Section 11701.201 - CriteriaThe evaluation of a municipality's financial stability by the department under section 121 shall include each of the following criteria. If at least one criterion is present and the department assesses pursuant to section 121(b) that it is a valid indication of municipal financial distress, then the department shall exercise its powers and duties pursuant to section 121.
(1) The municipality has maintained a deficit over a three-year period, with a deficit of 1% or more in each of the previous fiscal years.(2) The municipality's expenditures have exceeded revenues for a period of three years or more.(3) The municipality has defaulted in payment of principal or interest on any of its bonds or notes or in payment of rentals due any authority.(4) The municipality has missed a payroll for 30 days.(5) The municipality has failed to make required payments to judgment creditors for 30 days beyond the date of the recording of the judgment.(6) The municipality, for a period of at least 30 days beyond the due date, has failed to forward taxes withheld on the income of employees or has failed to transfer employer or employee contributions for Social Security.(7) The municipality has accumulated and has operated for each of two successive years a deficit equal to 5% or more of its revenues.(8) The municipality has failed to make the budgeted payment of its minimum municipal obligation as required by section 302, 303 or 602 of the act of December 18, 1984 (P.L. 1005, No. 205), known as the Municipal Pension Plan Funding Standard and Recovery Act, with respect to a pension fund during the fiscal year for which the payment was budgeted and has failed to take action within that time period to make required payments.(9) A municipality has sought to negotiate resolution or adjustment of a claim in excess of 30% against a fund or budget and has failed to reach an agreement with creditors.(10) A municipality has filed a municipal debt readjustment plan pursuant to Chapter 9 of the Bankruptcy Code (11 U.S.C. § 901 et seq.).(11) The municipality has experienced a decrease in a quantified level of municipal service from the preceding fiscal year which has resulted from the municipality reaching its legal limit in levying real estate taxes for general purposes. For determining levels of municipal service for the year 1987, the department shall utilize annual statistical data since the year 1982 to determine a pattern of decrease in delivery of municipal services since 1982. 1987, July 10, P.L. 246, No. 47, § 201, effective in 60 days. Amended 1988, Dec. 19, P.L. 1272, No. 157, § 1, imd. effective.