C.A. Blesse v. Borough of Coaldale ( 2016 )


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  •               IN THE COMMONWEALTH COURT OF PENNSYLVANIA
    Charles A. Blesse, Keith A. Krapf,       :
    and Todd Weiss,                          :
    Appellants            :
    :   No. 1448 C.D. 2015
    v.                           :
    :   Argued: March 7, 2016
    Borough of Coaldale                      :
    BEFORE:     HONORABLE PATRICIA A. McCULLOUGH, Judge
    HONORABLE ANNE E. COVEY, Judge
    HONORABLE DAN PELLEGRINI, Senior Judge
    OPINION NOT REPORTED
    MEMORANDUM OPINION
    BY JUDGE McCULLOUGH                                            FILED: May 2, 2016
    Charles A. Blesse, Keith A. Krapf, and Todd Weiss (Appellants) appeal
    from the July 13, 2015 order of the Court of Common Pleas of Schuylkill County
    (trial court), which granted the Borough of Coaldale’s (Borough) motion for
    summary judgment and dismissed Appellants’ complaint alleging that the Borough’s
    furlough of the police department did not constitute a good faith reduction due to
    economic reasons.
    Facts and Procedural History
    By letters dated February 14, 2012, the Borough advised Appellants that
    it was reducing its police force by three full-time officers for budgetary reasons and,
    pursuant to section 1190(d) of the Borough Code (Code),1 this objective shall be
    accomplished by furloughing the individuals most recently appointed to the force
    until the reduction is achieved. On August 28, 2013, Appellants filed a complaint in
    mandamus and for declaratory relief, seeking to recover for lost wages and benefits
    and alleging that the Borough violated section 1190 of the Code because the furlough
    did not constitute a good faith reduction due to economic reasons. The Borough filed
    an answer and new matter, denying the material allegations of Appellants’ complaint
    and alleging, inter alia, that Appellants failed to state a claim upon which relief could
    be granted.
    On March 10, 2015, after the parties had completed discovery, the
    Borough filed a motion for summary judgment, alleging that judgment as a matter of
    law was proper because the undisputed record evidence demonstrates that the
    furlough caused a reduction in the total amount of hours the police department
    worked and that the Borough realized a savings in its budget. Appellants filed a brief
    in opposition to the Borough’s motion, arguing that they produced sufficient evidence
    of the Borough’s bad faith to raise a genuine issue of a material fact and preclude
    entry of summary judgment.
    Discovery
    Charles Blesse (Blesse) testified that the Borough hired him as a part-
    time patrol officer in September 2006 and promoted him to full-time status in
    October 2008. Blesse confirmed that he was furloughed effective March 1, 2012, and
    reinstated to a full-time position in April 2014. Blesse stated that he first became
    aware that the Borough was considering furloughing police officers in January 2012
    1
    8 Pa.C.S. §1190(d).
    2
    when, during collective bargaining negotiations between the Borough and the local
    Fraternal Order of Police (FOP) representative, the Borough’s attorney advised the
    FOP representative that the police must accept a reduction in wages and benefits or
    the police department would look significantly different. Blesse testified that the
    Borough Council2 subsequently voted to furlough Appellants, effective March 1,
    2012. (Reproduced Record (R.R.) at 43a-44a, 60a.)
    Blesse acknowledged that he never discussed the possibility of a
    furlough with the Borough Council or the Mayor after meeting with the Borough’s
    attorney, but stated that he believed the furlough was a personal vendetta against the
    police department. Specifically, he explained that Sergeant Krapf had been injured
    responding to a call and, consequently, there had been some external discussion
    regarding whether the call was handled properly. Blesse stated that the discussion
    was largely generated by two individuals, Mayor Corkery and Councilman Yelito.
    However, Blesse conceded that he became aware of the alleged discussion only
    through word of mouth. (R.R. at 44a.)
    Blesse testified that, prior to the furlough, the police department
    consisted of eight police officers; four full-time officers and four part-time officers.
    Blesse confirmed that the police department provided coverage twenty-four hours a
    day, seven days a week before the furlough. However, after the furlough, Blesse
    testified that the police department consisted of seven part-time officers and one full-
    time officer, the Police Chief. He stated that the Borough hired new officers to the
    part-time roster following the furlough, but noted that the Borough did not provide
    police coverage twenty-four hours a day, seven days a week after the furlough.
