HomeMy WebLinkAbout1353 TrexlerIn Re: Carol Trexler
File Docket:
X -ref:
Date Decided:
Date Mailed:
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Daneen E. Reese
Donald M. McCurdy
Paul M. Henry
Raquel K. Bergen
03 -047
Order No. 1353
2/28/05
3/14/05
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding a possible violation of the Public Official and Employee Ethics
Act, Act 9 of 1989, P.L. 26, 65 P.S. § 401 et seq., as codified by Act 93 of 1998, Chapter
11, 65 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the commencement of
its investigation, the Investigative Division served upon Respondent written notice of the
specific allegation(s). Upon completion of its investigation, the Investigative Division
issued and served upon Respondent a Findings Report identified as an "Investigative
Complaint." An Answer was filed and a hearing was waived. The record is complete. A
Consent Agreement and Stipulation of Findings were submitted by the parties to the
Commission for consideration. The Stipulation of Findings is quoted as the Findings in
this Order. The Consent Agreement was subsequently approved.
Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter
11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989
and provides for the completion of pending matters under Act 93 of 1998.
This adjudication of the State Ethics Commission is issued under Act 93 of 1998
and will be made available as a public document thirty days after the mailing date noted
above. However, reconsideration may be requested. Any reconsideration request must be
received at this Commission within thirty days of the mailing date and must include a
detailed explanation of the reasons as to why reconsideration should be granted in
conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the
finality of this adjudication but will defer its public release pending action on the request by
the Commission.
The files in this case will remain confidential in accordance with Chapter 11 of Act
93 of 1998. Any person who violates confidentiality of the Ethics Act is guilty of a
misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than
one year. Confidentiality does not preclude discussing this case with an attorney at law.
Trexler, 03 -047
Page 2
I. ALLEGATION:
That Carol Trexler, a (public official /public employee) in her capacity as a treasurer/
tax collector for South Whitehall Township, Lehigh County, violated Sections 1103(a)
provisions of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. § 1103(a) when she used
the authority of her office for a private pecuniary gain by charging tax certification fees in
excess of the fee approved by the township board of commissioners and retained the
additional fees for personal use.
II. FINDINGS:
1. Carol Trexler has served as the elected treasurer for South Whitehall Township.
2. As tax collector /treasurer for South Whitehall Township Trexler collects real estate
and per capita taxes from township residents for the township, Parkland School
District and Lehigh County.
3. Compensation for the position of tax collector /treasurer is set by South Whitehall
Township, the Parkland School District and Lehigh County.
4. Real estate tax certifications are required by title /abstract companies as part of real
estate closing documents.
a. Closing companies pay the fees charged by tax collectors for tax
certifications as a cost of doing business.
5. A real estate tax certification gets initiated as a result of a request submitted to the
tax collector by an individual, title /abstract company or law firm on behalf of a client.
a. The tax collector would research collection records and provide the
requesting party with a certification indicating whether or not the real estate
taxes were paid on the subject property.
6. Tax Collectors generally charge a fee for this service which is set by ordinance or
resolution of the municipality.
7 The South Whitehall Township Board of Commissioners unanimously approved
Ordinance No. 500 at their February 19, 1991, meeting, establishing a fee of $10.00
for tax certifications.
8. Sewer and water certifications are also sought by title /abstract companies or law
firms when completing real estate transactions.
a. The township charges a fee for issuing these certifications.
9. Township files include ordinance number 419 enacted on July 21, 1987, which
established a $10.00 fee for water and sewer certifications.
a. Water and sewer account certifications are handled by the township's
administrative staff.
b. The elected tax collector /treasurer plays no role in the certification of water
and sewer accounts.
10. On January 1, 2002, Trexler circulated a memo to various title /abstract companies
advising that Phyllis Long was no longer the treasurer of South Whitehall Township.
Trexler's memo noted, "Checks should be made payable to Carol A. Trexler,
Treasurer, when requesting tax certifications and lien certifications with the fees
Trexler, 03 -047
Page 3
remaining at $10.00."
