Township Supervisors Handbook

Tenth Edition
Harrisburg, April 2001
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Department of Community and Economic Development
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Harrisburg, Pennsylvania 17120-0225
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No liability is assumed with respect to the use of information contained in this publication. Laws may be amended or court rulings made that could affect a particular procedure, issue or interpretation. The Department of Community & Economic Development assumes no responsibility for errors and omissions nor any liability for damages resulting from the use of information contained herein. Please contact your local solicitor for legal advise.

Preparation and printing of this edition of the Township Supervisors Handbook was financed from appropriations of the General Assembly of the Commonwealth of Pennsylvania.
Copyright © 2001, Pennsylvania Department of Community and Economic Development, all rights reserved.
Table of Contents
I. The Supervisor and Township Government 1
Development of Township Government 1
Role of Municipal Government 2
Role of Supervisors 3
Structure of Township Government 4
II. Office of Township Supervisor 5
Qualifications 5
Vacancies 6
Compensation 7
Conflicts of Interest 8
Surcharges 9
Removal from Office 9
Official Liability 9
III. Legislative Powers 11
General Powers 11
Meetings 11
Sunshine Law 12
Conduct of Meetings 13
Parliamentary Procedure 14
Minutes and Records 14
The Legislative Role 15
Quasi-Judicial Role 16
IV. Administrative and Appointive Powers 17
Appointed Administrator 17
Personnel Management 18
Appointment Powers 19
Boards and Commissions 20
V. Fiscal Powers 22
Taxes 22
The Budget 23
The Budget Calendar 24
Capital Improvements Planning and Budgeting 25
Contracts 26
Officers’ Bonds 26
Municipal Borrowing 27
Pension Funding 27

VI. Municipal Services 28
Roads 28
Street Lighting 28
Police 29
Firefighting 29
Ambulance/Rescue Services 30
Parks and Recreation 30
Libraries and Cultural Services 31
Building and Housing Codes 31
Sewer and Water Services 31
Emergency Management 32
VII. Land Use Control and Environmental Regulation 34
Comprehensive Planning 34
The Subdivision and Land Development Ordinance 36
The Zoning Ordinance 36
Flood Plain Regulations 36
Stormwater Management 37
Sewage Enforcement 38
Solid Waste Management 38
Historic Districts 39
Agricultural Preservation 39
VIII. Intergovernmental Cooperation 41
Merger and Consolidation 41
Council of Governments 41
Intergovernmental Cooperation 42
Municipal Authorities 43
Glossary of Terms 45

I. The Supervisor and Township Government
Townships governed by elected boards of supervisors are the most common form of municipal government in Pennsylvania. The 1,457 townships of the second class represent 56% of all general purpose municipal governments in Pennsylvania. The state’s township supervisors govern a combined population of 4.6 million, representing 37% of the state total, more than any other municipal classification.
Although some second class townships are located in urban areas and have dense populations, most are rural in nature and have low population densities. Many, second class townships are small, rural communities; only 16% of the total have populations exceeding 5,000 persons.
Second Class Townships by Population Size
1990 Census
Population Number
20,000 and over 14
15,000-19,999 16
10,000-14,999 42
5,000-9,999 165
2,500-4,999 312
1,000-2,499 518
under 1,000 390
The largest second class townships are Bensalem (Bucks County) 58,434, Millcreek (Erie) 52,129, Lower Paxton (Dauphin) 44,424, Middletown (Bucks) 44,141 and Hempfield (Westmoreland) 40,721. Fourteen townships have populations under 100. The smallest are East Fork (Potter) 14, East Keating (Clinton) 24, West Keating (Clinton) 42, Elk (Tioga) 51 and Pine (Clearfield) 77.
Townships were the original subdivisions of counties in Pennsylvania. Cities and boroughs were formed from land originally included within a township. There are an average of 22 second class townships per county. The number ranges from five in Cameron County to 56 in Chester County.
Generally serving rural areas, townships have less government than other classes of local government. Serving 37% of the state’s population, second class townships constitute only 16% of all municipal revenues and expenditures. Townships enjoy a favorable economic position. They include 54% of the total market value of real estate in Pennsylvania, but have incurred only 9% of the total net debt of all municipal governments.
Development of Township Government
Townships are among the oldest political subdivisions of Pennsylvania. William Penn’s 1681 Charter authorized him to divide counties into towns and hundreds. As soon as the first counties were created in 1682, they were subdivided into districts for various governmental purposes. At least two dozen townships formed in the late 1600s still survive in southeastern Pennsylvania, the oldest being Chester, Haverford and Lower Chichester in Delaware County, formed in 1682. As settlement moved westward, townships were often formed in frontier areas before there was sufficient population to justify a separate county, so in most areas the oldest subdivisions are townships, antedating even the county government.
Townships were laid out by action of the local justices of the peace sitting as the county court of quarter sessions, subdividing the county for purposes of road maintenance, administering poor relief, conducting elections and collecting taxes. In 1803, the General Assembly regularized this process in a statute authorizing local courts to create townships within each county. Townships were also created by special act of the General Assembly until this practice was prohibited by the Constitution of 1874.
During the colonial period and the early republic, most township officers were appointed by county officials or the county court. The first general township law was enacted in 1834. Officers of townships in the nineteenth century included assessors, three supervisors, a treasurer, a town clerk, three auditors and a constable. The assessing function gradually migrated to the county level, while collection of real estate taxes became fixed at the township level. Until 1912, property owners could discharge their township tax liability by working on the roads personally.
The first law classifying townships was enacted in 1899. All townships became townships of the second class, except those certified to have a population density of 300 persons or more per square mile. About 10 townships around Philadelphia and Pittsburgh were certified as first class townships in 1900 and began to operate under the new form in 1901. The 1917 Township Law provided for both first and second class townships. Separate codes for first class townships were enacted in 1931 and for second class townships in 1933. The Second Class Township Code was reenacted in 1947 and again in 1995.
First class townships received important protection against annexation of territory by adjoining municipalities through the requirement of approval of any annexation by a referendum vote of the entire township in 1937. Similar protection was long sought by second class townships, but was not finally achieved until after the 1968 amendments to the state constitution. New townships were created by the division of existing townships until 1931. Since that time, the only method of forming a new township has been through the abandonment of a borough charter.
With the rapid urbanization of Pennsylvania between the end of the Civil War and World War I, townships were eclipsed as both economic and political activity became concentrated in rapidly growing cities and boroughs. With the widespread use of the automobile in the 1920s, both population and economic activity began dispersing out of the old urban centers, with the trend accelerating since the end of World War II. Townships again enjoyed a growing proportion of the state’s population and wealth. Township government has emerged as an equal to other municipal classifications. This was recognized in the 1968 constitutional amendments when they were included within the definition of municipality. In recent years, powers of township governments have been expanded to equal those of other classifications, and all classifications are now included in new uniform laws defining the powers and responsibilities of municipal officials.

Role of Municipal Government

The municipality is the focus of governmental legitimacy on the local level. Municipalities are given power and acknowledge the right to use that power to circumscribe individual rights for the good of society at large.
People living in society need rules to govern their behavior. Government is the vehicle which writes and enforces these necessary rules. Local government performs this function for the community it governs. Municipal government is acknowledged as legitimate because its officers are chosen in popular elections, and because it is subject to constraints found in written constitutions and laws. Many of these constraints are designed to protect the rights of individuals from undue infringement by the municipality on behalf of society.
Municipal government provides the only authentic organized voice for a community. It has an important role in planning for the community’s future development or renewal, finding solutions to present-day problems and conserving important parts of the community’s past in terms of buildings and traditions.
The municipal government speaks for the community to the outside world. This includes state and federal administrative agencies, as well as in the state legislature and Congress. A rapidly growing role is in economic development where the municipal government represents community interests in encouraging or seeking employment-generating economic activities.
The municipality provides important community services which are unsuited to private enterprise. Municipalities have traditionally been heavily involved in maintenance of roads, a function of growing importance in a society heavily dependent on the automobile. Municipal governments have the ultimate responsibility for public safety, including police, firefighting and emergency management. Municipalities often provide water, sewer and refuse collection services, although these may also be provided by private firms or municipal authorities.
The municipality is the tool for regulation of the quality of life within the community. It can promulgate health and safety regulations to protect citizens and often has a role in enforcing state regulations in this field. The municipality can influence aesthetic factors and amenities which contribute much to the quality of life. This can be done by removal of nuisances, control of noxious activities, control of development through zoning and subdivision ordinances, animal control and other regulatory activities.
Through their elected representatives, citizens of a community can have a great deal of control over the general appearance and desirability of the community. This also can be achieved through sponsorship or encouragement of local cultural or recreational activities, such as libraries, museums, concerts, parks, playgrounds, swimming pools, tennis courts, senior citizen centers and other community activities.
Role of Supervisors
The board of supervisors plays the central role in township government. Article 15 of the Second Class Township Code places general supervision of the affairs of the township in the hands of the board of supervisors. Supervisors combine many of the roles found in separate branches or levels of the state and federal governments. The board serves as the legislative body of the township, setting policy, enacting ordinances and resolutions, adopting budgets and levying taxes. Since there is no separately elected executive, the board also performs executive functions such as formulating the budget, enforcing ordinances, approving expenditures and hiring employes. Although some townships have hired managers, and most use the township secretary for general administrative purposes, in many townships supervisors play a large role in administrative activities, overseeing the day-to-day operation of township government. Because the Code allows supervisors to also be employed by the township, many supervisors spend a significant amount of their time working on the township roads, performing the duties of secretary or treasurer or other authorized duties.
Because of the supervisor’s elected status, an individual in that position is often looked to as a community leader. Certainly supervisors are the proper recipients of complaints, ideas and suggestions concerning township affairs. In many cases, the supervisor is called upon to perform as a problem solver, acting as an agent for township citizens with outside agencies or private firms. The supervisor has a role in representing the township’s communal interests, past, present and future. Although assisted by a planning commission, paid administrator or historical commission, many of the final decisions must be made by elected officials.