    Blesse also stated that, when a shift became available that needed to be covered, a
    2
    The Borough is governed by a seven-member council. See 8 Pa.C.S. §813.
    3
    preexisting part-time officer would be called instead of him. He speculated that this
    occurred because there was a vendetta against him and the other former full-time
    officers. According to Blesse, the Borough’s police department was not reduced in
    size after the furlough. Instead, he testified that the Borough’s budget remained
    essentially the same and that the number of officers actually increased. Blesse further
    testified that the layoffs did not occur because of budgetary reasons; rather, the
    layoffs arose from issues related to failed collective bargaining negotiations with the
    Borough. (R.R. at 45a-49a.)
    Keith Krapf (Krapf) testified that he was hired as a part-time patrol
    officer in June 2004, that he was promoted to full time in September 2005, and that
    he was promoted to sergeant in 2007. Krapf confirmed that he was furloughed in
    March 2012 and that, prior to the furlough, the Borough’s police department
    consisted of eight officers. Krapf stated that he first became aware that the Borough
    was considering the furlough of police officers during contract negotiations between
    the Borough and the FOP.        He explained that the prior collective bargaining
    agreement between the FOP and the Borough expired at the end of 2011, but testified
    that the new collective bargaining agreement had been agreed to and was nearly
    complete in December 2011, when the FOP agreed to meet with the Borough. At the
    meeting, Krapf explained that the Borough’s attorney withdrew the proposed deal and
    stated that, if the police officers wanted to remain employed, they must accept a
    reduction in wages and benefits or the police force would look completely different in
    a week. Krapf testified that the FOP rejected the Borough’s terms and the Borough
    Council subsequently voted to furlough the police officers. Krapf noted that the FOP
    was authorized and willing to further negotiate with the Borough; however, the
    Borough did not continue negotiations with the FOP. (R.R. at 51a-54a, 60a-61a.)
    4
    Krapf stated that, following the furlough, the police department
    consisted of nine officers but only the Police Chief remained full time. He further
    stated that the Borough did not provide police coverage twenty-four hours a day,
    seven days a week after the furlough and noted that the state police would respond to
    emergency calls if a Borough officer was absent. Krapf explained that his wages and
    benefits were reduced after the furlough and testified that the Borough Council
    maintained that financial issues were the reason for the furlough; however, Krapf
    stated that he did not believe the Borough’s purported rationale because the police
    department’s budget and expenditures were consistent with past years and certain
    employees received wage raises after the furlough, including preexisting part-time
    officers. Moreover, he testified that the collective bargaining agreement was virtually
    complete when the Borough revoked the agreement and proposed new terms, that a
    Borough secretary advised him that the Borough was not in financial hardship, and
    that the police force was not reduced because it had more officers after the furlough
    than before. (R.R. at 55a-57a, 61a.)
    Krapf further testified that he was never formally offered a part-time
    position with the police department. Instead, he explained that the Police Chief
    generated a new schedule and advised him that the preexisting part-time officers
    would be scheduled for a minimum of thirty-two hours per week and the remaining
    hours would be distributed between the remaining officers; however, the remaining
    officers were prohibited from working more than thirty-two hours and usually only
    worked eight or sixteen hours per week. Krapf stated that he inquired with the Police
    Chief numerous times about scheduling, but the Police Chief advised Krapf that he
    was doing what he was told. Krapf testified that he had heard that the Borough
    Council and Mayor were directing the Police Chief to schedule the hours that way
    because they did not like him. Krapf could not say why they did not like him, but
    5
    speculated that it was because he had arrested the Mayor before he held office and
    arrested Councilman Yelito’s girlfriend before he was elected. Krapf noted that a
    subsequent arbitration award mandated that certain officers be scheduled for thirty-
    two hours per week and that he was ultimately reinstated to a full-time position in
    April 2014. (R.R. at 58a-59a, 62a.)
    Todd Weiss (Weiss) testified that the Borough hired him as a part-time
    officer in 1985 and promoted him to full-time criminal investigator in July 2007.
