Section 12720.103 - Legislative findingsIt is hereby determined and declared as a matter of legislative finding:
(1) That cities of the first class have encountered recurring financial difficulties which may affect the performance of necessary municipal services to the detriment of the health, safety and general welfare of residents of such cities.(2) That the financial difficulties have caused cities of the first class to lose an investment-grade credit rating and direct access to capital markets.(3) That it is critically important that cities of the first class achieve an investment-grade credit rating and thereafter maintain their creditworthiness.(4) That, without the ability to enter the capital markets, cities of the first class may face a fiscal emergency that could render them unable to pay their obligations when due and deliver essential services to their citizens.(5) That, due to the economic and social interrelationship among all citizens in our economy, the fiscal integrity of cities of the first class is a matter of concern to residents of the entire Commonwealth, and the financial problems of such cities have a direct and negative effect on the entire Commonwealth.(6) That, because cities of the first class consume a substantial proportion of the products of Pennsylvania's farms, factories, manufacturing plants and service enterprises, economic difficulties confronting cities of the first class detrimentally affect the economy of the Commonwealth as a whole and become a matter of Statewide concern.(7) That, because residents of cities of the first class contribute a substantial proportion of all Commonwealth tax revenues, a disruption of the economic and social life of such cities may have a significant detrimental effect upon Commonwealth revenues.(8) That cities of the first class and the Commonwealth have shown a willingness to cooperate in order to address important financial and budgetary concerns.(9) That the financial difficulties of cities of the first class can best be addressed and resolved by cooperation between governmental entities.(10) That the Constitution of Pennsylvania grants municipalities authority to cooperate with other governmental entities in the exercise of any function or responsibility.(11) That the Commonwealth retains certain sovereign powers with respect to cities of the first class, among them the powers to authorize and levy taxes, to authorize the incurring of indebtedness and to provide financial assistance that may be necessary to assist cities in solving their financial problems.(12) That the Commonwealth may attach conditions to grants of authority to incur indebtedness or assistance to cities of the first class in order to ensure that deficits are eliminated and access to capital markets is achieved and maintained.(13) That such conditions shall be incorporated into intergovernmental cooperation agreements between the Commonwealth or its instrumentalities and cities of the first class.(14) That cities of the first class and the Commonwealth will benefit from the creation of an independent authority composed of members experienced in finance and management which may advise such cities, the General Assembly and the Governor concerning solutions to fiscal problems cities of the first class may face.(15) That the creation of such an authority with the power to borrow money and issue bonds in order to assist cities of the first class will allow such cities to continue to provide the necessary municipal services for their residents and to contribute to the economy of the Commonwealth.(16) That, in order for an authority to effectively assist cities of the first class in financing their cash flow needs and for cities of the first class to be able to cost-effectively finance their cash flow needs during the term of any authority bonds and thereafter, the enactment of certain provisions of law in connection with the issuance of tax and revenue anticipation notes of cities of the first class is necessary and desirable.(17) That a dedicated source of funding for the authority is necessary in order to address the immediate financial difficulties of cities of the first class.(18) That the Commonwealth's action in authorizing cities of the first class to impose taxes for the authority will allow such cities to continue to provide necessary services for their residents and for those nonresidents enjoying the benefits of such services.(19) That the levy of a tax within cities of the first class for the authority should be authorized by the Commonwealth for the benefit of cities of the first class, with the revenue produced as a result of such levy being Commonwealth-authorized revenues and revenues of a State authority, and not revenues of the city of the first class.(20) That the authority to levy a tax only within cities of the first class or at a rate that is higher than that imposed outside cities of the first class is based upon a legitimate classification which the General Assembly deems to be reasonable and just, since the benefit received by taxpayers in cities of the first class as a result of such levy is determined to be in proportion to the tax burden imposed in such cities of the first class.(21) That a levy imposed only, or at a higher rate, in cities of the first class will be used to benefit citizens of cities of the first class by providing for their health, safety, convenience and welfare.(22) That, if this act is challenged, a prompt, final ruling as to the legality of the authority created by this act and the validity of bonds issued by the authority will be necessary so that the authority will be able to enter capital markets to assist cities of the first class.(23) That the authority and each assisted city have demonstrated the soundness and effectiveness of the tools provided for by this act in maintaining and enhancing the fiscal soundness of cities of the first class and that the continued existence and use of such tools will allow each assisted city to further maintain and enhance fiscal soundness.(24) That cities of the first class have ongoing critical infrastructure and other capital needs and the ability of cities of the first class to access the capital markets at favorable interest rates through bonds issued by the authority will maintain and enhance the ability of cities of the first class to meet the capital needs. 1991, June 5, P.L. 9, No. 6, § 103, imd. effective. Amended 2022, July 7, P.L. 440, No. 36, § 2, effective in 60 days [Sept. 6, 2022].