The extent of any one supervisor’s activities in these roles will be defined by the individual’s own view of civic responsibilities, particular fields of individual interest and personal skills and talents. To a large degree the supervisor’s role is also defined by the local political culture, the generalized local attitudes toward municipal government and commonly-held expectations of how officials will operate.
Structure of Township Government
The Code contains few organizational details and allows wide flexibility in defining the operating departments of the township. Small townships may have no formal department structure or may have only a department of roads or public works. Large townships will have separate departments for functions such as parks and recreation, police, finance, water or others. The number of departments and their respective functions is based on local needs, and this determination is one of the concerns of a supervisor.
Few townships in Pennsylvania have managers, so often the board of supervisors or the township secretary supervise the operating departments. Because many township supervisors are also employed by the township as roadmasters, road superintendents or as secretary-treasurer, they also have important administrative responsibilities over township departments.
Other elected township officials include the three auditors, the tax collector and, in some townships, an assessor. Although elected from a township, the constable is an independent county officer and does not form part of township government. Assessors are elected only in townships within the 51 fourth through eighth class counties and work under the direction of the chief county assessor. They are usually not involved in assessment of real estate but are primarily used for assessment of occupations and preparation of the per capita tax roll.
The elected auditors conduct the annual audit of township finances, except when an independent certified public accountant has been appointed. The auditors also set the compensation of supervisors that are employed by the township.
The tax collector collects school, county and township real estate taxes. Tax collectors also collect certain special township assessments. In addition, they can be appointed to collect taxes levied under the authority of the Local Tax Enabling Act.
Every township has an appointed secretary and treasurer. These two offices were combined until 1981 and still may be combined if the board chooses. The secretary and treasurer may be a supervisor, a township employee or, in the case of treasurer, a financial institution.
Officers that also may be appointed include the solicitor and the engineer, whose duties are outlined in the Code. Almost all townships have solicitors. The solicitor has control of the legal matters of the township including bonds, real estate transactions, review of ordinances and actions in court. About half the townships have engineers. The engineer does engineering for township work on roads and other public works. The engineer also prepares plans, specifications and estimates for work to be performed under contract.
Certain offices, such as manager or police chief, may be created by township ordinance. Other state laws authorize the appointment of officers such as the sewage enforcement officer, emergency management coordinator, earned income tax officer and zoning officer. These positions may be held by township employees or independent contractors.



II. Office of Township Supervisor
Second class townships are governed by 3-or 5-member boards of township supervisors. Responding to demands for additional representation in large townships, the legislature in 1961 authorized the expansion of boards from 3 to 5 members in townships over 10,000 population upon petition to the county court. The population requirement was reduced to 3,000 in 1974 and removed entirely in 1977. In 1975 the procedure was changed to require approval by the voters of the township in a referendum.
A referendum to expand the board of supervisors to 5 members may be initiated by a petition signed by at least 5% of the registered voters of the township, or by a resolution adopted by the board of supervisors.1 The referendum petition or resolution must be filed with the county board of elections at least 13 weeks before the next municipal or general election. This question can only appear on the ballot in a November election. The proposal must be approved by a majority of those voting on the question to be adopted. In 2000, 138 townships operating under the Second Class Township Code had 5-member boards of supervisors. In addition, 5 townships with optional plans and 14 with home rule charters had five member boards.
In townships with 5 supervisors, a referendum to reduce the board from 5 to 3 members may be initiated by a petition signed by 5% of the registered voters of the township or by a resolution of the board of supervisors. The change must be approved by a majority of those voting on the question at the next November election. If the voters approve reducing the size of the board, 3 supervisors are elected at the next municipal election for terms of 6, 4 and 2 years.
Qualifications
To serve as a township supervisor, an individual must be a resident and registered voter of the township and must have resided in the township continuously for at least one year before their election.2 To qualify as a voter, a person must be 18 years of age and a resident of the election district. To continue serving as a supervisor, an individual must retain residence within the township. A person whose name appears on the district voting register but who is no longer a resident of the township is not a lawfully registered elector.3 Legal residence includes not only a persons intention, but also a physical presence. Intention or voter registration is not enough; an individual must actually physically reside in the township. A person cannot declare a residence inconsistent with the facts of where they actually live.4
Term of Office. The term of office for a township supervisor is 6 years. Ordinarily, one of a township’s 3 supervisor positions will be on the ballot at each municipal election. However, shorter terms may occur. After the voters approve expansion of the board to 5 members or reduction to 3 members, the Code stipulates short terms to achieve the proper staggering of terms. Thereafter, all members are elected for 6-year terms, with 1 or 2 positions on the ballot at each municipal election.
When a vacancy occurs in the office of township supervisor, the office may appear on the ballot as a shorter term.5 If the vacancy occurs more than 60 days before a municipal election and if there are at least two years remaining of the original term, the position will go on the ballot for either a two- or four-year term. This provision is intended to retain the original staggering of board members, yet prevent appointees from holding elective office for more than 2 years.
Incompatible Offices. A supervisor may hold no other elected township office,6 nor serve as a school board member,7 nor hold any elective county office.8 A supervisor may not serve as township manager,9 township police officer10 or zoning officer.11 A limited number of supervisors can serve as members of the township planning commission,12 but are prohibited from becoming members of the zoning hearing board.13
A supervisor may hold the appointive positions of roadmaster, laborer, secretary, treasurer, assistant secretary, assistant treasurer or in any employee capacity not otherwise prohibited by law.14 However, supervisors cannot grant themselves additional compensation for performing general administrative duties.15
The eligibility of members of municipal governing bodies to serve on authority boards had long been an unsettled issue. However, in 1993, the Pennsylvania Supreme Court determined that a township supervisor could legally serve on the board of a municipal authority created by the township.16 This dual office holding did not violate the Second Class Township Code which limits the appointed offices supervisors can fill, because authorities are independent agencies of the Commonwealth and not part of the township government. Any incompatibility of office must be established by the legislature, not by the courts. However, the articles of incorporation of an authority may prohibit elected officials from serving on authority boards and these provisions are enforceable in the courts.17 Commonwealth Court ruled an elected official violated the state Ethics Act when he voted to appoint himself to an authority board where he received compensation.18
Oath of Office. Before entering office, each supervisor, whether elected or appointed, must take an oath of office.19 The oath can be administered by a judge, district magistrate or notary public. The supervisor must swear to support the Constitution of the United States and of the Commonwealth of Pennsylvania and to perform the duties of the office of supervisor with fidelity. A copy of this oath must be filed with the township secretary before assuming the duties of office.
Vacancies
The most common reason for vacancies on the board of supervisors is resignation. Individuals sometimes find the demands on their time, the pressure of private business activities, personal health or family problems or the responsibilities of office are too much to cope with. Vacancies can also occur because of death or moving out of the township. The Code provides for the remaining members of the board of supervisors to fill a vacancy by resolution.20
A resignation requires acceptance by the governing body before it is effective.21 Resignations can be rescinded or withdrawn before they are accepted by the governing body. However, once the resignation has been accepted, the vacancy exists. The governing body cannot rescind acceptance of a resignation.22 Once the resignation is accepted, the office is vacant and must be filled by the appointment of a successor.
The appointment of a new member must be made within 30 days from the date of the vacancy. If the board of supervisors fails to fill the vacancy within the prescribed limit, then the vacancy board fills the vacancy within 15 additional days by appointing a qualified person. The vacancy board consists of the board of supervisors and 1 registered voter of the township who is appointed by the board and acts as the chairman of the vacancy board. If the vacancy board fails to fill the vacancy within the prescribed time, the chairman then petitions the court of common pleas to fill the vacancy. In the case of a vacancy in the chairmanship, the remaining members of the vacancy board petition the court to fill the vacancy. Where 2 or more vacancies occur on a 3-member board of supervisors, or 3 or more vacancies on a 5-member board, the court fills the vacancies upon petition of at least 15 registered voters of the township.
In all cases, the successor is appointed to serve until the first Monday in January following the first municipal election occurring more than 60 days after the vacancy occurs. At that municipal election, a successor is elected to fill any unexpired balance of the term. All persons appointed to fill vacancies must have all the qualifications required of elected officials.
Compensation
Compensation authorized for township supervisors falls into 2 categories: compensation as an elected official and compensation as an employee of the township.
As elected officials, supervisors receive a salary as fixed by ordinance.23 The salary cannot exceed the maximums set for the following population groups, as determined by the latest official census. However, a township is not required to reduce the salaries of supervisors should the population of the township decrease.
Maximum
Township Population Compensation
Under 4,999 $1,875
5,000-9,999 $2,500
10,000-14,999 $3,250
15,000-24,999 $4,125
25,000-34,999 $4,375
35,000 and over $5,000
This salary must be established by an ordinance enacted by the board of supervisors and is payable monthly or quarterly. Any change in salary for supervisors as elected officials becomes effective at the beginning of the next term of office. This restriction does not apply to supervisors receiving compensation or benefits as township employees.
When supervisors are employed by the township in any capacity — including secretary, treasurer, or secretary treasurer — their compensation is set by the auditors at a figure comparable to wages in the locality for similar services.24 The auditors set these wages at their annual reorganization meeting. Before the compensation is set, there should be a common understanding of the range of duties, or better yet, a written job description. Paid leave for supervisors serving as employees, such as vacation or sick leave, also must be set by the auditors.25
No supervisor may receive compensation as an employee for attending a meeting of the board of supervisors. 26 Township supervisors that are also employees of the township must be careful to differentiate between their supervisory duties and their duties as an employee when billing for their time. Supervisors may not receive compensation as an employee for performing their elected supervisory duties of office. 27
Benefits. Townships are authorized to provide group insurance benefits for employees covering workers’ compensation, health, hospitalization, medical service, accidents and pensions.28 Supervisors are eligible for inclusion in township group life, health, hospitalization, medical and accident insurance whether or not they are also township employees.29 However, any decision by the township to pay, in whole or in part, to include supervisors not employed by the township in insurance plans cannot be implemented until the beginning of the next term of that supervisor. Supervisors employed by the township qualify as municipal employees for purposes of unemployment compensation.30 Supervisors who serve only in the capacity of elected officials and are not employed by the township are not entitled to receive pensions.31 All supervisors may be covered by the township’s liability insurance.