    Weiss confirmed that he was furloughed in March 2012 for purported budgetary
    reasons; however, he testified that he believed he was furloughed because the
    Borough did not care for any of the full-time officers. Weiss explained that it was his
    understanding that the Borough and the FOP had finalized a new collective
    bargaining agreement in December 2011, but noted that he received a letter in
    January 2012 scheduling a meeting with the Borough to discuss contract negotiations.
    Weiss further explained that, at the meeting, the Borough’s attorney stated that the
    police officers could accept reduced wages and benefits or the police force would
    look entirely different on March 1, 2012.        He noted that the FOP rejected the
    Borough’s demands and Appellants were furloughed effective March 1, 2012. (R.R.
    at 76a-80a.)
    Weiss further testified that he believed that the FOP’s rejection of the
    Borough’s terms was the reason for the furlough. However, Weiss acknowledged
    that he did not discuss the reasons for the furlough with the Mayor or any member of
    the Borough Council. He stated that he did not believe the police force was actually
    reduced after the furlough because the hours were not reduced; instead, the hours
    were redistributed to other officers, usually the preexisting part-time officers. Weiss
    noted that the preexisting part-time officers advised him that they had been told that
    they would be promoted to full-time work once the existing full-time officers were
    6
    gone. Weiss also noted that the Police Chief was responsible for generating the
    officers’ schedule, but at some point the Mayor took over scheduling duties and, after
    the furlough, he was prohibited from working more than thirty-two hours per week.
    Weiss testified that he was ultimately reinstated to a full-time position in April 2014.
    (R.R. at 78a-80a.)
    Thomas Keerans (Keerans) testified that he was elected to the Borough
    Council in 2008, that he was a member of the Borough’s finance committee
    throughout his tenure, and that he had been a member of the Borough’s police
    committee through 2013.       Keerans stated that the police committee negotiates
    contracts with the FOP and attempted to negotiate a new contract in 2011. He
    explained that, at the end of 2011, the Borough had approved a new agreement with
    the FOP but, before the FOP could approve the contract, the Borough withdrew its
    approval.   Keerans stated that the Borough withdrew its approval because of
    budgetary woes; specifically, Keerans testified that the Borough was borrowing more
    money every year and could not afford all of the police officers’ salaries and benefits.
    He further testified that the Borough met with the FOP and advised the officers that
    changes must be made or they would likely be furloughed. (R.R. at 143a-44a.)
    Keerans testified that a meeting occurred between the police committee,
    the Borough’s attorney, and the FOP.        Keerans stated that, at the meeting, the
    Borough’s attorney advised the FOP that the officers must accept a reduction in
    wages and benefits or the police department would look substantially different as of
    March 1, 2012. He further testified that the Borough Council voted to furlough three
    full-time officers at a February 14, 2012 council meeting. Keerans confirmed that the
    officers were furloughed because of budgetary reasons; specifically, he stated that the
    Borough was operating in the red. (R.R. at 147a-48a.)
    7
    Keerans explained that the Borough had exhausted a $60,000.00 line of
    credit, had borrowed funds via a tax anticipation loan to maintain the Borough
    government, and had terminated two full-time employees in the Borough’s streets
    department. Keerans estimated that the Borough was approximately $100,000.00
    over budget and was borrowing money from a sewer maintenance account. Keerans
    noted that an increase in workers’ compensation insurance premiums, fuel costs, and
    inflation contributed to the Borough’s decision to furlough the officers. However, he
    acknowledged that the Borough’s revenue increased approximately $200,000.00 from
    2010 to 2011, that the Borough’s Secretary received a raise in 2012, and that the
    Borough had spent approximately $30,000.00 in capital improvements during 2012.
    (R.R. at 144a-48a.)
    Timothy Delaney (Delaney), the Borough’s Police Chief, testified that,
    prior to February 2012, the police officers’ schedules were consistent; that is, Krapf
    worked second shift, Blesse worked nightshift, and Weiss worked during the
    weekends and would cover shifts as necessary. Delaney explained that part-time
    officers would be used if full-time officers were on vacation, using leave time, or if
    more than one officer was required. Delaney stated that he was responsible for
    generating the schedule. However, he noted that, after the furlough, he was advised
    to schedule Appellants for only eight or sixteen hours per week. Delaney testified
    that he did not comply with the scheduling directive initially; however, the Mayor
    and members of the Borough Council advised him that if he did not comply he would
    be laid off. (R.R. at 212a-17a.)
