[HISTORY: Adopted by the Borough Council of the Borough of Middletown as indicated in article histories. Amendments noted where applicable.]
Editor's Note: Former Ch. 84, Shade Tree Commission, was adopted 12-12-1960 by Ord. No. 407 and amended 4-6-1987 by Ord. No. 943. The Shade Tree Commission was abolished 3-2-2015 by Ord. No. 1312.
[Adopted 4-2-2019 by Ord. No. 1360, approved 4-2-2019]
There shall be established in the Borough of Middletown (hereinafter the "Borough") a stabilization fund pursuant to the authority set forth in 8 Pa.C.S.A. § 1202(23) for the creation of an operating reserve fund and 8 Pa.C.S.A. § 1313.1 for the creation of special funds and investments. The Borough shall set aside money in the stabilization fund for the payment of unforeseen and unfunded emergency expenses of the Borough related to the health, safety and welfare of Borough residents. The administration, control, investment and expenditure of the stabilization fund by Borough Council shall be in accordance with this chapter.
The stabilization fund shall be funded by annual contributions from the Borough's general fund and electric fund. Transfers shall be made to the stabilization fund from the general fund and electric fund each year that there is an end-of-year surplus in either or both contributing funds. A transfer equal to 10% of each fund's surplus shall be made after receipt by the Borough of the audited financial statements for the fiscal year for which there was a year-end surplus.
There shall be no maximum placed on the total stabilization fund balance. Notwithstanding the foregoing, pursuant to 8 Pa.C.S.A. § 1202(23), no appropriation may be made to the stabilization fund if said appropriation would cause the stabilization fund balance to exceed 25% of the estimated revenues of the Borough's general fund in the current fiscal year.
Expenditures. Payments out of the stabilization fund shall be for unforeseen and unfunded emergency expenses of the Borough related to the health, safety and welfare of Borough residents. Such expenditures are those that would result in significant unanticipated revenue shortfalls if paid out of the general fund. Stabilization funds may also be used for any lawful municipal purpose under the Pennsylvania Borough Code, 8 Pa.C.S.A. § 101 et seq. Consistent with Council's authority set forth in 8 Pa.C.S.A. § 1313.1 to expend funds in the manner as may be determined by action of Council under this article, a majority vote of all elected Borough Council members plus one is required to spend money out of the stabilization fund for the payment of authorized expenses.
Investments. Money deposited into the stabilization fund shall be subject to the investment rules governing Borough funds set forth under 8 Pa.C.S.A. § 1316, Investment of funds.