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Editor's Note: This ordinance was adopted
pursuant to Article XII, § 1202(33), of the 1966 Borough
Code; see now 53 P.S. § 46202(33).
A special fund, to be known as the "Capital
Reserve Fund," be and hereby is created and set up to be administered
and controlled by the Borough Council and, by them, from time to time,
expended to provide, expand and improve the capital assets of the
Borough, to include but not be restricted to the construction, purchase
or replacement of or additions to municipal buildings, sanitary and
storm sewer systems and facilities, major equipment and machinery,
including fire apparatus and such other Borough capital assets and
purposes as are in consonance with pertaining public laws and the
provisions of this article.
For the purpose of administering the provisions
of this article, the following terms shall have the meanings indicated:
Structures and installations of a permanent and basic capital
nature and machinery and equipment of a major nature with a normal
use expectancy of not less than 10 years.
The Borough Council may appropriate moneys from
the general fund, Sewer Fund, Parking Fund, Refuse Fund and any other
revenue-producing fund to be paid into a Capital Reserve Fund, provided
that the revenues shall be separately accounted for in each fund and
that no revenue from one fund may be transferred into another fund,
or the Borough Council may place into the Capital Reserve Fund any
moneys received from the sale, lease or other disposition of any Borough
property or moneys received from any other source, provided that such
moneys are not received or acquired for a particular purpose differing
from the purpose of this fund.
The moneys of this fund shall be controlled,
invested, reinvested and administered, and the moneys therein and
income from such moneys expended for any of the purposes for which
the fund has been created, in such manner as may be determined by
the Borough Council, provided that no part of this article shall be
construed to deny the Borough the temporary use of these moneys when
secured by the Borough's tax anticipatory notes bearing interest at
the rate of 7% per annum and of a term not exceeding eight months.
Moneys temporarily loaned to the Borough in
anticipation of tax receipts shall be returned to the fund with interest
from the first available tax receipts and, in any case, not later
than the eight months after the loan is incurred.
The moneys of the Capital Reserve Fund shall
be invested in securities designated by law as legal investments for
sinking funds of municipalities.
Authority for the expenditure of moneys of the
Capital Reserve Fund for the capital improvements as specified and
authorized by the provisions of this article shall be further evidenced
by the affirmative vote of Council and the approval of the Mayor.