    Delaney further testified that he had conversations with the Mayor prior
    to the furlough and it was his understanding that only one officer would be
    furloughed.    He also stated that he discussed the possibility of furloughs with
    members of the Borough Council and concluded that the furlough was intended to
    8
    single out Krapf.     Delaney explained that members of the Borough Council
    frequently encouraged him to suspend Krapf and ordered him to investigate whether
    Krapf had committed acts of misconduct.          Delaney confirmed that Krapf had
    previously issued a citation to the Mayor and noted that Krapf had raised the issue of
    Councilman Yelito’s eligibility to hold office with the Attorney General’s Office
    because of a prior felony conviction. (R.R. at 218a-28a.)
    Delaney confirmed that the Borough purported to furlough Appellants
    for budgetary reasons, but stated that he believed the actual reason for the furlough
    was because it was the only way the Borough could get rid of Krapf. Delaney stated
    that he asked the Borough Council numerous times to identify the shortage in the
    budget, but was only advised that the police department was bankrupting the
    Borough; however, he noted that the Borough Council never gave him any specific
    information regarding how or why the Borough was bankrupt. (R.R. at 227a-233a.)
    Scott Cramer (Cramer) testified that he was employed as a part-time
    patrolman for the Borough from September 2007 to February 2013. He stated that he
    was scheduled to work approximately thirty-two hours per week before the furlough
    and would occasionally work more but, after the furlough, he regularly worked more
    than thirty-two hours per week. Cramer also stated that the Mayor advised him that
    new full-time officers would be hired after the furlough and that he wanted Cramer to
    be a full-time officer. Cramer testified that the Mayor also advised him that it was his
    desire to permanently remove Krapf from the police department and noted that
    Councilman Yelito was present for some of these conversations. He further testified
    that, after the furlough, the Mayor was responsible for generating the schedule and,
    consequently, the officers’ schedules changed dramatically; specifically, he noted that
    Appellants usually worked only one day per week. He confirmed that there were
    occasions after the furlough where the state police were required to cover a shift for
    9
    the Borough and testified that this did not occur prior to the furlough. (R.R. at 279a,
    286a-89a, 292a-93a.)
    Joseph Krebs (Krebs) testified that he was hired as a part-time police
    officer for the Borough in April 2011 to work at least thirty-two hours per week. He
    stated that he received an increase in wages and hours when Appellants were
    furloughed.     Krebs explained that the Mayor was responsible for generating the
    schedule after the furlough and Appellants were only authorized to work two days a
    week. Krebs stated that the Mayor met with him to discuss scheduling and advised
    him that he was being given scheduling preference over Appellants, but did not
    mention any budget issues. He also stated that Councilman Yelito was present for
    some scheduling meetings, that they would frequently discuss Krapf, and that they
    gave Krebs the impression that he would ultimately be hired for a full-time position.
    (R.R. at 311a, 315a-317a, 322a-37a.)
    Susan Solt (Solt) testified that she was the president of the Borough
    Council from 2001 through 2012 and served on every committee. Solt stated that it
    was brought to the Borough Council’s attention before formulating the 2012 budget
    that the Borough had insufficient funds and, as such, she voted to furlough
    Appellants. She explained that the Borough depended on lines of credit and tax
    anticipation loans to operate so the finance committee suggested making changes to
    balance the budget. However, Solt conceded that subsequent Borough budgets also
    included a line of credit and tax anticipation loan similar to those that prompted the
    furlough. (R.R. at 353a, 357a-59a, 369a-70a.)
    Joe Hnat (Hnat) testified that he was a member of the Borough Council
    from 1998 through December 2012. He stated that the Borough Council voted to
    furlough three full-time police officers based on information from the finance
    committee that the Borough did not have sufficient funds to continue operating the
    10
    police force in the same capacity. Hnat further testified that he voted to furlough
    Appellants based on the finance committee’s recommendation, but conceded that he
    did not look at any specific item in the proposed budget to confirm the finance
    committee’s representation. (R.R. at 382a-83a, 385a, 389a, 393a.)
