Municipalities, school districts and other governmental entities in Pennsylvania may want to sell or lease their assets for a variety of reasons. Governmental entities facing financial distress may sell or lease assets to generate a substantial upfront payment that can be used for a variety of purposes, including paying down debts resulting from labor and
Public Finance
Governor Corbett’s Legacy: a new and improved Act 47?
By Tim Horstmann on
With relatively little fanfare last year, shortly before he was given an early retirement by the voters, Governor Tom Corbett of Pennsylvania signed into law Act 199, which amends the Commonwealth’s program for distress municipalities known as Act 47.
Act 199 makes numerous changes to municipal recovery in Pennsylvania. While most of the attention has…
Municipal Advisors and their Duties to Public Entity Clients
By Tim Horstmann on
Posted in Public Finance, Securities
The MSRB recently published a revised version of proposed Rule G-42, concerning the duties owed by municipal advisors to their public entity clients. The MSRB’s changes to the Rule incorporate many of the comments previously received from the public, the effect of which would be to substantially relax the duties owed by municipal advisors…
Where Do We Go from Here: Scranton Commuter Tax Scrapped
By Tim Horstmann on
It’s no secret that the City of Scanton is facing tough times. Operating under an Act 47 designation of distressed status since 1992, the City faces enormous financial pressures – most notably with respect to its pension obligations. According to the most recent report prepared by the Pennsylvania Public Employee Retirement Commission (based on 2013…
The Challenges of Being a Municipality Under the Laws of Pennsylvania
By Tim Horstmann & David Unkovic on
Reprinted with permission from the September 24, 2013 issue of The Legal Intelligencer.
© 2013 ALM Media Properties, LLC.
Further duplication without permission is prohibited. All rights reserved.
If you are a municipality in Pennsylvania, you do not have an easy life. In many ways, you operate like a small business: you have revenues, expenses…
The SEC Action Against the City of Harrisburg: Lessons for Other Municipalities
By Tim Horstmann on
The Securities and Exchange Commission (“SEC”) recently announced that it has charged the City of Harrisburg with violations of various anti-fraud provisions of federal securities laws in connection with the resource recovery facility and other outstanding municipal bonds issued or guaranteed by the City. The City has accepted a settlement of the charges in which…
Five Things to Know when Contemplating the Issuance of Municipal Debt
By Tim Horstmann & Donna Kreiser on
Municipal financings are often perceived as a very complex, and even overwhelming, undertaking. The various rules and regulations which govern the process oftentimes seem complicated and difficult to understand. Keep in mind that no matter how difficult or cumbersome the process may seem, the issuance of bonds or notes by a municipality is simply the…