Expenses. When travel on official business is authorized by the board, supervisors can receive a mileage fee for use of their personal vehicle. The amount for mileage is to be set by the board of supervisors for all township personnel.32 When attending meetings, conferences, institutes and schools authorized by the board, a supervisor is entitled to payment of any registration fee, mileage and other actual expenses the board agrees to pay.33 The mileage fee cannot exceed the current mileage allowance set by the Internal Revenue Service.
The board should set a policy for claiming travel expenses. Allowable expenses should be limited to such items as lodging, meals, parking, tolls and public transportation expenses. Every attendee is required to submit an itemized account of expenses before being reimbursed.
Supervisors are authorized to attend county conventions of township associations. Township supervisors attending such conventions are entitled to payment of the registration fee, mileage or actual transportation expense and all other actual expenses the township board agrees to pay. In addition, each township official is entitled to collect $35 for each day’s attendance at the convention. Township employees, including supervisor-employees, may be paid at their regular rate of pay instead of the $35 per diem when the county convention occurs during their regular work hours. No supervisor is to be paid for more than 2 days attendance in a year. Each delegate attending the convention must submit an itemized account of expenses before reimbursement is made.34
Similarly, township supervisors authorized by the board to attend the annual convention of the Pennsylvania State Association of Township Supervisors are entitled to payment of the registration fee, mileage or actual transportation expense and all other actual expenses the board agreed to pay. Each supervisor attending the convention must submit an itemized account of expenses to the board. The time spent attending the annual convention cannot exceed 4 days, including travel time. The board of supervisors may authorize township employees to be compensated at their regular rate of pay while attending the annual convention.35 Supervisors, secretaries, treasurers, and managers may serve as delegates to the annual convention.
Conflicts of Interest
Township supervisors should be very careful to avoid the possibility of conflict between their personal and private interests and their role as public officers. The Public Officials and Employees Ethics Act states the people have a right to be assured the financial interests of public officers do not conflict with the public trust.36
In any issue brought before the board of supervisors where an individual member has a conflict of interest, or there is an appearance of a conflict of interest, that supervisor should refrain from voting on the issue. Pennsylvania courts have long upheld as a fundamental public policy principle the rule that members of a governmental body cannot vote on any matter where they have a direct personal interest.37
Specific legal prohibitions governing personal interest in contracts and purchases appear both in the Ethics Act and in the Second Class Township Code. Under the Ethics Act, no public official, including a township supervisor, can enter into a contract valued at $500 or more with the governmental body with which the official is associated, unless the contract is awarded through a public process, including prior public notice and subsequent public disclosure. Moreover, this prohibition extends to any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official is associated, unless the contract is awarded through a public process. In such case, the public official cannot have any supervisory responsibility for administration of the contract.38
The Code also prohibits supervisors from having any personal interest in contracts over $500.39 In cases where a contract is made with a firm employing a supervisor in a nonmanagement position, the supervisor must inform the board of such status and refrain from voting on the contract. The Code includes specific penalties for violation of the personal interest prohibition. However, a court determined this prohibition did not apply where the connection between a supervisor and bidder is remote and there is no evidence of collusion or ulterior motive in awarding a contract.40
Any supervisor facing the possibility of a conflict of interest under the Ethics Act may request an advisory opinion from the State Ethics Commission. Alleged violations may be reported to the Commission for further investigation. Any contract, purchase or appointment a township wishes to make where a supervisor or any other township official has a personal interest should be closely scrutinized as to its legality. In all cases, the appearance of honesty and impartiality is at least as important as fulfilling legal requirements.
Financial Disclosure Statements. The Ethics Act requires local elected and appointed officials to file financial interest statements no later than May 1 of each year in office and 1 year after leaving office. The statements are open to public inspection.
Surcharges
Township officers whose actions have exceeded legal authorizations or who failed to take actions required by law are subject to a financial penalty if the action or failure to act resulted in a financial loss to the township.41 When the township auditors review the accounts for the year they are required to determine if financial loss was caused by the illegal action or inaction of any officer. If they find such a case, the audit contains a balance entered against the official responsible. This is known as a surcharge. The Code contains procedures for the filing and appeal of surcharges. The action of imposing surcharges is civil in nature rather than quasi-criminal, since the function of the surcharge is remedial and not punitive — it is designed to reimburse the government for losses resulting from some misconduct of its officials.42
There is a specific provision for surcharge in cases of evasion of advertising requirements in making purchases. Any supervisor who contracts for purchases piecemeal to avoid advertising for a purchase of more than $10,000 may be subject to a surcharge of 10% of the full amount of the contract or purchase.43
Limiting surcharges to the amount of actual loss does not apply to cases of fraud or collusion. For such activities, supervisors would also be subject to the criminal laws of the Commonwealth. Officials convicted of crimes relating to the conduct of their public office are subject to removal from office by the courts.
Removal from Office
In 1995, the Pennsylvania Supreme Court struck down all legislative provisions for removal of an elected official for failure to perform the duties of office, and clarified that the only constitutional method for removal of an elected official is contained in Article VI, Section 7 of the Pennsylvania Constitution.44
The Pennsylvania Constitution provides that elected officials may only be removed from office if they are convicted of misbehavior in office or of any infamous crime. Elected officials also may be removed for reasonable cause by the Governor, after impeachment by two-thirds of the Senate. 45 Misbehavior in office is committed when a public official fails to perform a duty of office. 46 However, public officials should not be threatened with dismissal for honest errors in judgment or for mistakes in administration. 47 Violation of Section 3(c) of the State Ethics Law, accepting money in exchange for official favors, is an infamous crime under Article II, Section 7 of the Pennsylvania Constitution. 48
Official Liability
The Judicial Code defines a strictly limited set of conditions where the township can be held liable for damages because of injury to a person or property.49 Members of the board of supervisors are exempted from official liability if the acts or omissions in question are held to be within the policymaking discretion granted to them by law. If an action is brought against a supervisor for an act or omission claimed to be within the scope of official duties, the township must defend the action when requested by the supervisor. The township is authorized to purchase liability insurance for itself and its officers and employees or to initiate a risk management program. However, the Pennsylvania Supreme Court has ruled that when a surcharge arises from the willful or fraudulent misconduct of an official, the municipality may insure only its loss and may not purchase coverage for the official. Surcharges arising out of an official’s willful or fraudulent misconduct are liabilities which arise outside the scope of the official’s official duties.50
References
1. 53 P.S. 65402; Second Class Township Code, Section 402.
2. 53 P.S. 65401; Second Class Township Code, Section 401.
3. Commonwealth ex rel. District Attorney v. Champaine, 17 D.&C.3d 120, at 123, 1980, C.P. Chester Co.
4. Commonwealth ex rel. Fortney v. Bobrofskie, 196 A. 489, 329 Pa. 44, at 48, 1938.
5. 53 P.S. 65407; Second Class Township Code, Section 407.
6. 53 P.S. 65403; Second Class Township Code, Section 403.
7. 24 P.S. 3-322; Public School Code, Section 322.
8. 16 P.S. 402(a); County Code, Section 402(a).
9. 53 P.S. 66301(c); Second Class Township Code, Section 1301(c).
10. 53 P.S. 66902; Second Class Township Code, Section 1902.
11. 53 P.S. 10614; Pennsylvania Municipalities Planning Code, Section 614.
12. 53 P.S. 10205; Pennsylvania Municipalities Planning Code, Section 205.
13. 53 P.S. 10903; Pennsylvania Municipalities Planning Code, Section 903.
14. 53 P.S. 65606(a); Second Class Township Code, Section 606(a).
15. Cotlar v. Warminster Township, 302 A.2d 859, 8 Pa.Cmwlth. 163, at 166, 1973.
16. Commonwealth v. Lucas, 632 A.2d 868, Pa., 1993.
17. Ross Township v. Menhorn, 588 A.2d 1347, 138 Pa.Cmwlth. 686, 1991.
18. Koslow v. Commonwealth, State Ethics Commission, 540A.2d 1374, 116 Pa.Cmwlth. 19, appeal denied 533 A.2d 971, 520 Pa. 609.
19. 53 P.S. 65501; Second Class Township Code, Section 501.
20. 53 P.S. 65407; Second Class Township Code, Section 407; Commonwealth ex rel. Zimmerman v. Kleiman, 402A.2d 1343, 485 Pa. 421, at 428, 1979; In re Gianoplos, 11 D.&C.3d 436, at 438, 1979, C.P. Clinton Co.
21. Bowen v. Mount Joy Township, 644 A.2d 818, Pa.Cmwlth., 1994; Borough of California v. Horner, 565 A.2d 1250, Pa.Cmwlth., 1989; Whitehouse v. Krapf, 94 A. 533, 249 Pa. 81, 1915.
22. King v. Weiser, 591 A.2d 770, 140 Pa.Cmwlth. 90, 1991, appeal denied 600 A.2d 541, 529 Pa. 626.
23. 53 P.S. 65606; Second Class Township Code, Section 606.
24. 53 P.S. 65606, 65703, 65803; Second Class Township Code, Section 606, 703 and 803; In Re: Center Township, Butler County, Pa., 4l D.&C.3d 234, 1986; Yacabet v. State Ethics Commission, 531 A.2d 536, 109 Pa.Cmwlth. 432, 1987.
25. In re: Appeal from Hazle Township Audit, 1952 (No. 2), 51 Luz.Leg.Reg. 207, at 211, 1962.
26. 53 P.S. 65606; Second Class Township Code, Section 606.
27. R.H. v. State Ethics Commission, 673 A.2d 1004, Pa. Cmwlth, 1996.
28. 53 P.S. 66512; Second Class Township Code, Section 1512.
29. 53 P.S. 65606(c)(1); Second Class Township Code, Section 606(c)(1).
30. Lescallet v. Unemployment Compensation Board of Review, 505 A. 2d l086, 95 Pa.Cmwlth. 429, 1986.
31. 53 P.S. 65606(b)(1); Second Class Township Code, Section 606(b)(1); Ross Township v. McDonald, 431 A.2d 385, 60 Pa. Cmwlth. 306, at 311, 1981.
32. 65 P.S. 371; 1979 P.L. 156, No. 51, as amended.
