As used herein the following terms shall be
defined as herein set forth:
CAPITAL
As used in conjunction with "purpose" or "expenditure" shall
have the same meaning generally ascribed to the term "capital" by
generally accepted accounting principles, but shall not include any
automobile, truck or other vehicle, nor any depreciable tangible personal
property.
The Borough of Homestead hereby establishes
a separate fund, to be known as the "Homestead Borough Special Reserve
Fund" (the "fund"). The fund shall consist of those specific accounts
and investments as are identified for the purposes of this article.
The fund shall not be commingled with any other funds of the Borough
or any other entity.
The authority for this article is § 1202(32)
of the Borough Code, Act of February 1, 1966 (1965 P.L. 1656, No.
581), as amended.
The initial deposit into the fund shall be the
sum of $850,000, which are the proceeds of sale received from the
Western Pennsylvania Water Company for the Borough's waterworks. The
Borough may, from time to time, make additional deposits into the
fund from any sale, lease or other disposition of Borough property,
or from any sums received from any source other than taxation, unless
said sums referred to were received for a particular purpose inconsistent
with this fund. Other than this initial deposit, all deposits shall
be made by motion or resolution of Council, duly enacted at a meeting
lawfully assembled. Any unexpended and unappropriated interest shall
be deemed a part of the principal of the fund and shall be further
deposited as principal into the fund.
The principal (and any unexpended and unappropriated interest, which has been deemed to be principal pursuant to §
1-210 hereof) shall be invested and reinvested in funds, accounts and other investments which are lawful for boroughs to make, as Council may from time to time direct by motion or resolution duly enacted at a meeting lawfully assembled, unless otherwise appropriated or expended by Council as set forth in this article. The motion or resolution directing the investment of the fund shall be continuing, unless otherwise stated, or limited by the terms or nature of the investment, or unless otherwise abrogated by Council.
The Borough may make appropriations from the
fund, only upon the following terms:
1. Council may from time to time by motion or resolution duly enacted at a meeting lawfully assembled, authorize the appropriation and expenditure of all or any part of the interest earned or to be earned for any lawful purpose. If Council has not acted to authorize the appropriation and expenditure of interest as stated aforesaid, or does not act within 60 days from the payment or crediting of any interest to the fund, then said interest shall be deemed to be unexpended and unappropriated and made a part of the principal of the fund, subject to §§
1-210 and
1-211 hereof. It is expressly understood that a motion or resolution for the purpose of this § 1-212.1 may be enacted in advance of the payment or crediting of fund interest.
2. Once per every fiscal year, Council may, by resolution passed by at least 2/3 of the number of Councilpersons comprising Council, authorize the appropriation and expenditure of not more than $100,000 of the principal from the fund for, and only for, the specific purposes set forth in §
1-213 of this article. In the event the Borough desires to expend and appropriate more than $100,000 per fiscal year, or if Council, after already exercising the once per fiscal year appropriation and expenditure, desires to exercise another appropriation of principal from the fund; the same may be so undertaken provided that a resolution is adopted without dissenting vote cast by any member of Council present at a meeting lawfully assembled.
3. Council may from
time to time, by motion or resolution duly adopted at a meeting lawfully
assembled, authorize any borrowing from the principal of the fund
as it deems appropriate, at any rate of interest and for any length
of time the Borough deems appropriate, for any lawful purpose or expenditure
of the Borough.
[Added 12-13-1990 by Ord. No. 1003;
amended 3-14-1991 by Ord. No. 1011]
[Amended 3-14-1991 by Ord. No. 1011]
In addition to the provisions of §
1-213 hereof, each and every appropriation and expenditure of principal of the fund must include, as part of the authorizing resolution, a written plan of repayment consented to and approved by the person or entity charged by the Borough with primary responsibility for its financial management.