PRINTER'S NO. 489
No. 469 Session of 1999
INTRODUCED BY ZUG, BARRAR, FARGO, PESCI, ROSS AND TRELLO,
FEBRUARY 9, 1999
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 9, 1999
AN ACT
1 Amending Title 53 (Municipalities Generally) of the Pennsylvania
2 Consolidated Statutes, further providing for limitations on
3 incurring certain types of debt.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 8022(a) and (b) of Title 53 of the
7 Pennsylvania Consolidated Statutes are amended to read:
8 § 8022. Limitations on incurring of other debt.
9 (a) Nonelectoral debt.--Except as provided in subsections
10 (c), (d) and (e) and as otherwise specifically provided in this
11 subpart, a local government unit shall not incur any new
12 nonelectoral debt if the aggregate net principal amount of the
13 new nonelectoral debt, together with all other net nonelectoral
14 debt outstanding, would cause the total net nonelectoral debt of
15 the local government unit to exceed any of the following:
16 (1) One hundred percent of its borrowing base in the
17 case of a school district of the first class.
18 (1.1) Fifty percent of its borrowing base in the case of
1 a school district of the second through fourth classes.
2 (2) Three hundred percent of its borrowing base in the
3 case of a county.
4 (3) Two hundred fifty percent of its borrowing base in
5 the case of any other local government unit.
6 (b) Nonelectoral debt plus lease rental debt.--Except as
7 provided in subsections (c), (d) and (e) or as otherwise
8 specifically provided in this subpart, in the exercise of
9 legislative control over the budgets and expenditures of local
10 government units and of the purposes for which tax moneys and
11 general revenues of local government units may be expended, a
12 local government unit shall not incur any new lease rental debt
13 or nonelectoral debt if the aggregate net principal amount of
14 the new debt, together with any other net nonelectoral debt and
15 net lease rental debt then outstanding, would cause the
16 outstanding total of net nonelectoral debt plus net lease rental
17 debt of the local government unit to exceed any of the
18 following:
19 (1) Two hundred percent of the borrowing base in the
20 case of a school district of the first class.
21 (1.1) Fifty percent of its borrowing base in the case of
22 a school district of the second through fourth classes.
23 (2) Four hundred percent of its borrowing base in the
24 case of a county.
25 (3) Three hundred fifty percent of its borrowing base in
26 the case of all other local government units.
27 * * *
28 Section 2. This act shall take effect in 60 days.
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