Article XIII. Financial Responsibility
Section 13.01 General Considerations
PLB shall maintain a balanced budget. The PLB shall not acquire Real Property that is associated with costs that are not provided for in its budget. PLB must budget and secure funds to pay for maintenance obligations associated with its Real Property. The PLB must budget to pay for the legal costs associated with clearing title so that land can be transferred out with free and clear title in furtherance of the City’s vision for land use.
Section 13.02 Costs of Obligations
- The PLB is obliged by City policy that recognizes obligations of property ownership which should be honored and enforced and by the Ordinance and the Act to maintain its often long term neglected property in accordance with applicable statutes, laws and codes. There are significant costs associated with maintenance of property.
- The PLB must be compliant with local, state, and federal prevailing wage laws.
Section 13.03 Sources of Funding
- Real Property related. The PLB may control, hold, manage, maintain, operate, lease as lessor, secure, prevent the waste or deterioration of, demolish, or take all other actions necessary to preserve the value of its Real Property inventory. The PLB may fix, charge, and collect rents, fees, and charges for use of its property as provided in the Act or the Ordinance as well as for services provided by the PLB. Any proceeds from the property sales shall be retained, expended, or transferred by the PLB as determined by the Board in the best interests of the Land Bank and in accordance with the Ordinance and the Act. The PLB is not authorized to levy any type of tax or special assessment.
Operational funding. The PLB may receive:
- Funding through grants and loans from the Federal Government, the State, the County, the City, School District and, any members of the PLB, and private sources;;
- Proceeds of insurance coverage for losses incurred, for income from investments and for an asset and activity lawfully permitted to PLB; and
- Funding through remittance or dedication to PLB of a portion of real estate tax collections on property conveyed by the PLB pursuant to each of the three taxing body’s authorizations. The City has authorized the remittance or dedication of 50% of said collections for five (5) years. The PLB shall approach the County and the School District to pursue an ICA which authorizes the same remittance or dedication to PLB.
Section 13.04 Methods of Accountability
- Board Action. The PLB through its Board has sole discretion to expends funds within its budget as necessary to carry out the powers, duties, functions and responsibilities of the PLB. Certain financial related actions--incurring of debt, adoption or amendment of the annual budget and sale, lease, encumbrance, or alienation of real property, improvements or personal property shall be approved by a majority of the entire Board membership.
Documentation. The PLB must have prepared, reviewed and approved, annually, at the PLB’s expense:
- Audited financial statements;
- A balanced budget inclusive of identification and duly approved funding associated with anticipated expenses; and
- A report of its activities.
- Policies. The Board shall adopt an investment policy that comports with the appropriate investment standards of public funds for the optimal deposit of funds that may be available to the PLB. The PLB shall establish guidelines for disbursements of funds.
- Annual Audit and Report. The Land Bank shall annually, within 120 days after the end of the fiscal year, submit an audit of income and expenditures, together with a report of its activities for the preceding year, to the PA Department of Community and Economic Development. A duplicate of the audit and the report shall be filed with the City, County, and PLB. Upon review of the Annual Audit and Report every third year, City Council may initiate dissolution of this Chapter by way of resolution approved by a majority vote of City Council.