State agency to create action plan for distressed Borough of Colwyn

To help the economically troubled Borough of Colwyn in Delaware County, the Pennsylvania Department of Community and Economic Development (DCED) has taken steps toward crafting a recovery plan for the municipality, the DCED said on Wednesday.

Acting DCED Secretary Dennis Davin declared the borough to be financially distressed under the provisions of Pennsylvania’s Municipalities Financial Recovery Act, or Act 47. Davin has 30 days to appoint a recovery-plan coordinator, after which the appointed planner will have 120 days to develop and propose a plan to the mayor, city council and DCED.

 Davin reached his decision after a review of public records indicated that Colwyn meets the criteria necessary for Act 47, in that it failed to make a required payment toward its minimum municipal obligation as required by the Municipal Pension Plan Funding Standard and Recovery Act within the mandated time period.

Evidence also was provided that indicated the borough would be unable to provide for its citizens’ health, safety and general welfare; pay debts; meet other financial obligations; and engage in proper budgeting and accounting practices -- all provisions under Act 47.

“Colwyn has encountered circumstances that have resulted in a need to seek state support in developing a plan for recovery,” Davin said “This is a turning point on the road for recovery for Colwyn, and today’s determination further supports the need for Governor Wolf’s proposed (boost) to the Early Intervention program, which will allow DCED to be proactive rather than reactive in assisting municipalities experiencing fiscal difficulties.”

Act 47 triggers procedures, follows guidelines and designates other oversight to help distressed communities. State intervention helps with long-term fiscal management, service delivery, government cooperation and economic priorities.

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Pennsylvania Department of Community and Economic Development

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