - 74 -
1 PLAN SUBMITTED PURSUANT TO THIS SECTION, AN ASSISTED CITY 2 SHALL EXECUTE CONTRACTS AND COLLECTIVE BARGAINING AGREEMENTS 3 IN COMPLIANCE WITH SUCH PLAN. IF AN ASSISTED CITY EXECUTES A 4 CONTRACT OR A COLLECTIVE BARGAINING AGREEMENT WHICH IS NOT IN 5 COMPLIANCE WITH THE PLAN, THE CONTRACT OR AGREEMENT SHALL NOT 6 BE VOID OR VOIDABLE SOLELY BY REASON OF SUCH NONCOMPLIANCE, 7 BUT THE ASSISTED CITY SHALL SUBMIT TO THE AUTHORITY A 8 PROPOSED REVISION TO THE PLAN WHICH DEMONSTRATES THAT 9 REVENUES SUFFICIENT TO PAY THE COSTS OF THE CONTRACT OR 10 COLLECTIVE BARGAINING AGREEMENT WILL BE AVAILABLE IN THE 11 AFFECTED FISCAL YEARS OF THE PLAN. 12 (L) EFFECT OF PLAN UPON CERTAIN ARBITRATION AWARDS.-- 13 (1) AFTER THE APPROVAL BY THE AUTHORITY OF A FINANCIAL 14 PLAN SUBMITTED PURSUANT TO THIS SECTION, ANY DETERMINATION OF 15 A BOARD OF ARBITRATION ESTABLISHED PURSUANT TO THE PROVISIONS 16 OF THE ACT OF JUNE 24, 1968 (P.L.237, NO.111), REFERRED TO AS 17 THE POLICEMEN AND FIREMEN COLLECTIVE BARGAINING ACT, 18 PROVIDING FOR AN INCREASE IN WAGES OR FRINGE BENEFITS OF ANY 19 EMPLOYEE OF AN ASSISTED CITY UNDER THE PLAN, IN ADDITION TO 20 CONSIDERING ANY STANDARD OR FACTOR REQUIRED TO BE CONSIDERED 21 BY APPLICABLE LAW, SHALL TAKE INTO CONSIDERATION AND ACCORD 22 SUBSTANTIAL WEIGHT TO: 23 (I) THE APPROVED FINANCIAL PLAN; AND 24 (II) RELEVANT MARKET FACTORS, SUCH AS THE FINANCIAL 25 SITUATION OF THE ASSISTED CITY, INFLATION, PRODUCTIVITY, 26 SIZE OF WORK FORCE AND PAY AND BENEFIT LEVELS IN 27 ECONOMICALLY AND DEMOGRAPHICALLY COMPARABLE POLITICAL 28 SUBDIVISIONS. 29 (2) SUCH DETERMINATION SHALL BE IN WRITING AND A COPY 30 THEREOF SHALL BE FORWARDED TO EACH PARTY TO THE DISPUTE AND 20030H2006B3291 - 75 -
1 THE AUTHORITY. ANY DETERMINATION OF THE BOARD OF ARBITRATION 2 WHICH PROVIDES FOR AN INCREASE IN WAGES OR FRINGE BENEFITS OF 3 ANY EMPLOYEE OF AN ASSISTED CITY SHALL STATE WITH SPECIFICITY 4 IN WRITING ALL FACTORS WHICH THE BOARD OF ARBITRATION TOOK 5 INTO ACCOUNT IN CONSIDERING AND GIVING SUBSTANTIAL WEIGHT TO 6 THE FACTORS REFERRED TO IN PARAGRAPH (1). 7 (3) ANY PARTY TO A PROCEEDING BEFORE A BOARD OF 8 ARBITRATION MAY APPEAL TO THE COURT OF COMMON PLEAS TO 9 REVIEW: 10 (I) CONSIDERATION UNDER PARAGRAPH (1); OR 11 (II) FAILURE OF THE BOARD OF ARBITRATION TO ISSUE A 12 DETERMINATION UNDER PARAGRAPH (2). 13 (4) AN APPEAL UNDER PARAGRAPH (3) MUST BE COMMENCED NOT 14 LATER THAN 30 DAYS AFTER THE ISSUANCE OF A FINAL 15 DETERMINATION BY THE BOARD OF ARBITRATION. 