City of Harrisburg, PA
Dauphin County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Harrisburg by Ord. No. 10-1971. Amendments noted where applicable.]
Assistants and employees: see 3rd Class Code § 1408 (53 P.S. § 36408).
Bonds and insurance of Treasurer: see 3rd Class Code § 1402 (53 P.S. § 36402).
Compensation: see Optional Charter Law § 607(c) [53 P.S. § 41607(c)].
Deposits of public money: see 3rd Class Code § 1406 (53 P.S. § 36406).
Election and term: see Optional Charter Law § 403 (53 P.S. § 41403).
Handling money transactions: see 3rd Class Code § 1403 et seq. (53 P.S. § 36403 et seq.).
Pooling assets: Act 72 of 1971, Act of August 6, 1971, P.L. 281 (72 P.S. § 3836-1 et seq.).
Powers and duties: see Optional Charter Law § 415(a) [53 P.S. § 41415(a)].
Qualifications of Treasurer: see 3rd Class Code § 1401 (53 P.S. § 36401).
Vacancy in office: see Optional Charter Law § 406(b) [53 P.S. § 41406(b)].
Violation in office: see Optional Charter Law § 601 et seq. (53 P.S. § 41601 et seq.).
The City Treasurer shall carry out such duties and exercise such powers with respect to the receipt and disbursement of public monies as are provided by general law and, in addition, shall receive for deposit from the departments of the City government all City monies collected by such departments.
The City Treasurer shall disburse City funds only in accordance with warrants presented to him therefor, signed by the Controller and countersigned by the Treasurer. Checks or drafts drawn by the City Treasurer disbursing City funds shall be valid only when countersigned by the City Controller.
The City Treasurer shall furnish such fidelity bond and insurance as is required by general law. The fidelity bond shall be in the amount of $500,000, or the Treasurer shall be included in the blanket bond covering all City officers and employees. The Treasurer shall furnish insurance protection in the amount of $50,000 against the loss of funds through fire, burglary, larceny, theft, robbery, or forgery.
[Ord. No. 8-1974]
Provision shall be made in the budget for adequate staff to enable the Treasurer to perform the duties assigned to the office. Personnel shall be assigned to the City Treasurer by the Department of Administration, subject to the Treasurer's approval and exclusive direction and control and subject to the general personnel policies of the City administered by the Department of Administration; provided, however, that except to the extent that personnel policies and compensation for such employees are subject to a collective bargaining agreement, the Treasurer, within the appropriations made to that office in the budget, may fix and determine the compensation to be paid to employees assigned to the office, and such determination shall not be subject to the approval of any other official.
[Ord. No. 17-1984]
There is hereby created in the City an escrow account which shall be known as the "Urban Development Action Grant (UDAG) Loan Repayment Account" for the deposit of the repayments of UDAG loans. The funds deposited in this account shall bear interest and be insured by an agency of the United States government. Such funds shall be spent for eligible activities approved by the United States Department of Housing and Urban Development; provided, however, that no funds shall be paid, expended, transferred or otherwise removed from said escrow account except upon appropriation by the City Council.
[Ord. No. 36-1985]
The City Treasurer shall deposit all City funds in a bank or other federally regulated financial institution (the "depository") with offices within the limits of the City. Such depository relationship shall be by written contract between the City and the institution approved by the office of the City Solicitor, and that institution shall confirm that all City funds are protected as provided in Act 72 of 1971.[1]
Editor's Note: See 72 P.S. § 3836-1 et seq.
The City Treasurer is granted authority to purchase United States treasury bills and notes at a purchase price discount of their mature market value. Such bills or notes shall be purchased at a discount so that interest is realized upon maturity and/or sale of said bills and notes. Such bills or notes will be delivered to the designated department of the City depository, or any other federally regulated bank or financial institution with which the City maintains a custodial agreement for these purposes, as provided in Act 72 of 1971 (the "custodian"). The City reserves the right to dispose of such bills or notes at its discretion. Should physical possession in a custodial account of these documents be unavailable due to current United States treasury regulations, ledger entries indicating the possession of the securities shall be made to an account specifically registered in the name of the City of Harrisburg. No disposition of this account will be allowed without specific authorization of the City Treasurer.
The City Treasurer is granted authority to purchase short-term obligations of the United States government, its agencies or instrumentalities. These obligations shall be purchased at a discount of market value, thus to insure a specified interest rate and maturity date. Physical possession in a restricted account in the name of the City of Harrisburg is required where applicable.
