Pennsylvania Act 1919-81 — PHILADELPHIA, CALCULATING BORROWING CAPACITY

Act text

PHILADELPHIA, CALCULATING BORROWING CAPACITY
                   Act of May 2, 1919, P.L. 106, No. 81               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 and
        the proceeds thereof invested in any public improvements of
        any character which shall be yielding to the said city an
        annual current net revenue.

        Section 1.  Exclusion of debts for revenue producing
     improvements in determining borrowing capacity; petition to
     court
        Whenever the City of Philadelphia shall have incurred any
     debt or debts for, and the proceeds thereof shall have been
     invested in, any public improvements of any character which
     shall be yielding to the said city an annual current net
     revenue, the said 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 public improvement
     or improvements yielding such annual current net revenue, the
     amount of indebtedness which shall have been incurred for, and
     the proceeds thereof invested in, such public improvement or
     improvements, the gross revenue from each of said improvements
     during the year immediately preceding the time of filing such
     petition, and the average rate of interest and sinking-fund
     charges payable upon the indebtedness incurred by said city as
     to each of such improvements; and it may, at the option of the
     petitioner, also contain a statement of the deductions deemed
     proper to be made from the gross revenue therefrom in order to
     ascertain the current net revenue from each improvement during
     the preceding year, together with such details with regard to
     the said gross revenue and deductions therefrom in order to
     ascertain the current net revenue and deductions therefrom as
     may be, in the opinion of the petitioner, necessary for making
     such computation, as well as a calculation of the capitalization
     of such annual current net revenue at the average rate of
     interest and sinking-fund charges payable upon the indebtedness
     incurred by the said city for the purpose of the said public
     improvements, and together with such other information as may be
     pertinent to the ends of the inquiry. The petition, hereinabove
     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 and by the chief of the bureau
     in immediate charge thereof, as to the matters within their
     special knowledge or control, respectively.  1919, May 2, P.L.
     106, Sec. 1.
        Section 2.  Notice; 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 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.  1919, May 2, P.L. 106, Sec. 2.
        Section 3.  Decision; 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 incurred and
     the proceeds thereof invested in any public improvements of any
     character which shall be yielding to the said city an annual
     current net revenue, how much of such debt shall have been so
     incurred and the proceeds thereof so invested in each of such
     public improvements, the amount of the gross revenue and the net
     revenue from each such public improvement during the year
     immediately preceding the time of such ascertainment, with such
     particulars as shall show how the computation of the net revenue
     is made, the average rate of interest and sinking-fund charges
     payable upon the indebtedness incurred by the said city for each
     such improvement, and the capitalization of the principal amount
     which would yield such annual current net revenue at the average
     rate of interest and sinking-fund charges payable upon the
     indebtedness incurred by the said city therefor; 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 a 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 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
     become otherwise indebted.  1919, May 2, P.L. 106, 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 relating to the amount of the
     debt of the City of Philadelphia which may be deducted from its
     indebtedness, in ascertaining its borrowing capacity, by reason
     of such debt having been incurred and the proceeds thereof
     invested in any public improvements of any character which shall
     be yielding to the said city an annual current net revenue. (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).