16 (5) THE DECISION OF THE BOARD OF ARBITRATION SHALL BE 17 VACATED AND REMANDED TO THE BOARD OF ARBITRATION IF THE COURT 18 FINDS: 19 (I) THAT THE BOARD OF ARBITRATION FAILED TO TAKE 20 INTO CONSIDERATION AND ACCORD SUBSTANTIAL WEIGHT TO THE 21 FACTORS REFERRED TO IN PARAGRAPH (1); OR 22 (II) THAT THE BOARD OF ARBITRATION HAS FAILED TO 23 ISSUE A DETERMINATION UNDER PARAGRAPH (2). 24 (6) IF, AFTER THE EXHAUSTION OF ALL APPEALS, THE FINAL 25 ARBITRATION AWARD IS NOT IN COMPLIANCE WITH THE APPROVED 26 FINANCIAL PLAN, THE AWARD SHALL NOT BE VOID OR VOIDABLE 27 SOLELY BY REASON OF SUCH NONCOMPLIANCE, BUT THE ASSISTED CITY 28 SHALL SUBMIT TO THE AUTHORITY A PROPOSED REVISION TO THE PLAN 29 WHICH DEMONSTRATES THAT REVENUES SUFFICIENT TO PAY THE COSTS 30 OF THE AWARD WILL BE AVAILABLE IN THE AFFECTED FISCAL YEARS 20030H2006B3291 - 76 -
1 OF THE PLAN. 2 SECTION 210. POWERS AND DUTIES OF AUTHORITY WITH RESPECT TO 3 FINANCIAL PLANS. 4 (A) FORMULATION AND APPROVAL OF PLAN.--TO ADVANCE THE 5 FINANCIAL RECOVERY OF EACH ASSISTED CITY, THE AUTHORITY SHALL 6 REQUIRE THE ASSISTED CITY TO SUBMIT A FIVE-YEAR FINANCIAL PLAN 7 IN ACCORDANCE WITH SECTION 209. WITH REGARD TO THE FORMULATION 8 OF SUCH PLAN, THE AUTHORITY SHALL: 9 (1) CONSULT WITH AN ASSISTED CITY AS IT PREPARES THE 10 FINANCIAL PLAN. 11 (2) PRESCRIBE THE FORM OF THE FINANCIAL PLAN. 12 (3) PRESCRIBE THE SUPPORTING INFORMATION REQUIRED IN 13 CONNECTION WITH SUCH PLAN, SUCH INFORMATION TO INCLUDE AT A 14 MINIMUM: 15 (I) DEBT SERVICE PAYMENTS DUE OR PROJECTED TO BE DUE 16 DURING THE RELEVANT FISCAL YEARS; 17 (II) PAYMENTS FOR LEGALLY MANDATED SERVICES INCLUDED 18 IN THE PLAN AND DUE OR PROJECTED TO BE DUE DURING THE 19 RELEVANT FISCAL YEARS; AND 20 (III) A STATEMENT IN REASONABLE DETAIL OF THE 21 SIGNIFICANT ASSUMPTIONS AND METHODS OF ESTIMATION USED IN 22 ARRIVING AT THE PROJECTIONS IN THE PLAN. 23 (4) EXERCISE ANY RIGHTS OF APPROVAL OR DISAPPROVAL AND 24 ISSUE SUCH RECOMMENDATIONS AS ARE AUTHORIZED BY THIS ACT IN 25 ACCORDANCE WITH THE STANDARDS FOR FORMULATION OF THE PLAN SET 26 FORTH IN SECTION 209(C). 27 (B) AUTHORITY FUNCTIONS AFTER PLAN IS APPROVED.--AFTER A 28 FINANCIAL PLAN HAS BEEN APPROVED, THE AUTHORITY SHALL: 29 (1) RECEIVE AND REVIEW: 30 (I) THE FINANCIAL REPORTS SUBMITTED BY THE MAYOR OR 20030H2006B3291 - 77 -
