73 Pa.C.S. Ch. 49

in effect

73 Pa.C.S. § 4901 Fiscal year, annual budget and regulation of appropriations.

(a) Fiscal year.--The fiscal year in townships of the first class shall begin on January 1 and end on December 31. (b) Annual budget.--The board of commissioners shall annually prepare a proposed budget for all funds for the ensuing fiscal year. The proposed budget shall reflect as nearly as possible the estimated revenues and expenditures of the township for the year for which the budget is prepared. (c) Notice of proposed budget.--Notice that the proposed budget is available for inspection and copying shall be published by the township in a newspaper of general circulation in accordance with the provisions of section 1107 (relating to legal advertising). The proposed budget shall be kept on file with the township secretary and be made available for public inspection and copying by the township secretary for a period of 20 days. The notice shall state the date fixed by the board of commissioners for adoption of the proposed budget, and notice shall be published at least 20 days prior to the time fixed by the board of commissioners for adoption of the proposed budget. A township may not prepare and advertise notice of a proposed budget when the budget is knowingly inaccurate. (d) Adoption of budget.--After the proposed budget has been available for public inspection for at least 20 days, the board of commissioners shall, after making revisions as appropriate, adopt the final budget not later than December 31. (e) Revision of budget.--Upon a revision of the proposed budget, if the estimated revenues or expenses in the budget will be increased more than 10% in the aggregate, or more than 25% on any individual item, over the proposed budget, it shall be presumed that the tentative budget was inaccurate, and the proposed budget may not be legally adopted with the increases unless the proposed budget is again advertised once, at least 10 days before adoption, and an opportunity given to taxpayers to examine the amended proposed budget. (f) Regulation of appropriations.--The tax levied by the board of commissioners shall be fixed, within the limit allowed by law, that together with other sources of revenue will meet and cover appropriations. The total appropriation may not exceed the revenues estimated as available for the fiscal year. If the money available from taxation and other sources is estimated to be in excess of the requirements of the ensuing fiscal year, an appropriation may be made for the payment of township orders or indebtedness of the previous years. A budget adopted in the December prior to the fiscal year to which the budget applies may be amended. (g) Supplemental appropriations.--The board of commissioners may at any time by resolution make supplemental appropriations for any lawful purpose from any money on hand or estimated to be received within the fiscal year and not appropriated to any other purpose, including the proceeds of any borrowing as authorized by law. Supplemental appropriations may be made whether or not an appropriation for that purpose was included in the original budget as adopted. (h) Transfers.--The board of commissioners may, by resolution, transfer unencumbered money from one township account to another, but no money may be transferred from the fund allocated for the payment of debts or from any fund raised by a special tax levy or assessment for a particular purpose. Transfers may not be made during the first three months of the fiscal year. No money may be paid out of the township treasury except upon appropriation made according to law.

73 Pa.C.S. § 4902 Budget amendment.

(a) General rule.--During the month of January next following a municipal election, the board of commissioners may amend the budget and the levy and tax rate to conform with the amended budget. A period of 10 days' public inspection at the office of township secretary of the proposed amended budget after notice by the township secretary to that effect is published once in a newspaper of general circulation, as provided in section 1107 (relating to legal advertising), shall intervene between the proposed amended budget and the amended budget's adoption. An amended budget must be adopted by the board of commissioners on or before the 15th day of February. (b) Limitation.--No proposed amended budget may be revised upward in excess of 10% in the aggregate or in excess of 25% of the amount of an individual item in the proposed amended budget.

73 Pa.C.S. § 4903 Uniform financial report and forms.

(a) Preparation of forms.--The uniform forms for the annual financial report required to be made by the township auditors or controller to the Department of Community and Economic Development shall be prepared by a committee consisting of four representatives from the Pennsylvania State Association of Township Commissioners and the Secretary of Community and Economic Development, or the secretary's agent or designee who shall be a person trained in the field of municipal finance. (b) Appointment of representatives.--The representatives of townships shall be appointed by the president of the Pennsylvania State Association of Township Commissioners. The representatives shall be chosen from among the finance officers or other officers of townships who have knowledge of fiscal procedures. As far as possible, the representatives shall be chosen to represent townships in the various population groups within the range of townships of the first class. The president of the organization shall supply to the Department of Community and Economic Development the names and addresses of the representatives immediately upon their appointment. (c) Expenses and meetings.--The representatives shall serve without compensation but shall be reimbursed by the Commonwealth for the necessary expenses incurred in attending meetings of the committee. The committee shall meet at the call of the Secretary of Community and Economic Development, or the secretary's agent or designee, who shall serve as chairperson of the committee. (d) Duties of secretary.--It shall be the duty of the Secretary of Community and Economic Development, or the secretary's agent or designee, to ensure that the forms required under this chapter are prepared in cooperation with the committee. In the event that the committee should for any reason fail to cooperate, the Secretary of Community and Economic Development, or the secretary's agent or designee, shall prepare the forms. After the forms are prepared, the Secretary of Community and Economic Development, or the secretary's agent or designee, shall issue the forms and distribute them annually, as needed, to the designated officers of each township. Cross References. Section 4903 is referred to in sections 2904, 2923 of this title.