11. From January 2002 until March 7, 2002, Trexler provided tax certifications to
companies and individuals requesting information for a fee of $10.00 for a current
years certification that taxes were paid consistent with the $10.00 fee established
by ordinance number 500 enacted February 19, 1991.
12. Trexler approached Township Manager Gerald Gasda to discuss increasing the tax
certification fee on or about March 7, 2002.
13. Gasda was unaware of the need for a resolution or ordinance by the board of
commissioners authorizing the increase when he was approached by Trexler.
a. Gasda did not object to Trexler increasing the fee based on his lack of
knowledge of the legal requirements for such a change to be made.
b. Gasda did not have authority to authorize her to charge added fees.
14. On or about March 7, 2002, Trexler distributed a memo to companies who had
ordered real estate tax certifications informing them that the cost of tax certifications
was changed to $20.00.
15. Trexler's decision to increase the tax certification fee was based upon her
discussion with the township manager.
16. South Whitehall Township Manager Gerald Gasda and the township commissioners
received complaints from title /abstract companies regarding Trexler increasing the
tax certification fees.
17. As a result of complaints from various title companies over the increase, Manager
Gasda and the township solicitor researched the topic.
a. Manager Gasda was unable to find any authorization for the tax collector to
charge a real estate tax certification fee.
b. Township Ordinance Number 500 establishing a $10.00 real estate tax
certification fee was not in the township's codified ordinance book at the time
of Gasda's record review.
1. An executed copy of this ordinance was eventually located in
township archives.
c. Gasda's research found that prior tax collectors Phyllis Long and
Christopher Haines each charged $10.00 per tax certification.
18. On May 22, 2002, Township Manager Gasda issued a memo to Treasurer Trexler
outlining Trexler's responsibilities to collect taxes personally or with the assistance
of an authorized deputy treasurer. Gasda went on to inform Trexler that she was
not authorized to charge a tax certification fee. On this point, Gasda specifically
wrote:
a. "I have been recently advised by the solicitor's office that there is no
authorization for the Treasurer to charge a fee for tax certification unless that
fee is authorized by municipal ordinance. This action is established by a
1988 Commonwealth Court decision Allen v. State Ethics Commission,
(Opinion and Order filed at No. 1790 CD 1988, PA Commonwealth June 10,
1988). I have searched the Township Codified Ordinances and have found
Trexler, 03 -047
Page 4
that there is no ordinance authorization for the assessment of a tax
certification fee by the Treasurer. You are, consequently, not permitted to
charge any fee for tax certifications.
You may request that the Board of Commissioners enact an ordinance,
which would allow you to charge a fee for tax certifications.
I recognize that this is contrary to the information on this topic which we
discussed several months ago when you changed the fee from the $10.00
that was charged by your predecessor to your current charge, which
believe is $20.00.
Because tax collectors are municipal officers, the municipality has the power
to establish fees for services of its officers."
19. Trexler responded to Gasda's May 22, 2002, memo with a memo dated May 23,
2002, relating to the tax certification issue.
a. Trexler informed Gasda of her understanding of the tax certification fees
historically charged by her predecessors.
Phyllis Long $ 10.00 each, 4 years
Christopher Haines $ 10.00 each, 8 years
Albert Haines $ 5.00 each
b. Trexler went on to indicate that on March 7, 2002, Gasda said she could
charge $20.00 per tax certification.
c. Trexler requested that an ordinance be in place as soon as possible to
authorize the fee of $20.00 for each certification."
20. As a result of Trexler's concerns over her compensation, the following series of
memos were exchanged between Trexler and township officials.
a. May 30, 2002: Memo from Manager Gasda to Commissioner Gary R.
Search outlining the compensation for the Treasurer.
The Parkland School District pays the SWT Treasurer a flat fee of
$16,520.00 per year. This fee is fixed for each year of the four -year term of
office. The school district also provides the treasurer with the same package
of benefits that are provided to Parkland School District Employee.