    David Yelito (Yelito) testified that he was elected to the Borough
    Council for a four-year term in January 2010 and confirmed that he served on the
    finance and police committees during his tenure. He stated that he largely relied on
    the Borough Secretary when formulating the Borough’s budget, but testified that he
    also considered the Borough’s spending habits when formulating the 2012 budget;
    specifically he stated that the lines of credit and tax anticipation loans were a
    significant problem and he was concerned with whether the Borough had sufficient
    funds to balance its budget. Yelito testified that the Borough owed over $300,000.00
    and that it had been borrowing money for years from sewer maintenance fees but
    failed to replace the borrowed monies. He further testified that a previous Borough
    Council had used a “special formula” line item that indicated that approximately
    $40,000.00 was available to the Borough; however, Yelito said that he was advised
    that the monies did not actually exist. Yelito confirmed that he voted to furlough
    three full-time officers and two other Borough employees, but denied advising
    Cramer or Krebs that they would eventually be hired as full-time officers. (R.R. at
    411a-12a, 417a, 420a-30a, 441a-42a.)
    Nancy Lorchak (Lorchak) testified that she served on the Borough
    Council from 2008 through 2015. Lorchak stated that she served on the finance and
    police committees during her tenure on the Borough Council. She confirmed that she
    voted to furlough three full-time police officers in February 2012 based on
    recommendations from the Borough’s attorney and the police committee that the
    Borough could not afford the proposed contract with the police.            Lorchak
    11
    acknowledged that the Borough had been operating at the same level for the past few
    years, but stated that the decision to furlough Appellants was motivated by a
    substantial increase in insurance charges. Lorchak testified that the Borough tried to
    renegotiate health benefits, but the FOP rejected the Borough’s terms because the
    health benefits were not the same or better than what was offered in the previous
    contract. She also noted that the FOP did not request arbitration to resolve the
    contract dispute in late 2011. Lorchak acknowledged that the Borough had given
    employees raises notwithstanding the Borough’s budget concerns. (R.R. at 469a-70a,
    473a-75a, 478a, 486a-88a, 494a, 504a.)
    Michael Doerr (Doerr) testified that he began serving on the Borough
    Council in January 2012. He stated that he voted to furlough three full-time officers
    in February 2012 because Yelito had advised him that the Borough was in financial
    ruin and would be bankrupt if the furlough was not performed. Doerr acknowledged
    that he did not review any documentation prior to the vote and relied on what Yelito
    had told him when he made his vote. (R.R. at 511a-515a.)
    Richard Corkery (Corkery) testified that he served as mayor of the
    Borough from January 2010 until early 2014. He stated that he had no involvement
    with the police department’s schedule prior to the furlough; however, Corkery
    testified that, after the furlough, he was responsible for scheduling and the only
    parameters were to schedule the state police for ten shifts a month and the three
    furloughed officers for thirty-two hours per week. He explained that Yelito gave him
    the scheduling parameters and noted that he had no conversations with any Borough
    Council members about the budget prior to the furlough; however, he noted that the
    Borough Council had advised him that it was going to vote regarding a possible
    furlough because the Borough was bleeding money and some drastic personnel action
    had to be taken. Corkery acknowledged that there had been no budget issues during
    12
    his first two years as mayor and confirmed that he had expressed concerns to Police
    Chief Delaney about Krapf’s attitude. (R.R. at 535a-38a, 542a-44a.)
    Trial Court’s Decision
    By order dated July 13, 2015, the trial court granted the Borough’s
    motion for summary judgment and dismissed Appellants’ complaint. In its opinion,
    the trial court reasoned that the testimony supporting Appellants’ assertion that the
    Borough acted in bad faith was “speculative, unreliable and formed from personal
    opinions suggesting bias and prejudice.” (Trial court op. at 7.) The trial court
    rejected the relevant testimony as “not credible” and determined that the “credible
    evidence establishes that various council members had legitimate concerns that ‘there
    was no money.’” Id. Accordingly, the trial court concluded that “the only logical
    conclusion based on the credible evidence is that the [Appellants] were laid off in
    good faith . . . .” Id. at 8.
