§ 1005 — Powers of council

The council shall have power:

(1) To, by motion, ordinance or resolution, create the offices of and appoint a treasurer, a secretary, a solicitor, an engineer, a street commissioner and other officers as it deems necessary. The treasurer and the secretary shall not be members of council. A bank or bank and trust company may be appointed as treasurer. All officers and employees appointed by the council, with the exception of those who under this part or any other act are under civil service or have a definite term of office, shall serve for an indefinite term at the pleasure of the council.

(2) To mitigate or remit fines and forfeitures in reasonable cases.

(3) By resolution, to make temporary loans on the credit of the borough in anticipation of taxes to be collected and issue certificates of indebtedness. The loans shall be repaid from the first money available from taxes in anticipation of which the loans were made.

(4) With respect to depositories and securities, to:

(i) Appoint and revoke the appointment of one or more depositories for borough funds and to fix and approve security to be furnished by the depository. The security may be bonds with corporate or individual securities to be approved by council, or collateral security consisting of obligations of the United States or the Commonwealth or any political subdivision, deposited with the borough or with any bank or trust company within this Commonwealth and of a market value of 120% of the amount of the deposit to be secured. Any deposit of collateral shall be under proper agreement and be accompanied by proper assignment or power of attorney for the transfer of the collateral. The borough treasurer shall deposit all borough funds in a depository designated under this subparagraph. If borough funds are deposited under this subparagraph, the borough treasurer shall be released and discharged from further liability on account of the deposit.

(ii) Subparagraph (i) shall not be construed to require a depository to furnish bond or collateral security to cover the amount of any deposit to the extent that the deposit is insured with the Federal Deposit Insurance Corporation.

(5) To secure indemnity bonds or policies of insurance as it may deem necessary to protect the borough from loss by reason of fire, flood, windstorm, burglary, larceny, negligence or dishonesty or insolvency of a depository, or otherwise, and to pay for the protection the usual or customary costs.

(6) With respect to investments, to:

(i) make investment of borough sinking funds as authorized by 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing);

(ii) make investment of money in the general fund and in special funds of the borough other than the sinking funds as authorized by Chapter 13 (relating to taxation and finance); and

(iii) liquidate any investment, in whole or in part, by disposing of securities or withdrawing funds on deposit. Any action taken to make or to liquidate any investment shall be made by the officers designated by action of the council.

(7) To provide, by ordinance passed by a two-thirds vote of the entire number of members of council elected, for the appointment of an independent auditor who shall be a certified public accountant registered in this Commonwealth, a firm of certified public accountants registered in this Commonwealth or a competent public accountant or a competent firm of public accountants.

(i) When an ordinance has been adopted, an independent auditor shall be appointed annually, by resolution before the close of the fiscal year, to make an independent examination of the accounting records of the borough for the fiscal year, and the independent auditor shall also perform the other duties and exercise the powers as conferred upon the independent auditor under Subchapter C (relating to auditors).

(ii) When an independent auditor is appointed as provided in this paragraph, the office of elected borough auditor or controller is abolished, but the borough auditor or controller then in office shall continue to hold office during the term for which elected, and the borough auditor or controller shall not audit, settle or adjust the accounts audited by the independent auditor but shall perform the other duties of office.

(iii) If any borough has provided by ordinance for the audit of its accounts by an appointed auditor, the borough shall have the right at any time to repeal the ordinance, and the office of appointed auditor shall be abolished as of the date set in the ordinance. The borough shall have the further right at the next municipal election following the repeal of the ordinance to elect three auditors, one for a term of two years, one for a term of four years and one for a term of six years, from the first Monday of January following the election, which auditors shall succeed the appointed auditor and shall have and possess all the powers and perform all the duties provided in this part for elected auditors. If, at any time after the effective date of any ordinance abolishing the office of appointed auditor, there shall be a vacancy in the office of elected auditor, council shall fill the vacancies in the manner prescribed in section 901 (relating to filling vacancies in elective borough offices).

(8) To make, authorize and ratify expenditures for lawful purposes from funds available or from funds borrowed within legal limits.

(9) To pay authorized expenses incurred by elected and appointed borough officers in connection with their duties or other borough business.

Legislative History

Cross References.Section 1005 is referred to in sections 806, 1059.11, 24A04 of this title.