Skip Navigation LinksPA Gov > News Details
3/20/2014

Governor Corbett: DCED Secretary Determines Millbourne Borough Ready to Exit Act 47; Rescinds Distressed Status

News for Immediate Release

March 20, 2014

Governor Corbett: DCED Secretary Determines Millbourne Borough Ready to Exit Act 47; Rescinds Distressed Status

Millbourne is the seventh municipality to exit Act 47 and the first since 2007

Delaware County – Governor Tom Corbett today joined Millbourne Mayor Thomas Kramer and members of Borough Council to announce that Department of Community and Economic Development Secretary C. Alan Walker has determined that Millbourne Borough’s status as a distressed municipality is rescinded under Act 47.

“We need to ensure resources are available to preserve the heritage of communities like Millbourne and help them overcome the financial struggles they face,” Corbett said. “Today we recognize the positive steps taken by Millbourne Borough to get its fiscal house in order and exit Act 47. 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.”

Sec. Walker determined that Millbourne Borough 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.

Sec. Walker made the decision after reviewing data and the record from a public hearing held on July 10, 2013 and the thorough review of audits and data. The Borough now has mechanisms in place to address issues related to technical expertise and the Borough’s fund balance has averaged $434,000 over the last five years, more than 50 percent of average expenditures. Projections show the Borough can sustain a positive operating position for the foreseeable future.

Millbourne Borough was designated as distressed under Act 47 on January 7, 1993. At that time the Borough had serious issues related to technical expertise available to manage financial management record keeping including the lack of solid financial management systems, poor record keeping, no annual budget, and late and inadequate annual audits. The Borough also expressed it had an annual deficit although it was difficult to confirm due to the lack of records and an annual budget.

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.

Media contact:

Valerie Caras, Governor’s Office; 717-783-1116

Steve Kratz, DCED; 717-783-1132

###​

Search

Enter your search term

Search
× Cancel