The City Treasurer is granted authority to deposit funds in savings accounts and time deposit accounts in federally regulated commercial banking or savings and loan institutions, provided that the institution is covered by FDIC/FSLIC insurance. All deposits in excess of the insurable limits will be secured by acceptable collateral as specified in Act 72 of 1971. A written contract requiring the collateralization of deposits in excess of the federally insured limits is required.
The City Treasurer is granted authority to purchase certificates of deposit of bank and trust companies and savings and loan associations, provided that the certificates of deposit are insured by FDIC/FSLIC insurance. An amount purchased in excess of the insurable limits will be secured by acceptable collateral as specified by Act 72 of 1971. All certificate of deposit transactions will be conducted with the institution issuing said certificate. Certificate of deposit brokerage firm transactions are not permitted. All institutions proposed for certificate of deposit transactions must provide financial statements to the City for its review prior to purchase of any certificates of deposit with that institution.
The City Treasurer is granted authority to purchase general obligation bonds of the Commonwealth of Pennsylvania or any other state or any Pennsylvania subdivision, agency and instrumentality, so long as these investments are backed by the full faith and credit of the issuing entity and have the highest rating of a recognized bond rating agency, such as Moody's or Standard and Poor's. In every case, possession of the physical securities will be taken by the custodian referred to in Subsection B. These securities will be placed in a restricted account in the name of the City of Harrisburg, and the City Treasurer shall reserve the right to dispose of these obligations at any time.
The City Treasurer is granted authority to make a simultaneous contract to purchase and later sell government securities, including securities of federal agencies and instrumentalities, provided that such transaction involves the actual purchase of such securities and is not merely a contract with a third party. These simultaneous transactions are referred to as "repurchase agreements" or "repos." Repurchase agreements of government securities will be conducted with primary dealers of United States government securities who report their daily activity to the Federal Reserve Bank of New York. Repurchase agreements can also be conducted with commercial banks with assets in excess of $1,000,000,000. All repurchase agreement transactions shall be of a short-term nature, no more than 30 days. If a repurchase agreement transaction exists over the end of any given month, reevaluation of collateral requirements will be examined by the office of the City Treasurer and/or the custodian. The value of all collateral contained within any repurchase agreement transaction must equal at least 105% of the purchase price. All collateral must be delivered to the custodian. All agreements for repurchase agreement transactions shall specify "Payment for securities upon delivery."
The City Treasurer is granted authority to purchase shares of registered investment companies, such as mutual or money market funds, whose portfolios consist solely of government securities acceptable in previous provisions of this section. In no way shall approval for purchase be granted if said portfolio contains any securities not covered by this section or approved for collateral as specified in Act 72 of 1971.
The City Treasurer is granted authority to participate in investing with pooled funds of public agencies of the commonwealth, provided that said fund administration conforms to all provisions of Act 72 of 1971 and the Intergovernmental Cooperation Law, Act of December 19, 1996, P.L. 1158, as amended, 53 Pa.C.S.A. § 2301 et seq., as the same may be amended. All "pooled" investment agreements must be approved by the City Council prior to any fund pooling. The Pennsylvania Local Government Investment Trust (PLGIT) is an example of an approved pooled fund.[2]
Editor's Note: Amended at time of adoption of Code (see Ch. 1-303).
The following special provisions and/or requirements are to be included in all investment activities specified in this section:
The City reserves the right to dispose of the securities (the actual documents delivered to the custodian, if applicable) as it sees fit at any time for any reason.
Any authorized City depository may secure City deposits by pledging assets on a pooled basis pursuant to Act 72 of 1971. It shall be the responsibility of any depository which utilizes the pooled basis to comply completely with the provisions of the Act.
The City will allow substitution of collateral securities held by the custodian so long as devaluation of the collateral does not occur and all requirements of Act 72 of 1971 with regard to collateral substitution are met by the custodian.
The City reserves the right to reject any securities held for purpose of collateralization for any reason. The custodian must immediately substitute acceptable securities at the City's request. This applies to individual investment transactions as well as pooled asset collateralization.
A signed custodial agreement with an authorized custodian is required for the conduct of City-related investment activity, and any custodial agreement will include the following:
A signed contractual agreement between the City and the institution specifying the responsibilities of each. This contract shall be signed by the City Solicitor, the Mayor, City Controller, City Treasurer and the authorized representative of the financial institution.