The County of Lehigh pays the SWT Treasurer a fee based on the number
of bills that are processed the fee schedule is as follows:
$3.00 for the first 1,000 bills
$2.25 for bills 1,001 to 3,001
$1.75 for the remaining bills
Additionally, the treasurer is compensated $0.50 for each bill that is paid
electronically by a mortgage company.
The gentleman at Lehigh County that I spoke to advised me that the
Treasurer is budgeted to receive $13,935 this year from Lehigh County.
This commission is paid in the form of a bi- weekly draw of $455.58 which
presumably represents what was described as An 85% draw against
commission" with settlement on the difference occurring at the end of the
fiscal year."
The Total Approximate Compensation for the SWT Treasurer is:
Trexler, 03 -047
Page 5
g.
South Whitehall Township
Parkland School District
Lehigh County
Total Compensation
$10,000
$16,520 plus benefits
$13,935
$40,455 plus benefits
Trexler asserts that the Parkland School District paid the South
Whitehall Township Treasurer a total salary of $7,624.56 during the
year 2002 plus Blue Cross /Blue Shield health benefits. The total
salary in 2002 was $28,102.90 before taxes.
ii. Trexler further asserts that during the years 2003 and 2004 the total
salary from Parkland School District was $16,519.88 with Blue Cross
and Blue Shield health benefits.
b. June 5, 2002: Memo from Manager Gasda to Treasurer Trexler regarding
assessing fees for returned checks. Gasda informed Trexler that she was
not permitted to deduct bank fees from tax revenues collected.
c. June 18, 2002: Correspondence from Attorney Timothy I. Siegfried to the
South Whitehall Township Board of Commissioners requesting authorization
for Trexler as tax collector to charge $20 per tax certification issued.
Attorney Siegfried included a draft resolution for board consideration.
d. July 2, 2002: Memo from Manager Gasda to the board of commissioners
regarding fees charged by Lehigh County Tax Collectors for tax certifications
and tax bill duplicates. Gasda found out that all other Lehigh County tax
collectors charged $10.00 per tax certification and $2.00 for a tax bill
duplicate.
Trexler asserts that Whitehall Township, in Lehigh County, charged
$20.00 for tax certifications.
e. July 10, 2002: Correspondence from Attorney Siegfried to township solicitor
Blake C. Marles requesting a meeting to discuss issues between the
township and the tax collector.
f. August 16, 2001 (2002): Memo from Manager Gasda to the board of
commissioners providing a chronology of his involvement with Trexler's
efforts to increase the tax certification rate to $20 per certification. Gasda
included a copy of his May 22, 2002, correspondence to Trexler. Gasda
recalled discussing the increase with her in March (2002) and communicated
with her that Gasda wasn't aware of any regulation prohibiting her from
increasing the tax certification rate to $20. After learning from Solicitor
Marles that an ordinance was needed he reviewed the township ordinance
book and found no approval. Gasda indicated he conveyed this to Trexler
on May 22, 2002. Gasda went on to indicate that Trexler never was advised
that there was an ordinance or other document allowing her to charge
$10.00 and she was not to charge any fee until she had an approved
ordinance.
Phyllis Long was the treasurer of Whitehall Township in August 2001.
September 18, 2002: Memo from Gasda to the Board of Commissioners
informing them that Trexler is still collecting $20.00 per tax certification even
though the board approved amount is $10.00.
Trexler, 03 -047
Page 6
h. September 19, 2002: File notes on problems title companies have been
having getting certifications from Trexler.
Buyers Settlement /Hamilton Abstract — sending $20.00, from the beginning
she would return the checks if they were only $10.00. Very emphatic that
they must be made payable to her personally — they do not do that with any
tax collector, they are always made payable to a tax collector's name and
title. When they call her she is very nasty — he has been waiting 2 to 3
weeks for tax certs and has not received them yet — she won't help so they
try to have the sellers bring the tax info to settlement — Oliver told me she
has sent nasty letters to them concerning the checks they mail her— Dennis
Hinkle had called him about her and Oliver had sent him copies of the nasty
letters.
