Yesterday’s article looked at economic development corporations. Today, the focus will be on the municipal authority. Here is the reference (click on the picture to read or download):

“Although local government plays a role in the creation of an authority, and appoints the members of its board, the authority is not part of the municipal government. An authority is not the creature, agent or representative of the municipality, but is an independent agency of the Commonwealth.”

According to the borough Website, “The Columbia Borough Municipal Authority is made up of 5 members appointed by Borough Council.” The members of the Authority are: Breneman Shultz, Jr – Chair; Ray McCarty- Vice Chair; Michael Schober – Secretary/Treasurer; Joseph Schauren – Assist. Sec/Treas. and William Kloidt – Member.

A municipal authority differs from a municipal government in a number of significant ways:

1. A municipal government is a “general purpose” unit of government, exercising powers of both a governmental and entrepreneurial nature. It has residual police powers to protect the public safety, health and general welfare. By contrast an authority exercises a limited entrepreneurial power only.
2. A municipal governing body is elected and subject to the express wishes of the voters. An authority board is appointed and thus some distance removed from the voters. An authority can raise and spend money without reference to the immediate wishes of the electorate, while government officials raising and spending money must face the voters at the next election.
3. A municipality has the power to tax and raise additional revenues through a wide variety of franchise fees, rents, user fees and service charges. Authorities are limited to the revenues generated by their project such as user charges, connection fees and special assessments.
4. Operating under the Municipality Authorities Act, authorities are free of many of the restraints that state law imposes on the administrative, budgetary and personnel practices of municipalities under the various municipal codes. While the Act does impose some restraints on the operations of an authority they are not as pervasive as those included in the municipal codes.
5. Most municipal authorities concentrate on a single service while municipalities offer a multitude of services. As limited by its articles of incorporation, an authority is restricted as to the functions it may perform and is relatively free as to the methods it may use in providing those services or functions. On the other hand, municipalities have multiple responsibilities. Municipal officials are relatively free in determining the services to be rendered but they are more restricted as to the methods employed in carrying out their activities.

Municipal authorities resemble municipal governments in some ways.

1. They are exempt from taxation. This exemption applies to property owned and transactions conducted by the authority. Furthermore, interest on authority bonds is excluded from state and federal income taxes.
2. Authorities may levy and enforce special assessments against properties served.
3. Authorities possess the power of eminent domain to acquire real estate.
4. Municipal authorities may participate in the Pennsylvania Municipal Retirement System.
5. Authorities and municipalities are both subject to general state laws protecting the public interest, including the Sunshine Law, the Open Records Act and the State Ethics Act.

[The following information about the Columbia Municipal Authority is located at the “ordinances” tab. HISTORY: The Municipal Authority was adopted by the Borough Council of the Borough of Columbia 11-13-1950 by Ord. No. 231 (Appendix Part II of the 1971 Code). Amendments noted where applicable.]

The Chief Burgess, the President of the Borough Council and the Secretary of the Borough Council are hereby authorized and directed to execute on behalf of the Borough of Columbia Articles of Incorporation in substantially the following form:

ARTICLES OF INCORPORATION
To the Secretary of the Commonwealth of Pennsylvania:
In compliance with the requirements of the Act of May 2, 1945, P.L. 382, known as the “Municipality Authorities Act of 1945,” as amended, the municipal authorities of the Borough of Columbia, Lancaster County, Pennsylvania, desiring to incorporate an Authority thereunder, do hereby certify:
(a)	The name of the Authority is “Columbia Municipal Authority.”
(b)	Said Authority is formed under the provisions of the Act of May 2, 1945, P.L. 382, known as the “Municipality Authorities Act of 1945,” as amended.
(c)	No other Authority has been organized under the said Municipality Authorities Act of 1945, or under the Act approved the 28th day of June 1935, P.L. 463, or is in existence in or for the Borough of Columbia, Pennsylvania.
(d)	The name of the incorporating municipality is the Borough of Columbia, Lancaster County, Pennsylvania