1 CHIEF EXECUTIVE OFFICER OF A CITY UNDER SECTION 209(J); 2 (II) REPORTS CONCERNING THE DEBT SERVICE 3 REQUIREMENTS ON ALL BONDS, NOTES OF THE ASSISTED CITY AND 4 LEASE PAYMENTS OF THE ASSISTED CITY SECURING BONDS OR 5 OTHER GOVERNMENT AGENCIES FOR THE FOLLOWING QUARTER, 6 WHICH REPORTS SHALL BE IN SUCH FORM AND CONTAIN SUCH 7 INFORMATION AS THE AUTHORITY SHALL DETERMINE, AND WHICH 8 SHALL BE ISSUED NO LATER THAN 60 DAYS PRIOR TO THE 9 BEGINNING OF THE QUARTER TO WHICH THEY PERTAIN, AND SHALL 10 BE UPDATED IMMEDIATELY UPON EACH ISSUANCE OF BONDS OR 11 NOTES, BY THE ASSISTED CITY OR EXECUTION OF A LEASE 12 SECURING BONDS OF ANOTHER GOVERNMENT AGENCY, AFTER THE 13 DATE OF SUCH REPORT TO REFLECT ANY CHANGE IN DEBT SERVICE 14 REQUIREMENTS AS A RESULT OF SUCH ISSUANCE; AND 15 (III) ANY ADDITIONAL INFORMATION PROVIDED BY THE 16 ASSISTED CITY CONCERNING CHANGED CONDITIONS OR UNEXPECTED 17 EVENTS WHICH MAY AFFECT THE ASSISTED CITY'S ADHERENCE TO 18 THE FINANCIAL PLAN. THE REPORTS DESCRIBED IN SUBPARAGRAPH 19 (II) SHALL BE CERTIFIED BY THE CITY CONTROLLER. 20 (2) DETERMINE, ON THE BASIS OF INFORMATION AND REPORTS 21 DESCRIBED IN PARAGRAPH (1), WHETHER AN ASSISTED CITY HAS 22 ADHERED TO THE FINANCIAL PLAN. 23 (C) VARIATION FROM THE PLAN.--IF THE AUTHORITY DETERMINES, 24 BASED UPON REPORTS SUBMITTED BY AN ASSISTED CITY UNDER 25 SUBSECTION (B) OR INDEPENDENT AUDITS, EXAMINATIONS OR STUDIES OF 26 THE ASSISTED CITY'S FINANCES OBTAINED UNDER SUBSECTION (I)(3), 27 THAT AN ASSISTED CITY'S ACTUAL REVENUES AND EXPENDITURES VARY 28 FROM THOSE ESTIMATED IN THE FINANCIAL PLAN, THE AUTHORITY SHALL 29 REQUIRE THE CITY TO PROVIDE SUCH ADDITIONAL INFORMATION AS THE 30 AUTHORITY DEEMS NECESSARY TO EXPLAIN THE VARIATION. THE 20030H2006B3291 - 78 -
1 AUTHORITY SHALL TAKE NO ACTION WITH RESPECT TO AN ASSISTED CITY 2 FOR DEPARTURES FROM THE FINANCIAL PLAN IN A FISCAL QUARTER IF: 3 (1) THE CITY PROVIDES A WRITTEN EXPLANATION FOR THE 4 VARIATION THAT THE AUTHORITY DEEMS REASONABLE; 5 (2) THE CITY PROPOSES REMEDIAL ACTION WHICH THE 6 AUTHORITY BELIEVES WILL RESTORE THE ASSISTED CITY'S OVERALL 7 COMPLIANCE WITH THE FINANCIAL PLAN; 8 (3) INFORMATION PROVIDED BY THE CITY IN THE IMMEDIATELY 9 SUCCEEDING QUARTERLY FINANCIAL REPORT DEMONSTRATES THAT THE 10 ASSISTED CITY IS TAKING SUCH REMEDIAL ACTION AND OTHERWISE 11 COMPLYING WITH THE PLAN; AND 12 (4) THE ASSISTED CITY SUBMITS MONTHLY SUPPLEMENTAL 13 REPORTS IN ACCORDANCE WITH SECTION 209(J) UNTIL IT REGAINS 14 COMPLIANCE WITH THE FINANCIAL PLAN. 15 (D) AUTHORITY MAY MAKE RECOMMENDATIONS.--THE AUTHORITY MAY 16 AT ANY TIME ISSUE RECOMMENDATIONS AS TO HOW AN ASSISTED CITY MAY 17 ACHIEVE COMPLIANCE WITH THE FINANCIAL PLAN AND SHALL PROVIDE 18 COPIES OF SUCH RECOMMENDATIONS TO THE MAYOR OR CHIEF EXECUTIVE 19 OFFICER AND THE GOVERNING BODY OF THE CITY AND TO THE OFFICIALS 20 NAMED IN SECTION 203(B)(4). 