North American Abstract — very difficult to get hold of — very unprofessional
Associated Abstract — does not return calls — they are still sending $20.00 —
even notified otherwise.
Imperial Abstract — still sending $20
Total Tax Certificates — July — 35 @ $20.00 = $700.00
August — 3 7 @ $20.00 = $740.00
September 1 -18 -24 @ $20.00 = $480.00
Crest Abstract — still sending $20.00 — problems with her returning
certifications on a timely basis - emphatic regarding payable to her
personally, no title -nasty on the phone — does not return calls.
Penn Title — sending $20.00 per tax cert — have not been informed otherwise
— when a title clerk called her on 9/17/02 — she started ranting how she had
to be out of the office because she had to find a new attorney, etc. she
wouldn't stop talking about it.
Carol Trexler asserts that title company tax certifications were put on
hold until closure came regarding the tax certification fee charge.
She further asserts that attorney Timothy Seigfried verbally advised
her to hold tax certifications until South Whitehall Township found the
ordinance regarding the tax certification fee charges. This resulted in
a delay of several weeks regarding disbursement of tax certifications.
21. In addition to the correspondence detailed in the previous findings the topic of
Trexler's receipt of real estate tax certifications fees were discussed during South
Whitehall Township meetings throughout 2002.
22. South Whitehall Township board of commissioners meeting minutes include the
following discussions and official actions on tax certification fees charged by
Treasurer Trexler.
a. July 17, 2002: Attorney Rod Fluck appeared before the board seeking
approval from the Board for Treasurer Trexler to charge $20.00 per tax
certification and $5.00 for a duplicate tax bill. A discussion followed
regarding rates charged by surrounding municipalities, hours worked by and
complaints made against Trexler. The commissioners decided to table the
request until all five (5) members were present to discuss it.
Present: Gary Search, Larry Bernhard, Steven Seyer
Absent: Martha Nolan, Renato Rodriquez
Trexler, 03 -047
Page 7
b. August 21, 2002: Citizen complaints about tax collectors office hours.
Attorney Timothy Siegfried appeared before the board to discuss a proposed
ordinance to increase the tax certification fee from $10.00 to $20.00 with a
$5.00 fee for the duplicates. It was the consensus of the board that staff
should prepare an ordinance establishing a tax certification fee at $10.00
and a returned check fee at the current bank rate with no inclusion of the
requested $5.00 tax duplication fee. Attorney Siefried requested the Board
work with him to resolve their issues with Treasurer Trexler.
Present: Search, Rodriquez, Bernard, Seyer
c. September 4, 2002: Citizens complaints about relocating the tax collector
office from the township building to the Wehr Dam Hall Building. Complaints
about Trexler's office hours. Attorney Siegfried appeared again on behalf of
Trexler to address township issues with Trexler. Commissioner search
called for Trexler to resign if the job is to "tedious" for her. The
commissioners then approved ordinance number 764 which amended
ordinance number 630. Ordinance 630 established fees for permits,
licenses, service charges, zoning board subdivision, and land development
applications. Ordinance 764 established a $10 per property tax certification fee
and a returned check charge at the same rate charged to the tax collector by the
bank. Commissioners Bernhard, Nolan and Search voted to approve this
amendment.
23. Official action taken by the South Whitehall Township Board of Commissioners on
September 4, 2002, approving Ordinance 764 re- established the tax certification
rate of $10.00 each established on February 19, 1991, as a result of Ordinance
500.
a. Township officials were unaware of the existence of Ordinance 500 at the
time they enacted Ordinance No. 764.
24. As a result of Ordinance No. 764 companies including Crest Abstract and Hamilton
Abstract went back to paying $10.00 per certification in October 2002.
a. After the September 4, 2002, township meeting during which the tax
certification fee was set at $10.00, Trexler continued to request the $20.00
fee she was accustomed to receiving.
b. Abstract companies complied with Trexler's demands since they needed the
certifications to do business by paying the $20.00 fee.