    Discussion
    On appeal to this Court,3 Appellants argue that the trial court committed
    an error of law when it made factual and credibility determinations at the summary
    judgment stage. In response, the Borough argues the undisputed record evidence
    indicates that the furlough was due to economic reasons because it realized economic
    savings and its police department worked less hours after the furlough than before.
    Additionally, the Borough asserts that this Court should affirm the trial court’s order
    3
    This Court’s standard of review of a trial court’s order granting summary judgment is de
    novo and our scope of review is plenary. Pentlong Corp. v. GLS Capital, Inc., 
    72 A.3d 818
    , 823 n.6
    (Pa. Cmwlth. 2013). The trial court’s order will be reversed only if it committed an error of law or
    an abuse of discretion. Davis v. Brennan, 
    698 A.2d 1382
    , 1383 n.1 (Pa. Cmwlth. 1997).
    13
    on alternative grounds because the testimony the trial court deemed not credible
    contemplates only immaterial facts and is not sufficient to preclude entry of summary
    judgment.
    Pursuant to the Pennsylvania Rules of Civil Procedure, summary
    judgment is proper when there is no genuine issue of any material fact and the
    moving party is entitled to judgment as a matter of law. Pa.R.C.P. No.1035.2(1). A
    party is only entitled to judgment as a matter of law when the entire record
    establishes that the moving party’s right to relief is clear and free from doubt.
    Edinger v. Borough of Portland, 
    119 A.3d 1111
    , 1113 n.3 (Pa. Cmwlth. 2015). The
    court must view the evidence in the light most favorable to the non-moving party and
    resolve any doubt regarding the existence of a genuine issue of material fact against
    the moving party. Royal v. Southeastern Pennsylvania Transportation Authority, 
    10 A.3d 927
    , 929 n.2 (Pa. Cmwlth. 2010). The moving party has the burden of proving
    the non-existence of any genuine issue of material fact. O’Rourke v. Department of
    Corrections, 
    730 A.2d 1039
    , 1041 (Pa. Cmwlth. 1999). For purposes of summary
    judgment, “a factual issue is considered material if its resolution could affect the
    outcome of the case under the governing law.” McCarthy v. City of Bethlehem, 
    962 A.2d 1276
    , 1278 (Pa. Cmwlth. 2008) (internal quotation omitted).             It is well
    established that the credibility of testimony is a matter for the fact-finder and cannot
    be resolved at the summary judgment stage. Department of Transportation v. UTP
    Corp., 
    847 A.2d 801
    , 806 (Pa. Cmwlth. 2004); see also Nanty-Glo Borough v.
    American Surety Co., 
    163 A. 523
    , 524 (Pa. 1932).
    Here, the record contains conflicting testimony regarding the Borough’s
    motivation for furloughing the police department.        The trial court rejected the
    testimony supporting Appellants’ position as not credible and concluded that “the
    only logical conclusion based on the credible evidence is that the [Appellants] were
    14
    laid off in good faith . . . .” (Trial court op. at 8) (emphasis added). As noted above,
    it is well settled that the credibility of testimony is a matter for the fact-finder and
    cannot be resolved at the summary judgment stage. UTP Corp, 
    847 A.2d at 806
    .
    Accordingly, the trial court committed an error of law when it made credibility
    determinations at the summary judgment stage.
    Notwithstanding the trial court’s improper credibility determinations, the
    Borough argues that the trial court’s order should be affirmed on alternative grounds
    because the testimony the trial court deemed not credible was not related to a material
    fact and the undisputed record evidence indicates that the furlough was due to
    economic reasons because it realized economic savings and its police department
    worked less hours after the furlough than before.
    Section 1190(d) of the Code states that:
    If, for reasons of economy or other reasons, it shall be
    deemed necessary by any borough to reduce the number of
    paid employees of the police or fire force, the borough shall
    furlough the person, including a probationer, last appointed
    to the respective force. The removal shall be accomplished
    by furloughing in numerical order commencing with the
    person last appointed until the reduction shall have been
    accomplished. In the event the police or fire force shall
    again be increased, the employees furloughed shall be
    reinstated in the order of their seniority in the service. This
    subsection as to reductions in force is not applicable to a
    chief of police.
