Pennsylvania Act 1921-383 — FIRST CLASS CITIES, FINANCES

Act text

FIRST CLASS CITIES, FINANCES
                 Act of May 21, 1921, P.L. 1054, No. 383              Cl. 11
                                  AN ACT

     To carry out the provisions of section eight, article nine of
        the Constitution of the State of Pennsylvania, as amended,
        and, for that purpose, prescribing the method of determining
        the amount which may be deducted in ascertaining the
        borrowing capacity of the city of Philadelphia by excluding
        from the calculation, and deducting from its indebtedness, so
        much of the debt of said city as shall have been incurred, or
        is about to be incurred, and the proceeds thereof expended or
        about to be expended, upon any public improvement or in the
        construction, purchase, or condemnation of any public
        utility, or part thereof or facility therefor, if such public
        improvement or public utility, or part thereof, whether
        separately or in connection with any other public improvement
        or public utility, or part thereof, may reasonably be
        expected to yield revenue in excess of operating expenses
        sufficient to pay the interest and sinking-fund charges
        thereon.

        Section 1.  Borrowing capacity of Philadelphia; petition to
     common pleas to determine
        Whenever the city of Philadelphia shall have incurred or is
     about to incur any debt or debts for, and the proceeds thereof
     shall have been or are about to be invested in, any public
     improvements of any character, or in the construction, purchase,
     or condemnation of any public utility, or part thereof or
     facility therefor, which, either separately or in connection
     with any other public improvement or public utility, or part
     thereof, may reasonably be expected to yield revenue in excess
     of operating expenses sufficient to pay the interest and
     sinking-fund charges thereon, the city may, at any time and from
     time to time, present its petition to any of the courts of
     common pleas of the county in which such city is situated for
     the purpose of having determined the amount of its debt which
     may be deducted from its indebtedness in ascertaining the
     borrowing capacity of the said city as provided in section
     eight, article nine of the Constitution of the State of
     Pennsylvania, as amended. The said petition shall contain an
     enumeration of any such public improvement or improvements,
     public utilities, part or parts thereof and facilities therefor,
     so reasonably to be expected to yield such revenue, the amount
     of indebtedness which shall have been incurred or is about to be
     incurred for such public improvement or improvements, public
     utilities, part of parts thereof and facilities therefor, the
     average rate of interest and sinking-fund charges payable upon
     the indebtedness incurred by said city as to each of such
     improvements, public utilities, part of parts thereof and
     facilities therefor, and such other facts as may show or tend to
     show that the operation of the said improvements, public
     utilities, part or parts thereof and facilities therefor,
     whether operated separately or in connection with any other
     public improvement or public utility, or part thereof, may
     reasonably be expected to yield revenue in excess of operating
     expenses sufficient to pay the interest and sinking-fund charges
     thereon, and together with such other information as may be
     pertinent to the ends of the inquiry. The petition herein above
     provided for shall be made and sworn or affirmed to by the
     mayor, and shall be filed by the city solicitor having first
     been attested by the city controller and by the head of the
     department or other branch of the city government having the
     management of such improvements, as to the matters within their
     special knowledge or control, respectively.  1921, May 20, P.L.
     1054, Sec. 1.
        Section 2.  Application upon petition; time for; notice of.,
     answer; hearing
        Upon the filing of the aforesaid petition, the court in which
     it shall have been filed shall fix a date, not less than three
     weeks nor more than five weeks thereafter, for the making of an
     application pursuant to the prayer of said petition, and notice
     of the filing thereof and of the date fixed for making such
     application shall be published by the mayor, not less than once
     a week for three weeks, in three daily newspapers of general
     circulation published in said city, to be designated by the
     court, and in the legal journal in which legal notices are
     regularly printed. On or before the date so fixed, all parties
     in interest, including the taxpayers, the owners or holders of
     bonds or other securities of said city, or otherwise, may appear
     in person or by attorney, and file with the said court a
     verified answer or answers to the aforesaid petition. Upon the
     date so appointed for the making of such application, or at such
     time thereafter as it or he may fix, the said court or one of
     the judges thereof shall proceed forthwith to take the testimony
     of the parties so appearing, and to hear argument thereon, as in
     other cases; at which taking of testimony and hearing of
     argument, all parties shall be entitled to present evidence, to
     be heard, and to file briefs, as the said judge or court may
     direct.  1921, May 21, P.L. 1054, Sec. 2.
        Section 3.  Decision and order; exceptions
        After hearing the allegations and proofs and the arguments
     thereon of the respective parties, the court or the judge before
     whom such hearing is had shall render a decision, stating how
     much of the debt of the said city shall have been or is about to
     be incurred and the proceeds thereof expended or about to be
     expended in any such public improvements or in the construction,
     purchase, or condemnation of any such public utility, or part
     thereof or facility therefor, which, operated either separately
     or in connection with any other public improvement or public
     utility, or part thereof, may reasonably be expected to yield
     revenue in excess of operating expenses sufficient to pay the
     interest and sinking-fund charges thereon, with such particulars
     as shall show the gross income therefrom, the operating expenses
     thereof, and the net revenue, -- all of which may be actual or
     estimated, -- and the total amount of the interest and sinking-
     fund charges payable upon the indebtedness incurred or about to
     be incurred by the said city for each such improvement,
     construction, purchase, or condemnation; and shall make an order
     fixing the total amount which for that reason the said city may
     exclude from the calculation and deduct from its debt in
     ascertaining its borrowing capacity. Should such hearing be
     before a judge of the said court, exceptions to his findings and
     decision may be filed by any party in interest who shall have
     appeared, as aforesaid, within ten (10) days after such decision
     shall have been rendered and notice of said findings and
     decision shall have been given to all such parties by the
     prothonotary of the court; and the said exceptions shall be
     heard and disposed of by the court in banc, in the same manner,
     and subject to the same rules, as govern the hearing of
     exceptions upon trials in equity. If no exceptions be filed
     within ten (10) days to the findings and decision of such judge,
     they shall be final and conclusive. Upon the making of such
     order by the court or by a judge thereof, if no exceptions be
     filed to his decision, the amount so ascertained shall thereupon
     be wholly excluded in determining the power of such city to
     incur debt.  1921, May 21, P.L. 1054, Sec. 3.
        Section 4.  Such determination and order of the court of
     common pleas shall not be subject to any other appeal or review,
     or to collateral attack of any kind whatsoever, but shall, with
     respect to the validity of all municipal loans, and in all other
     respects, be final and conclusive, and the proceeding herein
     provided for shall be the sole and exclusive method of
     determining the aforesaid matters. (4 repealed in part Apr. 28,
     1978, P.L.202, No.53)
        Compiler's Note:  Section 2(a) of Act 53 of 1978 provided
            that the reference in section 4 to "the proceeding herein
            provided for" shall be deemed a reference to 42 Pa.C.S. §
            5105 (relating to right to appellate review).