25. The following list of companies and law firms have obtained real estate tax
certifications from South Whitehall Township tax collector /treasurer Carol Trexler
since at least March 7, 2002.
Steckel & Stopp, Esquire Crest Abstract Company
4331 Route 309, P.O. Box 216 4457 Crackersport Road
Schnecksville, PA 18078 -0216 Allentown, PA 18104
Imperial Abstract Company Commerce Settlement Services
1425 Hamilton Street 7540 Windsor Drive, Suite 50
Allentown, PA 18102 Allentown, PA 18195
Advanced Abstract Penn Title
33 South Seventh Street 3015 College Heights Blvd
Allentown, PA 18101 Allentown, PA 18104
Traditions Settlement Services Real Estate Settlement Services
Trexler, 03 -047
Page 8
1611 Pond Road, Suite 200
Allentown, PA 18104 -2258
Tallman, Hudders & Sorrentino
1611 Pond Road, Suite 300
Allentown, PA 18104 -2258
Hometown Abstract, Inc.
3021 College Heights Blvd.
Allentown, PA 18104
North American Abstract Co.
5925 West Tilghman St., Suite 90
Allentown, PA 18104
Turtle Abstract Company
2310 Walbert Avenue, Suite 103
Allentown, PA 18104
207 North 19 Street
Allentown, PA 18104
Buyers Settlement Services, Inc.
207 North 19 Street
Allentown, PA 18104
Hamilton Abstract Co.
207 North 19 Street
Allentown, PA 18104
Associated Abstract
4101 Tilghman Street
Allentown, PA 18104
Realty Abstract, Inc.
779 Third Street
Whitehall, PA 18052
26. Trexler was entitled to receive a fee of $10.00 per tax certification provided as a
result of township ordinances 500 and 764.
a. Since March 7, 2002, Trexler regularly received a fee of $20.00 per tax
certification.
27. Business records of companies and law firms who obtained tax certifications from
Trexler confirm the following annual amounts paid directly to Trexler since January
2002, in excess of the authorized amount:
2002
2003
2004
TOTAL
$ 2,420
$ 3,630
$ 1,650
$ 7,700
28. South Whitehall Township sewer and water certification numbers mirror real estate
tax certifications for property transactions which result in a title transfer.
a. Not all title, abstract and /or other closing agencies require a water and sewer
certification on a mortgage refinancing since no property title ownership is
changing.
b. Water and sewer certifications are required by all of these companies when
property title /ownership changes.
c. Sewer and water certifications are issued by property address.
29. South Whitehall Township's water and sewer certification numbers should equal or
exceed the number of real estate tax certifications that were issued since January
2002.
a. Township staff confirmed that water and sewer certificates are issued in
conjunction with tax certifications issued as part of real estate transactions.
1. Water and sewer certifications are not usually issued as part of
mortgage refinancing.
b. Real estate tax certifications should equal or exceed the number of water
and sewer certificates issued annually due to mortgage refinancing which
does not require the water /sewer certifications.
c. Township staff confirm that there are no instances when sewer and water
Trexler, 03 -047
Page 9
certifications should exceed the number of tax certifications.
30. Business records of South Whitehall Township reflect the following number of
sewer and water certifications issued since January 2002.
a. 2002: 475
b. 2003: 586
c. 2004 to August 19: 352
31. South Whitehall Township sewer and water certification issued since January 2002
have exceeded confirmed real estate tax certifications by 541. The following details
the difference between township sewer /water certifications and real estate tax
certifications issued by Trexler.
a. Year Sewer /Water Real Estate Difference
2002 475 321 154
2003 586 382 204
2004 (to August 19) 352 169 183
541
32. At a rate of $20.00 per certification, this creates additional income of $10,820 (541 x
$20) and an additional unauthorized amount of $5,410.00.