73 Pa.C.S. § 4904 Appropriations not to be exceeded.

The township may not hire employees, purchase materials, execute contracts or issue orders for the payment of money if it would result in the total expenditure of money for a specific purpose to exceed the amount appropriated for that purpose.

73 Pa.C.S. § 4905 Investment of township funds.

(a) General rule.--The board of commissioners shall have power to provide for the investment of money in the general township fund or in special funds. (b) Sinking funds.--The board of commissioners shall have power to invest township sinking funds as authorized under 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing). (c) Investment standard.--The board of commissioners shall invest township funds consistent with sound business practices. (d) Restrictions.--The board of commissioners shall provide for an investment program subject to restrictions contained in this chapter and in any other applicable statute and any rules and regulations adopted by the board of commissioners. (e) Authorized investments.--In addition to investments authorized under the act of July 25, 1973 (P.L.217, No.53), entitled "An act authorizing cities of the first class and second class to invest all funds received and deposited with the city treasurer in certain commercial paper under certain terms and conditions; and providing for investment of public corporation or municipal authority funds," a township may invest in: (1) United States Treasury bills. (2) Short-term obligations of the United States Government or its agencies or instrumentalities. (3) Deposits in savings accounts or time deposits, other than certificates of deposit, or share accounts of institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are insured, and, for any amounts above the insured maximum, provided that approved collateral as provided by law shall be pledged by the depository. Those deposits are differentiated from savings or demand deposits as authorized by the act of July 25, 1973 (P.L.217, No.53). (4) Obligations of any of the following: (i) the United States of America or any of its agencies or instrumentalities backed by the full faith and credit of the United States of America; (ii) the Commonwealth of Pennsylvania or any of its agencies or instrumentalities backed by the full faith and credit of the Commonwealth; or (iii) a political subdivision of the Commonwealth of Pennsylvania or any of its agencies or instrumentalities backed by the full faith and credit of the political subdivision. (5) Shares of an investment company registered under the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 80a-1 et seq.), whose shares are registered under the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et seq.), provided that the only investments of that company are in the authorized investments for township funds listed in paragraphs (1), (2), (3) and (4), and both of the following conditions are met: (i) The investment company is managed in accordance with 17 CFR 270.2a-7 (relating to money market funds). (ii) The investment company is rated in the highest category by a nationally recognized rating agency. (6) Certificates of deposit purchased from institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are insured, and, for any amounts above the insured maximum, provided that approved collateral as provided by law shall be pledged by the depository. Certificates of deposit purchased from commercial banks shall be limited to an amount equal to 20% of a bank's total capital and surplus. Certificates of deposit purchased from savings and loan associations or savings banks shall be limited to an amount equal to 20% of an institution's assets minus liabilities. (7) An investment authorized under 20 Pa.C.S. Ch. 73 (relating to municipalities investments) shall be an authorized investment for a pension or retirement fund. (f) Powers of board of commissioners.--In making investments of township funds, the board of commissioners shall have authority to: (1) Permit assets pledged as collateral under subsection (e)(3), to be pooled in accordance with the act of August 6, 1971 (P.L.281, No.72), entitled "An act standardizing the procedures for pledges of assets to secure deposits of public funds with banking institutions pursuant to other laws; establishing a standard rule for the types, amounts and valuations of assets eligible to be used as collateral for deposits of public funds; permitting assets to be pledged against deposits on a pooled basis; and authorizing the appointment of custodians to act as pledgees of assets." (2) Combine money from more than one fund under township control for the purchase of a single investment if: (i) each of the funds combined for the purpose shall be accounted for separately; and (ii) the earnings from the investment are separately and individually computed and recorded and credited to the accounts from which the investment was purchased. (3) Join with one or more other political subdivisions and municipal authorities in accordance with 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental cooperation) in the purchase of a single investment, provided that the requirements of paragraph (2) are met. Cross References. Section 4905 is referred to in section 4341 of this title.

