§ 4341. Operating reserve fund.

288 words·~1 min read·/pa/title-73/chapter-43/4341

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General rule.-- The board of commissioners may create and maintain a separate operating reserve fund in order to:

(1)Minimize future revenue shortfalls and deficits.

(2)Provide greater continuity and predictability in the funding of vital government services.

(3)Minimize the need to increase taxes to balance the budget in times of fiscal distress.

(4)Provide the capacity to undertake long-range financial planning and to develop fiscal resources to meet long-term needs.

(b)Limitation on appropriations.-- The board of commissioners may annually make appropriations from the general township fund to the operating reserve fund, but no appropriation may be made to the operating reserve fund if the effect of the appropriation would cause the operating reserve fund to exceed 25% of the estimated revenues of the township's general fund in the current fiscal year.

(c)Authorized purposes.-- The board of commissioners may, at any time by resolution, make appropriations from the operating reserve fund for the following purposes only:

(1)Meet emergencies involving the health, safety and welfare of the residents of the township.

(2)Counterbalance potential budget deficits resulting from shortfalls in anticipated revenues or program receipts from any source.

(3)Counterbalance potential budget deficits resulting from increases in anticipated costs for goods or services.

(4)Provide anticipated operating expenditures related either to the planned growth of existing projects or programs or to establish new projects or programs if, for a project or program, appropriations have been made and allocated to a separate restricted account established within the operating reserve fund.

(d)Investment authorized.-- The operating reserve fund shall be invested, reinvested and administered in a manner consistent with the provisions of section 4905 (relating to investment of township funds).

73c4342s