33. Trexler received the $20.00 fee for tax certifications until early April 2004.
III. DISCUSSION:
Respondent, Carol Trexler, (also referred to herein as "Respondent" or "Trexler "),
has at all times relevant to these proceedings been a public official subject to the
provisions of the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65
Pa.C.S. § 1101 et seq., which Act is referred to herein as the "Ethics Act."
The allegation is that Trexler, as Treasurer /Tax Collector for South Whitehall
Township, Lehigh County, violated Section 1103(a) of the Ethics Act when she used the
authority of her office for a private pecuniary gain by charging tax certification fees in
excess of the fee approved by the township board of commissioners and retained the
additional fees for personal use.
Section 1103(a) of the Ethics Act provides:
§ 1103. Restricted activities
(a) Conflict of interest. - -No public official or public
employee shall engage in conduct that constitutes a conflict of
interest.
65 Pa.C.S. § 1103(a).
The term "conflict of interest" is defined in the Ethics Act as follows:
§ 1102. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employee of the authority of his office or
employment or any confidential information received through
his holding public office or employment for the private
pecuniary benefit of himself, a member of his immediate family
Trexler, 03 -047
Page 10
or a business with which he or a member of his immediate
family is associated. "Conflict" or "conflict of interest" does not
include an action having a de minimis economic impact or
which affects to the same degree a class consisting of the
general public or a subclass consisting of an industry,
occupation or other group which includes the public official or
public employee, a member of his immediate family or a
business with which he or a member of his immediate family is
associated.
65 Pa.C.S. §1102.
Section 1103(a) of the Ethics Act prohibits a public official /public employee from
using the authority of public office /employment or confidential information received by
holding such a public position for the private pecuniary benefit of the public official /public
employee himself, any member of his immediate family, or a business with which he or a
member of his immediate family is associated.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are reproduced above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
As Treasurer /Tax Collector for South Whitehall Township ( "Township "), Trexler is
responsible for collecting real estate and per capita taxes for the Township, Parkland
School District ( "School District "), and Lehigh County ("County "). The Township, School
District and County set the compensation for the Tax Collector/Treasurer.
One of the functions associated with the position of Tax Collector is to provide real
estate tax certifications to individuals, title /abstract companies or law firms. Tax
certifications are required by title /abstract companies as part of real estate closing
documents and are paid for by closing companies as a cost of doing business. Upon
request, the Tax Collector researches collection records and provides a certification
indicating whether the real estate taxes have been paid on the subject property. The Tax
Collector charges a fee for providing tax certifications, which fee is set by ordinance or
resolution of the municipality.
At its February 19, 1991, meeting, the Township Board of Commissioners unanimously
approved Ordinance No. 500, which established a fee of $10.00 for tax certifications (see,
Finding 7). That authorized fee amount remained constant throughout the time period
under review.
From January 1, 2002, to March 7, 2002, Trexler charged $10.00 for each tax
certification consistent with Ordinance No. 500 of 1991. On or about March 7, 2002,
Trexler approached Township Manager Gerald Gasda ( "Gasda ") to discuss increasing the
tax certification fee. Gasda was not aware that Trexler would need authorization from the
Board of Commissioners to increase the tax certification fee and therefore did not object to
Trexler taking such action. That same day, Trexler distributed a memorandum to
companies that had ordered real estate tax certifications informing them that the fee for tax
certifications was now $20.00.
After Trexler circulated her March 7, 2002, memorandum, Gasda and the Township
Commissioners started to receive complaints from title /abstract companies regarding the
$20.00 tax certification fee, prompting Gasda and the Township Solicitor to conduct an in-
depth review of the matter. Initially, Gasda was unable to find any authorization for the
township tax collector to charge a tax certification fee because Ordinance 500 of 1991 was
in archives and not in the Township's codified ordinance book at the time of Gasda's
Trexler, 03 -047
Page 11
search. Gasda was only able to determine that prior tax collectors had charged $10.00 per
tax certification.
