11 Pa.C.S. Ch. 118

in effect

11 Pa.C.S. § 11801 Fiscal year.

The fiscal year of each city shall begin on January 1 and end on December 31.

11 Pa.C.S. § 11802 Powers and duties of chief fiscal officer.

(a) Appointment.--Council shall appoint a chief fiscal officer. In filling the position of chief fiscal officer, council may appoint the director of the department of accounts and finance or the city administrator if one is an individual appointed under Chapter 111 (relating to the executive department) or 112A (relating to city administrator). (b) Bond.--The chief fiscal officer shall furnish a bond in accordance with section 10907 (relating to surety bonds, insurance and premiums). (c) Powers.-- (1) The chief fiscal officer may administer oaths and affirmations pertaining to the authentication of an account with the city or a claim by or demand against the city. (2) The chief fiscal officer may not receive any additional compensation for the administration or oath and affirmations under paragraph (1). (Mar. 28, 2024, P.L.9, No.3, eff. 60 days) 2024 Amendment. Act 3 amended subsec. (a).

11 Pa.C.S. § 11803 Deputy chief fiscal officer.

(a) Appointment.--Council may authorize the chief fiscal officer to appoint, subject to the approval of council, a deputy chief fiscal officer whose compensation shall be fixed by council. (b) Bond.--The deputy chief fiscal officer shall furnish a bond in accordance with section 10907 (relating to surety bonds, insurance and premiums). (c) Powers.-- (1) The deputy chief fiscal officer may administer oaths and affirmations pertaining to the authentication of an account with the city or a claim by or demand against the city. (2) The deputy chief fiscal officer may not receive any additional compensation for the administration or oath and affirmations under paragraph (1). (d) Temporary deputy chief fiscal officer.--If no deputy chief fiscal officer has been appointed, council may appoint a temporary deputy chief fiscal officer to serve during the chief fiscal officer's illness, absence or inability to serve. The temporary deputy chief fiscal officer may be required to furnish a bond as required by council.

11 Pa.C.S. § 11804 Regulations concerning appropriation.

(a) Debt.--Debt may not be incurred by any department of the city except in accordance with law. (b) Appropriations.--Money may not be paid out of the city treasury except by an appropriation made in accordance with law and a document authorizing payment drawn by the proper officer. (c) Expenditures.--The city may not hire employees, purchase materials, execute contracts or issue orders for the payment of any money if it would result in the total expenditure of money for a specific purpose to exceed the amount appropriated for that purpose. (d) Expense reports.--If an appropriation is entirely expended and the object of the appropriation is not completed, not later than the next regularly scheduled council meeting, the chief fiscal officer shall report the fact to council and accompany the report with a statement of the money which has been drawn on the appropriation and the particular purpose for which the money was drawn. (e) Supplemental appropriations.--Council may, by ordinance, make supplemental appropriations for any lawful purpose from any money in the city treasury or estimated to be deposited in the city treasury within the fiscal year and not appropriated for any other purpose, including the proceeds of any borrowing authorized by law. (f) Transfers.-- (1) Council may authorize the transfer of any unexpended balance of an appropriation item. (2) Before authorizing a transfer under paragraph (1), council shall seek comments from any director of a department negatively affected by the proposed transfer. (g) Methods of transfers.--Council shall determine the manner and method of all intradepartmental and interdepartmental financial transfers. Cross References. Section 11804 is referred to in section 12531 of this title.

