16 Pa.C.S. § 14984.3 – Operating reserve fund

(a) Operating reserve fund.— The county commissioners shall have the power to create and maintain a separate operating reserve fund in order to:
1. (1) minimize future revenue shortfalls and deficits;
2. (2) provide greater continuity and predictability in the funding of vital government services;
3. (3) minimize the need to increase taxes to balance the budget in times of fiscal distress;
4. (4) provide the capacity to undertake long-range financial planning; and
5. (5) develop fiscal resources to meet long-term needs.
(b) Appropriations from general county fund.— The county commissioners may annually make appropriations from the general county fund to the operating reserve fund, but no appropriation may be made to the operating reserve fund if the appropriation would cause the fund to exceed 25% of the estimated revenues of the county's general fund in the current fiscal year.
(c) Purpose of appropriations.— The county commissioners may, by resolution, make appropriations from the operating reserve fund only to:
1. (1) meet emergencies involving the health, safety or welfare of the residents of the county;
2. (2) counterbalance potential budget deficits resulting from shortfalls in anticipated revenues or program receipts from any source;
3. (3) counterbalance potential budget deficits resulting from increases in anticipated costs of goods or services; or
4. (4) provide for anticipated operating expenditures related either to the planned growth of existing projects or programs or the establishment of new projects or programs if for each project or program appropriations have been made and allocated to a separate restricted account established within the operating reserve fund.
(d) Administration of fund.— The operating reserve fund shall be invested, reinvested and administered in a manner consistent with the provisions of section 14906 (relating to investment of money).