73 Pa.C.S. § 4906 Indebtedness and orders of previous years.

No order or indebtedness of a previous year may be paid out of the funds of a fiscal year, unless the funds available from taxation and other sources are estimated to be in excess of requirements for the current fiscal year. If the available funds are in excess of the current fiscal year requirements, an appropriation may be made for this purpose to the extent of the excess, or unless, after the close of the fiscal year, it shall be ascertained that the funds appropriated and available for the fiscal year are in excess of the amount required, in which case the surplus may be applied to the former orders of indebtedness.

73 Pa.C.S. § 4907 Disbursements to pay indebtedness.

(a) Procedure.--Disbursements in discharge of township indebtedness duly incurred shall be made by the township treasurer or the treasurer's deputy, by virtue of warrants or orders drawn on the treasurer by the order of the board of commissioners, signed by the president or vice president and attested to by the secretary or assistant secretary of the board. (b) Approval.--The board shall prescribe, by ordinance, the manner in which bills for township indebtedness shall be approved for payment.

73 Pa.C.S. § 4908 Tax levies.

(a) General rule.--The board of commissioners may levy taxes by resolution for taxes levied at the same rate as or a rate lower than the previous fiscal year, and by ordinance if the tax rate increases from the previous fiscal year. Taxes may be levied upon all property and occupations within the township made taxable for township purposes and subject to valuation and assessment by the county assessment office, for the following purposes and at the following rates: (1) An annual tax for general township purposes, not exceeding 30 mills, unless the board of commissioners by majority action shall, upon due cause shown by resolution, petition the court of common pleas for the right to levy additional millage for general revenue purposes. The court, after public notice as the court may direct and after hearing, may order a greater rate than 30 mills but not exceeding five additional mills to be levied. (2) The following: (i) An annual tax not exceeding three mills for the purpose of: (A) building and maintaining suitable places for the housing of fire apparatus; (B) purchasing, maintaining and operating fire apparatus; (C) making of appropriations to fire companies located inside or outside the township; (D) contracting with adjacent municipalities or volunteer fire companies in adjacent municipalities for fire protection; (E) the training of fire personnel and payments to fire training schools and centers; (F) the purchase of land upon which to erect a fire house; and (G) the erection and maintenance of a fire house or fire training school and center. (ii) The township may appropriate up to one-half, but not to exceed one mill, of the revenue generated from a tax under this clause for the purpose of paying salaries, benefits or other compensation of fire suppression employees of the township or a fire company serving the township. For any calendar year, the board of commissioners may waive the appropriation limitation under this subparagraph by resolution. (iii) If an annual tax for the purposes specified in this paragraph is proposed to be set at a level higher than three mills, the question shall be submitted to the voters of the township and the county board of elections shall frame the question in accordance with the election laws of this Commonwealth for submission to the voters of the township. (3) An annual tax, not exceeding one-tenth of one mill, for the purpose of caring for trees planted under the supervision of the shade tree commission and for the purpose of publishing notices of meetings to consider the planting, removing or changing of trees. In lieu of the tax provided for in this paragraph, the board of commissioners may, by specific appropriation, provide for the maintenance of shade trees by appropriation from the general fund of the township. (4) An annual tax so long as necessary for the purpose of procuring a lot or erecting a building on a lot for a municipal building and for the payment of indebtedness incurred in connection with procuring the lot or erecting the building. (5) An annual tax sufficient to pay interest and principal on indebtedness incurred under 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing) or any prior or subsequent act governing the incurrence of indebtedness of the township. (6) An annual tax not exceeding one-half of one mill to provide for pensions, retirement or the purchase of annuity contracts for township employees. This tax shall be kept in a separate fund and used only for the purposes provided in this paragraph. (7) (i) An annual tax not exceeding one-half mill for the purpose of supporting ambulance, rescue and other emergency services serving the township, except as provided in subsection (c). (ii) The township may appropriate up to one-half of the revenue generated from a tax under this clause for the purpose of paying salaries, benefits or other compensation of employees of an ambulance, rescue or other emergency service serving the township. For any calendar year, the board of commissioners may waive the appropriation limitation under this subparagraph by resolution. (8) An annual tax not exceeding five mills to create and maintain a revolving fund to be used in making permanent street, sidewalk, water supply or sewer improvements before the collection of all or part of the cost from property owners as otherwise authorized under this part. A revolving fund may also be used for the deposit of funds raised through the issuance of general obligation bonds of the township for the making of permanent street, sidewalk, water supply or sewer improvements. When all or part of the cost of the construction of a permanent street, sidewalk, water supply or sewer improvement is paid from the revolving fund and is later assessed and collected from property owners as otherwise authorized under this part, the collections shall be applied to the credit of the revolving fund to the extent of the withdrawal from the revolving fund for that purpose. (9) An annual tax sufficient for the purpose of constructing, maintaining and operating parks, recreation areas, facilities and programs or for paying the township's share of a joint action with one or more political subdivisions, in accordance with section 7306 (relating to joint ownership and maintenance). (b) Applicability.--This section does not include: (1) the levy of taxes upon particular districts or parts of a township for particular purposes; or (2) special levies otherwise provided for in this part. (c) Referendum.--The tax for supporting ambulance and rescue squads serving the township shall not exceed the rate specified in subsection (a)(7) except when the question is submitted to the voters of the township in the form of a referendum which will appear on the ballot in accordance with the election laws of this Commonwealth, in which case the rate shall not exceed three mills. The county board of elections shall frame the question to be submitted to the voters of the township in accordance with the election laws of this Commonwealth. Cross References. Section 4908 is referred to in sections 4912, 7301 of this title.

