Skip to main content
Find a Lawyer

Pennsylvania Statutes Title 73 Pa.C.S.A. Townships § 4341. Operating reserve fund

Current as of January 01, 2026 | Updated by Findlaw Staff

(a) General rule.--The board of commissioners may create and maintain a separate operating reserve fund in order to:

(1) Minimize future revenue shortfalls and deficits.

(2) Provide greater continuity and predictability in the funding of vital government services.

(3) Minimize the need to increase taxes to balance the budget in times of fiscal distress.

(4) Provide the capacity to undertake long-range financial planning and to develop fiscal resources to meet long-term needs.

(b) Limitation on appropriations.--The board of commissioners may annually make appropriations from the general township fund to the operating reserve fund, but no appropriation may be made to the operating reserve fund if the effect of the appropriation would cause the operating reserve fund to exceed 25% of the estimated revenues of the township's general fund in the current fiscal year.

(c) Authorized purposes.--The board of commissioners may, at any time by resolution, make appropriations from the operating reserve fund for the following purposes only:

(1) Meet emergencies involving the health, safety and welfare of the residents of the township.

(2) Counterbalance potential budget deficits resulting from shortfalls in anticipated revenues or program receipts from any source.

(3) Counterbalance potential budget deficits resulting from increases in anticipated costs for goods or services.

(4) Provide anticipated operating expenditures related either to the planned growth of existing projects or programs or to establish new projects or programs if, for a project or program, appropriations have been made and allocated to a separate restricted account established within the operating reserve fund.

(d) Investment authorized.--The operating reserve fund shall be invested, reinvested and administered in a manner consistent with the provisions of section 4905 (relating to investment of township funds).

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Pennsylvania Statutes Title 73 Pa.C.S.A. Townships § 4341. Operating reserve fund - last updated January 01, 2026 | https://codes.findlaw.com/pa/title-73-pacsa-townships/pa-csa-sect-73-4341/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard