Any county, borough, town or township shall have power to enter into contracts with the Department of Highways, and therein to agree to contribute moneys to the department for the construction and improvement of mileage, additional to that which can be improved in such county from Commonwealth moneys, and, for such purpose, any county, borough, town or township may incur or increase its indebtedness within the limits permitted by the Constitution of the Commonwealth.
36 P.S. § 252