On May 22, 2002, Gasda sent Trexler a memorandum informing her that he had
been advised by the Township Solicitor that based upon a prior case, she was not
authorized to charge a tax certification fee because there was no ordinance authorizing
same. Gasda advised Trexler that she could ask the Board of Commissioners to enact an
ordinance authorizing her to charge a tax certification fee (see, Finding 18).
In response to Gasda's May 22, 2002, memorandum, Trexler requested that an
ordinance be passed as soon as possible to authorize a fee of $20.00 for each certification
(see, Finding 19).
On September 4, 2002, the Township Board of Commissioners, being unaware of
Ordinance No. 500 of 1991, passed Ordinance No. 764 of 2002 re- establishing the tax
certification rate of $10.00 per tax certification (see, Finding 23). Nevertheless, Trexler
continued to charge $20.00 per tax certification.
From March 7, 2002, until early April 2004, Trexler continuously charged and
received $20.00 for each tax certification issued (see, Findings 26, 33).
Sewer and water certifications, which are issued by the Township's administrative
staff without any involvement by the Treasurer /Tax Collector, are required by title /abstract
companies and other closing agencies for property transactions that result in title transfers.
There are no instances where the number of sewer and water certifications issued should
exceed the number of tax certifications issued (see, Finding 29(c)).
During 2002, 2003, and part of 2004, 1,413 sewer /water certifications were issued
by the Township administrative staff: 475 in 2002; 586 in 2003; and 352 from January
through August 19, 2004. Based upon the Stipulated Findings, this leads to the necessary
conclusion that at least 1,413 tax certifications were issued at or about the same time (see,
Findings 29(b), (c)).
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
"3.
The Investigative Division will recommend the following in relation to
the above allegations:
a. That a violation of Section 1103(a), of the Public Official and
Employee Ethics Law, 65 Pa. .S. § 1103(a) occurred in
relation to Trexler charging and retaining tax certification fees
in excess of the fee approved by the township board of
commissioners during the period from September 4, 2002,
through April 2004.
b. Trexler did not violate the Public Official and Employee Ethics
Law regarding excess tax collection certification fees prior to
September 4, 2002, as she believed that all such fees
collected had been authorized.
4. Trexler agrees to make payment in the amount of $10,000 in
settlement of this matter payable to the Commonwealth of
Pennsylvania and forwarded to the Pennsylvania State Ethics
Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
Trexler, 03 -047
Page 12
5. Trexler agrees to issue tax certifications at the rate authorized by
township ordinance and to cease and desist from collecting any
amounts in excess thereof.
6. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; and make no
specific recommendations to any law enforcement or other authority
to take action in this matter. Such, however, does not prohibit the
Commission from initiating appropriate enforcement actions in the
event of Respondent's failure to comply with this agreement or the
Commission's order or cooperating with any other authority who may so
choose to review this matter further."
Consent Agreement, paragraphs 3 -6.
In considering paragraph 3(a) of the Consent Agreement quoted above, it is clear
that the elements for a violation of Section 1103(a) of the Ethics Act have been
established. Trexler charged and retained tax certification fees in excess of the fee
approved by the Township Board of Commissioners during the period from September 4,
2002, through April 2004. But for the fact that Trexler was the Township Tax
Collector /Treasurer, she would not have been in a position to charge and collect fees for
real estate tax certifications during that time. Such uses of authority of office resulted in a
private pecuniary benefit to Trexler consisting of tax certification fees in excess of the
$10.00 rate established by Township Ordinance. The pecuniary benefit was private
because there is no authorization in law for a Township Tax Collector /Treasurer to charge
tax certification fees in excess of the amount authorized by the municipality. Accordingly,
we conclude that the application of the law to the facts before us supports a determination
that a violation of Section 1103(a) of the Ethics Act occurred in relation to Trexler charging
and retaining tax certification fees in excess of the fee approved by the Township Board of
Commissioners during the period from September 4, 2002, through April 2004. The
resulting private pecuniary benefit was in excess of $10,000.
We shall now consider paragraph 3(b) of the Consent Agreement quoted above.
Based upon the Stipulated Findings, it would appear to be the view of the parties that prior
to September 4, 2002, Trexler, being unaware of the existence of Ordinance No. 500 of
1991, and relying upon her March 7, 2002, conversation with Gasda, believed that she
was authorized to charge $20.00 per tax certification. However, Trexler is presumed to
know the law. We will treat paragraph 3(b) of the Consent Agreement as a non pros by the
Investigative Division within the context of a comprehensive settlement of this case.
Therefore, we find no violation of the Ethics Act as to the excess tax certification fees
charged by Trexler prior to September 4, 2002, based upon a non pros by the Investigative
Division.
We shall now consider the parties' recommendation as to restitution. (See, 65
Pa.C.S. § 1107(13)). In settlement of this matter, Respondent has agreed to make
payment in the amount of $10,000.00 to the Commonwealth of Pennsylvania, with such
payment to be forwarded to this Commission within thirty (30) days of the issuance of the
final adjudication in this matter.
In considering the above recommendation, the $10,000.00 of restitution proposed
by the Consent Agreement is less than the total private pecuniary benefit that Respondent
received from the aforesaid violation of Section 1103(a) of the Ethics Act, but that amount
has been agreed to by both parties in the context of a settlement.
Finally, Paragraph 5 of the Consent Agreement quoted above includes a
requirement that Respondent Trexler agrees to issue tax certifications at the rate
authorized by Township Ordinance and to cease and desist from collecting any amounts in
Trexler, 03 -047
Page 13
excess thereof. Given that Trexler continued to charge $20.00 per tax certification despite
the passage of Ordinance No. 764 of 2002, we believe that the inclusion of this
recommendation of the Consent Agreement is necessary.
We determine that the Consent Agreement submitted by the parties sets forth the
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances. Accordingly, Trexler is directed to pay
restitution in the amount of $10,000.00 to the C ommonwealth of Pennsylvania through this
Commission by no later than the thirtieth (30`") day after the mailing date of this Order.
Trexler is further directed to cease and desist from collecting any tax certification amounts
in excess of the rate authorized by the Township. Compliance with the foregoing will result
in the closing of this case with no further action by this Commission. Noncompliance will
result in the institution of an order enforcement action.
IV. CONCLUSIONS OF LAW:
1. Carol Trexler ( "Trexler "), as Treasurer /Tax Collector for South Whitehall Township
( "Township "), Lehigh County, was at all times relevant to these proceedings a
public official subject to the provisions of the Ethics Act.
2. Trexler violated Section 1103(a) of the Ethics Act when she charged and retained
tax certification fees in excess of the fee amount approved by the Township Board
of Commissioners during the period from September 4, 2002, through April 2004.
3. Trexler did not violate Section 1103(a) of the Ethics Act regarding excess tax
certification fees charged prior to September 4, 2002, based upon a non pros by the
Investigative Division.
In Re: Carol Trexler
ORDER NO. 1353
File Docket: 03 -047
Date Decided: 2/28/05
Date Mailed: 3/14/05
1 Carol Trexler ( "Trexler "), as Treasurer /Tax Collector for South Whitehall Township
( "Township "), Lehigh County, violated Section 1103(a) of the Ethics Act when she
charged and retained tax certification fees in excess of the fee amount approved by
the Township Board of Commissioners during the period from September 4, 2002,
through April 2004.
2. Trexler did not violate Section 1103(a) of the Ethics Act regarding excess tax
certification fees charged prior to September 4, 2002, based upon a non pros by the
Investigative Division.
3. Per the Consent Agreement of the parties, Trexler is directed to make payment in
the amount of $10,000.00 to the Commonwealth of Pennsylvania through this
Commission by no later than the thirtieth (30 day after the mailing date of this
Order.
4. Per the Consent Agreement of the parties, Trexler is directed to cease and desist
from collecting any tax certification amounts in excess of the rate authorized by the
Township.
a. Compliance with the foregoing will result in the closing of this case with no
further action by this Commission.
b. Non - compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
Louis W. Fryman, Chair