33. 53 P.S. 65607; Second Class Township Code, Section 607.
34. 53 P.S. 66401; Second Class Township Code, Section 1401.
35. 53 P.S. 66402; Second Class Township Code, Section 1402.
36. 65 Pa.C.S.A. 1101.1; Ethics Standards and Financial Disclosure, Section 1101.1.
37. Consumers Education and Protective Assn. v. Schwartz, 432 A.2d 173, 495 Pa. 10, at 17, 1981.
38. 65 Pa.C.S.A. 1103; Ethics Standards and Financial Disclosure, Section 1103.
39. 53 P.S. 68102(i); Second Class Township Code, Section 3102(i).
40. Kimmel v. Lower Paxton Township, 633 A.2d 1271, Pa.Cmwlth., 1993.
41. 53 P.S. 65907; Second Class Township Code, Section 907; Neville Township Auditors Report, 70 A.2d 379, 166 Pa.Super. 122, 1956.
42. In re: Appeal from Report of Audit of South Union Township for 1975, 407 A.2d 906, 47 Pa.Cmwlth. 1, at 8, 1979.
43. 53 P.S. 68104; Second Class Township Code, Section 3104.
44. In re Petition to Recall Reese, 665 A.2d 1162, 542 Pa. 114, Sup. 1995.
45. Pennsylvania Constitution, Article VI, Section 7.
46. Com. v. Knox, 94 A.2d 128, 172 Pa. Super. 510, 1953, affirmed 97 A.2d 782, 374 Pa. 343.
47. In re Shoaf, 88 A.2d 871, 370 Pa. 567, 1952.
48. Corbett v. Desiderio, 698 A.2d 134, Pa. Cmwlth 1997.
49. 42 Pa.C.S.A. 8541; Judicial Code, Section 8541.
50. Lewis Township v. Employers Mutual Casualty Company, 523 A.2d 719, 514 Pa. 242, 1987.




III. Legislative Powers
General Powers
Election to the governing body of any Pennsylvania municipality conveys a great deal of power and responsibility. This power is granted by various laws and codes vesting certain corporate and specific powers in the governing body. Corporate powers legalize the actions of the municipality and provide elected officials authority to act on behalf of the municipality.1
General municipal corporate powers include the right to sue and be sued, the right to make and use a common seal and the right to purchase, acquire, hold, lease and sell real and personal property in the best interests of the municipality.2 The Second Class Township Code invests the corporate power of a township in the board of supervisors.3
The Code further delineates other powers enabling the board to function in the best interest of the township. Specific powers provide authority to the board to enact legislation covering governmental functions such as health, fire and police protection and taxation. Specific powers granted to the township are intended to provide the supervisors with the capability needed to take action for the benefit of the municipality and its citizens.
The Code also includes an especially important power — the authorization for the board of supervisors to make and adopt all ordinances, bylaws, rules and regulations deemed necessary for the proper management and control of the township in order to maintain good government and protect the safety and welfare of its citizens.4 This general grant of power authorizes any legal action on the part of the board of supervisors to maintain the peace, good government and welfare of the township and to protect the health, safety, and general welfare of its inhabitants. However, a township may not enact any legislation in conflict with the Constitution and the laws of the Commonwealth.
The courts have held that these general police powers are not unlimited. An exercise of the police power must not be unreasonable, unduly oppressive or beyond the necessities of the case. The means that the township employs must have a real and substantial relation to the objective it seeks to obtain. The township must not invade the fundamental liberties of its citizens. Even legitimate legislative goals cannot be pursued by means which stifle fundamental personal liberty when the goals can be more reasonably achieved in other ways.5
Meetings
The Second Class Township Code requires the board of supervisors to meet at least once a month at a time and place designated by the board.6 Except for the annual reorganization meeting, the board may meet at any time during the month. The annual reorganization meeting must be held the first Monday in January of each year. When the first Monday is a legal holiday, the reorganization meeting is held the following day. The board’s first official business at this meeting is to elect one of its members as chairman and one as vice chairman. While chosen at this meeting, these officers serve at the pleasure of the board and can be replaced at any time.7
The Code sets minimum requirements for a quorum to do business at a meeting. A quorum is two members of a three-member board or three members of a five-member board. An affirmative vote of a majority of the entire membership of the board is required to transact any business. The State Ethics Law requires that any supervisor with a conflict of interest must abstain from voting on that particular issue. All actions taken by the board must be at a properly advertised public meeting.
Although supervisors are prohibited from voting on any issue where there is a conflict of interest, they sometimes abstain from voting on issues where they have no conflict. Local government is based on the concept of representative democracy. Township supervisors are elected to represent their constituents in making decisions for the community. Supervisors should never refuse to vote simply because a matter is contentious or may cause personal resentments. Supervisors refusing to vote are violating their sworn duty to represent the voters in helping to decide matters before the governing body.
Sunshine Law
The Sunshine Law requires all public agencies to take all official actions and conduct all deliberations leading up to official actions at public meetings.8 The Law covers all actions by the board and its committees and by all boards and commissions of the township. Official actions include making recommendations, establishing policy, decisions on municipal business and votes taken on any motion, resolution, ordinance, rule, regulation, proposal, report or order.
The boards of supervisors are required to provide an opportunity for public comments at each advertised regular and special meeting. A 1998 amendment to the Sunshine Law requires the public comment period that must be provided at each meeting to be held before official action is taken. To satisfy this requirement, townships may hold a comment period before each official action or hold the public comment period at the beginning of the meeting before any action is taken. 9 The right of citizens to make comments is limited to matters of concern, official action or deliberation which are or may be before the governing body. A board may impose time limit for the right to speak during this period to residents and taxpayers of the township.
Public notice must be given for all public meetings. Notice of regularly scheduled meetings may be given once a year by advertising in a newspaper of general circulation at least 3 days before the first meeting. Notice must also be posted at the township’s principal office. The courts have held that the dismissal of an employee by two members of the board of supervisors was void because the decision was not transacted at a public meeting and proper public notice was not given. 10 For rescheduled or special meetings, notice must be published in a newspaper of general circulation at least 24 hours in advance, plus posting.
Executive sessions, or meetings from which the public is excluded, may be held for a limited number of specific purposes. Executive sessions may be held to discuss personnel matters relating to a specific individual, strategy sessions and negotiations for collective bargaining agreements, purchase or lease of real estate, consultation with the solicitor in connection with ongoing or pending litigation, or to discuss any municipal business which if conducted in public would violate a legal privilege or protected confidentiality. Since the Act contains the legislative declaration of public policy as ensuring the right of citizens to attend meetings of public bodies, any use of the executive session must be limited to situations clearly falling within this list.
Executive sessions may be held during a public meeting or announced for some other time. The reason for holding the executive session must be announced at the open meeting occurring immediately prior or subsequent to the executive session. Any official action taken on the basis of discussions held at an executive session must be taken at an open meeting.
Public notice is not required for emergency meetings, but these must still be open to the public. Emergency meetings are defined as those called for the purpose of dealing with a real or potential emergency involving a clear and present danger to life or property.
Township supervisors are permitted to attend conferences, training programs or seminars to gather information on their responsibilities. These seminars are not required to be open to the public. Although official actions must be conducted in open meetings, the Sunshine Act does not require agency members to inquire, question and learn about agency issues only at an open meeting. 11 The Commonwealth Court held that township supervisors’ conduct in setting up and attending a meeting with the water association and county redevelopment authority was not a violation of the Sunshine Act because the meeting concerned business of the water association and not the township and the supervisors did not enact any law, policy or regulation, create any liability under contract or adjudicate any rights, duties, or responsibilities at that meeting. 12
Conduct of Meetings
As a supervisor, it is certain that at one time or another you will be called upon to conduct a meeting. While you may not be the chairman of the board, you may at some time have to conduct a township meeting. In addition, you may find yourself on special subcommittees, or a member of a regional group of municipalities. You may very well be designated chairperson and will be responsible for the proper conduct of meetings.
The Second Class Township Code does not set forth rules of conduct or procedure for municipal meetings. Each township is free to establish its own order of business and rules for conduct and procedure.13 Your township probably already has a procedure for its meetings which has been established either by ordinance, resolution or perhaps by tradition.
The wise chairperson will ensure an agenda is prepared for each meeting. This is necessary for several reasons: (1) the agenda provides a guide for the chairperson to keep the meeting on the track; without an agenda or an ordered sequence of events it will be too easy for irrelevant issues to disrupt the meeting; (2) an agenda assures all relevant points concerning the business at hand will be discussed; and (3) an agenda lets all the participants in the meeting know exactly when they will be expected to make their contribution.
The agenda also serves another useful purpose by enabling the township to inform the news media in advance of relevant topics to be discussed at the meeting. The news media in turn helps encourage citizen participation in the township’s decision-making process.
The following is an example of a township meeting agenda that, with minor variations, follows the general pattern used by many townships in Pennsylvania.
MEETING AGENDA
1. Call to Order - The chairman of the board calls the meeting to order. A roll call is conducted to determine if a quorum is present.
2. Pledge of Allegiance – Many townships recite the pledge at the beginning of every meeting.
3. Public Participation – A 1998 amendment to the Sunshine Act requires public participation to take place before any official action. This may take place at the beginning of the meeting or before each agenda item. A time limit is usually placed on an individual’s presentation and any resulting discussion.
3. Minutes of the Previous Meeting - Minutes from the previous meeting or meetings are presented for approval. To expedite the procedure, minutes of the previous meeting should be typed and mailed to supervisors for their review prior to the meeting. Minutes are reviewed for possible corrections, deletions or additions. It is not necessary to have the minutes read aloud.
4. Treasurer’s Report - The treasurer gives a report of expenditures and revenues since the prior board meeting. Once again, a typed report mailed to officials prior to the meeting could expedite action on financial matters.
5. Correspondence - Letters or verbal communications received by the township since the last meeting should be noted and acted upon.
6. Township Reports - Standing committees, special committees, the township manager, administrative officers and consultants are usually required to give reports on current projects in which they are involved. Townships not having managers usually require monthly or special reports from department heads.
