53 Pa. Stat. § 15902

Current through Pa Acts 2024-53, 2024-56 through 2024-111

Section 15902 - Definitions

The following words and phrases whenever used in this act shall have the following meanings unless the context clearly indicates otherwise:

"Bond" or "revenue bond" means a special obligation bond or promissory note authorized by this act, executed by the city, and evidencing an obligation payable solely from moneys derived directly or indirectly from project revenues and for the payment of which neither the general credit nor the taxing power of the city is pledged or applied.

"Bond ordinance" means the ordinance or ordinances enacted in accordance with section 7 of this act.

"City" means a city of the first class.

"County" means the county of the Commonwealth in which a city of the first class is located.

"Project" means any buildings, structures, facilities or improvements of a public nature, the related land, rights or lease hold estates in land, and the related furnishings, machinery, apparatus or equipment of a capital nature, which the city is authorized to own, construct, acquire, improve, lease as lessor or as lessee, operate, maintain or support; any item of construction, acquisition or extraordinary maintenance or repair thereof; the city's share of the cost of any of the foregoing or any combination thereof undertaken jointly with others; and any combination of any or all of the foregoing or any undivided portion of the cost of any of the foregoing or of any such combination as may be designated as a project by the city for financing purposes and in respect of which the city may reasonably be expected to receive project revenues.

"Project costs" or "cost" of a project means all costs of construction or acquisition of a project with proper allowance for contingencies determined in accordance with generally accepted municipal accounting principles and may include, but is not limited to costs of preliminary studies, surveys, planning, testing and design work; fees and expenses of engineers, architects, financial advisors, attorneys and other experts engaged in connection with the project; financing costs including bond discount, interest on money borrowed to finance the project if capitalized and operating capital during construction and for one year after completion of the project; capitalized reserves, the repayment of temporary loans or the payment of bond anticipation notes made or issued in connection with the project, and any of the foregoing incurred or paid prior to as well as after the issuance of revenue bonds.

"Project revenues" mean, in respect of a project, all rents, rates, tolls or charges imposed or charged for the use or product of or services generated from the project to the ultimate users or customers thereof, all payments under bulk contracts with municipalities, government instrumentalities or other bulk users, all subsidies or payments payable by Federal, State or local governments or governmental agencies on account of the cost of operation of, or the payment of the principal of or interest on moneys borrowed to finance the cost of the project, and may include reasonable estimates of all interest on and profits from investment of moneys derived from the foregoing. For the purpose of calculating projected annual project revenues for each year;

(i) only those rents, rates, tolls or charges to the general public shall be included which, under an appropriate ordinance, resolution or rate schedule duly adopted by the city or by the department or agency of the city responsible for the operation of the project, and in full force and effect as of the date of calculation, will be reasonably collectible in such year under the schedule or rate of rents, rates, tolls or charges which are or will be in effect during such year in accordance with such ordinance, resolution or rate schedule or which may be imposed by administrative action without further legislation;

(ii) only those bulk payments shall be included which may be imposed under subsisting legislation or which are provided under subsisting agreements or which are the subject of an expression of intent by the prospective obligor deemed reliable by the chief fiscal officer of the city; and

(iii) only those governmental subsidies or payments shall be included which, under subsisting legislation, are subject to reasonably precise calculation and, unless stated in such legislation or authorization to be of an annually or more frequently recurring nature, are payable in such year.

53 P.S. § 15902

1972, Oct. 18, P.L. 955, No. 234, § 2, imd. effective.