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Gov. Wolf issues emergency action plan for Chester due to pandemic
The emergency action plan will help the City of Chester to make steps towards financially recovery.
CHESTER, Pa. - Gov. Wolf's Administration has issued an emergency action plan for the City of Chester due to the ongoing COVID-19 pandemic.
In early April, Gov. Wolf issued a declaration of fiscal emergency for the city, which required the Department of Community and Economic Development to develop and release this plan within 10 days.
FULL COVERAGE: CORONAVIRUS
“The COVID-19 pandemic and subsequent collapse in economic activity have exacerbated the city’s pre-existing distressed condition. Anticipated revenue shortfalls and delayed General Fund receipts have put enormous pressure on the city’s operating cash position,” said Sec. Davin.
The emergency action plan will help the City of Chester to make steps towards financially recovery.
Under the plan, the city must implement a hiring freeze and overtime restrictions, eliminate benefits for employees who have been terminated or temporarily laid off where legally permissible, freeze discretionary spending, restrict the incurrence of new debt, review its assets, and implement disciplined financial monitoring and reporting.
FULL COVERAGE: PENNSYLVANIA
Chester's legacy costs, which consist of debt, pension, and other post-employment benefits, continue to place enormous pressure on the city’s finances, including both the month-to-month cash flow and long-term liabilities.
The COVID-19 pandemic has further hindered efforts to strengthen the economy and has placed the city in financial peril.
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