7. Old Business - Items of township concern not completely resolved are discussed in the unfinished business category until the board takes some conclusive action.
8. New Business - Once all topics of unfinished business included on the agenda are covered, the meeting should be open to new business. It may include such items as bid openings, consideration of new ordinances or discussion of new public works programs. During this portion of the meeting, supervisors may discuss any appropriate subject or make announcements of importance to other officials or those in attendance.
9. Adjournment - A meeting may be adjourned once business is completed.
Parliamentary Procedure
Rules of parliamentary procedure expedite business. The chairperson of the meeting is the one person primarily responsible for seeing that rules and procedures are followed. However, too intricate a system of parliamentary procedure has often caused undue delay of business and frustration among elected officials. Rules and procedures should be followed to the extent necessary to transact business in an effective and efficient manner.
The most commonly used standard code on parliamentary procedure is Robert’s Rules of Order by Henry M. Robert. Jefferson’s Manual and Cushing’s Manual also contain legislative procedures.
Legislative action is taken by a governing body through a motion and vote. One of the most common misunderstandings concerns the rule that only one main motion can be pending at one time. Although other motions may be applied to the main motion, there can be only one main motion.
A main motion is simply what the name implies, a motion to accomplish some concrete or specific item of business on the agenda. A subsidiary motion is a motion that is secondary to the main motion. If a secondary motion is made, then it must be dealt with before the main motion can be voted on. The several commonly used subsidiary motions are to amend the main motion, limit or extend debate, postpone indefinitely, or table the main motion.
Minutes and Records
The board of supervisors is required to keep minutes of its proceedings and official actions and other record books the board finds necessary in the performance of its duties.14 The minutes of township meetings must include the date, time and place of the meeting; the names of the members present; the substance of all official actions; a record of any roll call votes taken by individual board members; and the names of all citizens who appeared officially and the subject of their comments. 15 All minutes, records and books must be open to public inspection by a citizen at a reasonable time. All records, books and minutes must be delivered by the elected officials to their successors.
All township records required to be recorded or transcribed are valid if typewritten, printed, photostated or microfilmed. The minutes of the proceedings of the board may be recorded in a bound book or mechanical post binder book. Any records, attachments or transcribings added to a record book must bear the official township seal impressed upon each page.16
It is very important that all actions of the board be carefully recorded, especially those actions involving the expenditure of funds. It is also important to record votes in both legislative and financial actions. Supervisors disagreeing with a majority action of the board should make certain their no vote is recorded. A supervisor recorded as voting against an action cannot be held responsible for the action if it later is declared illegal. Any errors in roll call votes should be corrected at the following meeting. Supervisors cannot change their votes after the meeting is adjourned and the vote is recorded.17
The Legislative Role
As an elected township supervisor, you will be involved primarily in a legislative role. You also may act in an administrative, executive or supervisory capacity to a lesser extent. Your legislative role is of primary importance because the actions taken by you in deciding the laws governing the township will affect not only the people within the township, but also those outside the borders as well. The formulation of legislative policy involves full and free public discussion of issues, often with a supervisor vigorously acting as advocate for a particular policy approach, or possibly spearheading opposition. Such activity is often a necessary part of the legislative process.
Because the actions of a governing body have a direct impact on a municipality, the methods for taking official action are specified in the Second Class Township Code and other state laws. The Code requires all permanent legislative acts to be made by ordinance.18 A township ordinance becomes effective only after it has been properly recorded in the township’s ordinance book. 19
An ordinance is defined as a local law of a municipality of a general or permanent nature. In some cases, the Code specifies when an ordinance must be used. If no specific direction is given in the Code, then an ordinance should be used if the matter is of a general or permanent nature.20 On the other hand, a resolution is considered less formal than an ordinance and used when the matter under discussion is either specific or of a temporary nature, such as awarding contracts.21
A motion is a formal method for taking action on any measure under consideration by the governing body, such as an ordinance or resolution. In addition, it is used to finalize decisions on other actions before the board. The adoption of a motion by the required majority of the entire board expresses the will of the group. Because of the vagueness of the term “legislative action,” the township solicitor should be consulted when the governing body is uncertain whether to use an ordinance or resolution.
Your role as a legislator will not be confined to enacting township laws. As an elected official, you represent the township and will be expected to be concerned with, and at times attempt to influence, state legislation affecting your municipality. The General Assembly considers legislation affecting all townships, all local governments in Pennsylvania and your region.
As a representative of the township, you are in a position to exert some influence on the decisions of state legislators. The relationship between you and legislators is more effective if the board takes an official position by adopting a resolution prior to contacting your legislator. The methods of communication with your legislator may vary. Use the telephone, send an e-mail, write a letter or visit personally. If your contact has been verbal, follow it with a letter.
Make sure your facts are accurate, precise and brief. Don’t hesitate to contact legislators from districts other than your own, particularly the committee chair or other members of either chamber sponsoring a bill. This activity has been approved by the courts as part of a local official’s role, however, expenditures of public funds for lobbying should not become unreasonable.22
Quasi-Judicial Role
In addition to the power to deliberate, formulate and enact local legislation and regulations, state law gives township boards of supervisors quasi-judicial powers as a hearing board to hear, interpret local ordinances and decide certain issues. These include hearings on such matters as local personnel actions and various types of applications under the Pennsylvania Municipalities Planning Code.
When the board of supervisors is acting in a quasi-judicial role, a different pattern of behavior is required from when they are taking legislation actions. In a case appealing denial of conditional use and site plan applications, Commonwealth Court found the applicant’s right to due process was denied by the participation in the vote of one of the municipal officials who had actively opposed the proposal before it was brought before the governing body.23 His actions included speaking in opposition at public hearings on the proposal, writing to constituents on official stationery, expressing opposition and encouraging the public to attend meetings to pressure council to defeat the proposal, and alleged `vote trading’ with another municipal official. The court held that due to the municipal official’s clear bias and actions against the proposal, allowing him to vote on it was a denial of the applicant’s right to a fair hearing. This case underscores the need for supervisors to avoid the appearance of bias in cases where they are acting as a tribunal, performing a role quite different from the role in formulating public policy.
References
1. 53 P.S. 65601; Second Class Township Code, Section 601.
2. 53 P.S. 66501, 66502; Second Class Township Code, Sections 1501 and 1502.
3. 53 P.S. 66505; Second Class Township Code, Section 1505.
4. 53 P.S. 66506; Second Class Township Code, Section 1606.
5. Simco Sales Service v. Lower Merion Township, 394 A.2d 642, 38 Pa.Cmwlth. 434, at 438, 1978; Commonwealth v. Sterlace, 354 A.2d 27, 24 Pa.Cmwlth. 62, at 66, 1976.
6. 53 P.S. 65603; Second Class Township Code, Section 603.
7. Kline v. Fawes, 51 D.&C.2d 467, at 476, 1970, C.P. Bucks Co.; Quashnock v. Sigmund, 85 D.&C. 584, at 585, 1953, C.P. Allegheny Co.; Commonwealth v. Pape, 21 Dist. 1123, at 1124, 1912, C.P. Allegheny Co.
8. 65 Pa.C.S.A. 704; 1998 P.L. 729, No. 93, Section 704.
9. 65 Pa.C.S.A. 710.1; 1998 P.L. 729, No. 93, Section 710.1.
10. Thomas v. Township of Cherry, Butler County, 722 A.2d 1150, Pa. Cmwlth., 1999.
11. Sovich v. Shaughnessy, 705 A.2d 942, 945-946 Pa. Cmwlth., 1998; Belitskus v. Hamlin Township, 764 A.2d 669 Pa. Cmwlth., 2000.
12. Belitskus v. Hamlin Township, 764 A.2d 669 Pa. Cmwlth., 2000.
13. 65 P.S. 280; 1986 P.L. 388, No. 84, Section 10; Commonwealth ex rel. Zimmerman v. Kleiman, 402 A.2d 1343, 485 Pa. 421, at 429, 1979.
14. 53 P.S. 65605; Second Class Township Code, Section 605; 65 P.S. 276; 1986 P.L. 388, No. 84, Section 6.
15. 65 Pa.C.S.A. 706; 1998 P.L. 729, No. 93, Section 706.
16. 53 P.S. 65605(b); Second Class Township Code, Section 605(b).
17. Penn Wynne, supra, at 531.
18. 53 P.S. 66601; Second Class Township Code, Section 1601.
19. 53 P.S. 66601; Second Class Township Code, Section 1601; Cranberry Park Associates v. Cranberry Township Zoning Hearing Board, 561 Pa. 456, 751 A.2d 165, 2000.
20. Emert v. Hatfield Township, 19 D.&C.2d 182, at 185, 1957, Q.S. Montgomery Co.; Donivan v. Dallastown Borough, 835 F. 2d 486, 1987.
21. Penn Wynne v. Lower Merion Township, 124 A.2d 487, 181 Pa.Super. 524, at 529, 1956; Sheetz v. Borough of Lansdale, 438 A.2d 1048, 64 Pa.Cmwlth. 24, at 27, 1982.
22. In re: Appeal from the Settlement and Audit of the Auditors of Buckingham Township, Bucks Co., 460 A.2d 904, 74 Pa.Cmwlth. 614, at 618, 1983.
23. Prin v. Council of the Municipality of Monroeville, No. 203, C.D., Pa.Cmwlth., 1993.

IV. Administrative and Appointive Powers
In addition to your task as a legislator in the formation of policy and the enactment of laws, you will also be responsible directly or indirectly for the day-to-day operations of your township. In this capacity, you will be acting as an executive and an administrator concerned with law enforcement, preparing an annual budget, suggesting systems of taxation, preparing an annual municipal report, preparing grant applications, appointing members of boards and commissions and contracting for municipal purchases.
Local government is becoming more complex every day. Residents are demanding more services and federal and state governments are placing more responsibility at the local level. The administration of local government has reached the point where it is extremely difficult for a governing body to handle all of the day-to-day administrative functions without help. A number of municipalities have delegated administrative powers to appointed officials. Some municipalities have appointed a manager for this purpose, while many municipalities continue to use the secretary to perform many administrative tasks.
