Reading is ninth municipality to recover from distressed status under Wolf Administration

Reading, PA – Today, Department of Community and Economic Development (DCED) Acting Secretary Neil Weaver announced that the city of Reading’s status as a distressed municipality under Act 47 is successfully terminated. Reading is the 18th municipality to recover from distressed status — the ninth under the Wolf Administration alone.

“This is a great day for the city of Reading,” said Sec. Weaver. “It’s been a decade and a half since Reading was originally designated a financially distressed municipality under Act 47. The hard work of city leaders, the community, local businesses and other partners have helped Reading reach this significant achievement.”

Sec. Weaver signed a formal determination letter finding that termination of the city’s distressed status was appropriate under Section 255.1 of Act 47. The decision was made after a thorough review of the city’s audits, financial data, and the record from a public hearing held on May 4, 2022. Sec. Weaver was joined by Mayor Eddie Moran, City Council President Johanny Cepeda-Freytiz and other local and community leaders.

“Brighter days for Reading have arrived,” said Reading Mayor Eddie Morán. “We have demonstrated to our fiscal coordinators, state officials, and most importantly to ourselves that we could do it. Therefore, today Reading stands before everyone with reliable financial stability, an understanding of the best practices that brought us here, and the confidence that we will responsibly administer all available resources for our beautiful city.”

Reading was designated as distressed under Act 47 on November 12, 2009. This determination was made after years of recurring deficits, ineffective financial management practices and unfavorable socio-economic and demographic trends.

Since 2009, Reading has made significant strides to improve its management practices and fiscal situation. The city’s annual audits from 2012 through 2020 show operating budget surpluses in six of the past nine years, and it is anticipated that 2021 will also show a surplus. Additionally, in a ten-year period from 2010 to 2020, the city’s has had a debt reduction across all government activities from $163.9 million in 2010 down to $108.8 million at the end of 2020 – a 33.6 percent decrease.

“What an exciting, proud, and relieving feeling it is to exit Act 47,” said Reading City Council President Johanny Cepeda-Freytiz. “This is a true testament of collaboration, commitment, and leadership – our beloved Jeff Waltman must be doing flips right now. Remarkable merit goes to everyone from Mayor Moran and his administration to former Council President Jeff Waltman, current and former council members, PFM, and of course, our dedicated and hardworking employees. Today, we, the city, celebrate this major accomplishment!”

Reading is the ninth municipality under the Wolf Administration to recover from distressed status. Prior to Reading, the Borough of Colwyn, Delaware County, was the most recent community to recover, exiting Act 47 status on April 29, 2022. The City of Scranton, Lackawanna County; Farrell, Mercer County; Plymouth, Luzerne County; Nanticoke, Luzerne County; Clairton, Allegheny County; Pittsburgh, Allegheny County; and Altoona, Blair County also exited from Act 47 under the Wolf Administration.

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 information on Act 47, visit the Governor’s Center for Local Government Services or DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, Twitter, and LinkedIn.

MEDIA CONTACT:
Penny Ickes, DCED, dcedpress@pa.gov

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