Act 47, the Municipalities Financial Recovery Act, give a municipality five years after the effective date of its most recent recovery plan (2013) to exit distressed status, or else face default (2018).
I guess the city has 3 choices: 1) approve the new recovery plan and hang on to Act 47 status for another 5 years (2021); 2) come up with another plan that will balance the budget by 2018; or 3) face default, which I think means ‘go broke-go bankrupt’.
From the sounds of things, the folks in attendance expressed their concerns with the city having to make the choice between paying the pension fund and health insurance payments over paying the salaries of city workers, police, and fire fighters. The report indicates that the city doesn’t have the money to do both.
We elect government officials to make the tough decisions. Let’s see what they come up with.
Read the Delaware County Times front page story in Chester’s recovery plan meeting