11 Pa.C.S. § 11804.1 Investment of city money.

(a) General rule.--Council shall have power to provide the following: (1) The investment of city sinking funds as authorized by 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing). (2) The investment of money in the general fund and in special funds of the city, other than the sinking funds as authorized by this chapter. (3) The liquidation of any investment, in whole or in part, by disposing of securities or withdrawing money on deposit. Any action taken to make or to liquidate any investment shall be made by the officers designated by action of council. (b) Investment.--Council shall invest city money consistent with sound business practices. (c) Restrictions.--Council shall provide for an investment program subject to restrictions contained in this chapter and in any other applicable statute and any rules and regulations adopted by council. (d) Authorized investments.--Authorized types of investments of city money shall be any of the following: (1) United States Treasury bills. (2) Short-term obligations of the United States Government or its agencies or instrumentalities. (3) Deposits in savings accounts, time deposits, other than certificates of deposit, or share accounts of institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are so insured and, for any amounts above the insured maximum, provided that approved collateral as prescribed by law shall be pledged by the depository. (4) Obligations of: (i) The United States Government or any of its agencies or instrumentalities backed by the full faith and credit of the United States. (ii) The Commonwealth or any of its agencies or instrumentalities backed by the full faith and credit of the Commonwealth. (iii) Any political subdivision of the Commonwealth or any of its agencies or instrumentalities backed by the full faith and credit of the political subdivision. (5) Shares of an investment company registered under the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 80a-1 et seq.), whose shares are registered under the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et seq.), provided that the only investments of the company are in the authorized investments of city money under paragraphs (1), (2), (3) and (4). (6) Certificates of deposit purchased from institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are so insured. However, for any amounts above the insured maximum, the certificates of deposit shall be collateralized by a pledge or assignment of assets of the institution, and the collateral may include loans, including interest in pools of loans, secured by first mortgage liens on real property. Certificates of deposit purchased from commercial banks shall be limited to an amount equal to 20% of a bank's total capital and surplus. Certificates of deposit purchased from savings and loan associations or savings banks shall be limited to an amount equal to 20% of an institution's assets minus liabilities. (7) For any pension or retirement fund, any investment authorized by 20 Pa.C.S. Ch. 73 (relating to municipalities investments). (8) Repurchase agreements which are fully collateralized by obligations of the United States Government or its agencies or instrumentalities, which are free from other liens and backed by the full faith and credit of the United States or are rated in the highest category by a nationally recognized statistical rating organization. (9) Deposits in investment pools established by the State Treasurer or established by local governments pursuant to 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental cooperation) and related statutes, provided that the investment pools are rated in the highest category by a nationally recognized statistical rating organization. (e) Authority.--In making investments of city money, council shall have authority to do any of the following: (1) Permit assets pledged as collateral under subsection (d)(3) to be pooled in accordance with the act of August 6, 1971 (P.L.281, No.72), entitled "An act standardizing the procedures for pledges of assets to secure deposits of public funds with banking institutions pursuant to other laws; establishing a standard rule for the types, amounts and valuations of assets eligible to be used as collateral for deposits of public funds; permitting assets to be pledged against deposits on a pooled basis; and authorizing the appointment of custodians to act as pledgees of assets." (2) Combine money from more than one fund under city control for the purchase of a single investment, provided that each of the funds shall be accounted for separately in all respects and that the earnings from the investment are separately and individually computed and recorded and credited to the accounts from which the investment was purchased. (3) Join with one or more other political subdivisions and municipal authorities in accordance with 53 Pa.C.S. Ch. 23 Subch. A in the purchase of a single investment, provided that the requirements of paragraph (2) are adhered to.

11 Pa.C.S. § 11805 Countersigning documents, money available and evidence required.

(a) General rule.--The chief fiscal officer shall countersign all documents, in the form approved by council, authorizing payment from the city treasury. (b) Prohibition.--In countersigning documents authorizing payment from the city treasury, the chief fiscal officer shall not permit any appropriation made by council to be overdrawn and shall not countersign unless there is money in the treasury to pay the appropriation. (c) Evidence.--Except in the case of documents authorizing payment to volunteer fire companies, whenever a document authorizing payment from the city treasury is presented to the chief fiscal officer to be countersigned, the person presenting the document shall be required to produce evidence of each of the following: (1) That the amount expressed in the document is due to the person in whose favor it is drawn. (2) That the supplies, services or other consideration for payment have been furnished, performed or given according to law and the terms of the contract, if any, were satisfied.

11 Pa.C.S. § 11806 Record of assets, property, trusts, debts due, receipts and expenditures.

The chief fiscal officer or other official or employee of the city designated by council shall have charge and keep a record of accounts, under appropriate titles, to show separately and distinctly the following: (1) All of the assets and property vested in the city. (2) All trusts in care of the city. (3) Debts owed by the city. (4) All of the receipts and expenditures of the various departments.

11 Pa.C.S. § 11807 Supervision of accounts of departments.

The chief fiscal officer shall have the supervision and control of the accounts of all of the departments and may require at any time a statement in writing of all money or property of the city under any department's control.

11 Pa.C.S. § 11808 Suggestions for improvement of city finances.

The chief fiscal officer may, and when council directs shall, suggest plans to council for the management and improvement of the city finances.