21 (E) WHEN COMMONWEALTH SHALL WITHHOLD FUNDS.-- 22 (1) THE AUTHORITY SHALL CERTIFY TO THE SECRETARY OF THE 23 BUDGET AN ASSISTED CITY'S NONCOMPLIANCE WITH THE FINANCIAL 24 PLAN DURING ANY PERIOD WHEN THE AUTHORITY HAS DETERMINED BY 25 THE VOTE OF A MAJORITY THAT THE ASSISTED CITY HAS NOT ADHERED 26 TO THE PLAN AND HAS NOT TAKEN ACCEPTABLE REMEDIAL ACTION 27 DURING THE NEXT QUARTER FOLLOWING SUCH DEPARTURE FROM THE 28 PLAN. 29 (2) THE AUTHORITY SHALL CERTIFY TO THE SECRETARY OF THE 30 BUDGET THAT AN ASSISTED CITY IS NOT IN COMPLIANCE WITH THE 20030H2006B3291 - 79 -
1 PLAN IF THE ASSISTED CITY: 2 (I) HAS NO FINANCIAL PLAN APPROVED BY THE AUTHORITY, 3 HAS FAILED TO PROVIDE REQUESTED DOCUMENTS OR HAS FAILED 4 TO FILE A FINANCIAL PLAN WITH THE AUTHORITY; OR 5 (II) HAS FAILED TO FILE MANDATORY REVISIONS TO THE 6 PLAN OR REPORTS AS REQUIRED BY SECTION 209(I), (J), (K) 7 OR (L). 8 (3) IF THE AUTHORITY CERTIFIES THAT AN ASSISTED CITY IS 9 NOT IN COMPLIANCE WITH THE FINANCIAL PLAN UNDER PARAGRAPH (1) 10 OR (2), THE SECRETARY OF THE BUDGET SHALL NOTIFY THE CITY 11 THAT SUCH CERTIFICATION HAS BEEN MADE AND THAT EACH GRANT, 12 LOAN, ENTITLEMENT OR PAYMENT TO THE ASSISTED CITY BY THE 13 COMMONWEALTH SHALL BE SUSPENDED PENDING COMPLIANCE WITH THE 14 FINANCIAL PLAN. FUNDS WITHHELD SHALL BE HELD IN ESCROW BY THE 15 COMMONWEALTH UNTIL COMPLIANCE WITH THE PLAN IS RESTORED AS 16 SET FORTH IN PARAGRAPH (4). FUNDS HELD IN ESCROW PURSUANT TO 17 THIS SUBSECTION SHALL NOT LAPSE PURSUANT TO SECTION 621 OF 18 THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE 19 ADMINISTRATIVE CODE OF 1929, OR ANY OTHER LAW. 20 (4) THE AUTHORITY SHALL, BY MAJORITY VOTE, DETERMINE 21 WHEN THE CONDITIONS WHICH CAUSED AN ASSISTED CITY TO BE 22 CERTIFIED AS NOT IN COMPLIANCE WITH THE FINANCIAL PLAN HAVE 23 CEASED TO EXIST AND SHALL PROMPTLY NOTIFY THE SECRETARY OF 24 THE BUDGET OF SUCH VOTE. THE SECRETARY OF THE BUDGET SHALL 25 THEREUPON RELEASE ALL FUNDS HELD IN ESCROW, TOGETHER WITH ALL 26 INTEREST AND INCOME EARNED THEREON DURING THE PERIOD HELD IN 27 ESCROW, AND THE DISBURSEMENTS OF AMOUNTS IN THE CITY ACCOUNT 28 SHALL RESUME. 29 (F) EXEMPTIONS.--NOTWITHSTANDING THE PROVISIONS OF 30 SUBSECTION (E), THE FOLLOWING SHALL NOT BE WITHHELD FROM AN 20030H2006B3291 - 80 -