Under the broad scope of administration, you will be involved in many duties that will demand your time. Some examples are:
Informal meetings with residents to obtain their reactions to township programs and policies.
Informal meetings with the manager or administrators and township elected officials to discuss specific problems.
Reading the technical reports of the administrator, engineers, planners and other professionals employed by the township.
Delivering speeches before civic and interest groups.
Attending county and state association conferences.
Making field trips and inspections relating to specific problems or proposals.
Recruiting candidates and approving appointments to township boards and commissions.
Reporting the status of local government affairs to residents.
Appointed Administrator
If the township has appointed a manager or administrator, that person is delegated the responsibility for taking care of the day-to-day business of the township. In many townships, the secretary serves as the township’s administrator. It is your duty as an elected official to ensure that the performance of the administrator is efficient and effective. Whenever a township has an administrator, there should be a definite separation of powers and responsibilities between the governing body and the administrator. Policy and legislative powers should remain the responsibility of the supervisors while administrative functions for carrying out the decisions of the board are handled by the administrator.
An administrator is appointed by the entire governing body and operates under the directions and official actions of the entire board. Develop a good working relationship because he or she can be useful to you as a sounding board for ideas and a source of valuable information. Don’t bypass the administrator and give orders directly to department heads or employees. Work through the administrator. Meet informally with the administrator for the purpose of exchanging ideas and opinions on the issues arising in the township.
The extent of responsibility delegated to an administrator varies from municipality to municipality. The administrator’s power can be as restricted or as broad as the governing body determines. A good job description is important to clearly spell out the administrator’s duties and responsibilities.
Personnel Management
Personnel management is a key to efficient government operation. It is probably the area which can cause the greatest problems if handled poorly. Many functions of local government are categorized under personnel management: record-keeping, employee hiring policy, affirmative action, personnel in-service training plan, employee relations policy, systems for maximizing employee potential, standards for wage and salary administration and providing for employee benefits. Even the smallest townships need to understand the importance of personnel issues, since they are not immune from being charged with discrimination or violation of a statute.
Hiring Employees. Hiring employees involves recruiting and selecting the proper personnel. A number of personnel selection tools can be helpful to the municipality. Job descriptions should include a general definition of work to be performed, specific examples of work and required knowledge, skill and ability. A listing of essential functions should be developed for each job. The establishment of a minimum training and experience requirement will help to provide the township with qualified applicants, and will also supply prospective applicants with some details of the position’s responsibilities. These selection tools are not only helpful in the hiring process, they are also invaluable in showing the board’s reasoning should a rejected applicant take issue with the decision either in court or at a public meeting.
Well-designed application forms can provide the municipality with important background information on the applicant’s education, experience and relevant personal information without asking questions which laws and court cases have said might be construed as improper. Personal interviews, tests and reference checks can also aid the municipality in personnel selection.
Employee Training Program. Employee training programs help employees attain a high quality of performance on the job. Training programs can include a wide variety of activities and programs such as orientation, on-the-job training, conferences and discussions, apprenticeship, classroom training and cooperative training.
Wage and Salary Administration. Wage and salary scales are commonly based on job classifications. The classification of a job in accordance with duties and qualifications is a tedious personnel procedure. However, the presence of an adequate job classification system can be a key element in maintaining stable management-employee relations.
A classification plan groups similar positions into classes to permit common treatment in employment practices and compensation. Basically, a classification system involves classifying positions by nature of work, level of difficulty, degree of responsibility and training and experience requirements.
Township employees are covered under the federal Fair Labor Standards Act (FLSA). Hourly employees must be paid minimum wages and must be paid overtime if they work more than 40 hours a week. In addition, the law determines who is covered by the overtime provisions, what constitutes work hours and when punitive damages may be levied against the township for noncompliance.1 Elected officials, including township supervisors employed by the township, are not covered under FLSA. Any overtime pay for working supervisors must be approved by the board of auditors as part of the compensation package.
Compensation Plan. The best compensation plans are based on specialized job evaluation systems. For local governments without such systems it may be best to begin developing an employee wage schedule by determining what competing employers are paying for similar positions. The first step is to survey the labor market. Depending on the type of position to be surveyed, the labor market can be as small as the local area or as large as the state. A useful source for statewide township wage information is the biennial Wage and Salary Survey by the Pennsylvania State Association of Township Supervisors.
To be effective, a wage schedule should be based on accurate and current information about compensation provided by other employers for similar jobs in both the public and private labor market. Usually the best indicators of the local labor market are rates being paid for comparable work in the private sector, because the private sector usually covers the largest segment of the labor force. Municipal officials must look at the total compensation picture. Fringe benefits are an important part of the total compensation picture and should be examined carefully.
Labor Relations Laws. The Public Employe Relations Act was established to promote orderly and constructive relationships between all public employers and their employees.2 The Act grants employees the right to organize, requires employers to negotiate and bargain with employee organizations representing public employees and to enter into written agreements with the bargaining unit. It establishes procedures to protect the rights of the public employee, the public employer and the public.
The Act lists a number of activities which may lead to unfair labor practice charges for both employers and unions. It is unlawful for employers or managers to interfere, restrain or coerce employees in their rights to form and administer a union. A union on the other hand may not interfere with an employer complying with the provisions of the Public Employe Relations Act, nor may it restrain or coerce employees to join or not join a union.
A separate act covering police officers and paid firefighters authorizes collective bargaining with public employers concerning the terms and conditions of employment, including compensation, hours, working conditions, retirement, pensions and other benefits.3 The Act provides for arbitration in order to settle disputes and requires compliance with collective bargaining agreements and findings of arbitrators. The Police Tenure Act regulates municipal action for suspension, removal, furlough and reinstatement of police officers, and provides rights of police officers to hearings or appeals in cases of dismissal.4 It applies to all second class townships.
Other Personnel Laws. A number of state and federal laws govern the treatment of employees and job applicants. An even larger number of court cases offer opinions and precedents providing direction as to how these laws are implemented. These laws prohibit discrimination based on race, religion, national origin, sex, age and disability. They govern who must receive a minimum wage and when overtime rates must be paid. They require that certain benefits be paid to employees injured on the job and they determine the procedure for employees who request a hearing after being terminated. Townships and individual supervisors can be subject to serious penalties for failure to adhere to these laws.
Appointment Powers
Supervisors are involved in the appointment of individuals to provide a particular expertise to the township, such as the solicitor, secretary, engineer and manager. Other appointed positions include the roadmaster, zoning officer, codes enforcement officer and sewage enforcement officer.
Solicitor. One of the most critical appointments is that of municipal solicitor. In smaller townships, this individual is the only source of on-site professional assistance. As in many professions, attorneys have specialties and not every attorney has a working knowledge of municipal law. The complexity of laws which have an impact on township operations make it important to identify an attorney with demonstrated capability and interest in municipal law to fill the post. This can be done by sending a letter of interest to a number of attorneys or law firms in your region, or even using a formal request for proposals. Supervisors should know, before contacting attorneys, what they expect from a solicitor regarding attendance at meetings, if a retainer is to be provided, and what is covered by the retainer. Once the best candidate is identified, the supervisors should sit down and work out a written agreement on the services to be provided and how compensation is to be calculated.
Engineer. Another common appointment is that of township engineer. The engineer can be a valuable source of advice during road and bridge construction, site plan and subdivision reviews and some of the more complex environmental issues. The process of appointing an engineer is very similar to that of hiring a solicitor. A township needs an individual who has a broad general knowledge of engineering and is accessible to assist with immediate problems and plan reviews. It is also important to have a brief written understanding with the engineer regarding attendance at meetings and hearings, hourly rates for other assistants in the firm’s office and any restrictions fixed by the board of supervisors on engineering work done for other clients within the township.
Emergency Management Coordinator. This position is one of the least used but perhaps one of the most important positions in a township. State law dictates that each municipality have an emergency management coordinator and an emergency plan.5 The coordinator can be an existing employee of the township and, in fact, is often the fire chief or police chief. Since emergencies come in all forms, from toxic material spills to blizzards, the supervisors must feel comfortable with the ability of the individual to function in a variety of situations. In addition, the township must have a plan spelling out how and when an emergency is declared and the powers given to the emergency coordinator. While emergencies are rare, it is the duty of the supervisors to prepare for them. Indecision or poor decisions during an emergency can be costly.
Boards and Commissions
The successful operation of a municipality is a complex task requiring the time and effort of many people. Many times the elected officials and appointed employees have insufficient time or expertise to personally become involved in every aspect of township government. The Code and other state legislation allow the board to enlist the capabilities of citizens of the municipality through creation of boards and commissions. Although some of these entities are mandatory, such as a zoning hearing board if your township has enacted a zoning ordinance, many others are permissive. The concept of boards and commissions not only allows the governing body to draw on citizens with particular expertise, but also provides a channel for citizens to become more directly involved in their government.
The members of most boards and commissions serve without pay and their primary reward is the satisfaction derived from helping the people of the township. When a township supervisor has the opportunity to recommend appointments to boards and commissions, such appointments should reflect as many different cross sections of the township as possible. People from different neighborhoods, different occupational backgrounds and different interests should be appointed.
Since many appointed offices are semi-independent of the governing body, such as the zoning hearing board, it is especially important that the persons appointed have certain personal qualifications such as patience, understanding, courteousness, reasonableness and fairness. You should attempt to tap people who can make unbiased judgments in dealing with township concerns.
Planning Commission. Planning commissions or planning departments may be created by townships.6 At the direction of the board of supervisors, the planning commission may be given the responsibility to prepare a comprehensive plan for the township, to prepare and make recommendations on an official map and to prepare land use control ordinances including zoning ordinances and subdivision and land development ordinances. In addition, it may be required to prepare building and housing codes and environmental studies and to recommend capital improvements programs for the township.
Planning commissions can be very useful as a way for citizens to make their views known on growth, planning and the direction the township is taking. With the planning commission receiving and evaluating input on these topics, citizens are able to have more discussion time on topics that concern them. Meanwhile, meetings of the board of supervisors can remain the forum where decisions are made based on the citizen input received by the planning commission.
