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APPEAL AUDITOR'S REPORT MUNCY CREEK TOWNSHIP. MUNCY CREEK TOWNSHIP (02/11/87)

decided: February 11, 1987.

IN RE: APPEAL OF THE AUDITOR'S REPORT OF MUNCY CREEK TOWNSHIP. MUNCY CREEK TOWNSHIP, APPELLANT


Appeal from the Order of the Court of Common Pleas of Lycoming County in the case of In Re: Appeal of The Auditor's Report of Muncy Creek Township, No. 84-00646.

COUNSEL

John P. Campana, Groulx & Rudinski, for appellant.

Richard A. Gray, Mitchell, Mitchell & Gray, for appellee.

Thomas L. Wenger, Wix, Wenger & Weidner, for amicus curiae, Pennsylvania State Association of Township Supervisors.

Judges Craig, Doyle and Colins, sitting as a panel of three. Opinion by Judge Craig.

Author: Craig

[ 103 Pa. Commw. Page 608]

Muncy Creek Township appeals from an order of the Court of Common Pleas of Lycoming County affirming

[ 103 Pa. Commw. Page 609]

    the Muncy Creek Township auditors' surcharge against two of the township's supervisors. We affirm.

According to a stipulation of facts, the township supervisors, in 1983, approved the payment of a $798.30 premium on a health insurance policy for one of the supervisors. The supervisors also approved payment of a $541.85 premium on a life insurance policy for another supervisor. Neither one of the supervisors, for whom payment of the premium was authorized, was otherwise employed by the township. The auditors did not approve the insurance coverage and later surcharged the individual supervisors for the amount of the premium payments.

The township and the township supervisors appealed the surcharge, claiming that section 702 of the Second Class Township Code,*fn1 53 P.S. ยง 65713, authorizes the premium payments. The court of common pleas affirmed the surcharge because it determined that a township supervisor not otherwise employed by the township is not a person authorized to receive publicly-funded insurance coverage under section 702.

The township appeals from the court's determination contending that: (1) the court erred when it permitted the auditors to defend the surcharge and ultimately approved compensation to their attorney, and (2) the court improperly construed section 702 of the Second Class Township Code when it ruled that the supervisors were not authorized to appropriate public funds for health and life insurance contracts covering supervisors who are not otherwise employees of the township.

Preliminarily, the auditors maintain that the township's appeal should be dismissed because the township failed to preserve the issues raised in this appeal by filing motions ...


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