1 ASSISTED CITY: 2 (1) FUNDS GRANTED OR ALLOCATED TO AN ASSISTED CITY 3 DIRECTLY FROM AN AGENCY OF THE COMMONWEALTH OR FROM THE 4 FEDERAL GOVERNMENT FOR DISTRIBUTION BY THE COMMONWEALTH AFTER 5 THE DECLARATION OF A DISASTER RESULTING FROM A CATASTROPHE; 6 (2) FUNDS FOR CAPITAL PROJECTS UNDER CONTRACT IN 7 PROGRESS; 8 (3) PENSION FUND PAYMENTS REQUIRED BY LAW; AND 9 (4) FUNDS THE ASSISTED CITY HAS PLEDGED TO REPAY BONDS 10 OR NOTES. 11 (G) EFFECT OF COMMONWEALTH'S FAILURE TO DISBURSE FUNDS.--THE 12 PROVISIONS OF SUBSECTION (E) SHALL NOT APPLY AND AN ASSISTED 13 CITY SHALL NOT BE FOUND TO HAVE DEPARTED FROM THE FINANCIAL PLAN 14 DUE TO THE COMMONWEALTH'S FAILURE TO PAY ANY MONEY, INCLUDING 15 PAYMENT OF FEDERAL FUNDS DISTRIBUTED BY OR THROUGH THE 16 COMMONWEALTH, DUE TO THE ASSISTED CITY FROM MONEYS APPROPRIATED 17 BY THE GENERAL ASSEMBLY. 18 (H) ASSISTED CITY TO DETERMINE EXPENDITURE OF AVAILABLE 19 FUNDS.--NOTHING IN THIS ACT SHALL BE CONSTRUED TO LIMIT THE 20 POWER OF AN ASSISTED CITY TO DETERMINE, FROM TIME TO TIME, 21 WITHIN AVAILABLE FUNDS OF THE ASSISTED CITY, THE PURPOSES FOR 22 WHICH EXPENDITURES ARE TO BE MADE BY THE ASSISTED CITY AND THE 23 AMOUNTS OF SUCH EXPENDITURES THEN PERMITTED UNDER THE FINANCIAL 24 PLAN OF THE ASSISTED CITY. 25 (I) DOCUMENTS AND EXAMINATIONS TO BE REVIEWED OR UNDERTAKEN 26 BY THE AUTHORITY.--THE AUTHORITY SHALL: 27 (1) RECEIVE FROM AN ASSISTED CITY AND REVIEW THE 28 REPORTS, DOCUMENTS, BUDGETARY AND FINANCIAL PLANNING DATA AND 29 OTHER INFORMATION PREPARED BY OR ON BEHALF OF SUCH ASSISTED 30 CITY AND WHICH ARE TO BE MADE AVAILABLE TO THE AUTHORITY 20030H2006B3291 - 81 -
1 UNDER THIS ACT; 2 (2) INSPECT AND COPY SUCH BOOKS, RECORDS AND INFORMATION 3 OF AN ASSISTED CITY AS THE AUTHORITY DEEMS NECESSARY TO 4 ACCOMPLISH THE PURPOSES OF THIS ACT; AND 5 (3) CONDUCT OR CAUSE TO BE CONDUCTED SUCH INDEPENDENT 6 AUDITS, EXAMINATIONS OR STUDIES OF AN ASSISTED CITY'S 7 FINANCES AS THE AUTHORITY DEEMS APPROPRIATE. 8 (J) REMEDIES OF AUTHORITY FOR FAILURE OF AN ASSISTED CITY TO 9 FILE FINANCIAL PLANS AND REPORTS.--IN THE EVENT THAT AN ASSISTED 10 CITY SHALL FAIL TO FILE WITH THE AUTHORITY ANY FINANCIAL PLAN, 11 REVISION TO A FINANCIAL PLAN, REPORT OR OTHER INFORMATION 12 REQUIRED TO BE FILED WITH THE AUTHORITY PURSUANT TO THIS ACT, 13 THE AUTHORITY, IN ADDITION TO ALL OTHER RIGHTS WHICH THE 14 AUTHORITY MAY HAVE AT LAW OR IN EQUITY, SHALL HAVE THE RIGHT BY 15 MANDAMUS TO COMPEL THE ASSISTED CITY AND THE OFFICERS, EMPLOYEES 16 AND AGENTS THEREOF TO FILE WITH THE AUTHORITY THE FINANCIAL 17 PLAN, REVISION TO A FINANCIAL PLAN, REPORT OR OTHER INFORMATION 18 WHICH THE ASSISTED CITY HAS FAILED TO FILE. THE AUTHORITY SHALL 19 GIVE THE ASSISTED CITY WRITTEN NOTICE OF THE FAILURE OF THE 20 ASSISTED CITY TO FILE AND OF THE AUTHORITY'S INTENTION TO 21 INITIATE AN ACTION UNDER THIS SUBSECTION AND SHALL NOT INITIATE 22 SUCH AN ACTION EARLIER THAN TEN DAYS AFTER THE GIVING OF SUCH 23 NOTICE. 