Zoning Hearing Board. Any township which has enacted a zoning ordinance must appoint a zoning hearing board.7 The board is established to hear appeals on the validity of the zoning ordinance or map or any decision of the zoning officer. In addition, the board has the power to grant variances and special exceptions to the ordinance. The zoning hearing board is either a three-member or five-member quasi-judicial board consisting of residents of the municipality who may hold no other elected or appointed position.
The zoning hearing board must appoint its own solicitor to assist in its deliberations, written decisions and appeals.8 The municipal solicitor may not be the zoning hearing board solicitor since the opinions and decisions of the zoning hearing board may differ from the views of the supervisors. The supervisors may, just as any affected citizen, appeal a decision of the zoning hearing board to the courts.
Park and Recreation Board. Townships have the power to provide, improve, maintain and regulate public parks, parkways, playgrounds, playing fields, swimming pools, public bathing places and recreation centers. Many municipalities form a park and recreation board to function in an advisory capacity to the governing body in determining the amounts and kinds of recreation most needed by the citizens. The supervisors may also place the responsibility to equip, operate and maintain recreation facilities on the park and recreation board.9 Whichever approach is taken, the duties of a park and recreation board should be clearly spelled out by the supervisors so there is no blurring of the advisory and operational roles in the park and recreation programs of the township.
Shade Tree Commission. A township may appoint a shade tree commission and give it exclusive custody and control of the shade trees in the township.10 Shade tree commissions have the authority to plant, remove, maintain and protect shade trees on public streets and highways of the township.
Board of Health. Townships may appoint a board of health and a health officer to administer and enforce the health and sanitation laws of the township.11 The board of health consists of five members who serve without compensation. The board may appoint a health officer or inspectors. The health officer and inspectors must be certified by the Department of Environmental Protection and the state Department of Health. The board of health, health officer and inspectors have the power to enter premises where there are suspected health hazards or violations of health or sanitation laws. They may issue orders to abate or correct any hazards or violations found during inspections.
References
1. 29 U.S.C.. 201 et seq.
2. 43 P.S. 1101.101; Public Employe Relations Act.
3. 43 P.S. 217.1; 1968 P.L. 237, No. 111.
4. 53 P.S. 811; 1951 P.L. 586.
5. 35 Pa.C.S.A. 7502.
6. 53 P.S. 10201; Pennsylvania Municipalities Planning Code, Section 201.
7. 53 P.S. 10901; Pennsylvania Municipalities Planning Code, Section 901.
8. 53 P.S. 10017.3; Pennsylvaia Municipalities Planning Code, Section 617.3.
9. 53 P.S. 67204; Second Class Township Code, Section 2204.
10. 53 P.S. 67901; Second Class Township Code, Section 2901.
11. 53 P.S. 68001; Second Class Township Code, Section 3001.


V. Fiscal Powers
A significant portion of the management of a township involves raising and spending public money to perform its governmental functions. As a member of the board of supervisors, you will be involved in the fiscal management of the township and will be responsible not only for raising the necessary money through taxes, service charges and grants, but also for seeing that municipal funds are spent in accordance with the budget and capital program.
Taxes
The primary source of revenue for Pennsylvania townships is local taxes. In 1998, taxes provided 42% of the revenues of second class townships. The other significant sources of revenue were grants from federal and state agencies, including liquid fuels funds, totaling 7.5% of township revenues and sewer charges providing 8% of township revenues. Two chief tax sources provided the majority of tax revenues. The greatest tax yield came from the earned income tax, constituting 20% of all revenues, while real estate taxes came in second, contributing 14% of revenues.
Real estate taxes are authorized in the Second Class Township Code. The Code authorizes the township supervisors to levy up to fourteen mills for general township purposes.1 An additional five mills may be levied for general purposes after approval by the court of common pleas.
In addition to the general purpose levy, additional special purpose real estate millages may be levied by the township. They may be used for specific municipal purposes such as a municipal building, fire protection, recreation, debt service, permanent improvement fund, road machinery, libraries, ambulance and rescue squads, fire hydrants and street lights. Some of these special levies carry a maximum millage rate and others are unlimited, but all the revenue from each special levy must be maintained in a separate fund and used only for its specified purpose.
All real estate taxes, whether general or special purpose, are levied on an annual basis and collected by the elected township tax collector. The tax collector also is responsible for collecting assessments for street lighting or fire hydrants where these are levied. The supervisors can establish the manner and schedule for the tax collector to pay over tax receipts to the township. Real estate taxes represent a significant proportion of revenues in many townships. Because of the importance of this tax revenue source, the board of supervisors should establish regulations to assure timely payment by the tax collector. The supervisors also must assure that a township officer, usually the secretary or treasurer, reaches settlement with the tax collector at the end of the year, closing out the tax duplicate before the duplicate for the new year is issued. More information regarding the role of the elected tax collector can be found in the Tax Collectors Manual available from the Governor’s Center for Local Government Services.
Besides the earned income tax, a wide range of nonreal estate taxes may be adopted under the authority of the Local Tax Enabling Act. 2 These include the per capita, realty transfer, amusement, occupational privilege and occupation taxes. In 1998, these minor nonreal estate taxes contributed 8% of all township revenues, but did constitute more significant shares of revenue in particular townships with special circumstances.
Taxes levied under the Local Tax Enabling Act, often called Act 511 taxes, may be collected in a variety of ways as determined by the board of supervisors. While some of these taxes may be assigned to the elected tax collector, it is not required and the tax collector would be acting as an appointed officer and subject to the regulations the township may set for any appointed officer. It is common for the elected tax collector to be assigned collection of occupation and per capita taxes where levied. A collection agency, whether a joint collection bureau formed by taxing jurisdictions or a private collection company, also may be used. A collection agency is frequently used to collect the earned income tax (EIT). The EIT is often the largest source of tax revenue for a township and the quality of collection can vary greatly among municipalities. The loss of tax revenue and associated interest can be greatly reduced through efficient collection and prompt deposit into a township account. Realty transfer taxes are always collected by the county recorder of deeds.
More information on the taxes authorized for use by a township can be found in the Taxation Manual available from the Governor’s Center for Local Government Services.
The Budget
The budget is a plan for receiving and spending township money. Its preparation requires informed decisions on the part of township officials to identify the purposes for spending this money, the amount to be spent and revenues necessary to support such expenditures. This affords the supervisor valuable planning experience and helps assure the fiscal soundness of next year’s operation.
Budget forms have been prepared by the Commonwealth with the cooperation of the municipal associations. The budget form is based on budgeting by program. Money is allocated to programs or activities such as police, streets and highways, recreation and parks or similar categories. Township working budgets often break down each program area into line items such as salaries and wages, materials and supplies. Through the program budget the township official is able to compare and judge the reasonableness of expenditures for each function.
A balanced budget must be officially adopted by the township before December 31of each year.3 The Second Class Township Code contains procedures for reopening a budget after a municipal election, for making supplemental appropriations at any time, and for making budget transfers during the last 9 months of the year. This authority should not be used as a justification for poor prior planning. But even a carefully prepared budget will need to be changed under certain circumstances. An emergency situation can create needs not apparent during the budget process; realized revenues may be much more or less than expected; or an opportunity to obtain favorable loan or grant funds can force a shift in the priority of projects from one year to another.
During the budgeting process, attention focuses on the General Fund, because this is where most financial activity is concentrated. However, other township funds must be included in the budget, including planned revenues and expenditures for the Highway Aid Fund, Capital Improvement Fund and proprietary funds such as the Sewer Fund. Any planned transfers between funds must be shown. Some funds, particularly agency and fiduciary funds, will have little activity.
For more information on working with the budget, you should refer to the Fiscal Management Handbook distributed by the Governor’s Center for Local Government Services.
Projecting Revenues and Expenditures. When preparing a budget for the upcoming year, it is common practice to examine the expenditures and revenues of past years in order to project estimates for the next. This procedure can provide accurate information if items are first broken down and compared by function or activity and if past trends are likely to be representative of the situation expected in the next year. Simple graphs not only help show past trends of revenue receipts and expenditures but can also illustrate what might be expected in the future.
The technique is simple. By using the municipality’s annual financial reports over the past several years, you can plot on a graph revenue receipts and expenditures for a given year. When recording the total revenue receipts, each source of revenue must be considered separately before it is added to the total to determine whether continued funding can be expected from the source. When recording revenue receipts you would not include the balance carried forward from the previous year, or nonrevenue receipts such as borrowed funds, transferred funds, or one time revenue sources such as a sale of property or grant which would greatly distort a trend. You would include such items as taxes, highway aid, departmental earnings and similar types of revenues received on a regular basis.
Total expenditures should reflect the ordinary expenses of a municipality over the past several years. Costs such as municipal administration, police services, fire protection, street and highway construction and maintenance are included.
The Budget Calendar
A budget calendar is a plan for developing the budget in an orderly manner to avoid last minute panic efforts to adopt a budget before the deadline. The budget calendar is a guide for participation of elected and appointed officials in a time-scheduled adoption of the budget.
A typical budget calendar is illustrated below. You will note specific activities or events leading to the adoption of a budget are identified and the deadline date is indicated for the person responsible for the activity.
You will find variables are often involved; for example, dates may have to be adjusted depending upon when the county supplies tax duplicates. The budget calendar illustrated is a typical example. Your township may want to omit steps shown in the example, or you may wish to add to it; however, excessive detail in the budget calendar is likely to lead to confusion. The main reason for the budget calendar is to provide a plan for developing and adopting a budget. When making a budget calendar for your municipality, point out the activity to be done, schedule a due date for when it must be done and name the person or position responsible for getting it done.
Typical Budget Calendar
Due Date Budget Activity Responsible Person
September 15 Post current year expenditure and revenue estimates Secretary
on budget form
September 30 Certification of minimum municipal obligation Chief Administrative Officer for pension plans
October 1 Project revenue estimates for next year Secretary and/or Board
October 30 Submit activity expenditure estimates to secretary Department Heads
November 1 Enter estimates on budget forms Secretary
November 1-20 Conduct full review of budget Board of supervisors
November 20-30 Tentative adoption Board of supervisors
November 30 Advertise budget Secretary
December 3-23 Budget open to public inspection Secretary
December 27 Adopt budget and resolution setting real estate tax rate Board of supervisors
January 2 Create budget accounts in new ledger Secretary
Capital Improvements Planning and Budgeting
Sound financial management is aimed at securing the most use from available or projected financial resources. The capital improvements program and related capital budget are the primary elements of sound long-range financial planning. Townships are specifically authorized to create capital reserve funds to implement capital improvements.4 Townships also may establish separate revolving funds for capital improvements or road machinery and fund them with special taxes.5
Capital Improvements Program. A capital improvement is a major facility involving a nonrecurring cost which usually requires a large capital outlay and brings returns over a long period of time.