    8 Pa.C.S. §1190(d) (emphasis added).
    This Court has stated that:
    The only limitation imposed on the power of a municipality
    to act in the reduction of its police civil service work force
    for economy or other reasons is that it must act in good
    faith. Thus, where there is affirmative evidence of bad faith
    on the part of municipal officials or where the facts show a
    patent attempt to avoid or circumvent civil service
    15
    positions, our Courts have held a municipality’s exercise of
    this power may be illegal.
    Kraftician v. Borough of Carnegie, 
    386 A.2d 1064
    , 1066 (Pa. Cmwlth. 1978)
    (emphasis added). To prevail in a challenge to a municipality’s reduction of its
    police force, the challenger must show sufficient evidence of bad faith to rebut the
    presumption that public officials acted with regularity. 
    Id.
     Absent evidence to the
    contrary, we must presume that public officials have acted with regularity. Gabriel v.
    Trinity Area School District, 
    350 A.2d 203
    , 205 (Pa. Cmwlth. 1976). Cf. Schauer v.
    Borough of Whitehall, 
    194 A.2d 318
    , 318 (Pa. 1963) (concluding that evidence
    supported finding that borough’s adoption of ordinance abolishing the chief of police
    position was not performed in good faith); Mack v. Hoover, 
    20 A.2d 757
    , 759 (Pa.
    1941) (holding that transfer of sanitary inspector to police sergeant for purported
    economic reasons was an attempt to circumvent civil service laws). Accordingly,
    whether the Borough acted in good faith when it furloughed Appellants is a material
    fact because it relates to whether the Borough’s exercise of power was lawful.
    Here, the record contains testimony challenging whether the Borough
    acted in good faith when it implemented the furlough. Delaney testified that Krapf
    had arrested the Mayor prior to his election and had reported Councilman Yelito to
    the Attorney General’s Office for a prior felony conviction. (R.R. at 225a-26a.)
    Delaney further testified that the Borough’s justification that the furlough was due to
    economic reasons was a façade to terminate Krapf because Delaney had inquired
    about the budget deficit numerous times but was provided no specific information
    regarding the Borough’s financial status.      (R.R. at 219a, 225a-26a.)     After the
    furlough, Delaney was advised to schedule Appellants for a maximum of sixteen
    hours per week. (R.R. at 215a.) When Delaney failed to comply with the scheduling
    order, the Mayor and members of the Borough Council advised him that he would be
    laid off if he did not comply. (R.R. at 212a-17a.) Additionally, after the furlough,
    16
    the preexisting part-time officers received an increase in wages and worked more
    hours than before the furlough. (R.R. at 286a, 314a-15a.) Similarly, the record
    evidence indicates that a tax anticipation loan and line of credit were the bases for the
    Borough’s financial concerns and motivated the furlough; however, the same tax
    anticipation loan and line of credit were used in the Borough’s subsequent budgets.
    (R.R. at 369a-71a.)
    Because the relevant testimony raises a genuine issue of material fact,
    which cannot be resolved by credibility determinations at the summary judgment
    stage, the trial court’s order is vacated and the matter is remanded for further
    proceedings consistent with the foregoing opinion.
    ________________________________
    PATRICIA A. McCULLOUGH, Judge
    Judge Wojcik did not participate in this case.
    Senior Judge Pellegrini concurs in result only.
    17
    IN THE COMMONWEALTH COURT OF PENNSYLVANIA
    Charles A. Blesse, Keith A. Krapf,       :
    and Todd Weiss,                          :
    Appellants            :
    :    No. 1448 C.D. 2015
    v.                           :
    :
    Borough of Coaldale                      :
    ORDER
    AND NOW, this 2nd day of May, 2016, the July 13, 2015 order of the
    Court of Common Pleas of Schuylkill County is vacated and this matter is
    remanded for further proceedings consistent with the foregoing opinion.
    Jurisdiction relinquished.
    ________________________________
    PATRICIA A. McCULLOUGH, Judge