24 SECTION 211. LIMITATION ON AUTHORITY AND ON ASSISTED CITIES TO 25 FILE PETITION FOR RELIEF UNDER FEDERAL BANKRUPTCY 26 LAW. 27 (A) LIMITATION ON BANKRUPTCY FILING.--NOTWITHSTANDING ANY 28 OTHER PROVISION OF LAW, THE AUTHORITY AND ANY ASSISTED CITY 29 SHALL NOT BE AUTHORIZED TO FILE A PETITION FOR RELIEF UNDER 11 30 U.S.C. CH. 9 (RELATING TO ADJUSTMENTS OF DEBTS OF A 20030H2006B3291 - 82 -
1 MUNICIPALITY) OR ANY SUCCESSOR FEDERAL BANKRUPTCY LAW, AND NO 2 GOVERNMENT AGENCY SHALL AUTHORIZE THE AUTHORITY OR SUCH CITY TO 3 BECOME A DEBTOR UNDER 11 U.S.C. CH. 9 OR ANY SUCCESSOR FEDERAL 4 BANKRUPTCY LAW. 5 (B) BANKRUPTCY FILING APPROVAL.--IN ADDITION TO THE 6 LIMITATION SET FORTH IN SUBSECTION (A), AND NOTWITHSTANDING ANY 7 OTHER PROVISION OF LAW, NO CITY SHALL BE AUTHORIZED TO FILE A 8 PETITION FOR RELIEF UNDER 11 U.S.C. CH. 9 OR ANY SUCCESSOR 9 FEDERAL BANKRUPTCY LAW, UNLESS SUCH PETITION HAS BEEN SUBMITTED 10 TO, AND THE FILING THEREOF HAS BEEN APPROVED IN WRITING BY THE 11 GOVERNOR. THE GOVERNOR IS DESIGNATED, IN ACCORDANCE WITH 11 12 U.S.C. § 109(C)(2) (RELATING TO WHO MAY BE A DEBTOR), AS THE 13 ORGANIZATION OF THE COMMONWEALTH WHICH SHALL HAVE POWER TO 14 APPROVE OR DISAPPROVE THE FILING OF ANY SUCH PETITION OF A 15 POLITICAL SUBDIVISION, AND TO APPROVE OR DISAPPROVE ANY PLAN OF 16 READJUSTMENT OF THE DEBTS OF ANY SUCH POLITICAL SUBDIVISION 17 PREPARED, FILED AND SUBMITTED WITH THE PETITION TO THE COURT, AS 18 PROVIDED UNDER 11 U.S.C. CH. 9. 19 (C) REVIEW OF BANKRUPTCY PETITION.-- 20 (1) WHEN ANY SUCH PETITION SHALL BE SUBMITTED TO THE 21 GOVERNOR FOR APPROVAL, ACCOMPANIED WITH A PROPOSED PLAN OF 22 READJUSTMENT OF THE DEBTS OF A CITY, THE GOVERNOR SHALL MAKE 23 A CAREFUL AND THOROUGH INVESTIGATION OF THE FINANCIAL 24 CONDITION OF SUCH CITY, OF ITS ASSETS AND LIABILITIES, OF ITS 25 SINKING FUND, AND WHETHER THE AFFAIRS THEREOF ARE MANAGED IN 26 A CAREFUL, PRUDENT AND ECONOMIC MANNER IN ORDER TO ASCERTAIN 27 WHETHER THE PRESENTATION OF SUCH PETITION IS JUSTIFIED, OR 28 REPRESENTS AN UNJUST ATTEMPT BY SUCH CITY TO EVADE PAYMENT OF 29 SOME OF ITS CONTRACTUAL OBLIGATIONS, AND, IF THE GOVERNOR 30 BELIEVES THAT SUCH PETITION SHOULD BE APPROVED, WHETHER THE 20030H2006B3291 - 83 -
