(1) Some cities of the third class have encountered recurring financial difficulties that may affect the performance of necessary municipal services to the detriment of the health, safety and general welfare of residents of those cities.

(2) It is critically important that cities of the third class maintain their creditworthiness.

(3) Due to the economic and social interrelationship among all residents in our economy, the fiscal integrity of cities of the third class is a matter of concern to all residents of this Commonwealth, and the financial problems of these cities have a direct and negative effect on the entire Commonwealth.

(4) Because cities of the third class consume a substantial proportion of the products of Pennsylvania's farms, factories, manufacturing plants and service enterprises, economic difficulties confronting cities of the third class detrimentally affect the economy of the Commonwealth as a whole and become a matter of Statewide concern.

(5) Because residents of cities of the third class contribute a substantial proportion of all Commonwealth tax revenues, a disruption of the economic and social life of these cities may have a significant detrimental effect on Commonwealth revenues.

(6) The financial difficulties of cities of the third class can best be addressed and resolved by cooperation between governmental entities.

(7) The Constitution of Pennsylvania grants municipalities authority to cooperate with other governmental entities in the exercise of any function or responsibility.

(8) The Commonwealth retains certain sovereign powers with respect to cities of the third 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.

(9) The Commonwealth may attach conditions to grants of authority to incur indebtedness or assistance to cities of the third class in order to ensure that deficits are eliminated and access to capital markets is achieved and maintained.

(10) The conditions must be incorporated into intergovernmental cooperation agreements between the Commonwealth or its instrumentalities and cities of the third class.

(11) Cities of the third class and the Commonwealth will benefit from the creation of an independent authority composed of members experienced in finance and management that advises the cities, the General Assembly and the Governor concerning solutions to fiscal problems cities of the third class may face.

(12) The creation of an authority will allow cities of the third class to continue to provide the necessary municipal services for their residents and to contribute to the economy of this Commonwealth.