Pennsylvania Act 1921-137 — FIRST CLASS CITIES INDEBTEDNESS

Act text

FIRST CLASS CITIES INDEBTEDNESS
                 Act of Apr. 26, 1921, P.L. 278, No. 137              Cl. 11
                                  AN ACT

     Providing that in computing the indebtedness of cities of the
        first class, the word "indebtedness" shall include all manner
        of debt, and the net amount thereof shall be ascertained, as
        in the case of other municipal corporations, by deducting,
        from the gross amount thereof, the moneys in the treasury,
        all outstanding solvent debts, and all revenues applicable
        within one year to the payment of the same.

        Section 1.  A.  Be it enacted, &c., That in computing the
     indebtedness of cities of the first class in this Commonwealth,
     the word "indebtedness" shall be construed and shall be deemed,
     held, and taken to include any and all manner of debt, as well
     floating as funded, of such cities, and the net amount of such
     indebtedness shall be ascertained by deducting, from the gross
     amount thereof.
        (a)  The amount of any cash and bonds of the city held in any
     sinking fund for the payment of the principal of such
     outstanding debt.
        (b)  The par value of all obligations of the United States
     Government, and all other legal investments (other than bonds of
     the city) held in any sinking fund, unless such par value shall
     be in excess of the actual value in which case the actual value
     shall be used.
        (c)  The amount of current revenue, including appropriations
     to and earnings by the sinking funds, which are receivable
     within the current fiscal year for the payment of the principal
     of such outstanding debt.
        (d)  The amount of net debt incurred, or about to be
     incurred, and the proceeds thereof expended, or about to be
     expended, upon any public improvement or public utility which
     yields, or may reasonably be expected to yield, revenue in
     excess of operating expenses sufficient to pay the interest and
     sinking fund charges thereon, and the deduction of which, in
     ascertaining the borrowing power of the city, shall have been
     authorized by the Court pursuant to the provisions of the
     Constitution and laws of this Commonwealth.
        B.  That in computing the net indebtedness incurred, or about
     to be incurred, and the proceeds whereof have been expended, or
     are about to be expended, upon any public improvement or public
     utility which yields, or may reasonably be expected to yield,
     revenue in excess of operating expenses sufficient to pay the
     interest and sinking fund charges thereon, and the deduction of
     which, in ascertaining the borrowing power of the city, shall
     have been authorized by the Court, pursuant to the provisions of
     the Constitution and laws of this Commonwealth; there shall be
     deducted from the aggregate of such self-sustaining public
     improvement or public utility debt, the proportion of cash and
     investments in the sinking funds pledged for the payment of the
     principal of such debt, and the proportion of current revenue,
     including appropriations to and earnings by such sinking funds
     during the current fiscal year.
        C.  That in computing the net indebtedness authorized, or
     issued, and outstanding without the assent of the electors;
     there shall be deducted from the aggregate of such debt, cash
     and investments in the sinking funds pledged for the payment of
     such non-electoral debt, and the amount of current revenue,
     including appropriations to, and earnings by, such sinking funds
     during the current fiscal year.
        (1 amended Apr. 4, 1945, P.L.146, No.65)