1 PLAN OF READJUSTMENT SUBMITTED WILL BE HELPFUL TO THE 2 FINANCIAL CONDITION OF THE CITY AND IS FEASIBLE AND, AT THE 3 SAME TIME, FAIR AND EQUITABLE TO ALL CREDITORS. 4 (2) THE GOVERNOR SHALL ALSO, PRIOR TO GIVING HIS 5 APPROVAL, ASCERTAIN THE AMOUNT, IF ANY, OF THE OBLIGATIONS OF 6 ANY SUCH PETITIONING CITY WHICH IS HELD BY ANY AGENCY OR 7 AGENCIES OF THE STATE GOVERNMENT AS TRUST FUNDS AND SHALL, 8 BEFORE APPROVING ANY SUCH PETITION AND PLAN OF READJUSTMENT, 9 CONSULT WITH AND GIVE EVERY SUCH AGENCY AN OPPORTUNITY TO BE 10 HEARD AND THE PRIVILEGE TO EXAMINE THE FINDINGS OF THE 11 GOVERNOR RESULTING FROM THE INVESTIGATION REQUIRED TO BE MADE 12 UNDER THIS ACT, AND SHALL LIKEWISE HEAR ANY OTHER CREDITOR OF 13 SUCH CITY, WHETHER RESIDENT IN OR OUTSIDE THIS COMMONWEALTH, 14 WHO SHALL APPLY THEREFOR. 15 (3) THE GOVERNOR, IF HE APPROVES A PETITION, SHALL, 16 BEFORE GIVING HIS APPROVAL, REQUIRE SUCH MODIFICATION IN THE 17 PROPOSED PLAN FOR READJUSTING THE DEBTS AS TO HIM APPEARS 18 PROPER. 19 SECTION 212. INVESTMENT OF FUNDS. 20 FUNDS OF THE AUTHORITY WHICH ARE NOT REQUIRED FOR IMMEDIATE 21 USE MAY BE INVESTED IN OBLIGATIONS OF AN ASSISTED CITY OR IN 22 OBLIGATIONS OF THE FEDERAL GOVERNMENT OR OF THE COMMONWEALTH OR 23 OBLIGATIONS WHICH ARE LEGAL INVESTMENTS FOR COMMONWEALTH FUNDS. 24 HOWEVER, NO MONEY MAY BE INVESTED IN OBLIGATIONS ISSUED BY OR 25 OBLIGATIONS GUARANTEED BY AN ASSISTED CITY WITHOUT THE APPROVAL 26 OF A MAJORITY OF THE BOARD. 27 SECTION 213. SOVEREIGN IMMUNITY. 28 MEMBERS OF THE BOARD SHALL NOT BE LIABLE PERSONALLY FOR ANY 29 OBLIGATIONS OF THE AUTHORITY. IT IS HEREBY DECLARED TO BE THE 30 INTENT OF THE GENERAL ASSEMBLY THAT THE AUTHORITY CREATED BY 20030H2006B3291 - 84 -
1 THIS ACT AND ITS MEMBERS, OFFICERS, OFFICIALS AND EMPLOYEES 2 SHALL ENJOY SOVEREIGN AND OFFICIAL IMMUNITY, AS PROVIDED IN 1 3 PA.C.S. § 2310 (RELATING TO SOVEREIGN IMMUNITY REAFFIRMED; 4 SPECIFIC WAIVER), AND SHALL REMAIN IMMUNE FROM SUIT EXCEPT AS 5 PROVIDED BY AND SUBJECT TO THE PROVISIONS OF 42 PA.C.S. §§ 8501 6 (RELATING TO DEFINITIONS) THROUGH 8528 (RELATING TO LIMITATIONS 7 ON DAMAGES). 8 CHAPTER 7 9 MISCELLANEOUS PROVISIONS 10 SECTION 701. APPROPRIATION. 11 THE SUM OF $200,000 IS HEREBY APPROPRIATED FROM THE GENERAL 12 FUND TO THE INTERGOVERNMENTAL COOPERATION AUTHORITY FOR CITIES 13 OF THE SECOND CLASS AS A CONTINUING APPROPRIATION FOR THE 14 PURPOSE OF PROVIDING OPERATING FUNDS FOR THE INTERGOVERNMENTAL 15 COOPERATION AUTHORITY FOR CITIES OF THE SECOND CLASS. THIS 16 APPROPRIATION SHALL LAPSE JUNE 30, 2005. 