“Programming” simply involves deciding what a community needs most in coming years, and devising a schedule to pay for these facilities within bounds of the community’s ability to finance them. Nonrecurring, noncapital items such as major engineering studies may also be included for planning purposes. Generally, a 5 or 6-year period is used for the capital improvements program and expenditures (construction projects, major purchases and road work) are scheduled during each year of the plan according to available funding.
Advantages of the capital improvements program include:
1. Efficient implementation of the community’s goals, objectives and comprehensive plan.
2. Coordination of plans and policies to avoid overlapping projects;
3. Maintaining financial stability through fluctuations in the tax rate;
4. Lengthening available lead time to avoid last minute delays caused by technical difficulties and scheduling of resources;
5. Improvement of credit rating and interest savings; and
6. Enhancement of opportunities for state and federal grants.
Common elements involved in developing the capital improvements program include determining capital costs, translating capital costs to annual costs, comparing costs with available resources, determining priorities and developing the financial schedule. Cost estimates of capital improvements should be made by an engineer or architect. However, rules of thumb may be used for rough preliminary estimates. State and federal subsidies may reduce local costs. It is important to translate capital costs into 2 major elements of annual costs: annual debt service or borrowing costs (principal and interest) and the costs of operating the facility. Financing these costs may be accomplished through:
1. Payment from a special fund or reserve;
2. A pay-as-you-go approach through an annual appropriation;
3. The sale of general obligation or revenue bonds or notes or short term loans;
4. Donations;
5. Grants from state or federal source; or
6. A combination of the above methods.
Each year, the capital improvements program should be updated by omitting the first year and adding on a new ending year. A township may find priorities have shifted or new funds have been made available. Normally, the first year is used as a basis for the yearly capital budget.
Capital Budget. The capital budget is an outgrowth of the capital improvements program because it outlines those capital expenditures the township will be required to make in the coming year. Normally, a capital budget is set up a year at a time. Future planning decisions affecting the capital budget can be incorporated into the program merely by using the capital improvements program to establish priorities and change the budget as resources permit.
Contracts
There are 3 general types of contracts a municipality may enter into: a negotiated contract, a competitive bid contract and a contract for professional services. Negotiated contracts are permitted for all purchases and contracts not exceeding $10,000. The Second Class Township Code requires at least 3 written or telephone price quotations for contracts between $4,000 and $10,000.6 A written record of the price quotes must be made and retained on file for 3 years. Informal price quotes are not required for purchases below $4,000, but are a sound business practice. Contracts within certain specified categories for purchases above $4,000 are exempted from mandatory bidding and price quotation requirements.
For most purchases or contracts in excess of $10,000, a municipality must advertise for a competitive bid contract.7 Competitive bid contracts are basically of 2 types: a lump sum contract and a unit price contract. For both types of contracts, the board of supervisors must either accept the lowest bid or reject all bids.
The lump sum contract obligates the contractor to provide the goods or services according to the plans and specifications for a specified amount of money. The purchase of municipal road equipment is a good example of a competitive bid item for a lump sum amount.
The second type of competitive bid contract is the unit price contract. This contract is based on an estimate of unit prices for different types of materials to be supplied and it provides for payment to the contractor for each actual unit supplied at the agreed upon price. Bids are compared by the estimated quantities needed at the contractor’s proposed unit price.
As noted earlier in this handbook under surcharges, the board cannot waive the advertising requirements for competitive bids when the amount of the purchase or contract exceeds $10,000. Neither can the board contract for services on a piecemeal basis. Any supervisor who knowingly votes in violation of these provisions is subject to a surcharge of 10% of the full amount of the contract.
The third type of contract is for professional services. Regardless of the cost, professional services contracts are not required to be obtained through competitive bidding, although it is best to interview a number of applicants or entertain a number of proposals for professional services.
More complete information on purchasing requirements and procedures can be found in the Purchasing Handbook for Local Governments available from the Governor’s Center for Local Government Services.
Officers’ Bonds
It is the responsibility of the board of supervisors to designate the elected and appointed officials and employees of the township to be covered by a fidelity bond.8 The bond serves to protect the township from monetary loss either through dishonesty or willful neglect by officials and employees. Bonds in various amounts are offered by a number of surety companies. The solicitor of the township usually prepares or approves the form of the bond after the persons and the amounts have been determined.
The Second Class Township Code requires the treasurer and tax collector to be bonded. In the case of members of the board and other officials, the Code makes bonding permissive — in other words, the supervisors may bond these persons if they believe it is necessary. All township officials and employees who handle township funds should be bonded. The amount of the bond should correspond to the amount of money the individual handles. Bonding requirements should be reviewed and obtained on an annual basis. The form of the bond should be reviewed by the solicitor to determine if the bond’s provisions are in the township’s best interests. Blanket bonds, which list all bonded employees and the amount of their bond on a single form, thus reducing paperwork are available. These bonds are generally less expensive than purchasing a series of individual bonds.
The township pays the premiums on all bonds for its officers and employees. The premium of the tax collector’s bond is shared by all taxing districts in proportion to the amount shown on their tax duplicates. Some counties have instituted countywide bidding for all tax collector bonds.
Municipal Borrowing
All township borrowing, including the issuance of tax anticipation notes, is governed under the Local Government Unit Debt Act.9 Before entering into any borrowing arrangement, the legal and financial details should be worked out with the municipal solicitor, a bond counsel or other financial consultant. Borrowing actions in excess of $100,000, or 30% of the borrowing base, must be approved by the Office of Chief Counsel, Department of Community and Economic Development. The Local Government Unit Debt Act sets the non-electoral debt limit for townships at 250% of the average total revenues for the past 3 years and establishes important procedural requirements for incurring debt.
Major provisions of the Local Government Unit Debt Act are listed below:
1. No limit is established on electoral debt.
2. Bond anticipation notes may be issued to obtain funds pending the sale of long-term bonds or notes.
3. Bonds or notes may be sold at public or private sales.
4. The maturity date on bonds and notes may not be more than 40 years or the life of the project being financed, whichever occurs first.
5. Debt repaid solely from rents and other user fees (self-liquidating debt) is not subject to the debt limit.
6. Temporary indebtedness, such as tax and revenue anticipation loans, may not exceed 85% of the outstanding anticipated tax revenues and must be repaid during the fiscal year it is incurred.
7. A municipality in financial crisis may be able to issue unfunded debt to meet financial obligations.
For additional information on municipal borrowing, please consult the Debt Management Handbook available from the Governor’s Center for Local Government Services.
Pension Funding
Townships are authorized to create pension funds for their employees or to join the Pennsylvania Municipal Employees Retirement System. Townships with 3 or more full-time police officers must establish a police pension fund. The Municipal Pension Plan Funding Standard and Recovery Act requires municipalities to fully meet the actuarial funding requirements of their pension plans.10 Municipalities are required to include the minimum municipal pension obligation in their annual budgets. If the municipality fails to make timely payment into the pension fund it is subject to interest penalties. The Act also provides for state aid to all municipal employees’ pensions.
References
1. 53 P.S. 68205; Second Class Township Code, Section 3205.
2. 53 P.S. 6901; Local Tax Enabling Act.
3. 53 P.S. 68202; Second Class Township Code, Section 3202.
4. 53 P.S. 66508; Second Class Township Code, Section 1508; Turner v. Cheltenham Township, 19 D.&C.2d 105, at 112, 1958, C.P. Montgomery Co.
5. 53 P.S. 68205; Second Class Township Code, Section 3205.
6. 53 P.S. 68102(b); Second Class Township Code, Section 3102(b).
7. 53 P.S. 68102(a); Second Class Township Code, Section 3102(a).
8. 53 P.S. 65502; Second Class Township Code, Section 502.
9. 53 P.S. 6780-1; Local Government Unit Debt Act.
10. 53 P.S. 895.101; Municipal Pension Plan Funding Standard and Recovery Act.

VI. Municipal Services
Before the middle of the twentieth century, township services were generally restricted to the maintenance of roads. The growth and dispersal of population in the past few decades has placed greater demands on townships by citizens desiring increased public services. The Second Class Township Code has been amended frequently to provide authorizations for townships to meet these needs. The municipal services now provided by second class townships cover a much wider range than in the past. Small, rural townships may still do very little other than maintain roads, but large townships located in urban and suburban areas often provide the same services as large boroughs and cities.
Roads
Statewide, maintenance of roads is still the primary function of townships. Townships maintain more than 52,000 miles of roads in Pennsylvania. In 1998, expenditures for streets and roads constituted 25% of all township expenditures. Over 33% of township road expenditures were met from liquid fuels funds.
The Code imposes explicit duties on the supervisors to keep the roads open.1 Supervisors have a statutory duty to repair and maintain public roads and this duty can be enforced by the courts.2 While the Code requires townships to keep roads and bridges in repair and roads free of obstructions, the courts have declared that townships do not have an enforceable duty to inspect, install and replace road signs, or to clear vegetation obstructing views at an intersection.3 These activities, while authorized by the Code, are discretionary on the part of townships. However, the courts have been moving toward requiring a greater level of care on the part of all local governments and a township’s statutory responsibilities should not be taken lightly.
In many rural townships, supervisors actively work on the roads, serving as roadmasters or laborers. Second class townships are the only form of government which allows this practice, however, there is no requirement for supervisors to work on the roads. More townships are appointing road foremen and laborers who are not elected officials, but whose work is directed by the board of supervisors.
The Code contains extensive provisions for laying out, opening and repairing roads. A valuable overview of these functions is the Maintenance Practices for Local Roads, distributed by the Office of Research, P