Nanticoke is the first city and 10th municipality to exit Pennsylvania's workout program for distressed communities, state officials announced.
"We recognize the positive steps taken by Nanticoke's leadership and citizens to get its fiscal house in order," Department of Community and Economic Development Secretary Dennis Davin said while announcing Nanticoke's exit from the so-called Act 47 program.
Nanticoke, which has about 10,000 residents, is in Luzerne County, about eight miles southwest of Wilkes-Barre.
Davin issued a determination letter in Nanticoke City Council Chambers on Aug. 24, after reviewing city audits and financial data and following a June 22 public hearing.
A hearing officer's report indicated that the city eliminated structural deficits, greatly reduced debt-service payments and can meet its obligations to vendors and creditors while providing essential services.
The state designated Nanticoke distressed in 2006 after the city reported a series of recurring fiscal deficits of more than 1% from 2001 to 2005, ineffective financial management practices and an inability to retain professional management staff. Nanticoke also defaulted on its tax anticipation notes in 2001 and 2003.
The city's Act 47 plan coordinator was the Pennsylvania Economy League, Central Division.