17 SECTION 702. GENERAL RIGHTS AND PROHIBITIONS. 18 NOTHING IN THIS ACT SHALL LIMIT THE RIGHTS OR IMPAIR THE 19 OBLIGATIONS OF ANY ASSISTED CITY TO COMPLY WITH THE PROVISIONS 20 OF ANY CONTRACT IN EFFECT ON THE EFFECTIVE DATE OF THIS ACT OR 21 SHALL IN ANY WAY IMPAIR THE RIGHTS OF THE OBLIGEES OF ANY 22 ASSISTED CITY WITH RESPECT TO ANY SUCH CONTRACT. 23 SECTION 703. NONDISCRIMINATION. 24 THE AUTHORITY SHALL COMPLY IN ALL RESPECTS WITH THE 25 NONDISCRIMINATION AND CONTRACT COMPLIANCE PLANS USED BY THE 26 DEPARTMENT OF GENERAL SERVICES TO ASSURE THAT ALL PERSONS ARE 27 ACCORDED EQUALITY OF OPPORTUNITY IN EMPLOYMENT AND CONTRACTING 28 BY THE AUTHORITY AND ITS CONTRACTORS, SUBCONTRACTORS, ASSIGNEES, 29 LESSEES, AGENTS, VENDORS AND SUPPLIERS. 30 SECTION 704. CONSTRUCTION OF ACT. 20030H2006B3291 - 85 -
1 (A) LIBERAL CONSTRUCTION.--THE PROVISIONS OF THIS ACT 2 PROVIDING FOR SECURITY FOR AND RIGHTS AND REMEDIES OF OBLIGEES 3 OF THE AUTHORITY SHALL BE LIBERALLY CONSTRUED TO ACHIEVE THE 4 PURPOSES STATED AND PROVIDED FOR BY THIS ACT. 5 (B) SEVERABILITY.--IF ANY PROVISION OF THE TITLE OR ANY 6 CHAPTER, SECTION OR CLAUSE OF THIS ACT, OR THE APPLICATION 7 THEREOF TO ANY PERSON, PARTY, CORPORATION, PUBLIC OR PRIVATE, 8 SHALL BE JUDGED INVALID BY A COURT OF COMPETENT JURISDICTION, 9 SUCH ORDER OR JUDGMENT SHALL BE CONFINED IN ITS OPERATION TO THE 10 CONTROVERSY IN WHICH IT WAS RENDERED AND SHALL NOT AFFECT OR 11 INVALIDATE THE REMAINDER OF ANY PROVISION OF THE TITLE OR ANY 12 CHAPTER OR ANY SECTION OR CLAUSE OF THIS ACT, OR THE APPLICATION 13 OF ANY PART THEREOF TO ANY OTHER PERSON, PARTY, CORPORATION, 14 PUBLIC OR PRIVATE, OR CIRCUMSTANCE, AND, TO THIS END, THE 15 PROVISIONS OF THE TITLE OR ANY CHAPTER, SECTION OR CLAUSE OF 16 THIS ACT HEREBY ARE DECLARED TO BE SEVERABLE. IT IS HEREBY 17 DECLARED AS THE LEGISLATIVE INTENT THAT THIS ACT WOULD HAVE BEEN 18 ADOPTED HAD ANY PROVISION DECLARED UNCONSTITUTIONAL NOT BEEN 19 INCLUDED HEREIN. 20 SECTION 705. LIMITATION OF AUTHORITY POWERS. 21 EXCEPT AS PROVIDED IN SECTION 210(I), NOTHING CONTAINED IN 22 THIS ACT SHALL BE CONSTRUED TO CONFER UPON THE AUTHORITY ANY 23 POWERS WITH RESPECT TO A SCHOOL DISTRICT. 24 SECTION 706. REPEAL. 25 ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS THEY ARE 26 INCONSISTENT WITH THIS ACT. 27 SECTION 707. EFFECTIVE DATE. 28 THIS ACT SHALL TAKE EFFECT IMMEDIATELY. J14L11MSP/20030H2006B3291 - 86 -