As released by the Office of the Governor.
Harrisburg – Governor Tom Corbett today announced that Department of Community and Economic Development (DCED) Secretary C. Alan Walker has determined that Westfall Township’s status as a distressed municipality is rescinded under Act 47.
“Today we recognize the positive steps taken by Westfall Township to get its fiscal house in order and exit Act 47,” Gov. Corbett said. “With fiscal distress in the rearview mirror, this community can look to the future as we continue to build healthy communities in a stronger Pennsylvania.”
The Westfall Board of Supervisors requested rescission from Act 47, stating that the township is able to meet its expenses and provide essential services to residents and therefore, is no longer a distressed municipality. Sec. Walker has determined that Westfall Township has met the criteria for a rescission of its Act 47 status as provided for in both Section 253 and the Policy Statement of the Act.
Westfall Township was designated as distressed under Act 47 on April 14, 2009. The determination followed the township filing a Voluntary Chapter 9 Bankruptcy Petition in the United States Bankruptcy Court for the Middle District of Pennsylvania on April 10, 2009 due to an unfavorable judgment to resolve 20 years of legal, financial, zoning and other disputes with local real estate developers in the amount of more than $20 million.
Working with the Act 47 Plan coordinator and DCED, the township and the real estate developers reached a settlement which required the township to fund a sewage pumping station for the developers and to incorporate several of the developers’ requests in their comprehensive plan. Additionally, judgment was reduced to $6 million, without interest, payable in 80 quarterly installments of $75,000 each.
Accordingly, on June 4, 2010, Judge Thomas of the United States Bankruptcy Court for the Middle District of Pennsylvania issued a Final Decree Closing Chapter 9 and discharging Westfall from bankruptcy. In the subsequent four years, DCED worked to stabilize the township as it continued to implement the plan for its financial recovery. Westfall Township continues to meet the terms of the settlement and has substantially implemented all provisions of its recovery plan. Therefore, all conditions which led to the earlier determination of municipal financial distress are no longer present in the Township of Westfall.
Sec. Walker made the decision after a thorough review of audits and financial data and the record from a public hearing held on June 9, 2014.
The Municipalities Financial Recovery Act, Act 47 of 1987, was enacted to provide a broad-based program of fiscal management oversight, technical assistance, planning and financial aid to municipalities experiencing severe fiscal distress. For more information on Act 47, visit www.newPA.com or call 1-866-466-3972.
Photo/Natalie Cake