11 Pa.C.S. § 11809 Annual budget, presentation to council, notice, revision and adoption.

(a) Introduction.--Each year at the last stated meeting in November, the chief fiscal officer shall, on behalf of council, present to council for introduction a proposed budget ordinance. The proposed budget ordinance shall show the estimated receipts, expenditures and liabilities for the ensuing year, with the balance of unexpended appropriations and all other information of value as a basis for fixing the levy and tax rate for the next fiscal year. Council shall, upon introducing the proposed budget ordinance, fix a date for adoption, which shall be not later than December 31 of that year. (b) Estimate.--The departments of the city government shall, before the proposed budget ordinance is introduced as provided under subsection (a), furnish to council an estimate of the probable receipts and expenditures and an estimate of the amount required by each of the departments for public service during the ensuing fiscal year as a basis for making the annual appropriations. (c) Inspection.-- (1) When the proposed budget ordinance is submitted to council and has been introduced, the city clerk shall immediately make the proposed budget ordinance available for public inspection at the city clerk's office and shall publish a notice to that effect once in a newspaper of general circulation in accordance with the provisions of section 10109 (relating to publication of notices). (2) The notice shall state the date fixed by council for enactment of the proposed budget ordinance and notice shall be published at least 20 days prior to the time fixed by council for enactment of the proposed budget ordinance. The proposed budget ordinance shall be available for public inspection at the city clerk's office for at least 10 days after the newspaper notice is published. (d) Enactment.--Council shall, after making the changes and modifications as appear proper, enact the budget and any appropriation measures required to put it into effect upon the date fixed for enactment. The budget shall reflect as nearly as possible the estimated revenues and expenditures of the city for the year for which the budget is prepared. Should it appear upon any revision of the budget that the estimated expenditures in the enacted budget would be increased more than 10% in the aggregate or more than 25% in any individual item over the proposed budget, the budget shall not be enacted with any of the increases unless the budget is made available for public inspection for a period of at least 10 days after notice to that effect is published as provided under subsection (c).

11 Pa.C.S. § 11810 Amending budget and notice.

(a) General rule.--During the month of January following the expiration of a past fiscal year, in furthering its fiduciary responsibility, council may amend the budget and the levy and tax rate to conform to its amended budget ordinance. A period of 10 days' public inspection at the city clerk's office of the proposed amended budget ordinance, after notice by the city clerk to that effect is published in a newspaper of general circulation as provided in section 10109 (relating to publication of notices), shall intervene between council's introduction of the proposed amended budget ordinance and its enactment. Any amended budget ordinance must be enacted by council on or before February 15. (b) Prohibition.--After introduction, no proposed amended budget ordinance shall be revised upward in excess of 10% in the aggregate or as to an individual item in excess of 25% of the amount of the individual item in the proposed amended budget ordinance.

11 Pa.C.S. § 11811 Appropriations, tax rate and limitations.

(a) General rule.--When all estimates for the receipts, liabilities and expenditures for the ensuing year are made, council shall proceed to make the annual appropriations and shall fix the tax rate at the figure that will, in combination with all other estimated receipts of the city, fully meet and cover the aggregate amount of the estimates of liabilities and expenditures for the ensuing year. (b) Exceptions.-- (1) No appropriation shall be made for any purpose until the following are provided for: (i) Interest accruing on the funded debt of the city and the principal of that part of the debt as may be coming due in that fiscal year. (ii) The salaries of officers. (iii) The ordinary and necessary expenses of the city. (2) No appropriation shall be made for any purpose in excess of the estimated receipts and revenues for the fiscal year for which the appropriations are made.

11 Pa.C.S. § 11811.2 Borrowing in anticipation of current revenue.

In accordance with 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing), cities may: (1) borrow money in anticipation of current revenues to an amount of not more than the anticipated current revenues, which shall be pledged for the payment of the loan or loans; and (2) issue notes or other forms of obligation in evidence of the debt.

11 Pa.C.S. § 11812 Annual reports, publication, filing report with Department of Community and Economic Development and penalty.

