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An Ordinance establishing an Allegheny County "Rainy Day" Fund and providing for the administration of revenues placed into such fund.
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WHEREAS, Allegheny County has not created a formalized 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 over the last several years, as well as by former Allegheny County Controller Mark Flaherty; and
WHEREAS, federal and state funding to the County has decreased consistently and the County's operating expenditures have increased consistently for the last several budget years; and
WHEREAS, the County has historically demonstrated a tendency to rely upon one-time revenue adjustments such as tax receivable and property sales in order to balance its budget even as the County's structural operating deficit grew and its unrestricted operating cash position deteriorated; and
WHEREAS, the County's general fund balance was depleted to under $6 million at the conclusion of 2011, reflecting the expenditure of approximately $14 million in reserve funding simply to meet the County's financial obligations for 2011; and
WHEREAS, given the trends noted above, it is the desire of Council to create an Allegheny County Reserve fund in order to provide the County with a means of meeting unforeseen expenses without placing additional demands on its already stressed budget; 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, and it is the desire of the Council to fund such a fund through any future revenues derived from natural gas or other resource leasing or extraction activities;
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 fund, to be known as the "Allegheny County 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, shall remain in place continuously and in perpetuity, regardless of fund balance, and shall be operated and administered as follows:
A. Deposits. For fiscal year 2014 and in each fiscal year thereafter, County Council shall, within the County's operating budget, appropriate revenues for deposit into the Fund equal to fifty percent (50%) of any fees, royalties, or other revenue received by the County as payments pursuant to leasing or other agreements relating to the extraction of natural gas or any other naturally occurring substance, including but not limited to oil, coal, timber, or water, on County-owned property paid to the County during the prior fiscal year.
B. Investment authorized. The principal and any interest revenue derived from the principal shall be invested and/or reinvested in funds, accounts and other investments consistent with the terms of all applicable federal, state, and local law. Such investment shall be continuing unless limited by the terms or nature of the investment itself, by applicable law, or unless otherwise limited by subsequent enactment of a resolution limiting the duration of a particular investment of Fund revenues.
C. Appropriations. The Council may make appropriations of any amount of principal or interest revenue existing within the Fund for expenditure on any operating budget line item once authorized by the passage of a resolution approved by a two thirds (2/3) majority of the seated Members of Council. Such resolution shall, at a minimum, contain a complete explanation of the purpose(s) for which the Fund revenues are to be appropriated. Notwithstanding any provision in this Ordinance to the contrary, no part of Fund principal or interest may be used, directly or indirectly, for the payment of any item which could not lawfully be paid through am appropriation from the County's general fund.
Section 3. Short Title.
This Ordinance shall be known as the Honorable William J. Coyne ordinance.
Section 4. Effective Date.
The provisions of this ordinance shall take effect immediately upon the date of final approval.
Section 5. 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 6. 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 ROBINSON
CO-SPONSORS: