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An Ordinance establishing an Allegheny County “Rainy Day” Special Reserve Fund and providing for the administration of revenues placed into such fund.
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Whereas, Allegheny County has not created a formalized special reserve fund in order to provide funding to be held in reserve in case of unforeseen circumstances that could cause the depletion of the County's general fund; and
Whereas, the creation of such a special reserve fund has been recommended by multiple Members of County Council, as well as by the Allegheny Count Controller; and
WHEREAS, it is accordingly the desire of Council to create an Allegheny County Special Reserve fund in order to provide the County with a means of meeting certain unforeseen expenses; and
WHEREAS, the Council of Allegheny County is of the belief that the creation of such a fund will inure to the benefit of the citizens of the County;
The Council of the County of Allegheny hereby enacts as follows:
Section 1. Incorporation of Preamble.
The provisions set forth in the preamble to this Ordinance are incorporated by reference in their entirety herein.
Section 2. Establishment and Operation of Allegheny County “Rainy Day” Special Reserve Fund.
Allegheny County hereby establishes a restricted fund, to be known as the “Allegheny County 'Rainy Day' Special Reserve Fund (hereinafter “Fund” or “the Fund”). The Fund shall consist of those specific accounts and investments as are identified for the purpose of this Ordinance. The Fund shall not be co-mingled with any other funds of the County or any other entity, and shall be operated and administered as follows:
A. Deposits. The initial deposit into the Fund shall be determined by County Council and made no later than January 5, 2010. The County may, from time to time thereafter, make additional deposits into the Fund from any sale, lease or other disposition of County property, or from any sums received from any source other than taxation, unless said sums were received or particular purposes inconsistent with the Fund. All future deposits shall be made by motion or resolution of Allegheny County Council, duly enacted at a meeting lawfully assembled. Interest earnings on Fund deposits may be appropriated by Council for any purpose by motion or resolution approved by a majority of the seated members of Council. 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.
B. Investment. The principal and any unexpended and unappropriated interest deemed to be principal pursuant to the terms of Subsection A of this Section, shall be invested and/or reinvested in funds, accounts and other investments consistent with the terms of all applicable federal, state, and local laws. The investment of any revenue from the Fund shall be authorized in advance by motion or resolution duly enacted by County Council, unless otherwise appropriated or expended by Council as set forth in this Ordinance. Such motion shall be continuing unless otherwise states, or limited by the terms or nature of the investment itself, or unless otherwise abrogated by Council.
C. Appropriations. The County may make appropriations from the Fund under the following circumstances only:
1. County Council may from time to time by motion or resolution duly enacted, authorize the appropriation and expenditure of all or any part of the interest earned or to be earned by the Fund for any lawful purpose. If Council has not authorized the appropriation and expenditure of interest pursuant to the terms of this Subsection or does not act to do so within 60 days from the payment or credit of such interest to the Fund, then such interest shall be deemed unexpended and unappropriated and made part of the principal of the Fund, pursuant to the terms of Subsections A and B of this Section. The motion required under the terms of this Subsection may be enacted in advance of the payment or credit of interest revenue to the Fund.
2. Once each fiscal year, County Council may, by resolution passed by at least a majority of the seated Members of Council, authorize the appropriation of not more than the greater of $1,000,000 or 20% of the principal from the Fund for, and only for, the specific purposes set forth in Subsection D of this Section. In the event that the County desires to expend and appropriate more than the greater of $1,000,000 or 20% in any 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 a resolution is adopted by at least a two-thirds majority of the seated members of Council.
D. Any and all appropriations and expenditures of principal from the Fund shall be used for the following purposes:
1. As part of a plan of economic development for all or any part of Allegheny County.
2. In conjunction with, or as security for, any loan or bond issue which is for capital purposes.
3. For tax anticipation borrowing purposes, provided the moneys so appropriated are subject to the same constraints and repayment provisions as are standard and customary for tax anticipation borrowings within the Commonwealth of Pennsylvania; and provided further, no monies from the Fund shall be used for tax anticipation borrowing purposes until all outstanding sums for such purposes have been first re-paid.
4. For any capital expenditure lawfully undertaken by the County.
5. For any extraordinary or emergency purpose to the extent other funds of the County are unavailable or insufficient to cover the same in whole or in part.
Notwithstanding any provision in this Ordinance to the contrary, no part of Fund principal may be used, directly or indirectly, for the payment of any item which is lawfully or traditionally a charge to the County's general fund, including, but not limited to, the following: salaries or other compensation to any employee, officials, representatives, agents or independent contractors; any debt, charge, claim or damage sought against the County; or any other sum which may be owed the County and not explicitly listed in this Section.
E. Submittal of Plan of Repayment. In the event that the expenditure limits set forth in Section C.2. of this ordinance are exceeded in any calendar year, 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 County with primary responsibility for its financial management. In the event that the plan or repayment extends for more than one calendar year, the plan must included a provision remitting to the Fund interest on the principal so appropriated and expended. Said interest must be at a rate at least equal to the discount rate being charged by the County's depository to its preferred customers upon the date of enactment of the resolution.
F. Terms Defined. For the purposes of this Ordinance, the following terms shall have the following meanings, unless context clearly indicates otherwise:
1. “Economic Development” shall mean any project enumerated in the Municipality Authorities Act of 1945, as amended.
2. “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 depreciably tangible personal property.
Section 3. Effective Date.
The provisions of this ordinance shall take effect immediately and shall remain in effect unless otherwise amended, or terminated by, an ordinance passed by at least a two-thirds majority of the seated members of County Council.
Section 4. 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 5. 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.
PRIMARY SPONSOR: COUNCIL MEMBER McCULLOUGH