Chester, Colwyn Seeing Their Fortunes Improve

Photo courtesy of Newsworks.

Both Chester and Colwyn are seeing their fortunes improve, as they have begun to turn around their previously bleak financial situations, writes Laura Benshoff for Newsworks.

Just a year ago, the city of Chester and borough of Colwyn were both close to insolvency. However, thanks to Act 47 and some very heated municipal meetings, things started to change.

Municipalities fail when the cost to provide basic services exceeds their revenues. Stay in that position too long, and the state will step in to provide oversight and consultation under Act 47.

Both have benefited from Act 47, with Colwyn entering the program in 2015 and Chester in 1995. The basic idea is for the state to encourage struggling municipalities to come up with a cohesive plan to address their issues before the state takes over completely.

In order to balance the books, the state made recommendations to drastically reduce government positions, as well rein in public safety pensions.

“That doesn’t mean it’s hunky-dory, but it’s better than it was,” said David Connelly, Director of Fairmount Capital Advisors, which has been working with Colwyn to help fix its finances.

Read more about the municipalities from Newsworks by clicking here.

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