(a) Annual report.--The chief fiscal officer shall make a report, verified by oath or affirmation to council at a stated meeting in April of each year, of the public accounts of the city and of the trusts in its care for the preceding fiscal year, exhibiting all of the expenditures of the accounts, respectively, and the sources from which the revenue and funds are derived and in what measures the revenue and funds have been disbursed. Each account shall be accompanied by a statement detailing all of the following: (1) The appropriations made by council. (2) The amount drawn and encumbered on each appropriation. (3) The unencumbered balance outstanding to the debit or credit of the appropriation at the close of the fiscal year. (b) Publication.-- (1) The report shall be accompanied by a concise financial statement setting forth all of the following: (i) The balance in the treasury at the beginning of the fiscal year. (ii) All revenues received during the fiscal year, by major classifications. (iii) All expenditures made during the fiscal year, by major functions. (iv) The current resources and liabilities of the city at the end of the fiscal year. (v) The gross liability and the net debt of the city. (vi) The amount of the assessed valuation of the taxable property in the city. (vii) The assets of the city. (viii) The character and value of the assets. (ix) The date of the last maturity of the respective forms of funded debt. (x) The assets in each sinking fund. (2) The concise financial information approved by the independent auditor and consistent with the audited financial statements for total assets, total liabilities and total net position at the end of the fiscal year and total revenue, total expenses and changes in total net position for that fiscal year and a reference to a place within the city where copies of the financial statements and accompanying auditor's report may be examined shall be published in a newspaper of general circulation as required by section 10109 (relating to publication of notices) at least 10 days prior to the April meeting scheduled pursuant to subsection (a). If the full financial statements and accompanying auditor's report are not published, copies shall be supplied to the publishing newspaper when the request for publication is submitted. (3) Before the report or statement is made or the concise financial information is published, it shall be approved by the independent auditor, who may approve it, subject to exceptions. Council may cause the statement to be printed in pamphlet form in addition to the publications made. (c) Filing.--The chief fiscal officer shall annually report the financial condition of the city to the Department of Community and Economic Development within 90 days after the close of the fiscal year. The report shall be signed and duly verified by the oath of the chief fiscal officer and approved by the independent auditor, as provided above. Any chief fiscal officer appointed by the city refusing or willfully neglecting to file the report shall, upon conviction in a summary proceeding brought by the Department of Community and Economic Development, be sentenced to pay a fine of $5 for each day delayed beyond 90 days and costs. All fines recovered shall be for use by the Commonwealth. (d) Form.--The report to the Department of Community and Economic Development shall be presented in a form as provided for in section 11813 (relating to committee to prepare uniform forms). (Oct. 24, 2018, P.L.876, No.135, eff. 60 days) 2018 Amendment. Act 135 amended subsec. (b)(2) and (3).

11 Pa.C.S. § 11813 Committee to prepare uniform forms.

(a) General rule.--The uniform financial report forms under this chapter shall be prepared by a committee consisting of four representatives of the Pennsylvania Municipal League and the Secretary of Community and Economic Development, or the secretary's agent or designee who shall be an individual trained in the field of municipal finance. (b) Appointment.--The representatives shall be appointed by the president of the Pennsylvania Municipal League within 60 days of notification by the Secretary of Community and Economic Development or the secretary's agent or designee that the committee will convene. The representatives shall be chosen from among chief fiscal officers of cities or other officers of cities who have knowledge of fiscal procedures and shall be chosen to represent cities in the various population groups. The president of the Pennsylvania Municipal League and other designated participants shall supply to the Secretary of Community and Economic Development the names and addresses of the representatives immediately upon their appointment. (c) Compensation and meetings.--The representatives shall serve without compensation, but they shall be reimbursed by the Commonwealth for all necessary expenses incurred in attending meetings of the committee. The committee shall meet at the call of the Secretary of Community and Economic Development, or the secretary's agent or designee, who shall serve as chairperson of the committee. (d) Duty of secretary.--It shall be the duty of the Secretary of Community and Economic Development, or the secretary's agent or designee, to ensure the forms required by this chapter are prepared in cooperation with the committee. In the event that the committee should for any reason fail to furnish the cooperation, the Secretary of Community and Economic Development, or the secretary's agent or designee, shall complete the preparation of the forms. After their preparation, the Secretary of Community and Economic Development, or the secretary's agent or designee, shall issue the forms and distribute them annually, as needed, to the designated officers of each city. (e) Change or alteration.--No change or alteration in the forms prescribed shall be made by the Secretary of Community and Economic Development or the secretary's agent or designee, except by a majority approval of the committee, unless upon reasonable notice two or more representatives of the committee fail to attend the committee meetings. In voting upon any change or alteration, each representative and the chairperson of the committee shall have one vote. Special Provisions in Appendix. See section 3(3)(iv) of Act 67 of 2015 in the appendix to this title for special provisions relating to continuation of prior law. Cross References. Section 11813 is referred to in section 11812 of this title.

11 Pa.C.S. § 11814 Annual reports to council on insurance and bonds.

The chief fiscal officer shall prepare or cause to be prepared and submit to council, as council shall direct, a complete and itemized report of all policies of insurance contracted by the city for the information and consideration of council. The chief fiscal officer shall prepare a report, as council shall direct, of all bonds given for the protection of the city in whole or in part.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=11Fetched: 10/16/2026