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An Ordinance of the County of Allegheny, Commonwealth of Pennsylvania, providing for the establishment of a Budget Stabilization Reserve Fund within Allegheny County.
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WHEREAS, Allegheny County has historically been affected by unpredictable factors arising from national and international events over which the County cannot exercise control; and
WHEREAS, these factors on occasion impair the ability of the County to accurately predict its anticipated revenues and/or expenditures; and
WHEREAS, overestimates of revenues and underestimates of expenditures can create serious short-term deficits which generate the need for deficiency appropriations and tax increases; and
WHEREAS, financing short term deficits created by economic uncertainty in the past has led to tax increases and changes in tax rates and policies which impaired the attractiveness of Allegheny County as a location for job creation and business expansion; and
WHEREAS, recurring deficits occurring during economic downturns could damage the creditworthiness of the County and increase the cost of borrowing for essential capital projects; and
WHEREAS, the need to cope with problems arising from the effect of economic uncertainty could cause delays in adopting a budget for the County, may cause cutoffs of vital public programs, and could ultimately endanger the stability and reliability of the County's services and programs;
The Council of the County of Allegheny hereby enacts as follows:
SECTION 1. Intent.
It is hereby declared as the intent of Allegheny County Council to create a stabilization reserve in the amount of 6% of the revenues of the County's General Fund.
SECTION 2. Establishment of Budget Stabilization Reserve Fund.
There is established a special fund to be known as the Budget Stabilization Reserve Fund (BSRF), to be administered consistent with the provisions of this Ordinance.
SECTION 3. Certification of County Reserves.
A. Beginning in 2006, the County Controller shall, no later than January 30 of each year, make a written certification to both the Chief Executive and County Council in which he or she places a value on the County's reserve fund(s) as of the date on which the certification is made, and certifies the amount of any surplus in the County's General Fund as of December 31 of the preceding year.
B. The provisions of Section 4 of this Ordinance shall only be applicable in years in which the Controller's certification indicates that the total balance of the County's reserve fund(s) is equal to or greater than $10 million.
SECTION 4. Funding.
A. Except as may be provided in Section 3 of this Ordinance and in paragraph B of this section, if the County Controller certifies that there is a surplus in the General Fund for a specific year, 25% of that year's certified surplus amount shall be deposited into the BSRF within 90 days of the certification.
B. If, at the end of any fiscal year, the ending balance of the BSRF equals or exceeds 6% of the actual General Fund revenues received for the fiscal year in which the surplus occurs, and if the County Controller certifies that there is a surplus in the General Fund for that fiscal year, 10% of that year's certified surplus amount shall be deposited into the BSRF within 90 days of the certification.
C. County Council may at any time provide additional amounts from any funds available to the County as an appropriation to the BSRF.
SECTION 5. Disposition of Budget Stabilization Reserve Fund.
A. Funds from the BSRF may only be appropriated when emergencies involving the health, safety or welfare of the residents of Allegheny County or downturns in the economy resulting in significant unanticipated revenue shortfalls cannot be dealt with through the normal budget process.
B. Funds from the BSRF shall not be used to begin new programs but to provide for the continuation of vital public programs in danger of being eliminated or severely reduced due to financial problems resulting from the Economy.
C. Funds from the BSRF shall not be used to fund or offset costs arising from salary increases granted to any employee in any County agency, any appointee to any County agency, or any County elected official.
SECTION 6. Appropriations.
A. Whenever the Chief Executive determines that an appropriation from the BSRF is necessary to meet one or more emergencies involving the health, safety or welfare of the residents of Allegheny County or to counterbalance downturns in the economy which result in significant unanticipated revenue shortfalls, the Chief Executive shall present a request for an appropriation along with detailed specifics regarding the reasons for and uses to which the appropriation will be used, together with suggested ancillary and substantive legislation as may be necessary to the Office of the County Council, through the Chief Clerk. The Council may then through approval of an appropriation bill by at least two thirds of the seated Members appropriate money from the BSRF to meet the needs identified by the Chief Executive in his or her proposal.
B. Appropriations made under the provisions of this Ordinance shall automatically lapse 180 days from the date on which the appropriation bill is signed by the Chief Executive.
1. Subject to the provisions of subparagraph 2, any funds not expended on the date on which the appropriation lapses shall be returned to the BSRF within 10 days of the lapse.
2. Appropriations may be extended for a maximum of an additional 180 days by appropriate legislation enacted prior to the lapse date. Appropriations shall not be extended by any means after the lapse date has passed.
SECTION 7. Severability.
If any provision of this Ordinance shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Ordinance which shall be in full force and effect.
SECTION 8. Repealer.
Any Resolution or Ordinance or part thereof conflicting with the provisions of this Ordinance is hereby repealed so far as the same affects this Ordinance.