73 Pa.C.S. § 4909 Additions and revisions to duplicates.

(a) Reassessment.--If in a township there is any construction of a building or buildings not otherwise exempt as a dwelling after January 1 of any year and the building is not included in the tax duplicate of the township, the county assessment office shall, upon the request of the board of commissioners, direct the assessor in the county assessment office to inspect and reassess, subject to the right of appeal and adjustment by statute, the taxable property in the township to which major improvements have been made after January 1 of any year and to give notice of the reassessments within 10 days to the authority responsible for assessments, the township and the property owner. (b) Addition to duplicate.--The real property shall be added to the duplicate and shall be taxable for township purposes at the reassessed valuation for that proportionate part of the fiscal year of the township remaining after the property was improved. Any improvement made during the month shall be computed as having been made on the first day of the month. (c) Notice of taxes due.--A certified copy of the additions or revisions to the duplicate shall be furnished by the board of township commissioners to the township tax collector, together with the board's warrant for collection of the same, and within 10 days the township tax collector shall notify the owner of the property of the taxes due the township.

73 Pa.C.S. § 4910 Authority to levy, assess and collect mercantile and business privilege taxes on gross receipts.

Notwithstanding section 533(b) of the act of December 13, 1988 (P.L.1121, No.145), known as the Local Tax Reform Act, a township of the first class or a home rule municipality that previously had been a township of the first class and that has a population exceeding 70,000 which, before December 1, 1988, has levied, assessed or collected or provided for the levying, assessment or collection of a mercantile tax on gross receipts or parts of gross receipts may levy, assess and collect or provide for the levying, assessment or collection of mercantile and business privilege taxes on gross receipts or parts of gross receipts. This authority shall apply to the tax year beginning January 1, 1998, and to each tax year thereafter.

73 Pa.C.S. § 4911 Tax rates to be expressed in dollars and cents.

If the board of commissioners, by ordinance or resolution, fixes the rate of taxation for any year at a mill rate, the ordinance or resolution shall also include a statement expressing the rate of taxation in dollars and cents on each $100 of assessed valuation of taxable property.

73 Pa.C.S. § 4912 Special levies to pay indebtedness.

In addition to the levies provided for in section 4908 (relating to tax levies), when it is shown to the court that the debts due by a township exceed the amount which the board of commissioners may collect in any year by taxation, the court, after ascertaining the amount of indebtedness of the township, may, in an action of mandamus, direct the board of commissioners by special taxation to collect an amount sufficient to pay the debts. If the amount of the indebtedness is so large as to render it unadvisable to collect the entire amount in any one year, taking into consideration other necessary taxation, the court may direct the special taxes to be levied and collected during successive years as may be required for payment of the debt.

73 Pa.C.S. § 4913 Delivery of duplicates.

The board of commissioners shall, within 30 days after adoption of the budget or within 30 days after receipt of the assessment roll from the county, whichever is later, deliver a duplicate of the assessment of township taxes to the township tax collector, together with the board's warrant for collection of the taxes.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=73Fetched: 10/16/2026