A Pennsylvania judge has removed two Chester City Council members and the city controller from their positions on the board of directors of the Stormwater Authority of the City of Chester (SAC). It’s both a move to save money and address possible corruption in Chester city government.

In May, the state-appointed Receiver overseeing city finances sued the SAC, arguing that the board had violated not only state law but also the City’s Home Rule Charter by expanding to nine members, exceeding the five-member limit. The Receiver also objected to members of the city government, including City Councilmembers Portia West and Fred Green, and City Controller Joy Taylor, sitting on the board.

“This is the type of behavior by (Chester’s) elected officials that concerned this Court previously and continues to concern this Court now,” Commonwealth Court Judge Matthew S. Wolf ruled on July 11.

At issue is oversight of the SAC even as the city of Chester struggles to fix its long-failing finances and address its longstanding history of corruption.

Created in 2016, the SAC operates the bankrupt city’s stormwater system, which is separate from the wastewater system managed by the Delaware County Regional Water Quality Control Authority (DELCORA), and is designed to prevent debris and trash from entering local streams and the Delaware River.

Residents currently pay around $16 per month per household for stormwater services—nearly double the 2017 rate. It’s one of the highest stormwater fees in the country, according to Western Kentucky University.

The city had planned a major green infrastructure initiative through the SAC to protect public health, but those plans were never fully realized.

Chester’s finances have been troubled for decades due to mismanagement and allegations of fraud. The city was placed under Commonwealth oversight in 1995 under Pennsylvania’s Municipalities Financial Recovery Act (Act 47).

In 2020, then-Gov. Tom Wolf appointed Michael Doweary as receiver. Doweary put the city in Chapter 9 bankruptcy two years later. According to federal bankruptcy filings, the city has $369 million in unfunded pension and retiree healthcare obligations.

The SAC claims it’s a separate entity from the city, and its finances did not contribute to Chester’s fiscal crisis.

Court documents, however, show SAC has also had financial problems. Despite receiving $43 million in taxpayer-backed state loans, SAC borrowed $40,000 from former stormwater chief Horace Strand and his church to cover payroll in 2023. Authority executives blamed the loans on residents who refused to pay their bills. Those issues have been resolved, according to the SAC.

Also at issue: SAC board members receiving financial compensation, despite the fact that court documents say no resolution was passed to authorize salaries.

Board Chair Livia Smith was paid $26,400 per year, while West received $19,800 for being vice chair. Green, Taylor, Susan Dennis, William Riley, Joan Neal, John Shelton, and Elizabeth Williams were paid $13,200.

Last winter, the city solicitor also said the city charter barred elected officials from serving in a paid capacity on any board. Unpaid service is permitted.

West, Green, and Taylor publicly resigned from the SAC board shortly after that opinion was released. But new Receiver Vijay Kapoor, who replaced Michael Doweary earlier this month, claims the trio continued to participate in SAC decision-making behind the scenes while still receiving a salary.

“Judge Wolf’s decision finding that the SAC Board operated ‘outside the law’ and ordering SAC to stop making illegal payments to its board members and to operate with the required number of board members is a victory for SAC ratepayers and reaffirms the principle that everyone must follow the law,” according to a statement released by the Office of the Receiver.

Taylor denied continued involvement with the SAC board. She wrote on Facebook this week that she had no issue with resigning. “Many of us have stepped up in good faith to serve our city,” she wrote, “without guidance, training, or clear boundaries.”

Taylor, West, and Green remain listed as board members on the SAC’s website.

Judge Wolf has ordered the three, along with Susan Dennis and Elizabeth Williams, to be removed from the board.

Joan Neal, Livia Smith, William Riley, and John Shelton will remain on the board. All four were original SAC board members. The fifth position is vacant.

Kapoor called Wolf’s ruling “a victory for SAC ratepayers and reaffirms the principle that everyone must follow the law.”