The payment of a reasonable fee by the City for services included in any custodial agreement, based upon a request for proposal solicited from all available financial institutions offering custodial agreement services. These proposals shall be evaluated based on current need and flexibility by the office of the City Treasurer. Selection of the custodian shall be the sole responsibility of the City Treasurer.
Any financial institution proposed as custodian does not have to be the authorized City depository.
The custodial agreement specifies that the City will take delivery of all United States securities either invested in or used as collateral, where applicable. The only exception to this rule is securities currently transacted as only ledger entries, i.e., treasury bills and notes.
All collateral is to be maintained in an account specifically restricted for the City of Harrisburg only. No agency or individual shall have the right to violate this account and conduct any transactions without express written consent of the City Treasurer.
Except in unusual circumstances, no obligations of the Government National Mortgage Association will be held by the City as collateral during the first week of any month, since these securities are subject to significant devaluation of collateral.
Notwithstanding any of the above, the City Treasurer may be further limited in deposits and investments by the terms of any document by which funds are entrusted to his care.
[Ord. No. 17-1981]
This City shall become a settler of the Pennsylvania Local Government Investment Trust, entering into the Declaration of Trust by incorporating such Declaration of Trust by reference. A copy of the Declaration of Trust shall be filed with the minutes of the meeting at which this section was adopted and shall be open to inspection by any interested person.
The Mayor, the City Treasurer, the City Controller and the Director of the Bureau of Financial Management are hereby authorized from time to time to purchase shares of the Trust from City funds and to redeem such shares as, from time to time, funds are required for municipal purposes, all such actions to be in the discretion of such officers.[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1-303).
The Trustees of the Trust are hereby designated as having official custody of this City's funds which are invested therein by the purchase of shares.
The following matters are specifically found and determined:
The conditions of the agreement are set forth in the Declaration of Trust presented to this meeting and filed with the minutes hereof.
This City's participation in the Declaration of Trust shall be terminable at any time by ordinance.
The Declaration of Trust and the purchase of the shares are for the purpose of investing this City's funds in obligations which are otherwise legal for this City's investments as part of a pooled arrangement with other governmental units, thereby achieving economic and other advantages of pooled investments.
It is not necessary to finance the agreement authorized herein except through the purchase of shares from the City's funds.
The Trust shall be managed by a Board of Trustees as set forth in the Declaration of Trust and the bylaws provided for therein.
Shares may be purchased and redeemed as the City may from time to time determine to be necessary or appropriate to meet its cash needs.
[Ord. No. 23-1993]
This City shall join with other local governments in accordance with the Intergovernmental Cooperation Law[1] by becoming a member in the State Treasurer's Investment Program for Local Governments ("INVEST") for the purpose of purchasing and redeeming shares of INVEST ("INVEST shares") and by entering into an intergovernmental cooperation agreement with the State Treasurer (the "agreement"), upon such terms and conditions as are more fully set forth in the agreement, a signed copy of which shall be filed with the minutes of the meeting at which this section was adopted.
Editor's Note: See 53 Pa.C.S.A. § 2301 et seq.
The duration of the agreement shall be for a period of three years with automatic renewal of one-year periods.
The purpose of the agreement is to permit the State Treasurer to invest the funds of this City with the objectives of safety of principal, liquidity and high yield, consistent with sound investment strategy.
The agreement will not be financed, except for the purchase of INVEST shares, in quantities determined by the City Treasurer in accordance with existing investment practices contained in § 2-105.6.
The State Treasurer shall serve as the investment manager under the terms of the agreement.
This City is permitted to purchase and redeem shares that in turn are pooled with other local government shares to acquire and sell certain investment securities at a rate of $1 per share.
The City Treasurer or designee shall be authorized to make deposits and withdrawals, establish accounts and perform such other duties as are necessary or appropriate for participation as an INVEST member.
[Ord. No. 20-1986]
The City Treasurer shall not authorize the disbursement of Section 108 loan proceeds unless a development entity, in addition to the Harrisburg Redevelopment Authority, has signed promissory notes and other documents as may be required to guarantee the repayment of the loan in a manner which has been approved by City Council and unless the principal of said loan does not exceed the amount authorized by Council.
Any person who violates the provisions of this chapter shall be subject to the general code penalty, § 1-301.99 of these Codified Ordinances.