DV Journal

Chester’s new mayor wants a better relationship with the Pennsylvania government-appointed receiver overseeing the city’s finances.

On the Delaware Valley Journal podcast, Mayor-elect Stefan Roots acknowledged disincorporation is a real threat to the city’s existence, but he sees the state receiver and “getting through bankruptcy” as the solution. Roots sees Receiver Michael Doweary and his team as potential partners for the city to turn its fiscal fortunes around.

“One of the things that is going to help bankruptcy move along is to reduce the amount of challenge that we have brought to the receiver and his team… we’re going to get through this,” said Roots.

That would be a major political reversal in Chester City Hall. Mayor Thaddeus Kirkland has regularly clashed with Doweary, who was appointed in 2020 by then-Gov. Tom Wolf. The pair have gone to court over city salaries, and Kirkland once used a racial slur towards Doweary. Pennsylvania government attorneys accused Kirkland of “intentionally vexatious and obdurate behavior…which has wasted taxpayer dollars and…time that the City of Chester does not have.”

Roots’ strategy is to embrace the financial resources the receiver can bring to Chester while protecting the city’s autonomy.

“There’s been a lot of talk that he’s coming here to change the form of government or run the city, and that’s not the case at all,” Roots said.

“Working with the receiver, in my mind, does not mean falling into line with everything he wants to do. This is our city. This is my city,” Roots said. “We expect to come to terms on most things, but he’s not going to run over me.”

Chester’s fiscal books are full of red ink. The city lost $400,000 meant for the city employee workers’ compensation insurance fund after soon-to-be former Councilman William Morgan fell for a phishing scam. He was later removed from overseeing the city’s finances and voted out of office in this year’s Democratic primary. Other issues involve $127 million in unfunded pension benefits and $232 million owed for retiree healthcare.

Doweary warned the city could be dissolved if it didn’t get its house in order. Doweary’s chief of staff later told DVJournal it needed $5 million to make payroll in January 2024. Chester was put into Chapter 9 bankruptcy earlier this year.

Roots wants an equal partnership between the city and Doweary. “I’m bringing experts to the table as well, with the receiver. His emphasis is on finances…but the city definitely has to have input” on whatever financial changes might happen.

The state Department of Community and Economic Development (DCED)has defended Doweary’s time as Chester receiver, praising him for working with Chester elected officials and taking “many positive steps on the road to financial recovery.” That included hiring a chief of staff to run the government and suggesting that a chief financial officer (CFO) be hired in the future.

The DCED wants Doweary to remain on the job for a few more years. There is still a case before the Pennsylvania Supreme Court on whether Doweary overstepped his bounds.

When state Rep. John Lawrence read Delaware Valley Journal’s coverage of the City of Chester’s latest financial troubles last spring, one part of the story piqued his interest.

Receiver Michael Doweary was presenting the possibility that Chester might face disincorporation due to its calamitous finances. Chester’s Mayor Thaddeus Kirkland pushed back, saying he had offered the Receiver two plans to avoid such a disaster. Kirkland said both plans involved deals with the Chester Water Authority, including selling CWA to Aqua PA.

Lawrence, a Republican representing West Grove, wanted to see Kirkland’s plans, so he filed right-to-know (RTK) requests with Chester and with the Receiver.

Here’s where the story gets strange.

Doweary denied Lawrence’s RTK requests because the agency did not have those records. The City of Chester denied the request in part because it was “a record of an agency relating to a noncriminal investigation, including a record that, if disclosed, would…deprive a person of the right to an impartial adjudication.”

In a letter to Lawrence, Doweary said, “We do not know what documents that Mayor Kirkland is referencing when he refers to ‘two credible plans.’ My office has not received any plans from Mayor Kirkland. We suggest that you make this request of Mayor Kirkland, and in the event that you receive a response, we would appreciate it if you could please provide us with that information as well.”

Attached to the letter was an affidavit from Doweary attesting to the fact that “we have not identified any records within the Agency’s possession, custody and control that are responsive to Rep. Lawrence’s Request for copies of the ‘two credible Plans’ allegedly provided by Chester City Mayor Thaddeus Kirkland.”

In addition to interfering with an investigation, Chester officials also claimed the request for the two plans would be part of “internal, pre-decisional deliberations of an agency, its members, employees or officials.”

“That’s baloney,” Lawrence told DVJournal. “Somebody’s lying. Either the records exist, or they don’t exist. That’s deeply problematic.”

Last week, Lawrence appealed Chester’s denial to the Office of Open Records (OOR).

Lawrence said the two plans mentioned by Kirkland are not exempt under the law. The two credible plans are “not deliberations themselves,” Lawrence wrote.

“Even more likely, these ‘credible plans’ include estimates, projections, actual budget figures or comparisons. In such cases, OOR has concluded that such materials are not deliberative in nature.”

And if the plans do contain some deliberative information, redacting that is the appropriate response, not denial, Lawrence said. He suggests the OOR privately review the documents to determine that issue.

As for Chester’s response regarding an investigation, Lawrence was more vehement.

“It strains the credulity for the local agency to assert that the disclosure of the Mayor’s ‘two credible plans’ for fiscal recovery of the city transmitted to the Receiver relates to a noncriminal investigation or would somehow deprive a person of their right to an impartial adjudication,” Lawrence wrote.

“As there is no investigation or probe, it bears mentioning that the local agency is equally unable to assert that providing these records would deprive the Mayor (or anyone employed by the City) of an impartial adjudication,” Lawrence wrote to the OOR.

Frank Catania, a lawyer for CWA, said one plan was likely the offer by CWA of $60 million for the city not to sell CWA, and the other plan was to sell CWA to Aqua PA. Catania said the latter would only transfer the financial burden from taxpayers to ratepayers.

Kirkland confirmed that the two plans he handed over to the Receiver early in his tenure were related to CWA. However, he said, the city’s solicitor told him they were confidential and could not be released in response to Lawrence’s RTK request. Kirkland did not know why Doweary would claim he had received no plans from Kirkland.

“That’s not true,” said Kirkland. “I gave the Receiver two plans as soon as he got here. Once again, he’s not being truthful and honest.”

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The City of Chester is in danger of dissolution due to its dire financial situation.

It has been in Pennsylvania’s Act 47 Financial Recovery Program since 1995. That law allows the commonwealth’s Department of Community and Economic Development (DCED) to monitor Chester’s books, come up with a recovery plan, and offer financial aid that will be repaid.

So imagine Mayor Thaddeus Kirkland’s surprise when the city was told the state expected it to pay more than half a million dollars in fees to attorneys looking over its retirement system. He expressed his outrage at the August 9 city council meeting.

“Now, all of a sudden, we done hit the lottery y’all,” he told the council. “We couldn’t get any of these services, and you know why? Because they didn’t want us to provide you with the help that you needed. And they convinced people in this city to attack us and then turn around and give their behinds to kiss.”

The Receiver for the City of Chester, Michael Doweary, said the city has the ability and the duty to make those payments. Doweary’s critics point out he put Chester into Chapter 9 bankruptcy last November, repeatedly insisting the city’s finances were a disaster.

A judge accepted the bankruptcy filing in March, but Doweary went even further, suggesting the city could be dissolved. Doweary’s chief of staff previously told DVJournal that Chester needs $5 million to make payrolls in January 2024.

Now he wants Chester to pay up.

Chester’s biggest financial anvil? Retiree benefits. Federal bankruptcy court documents list the city’s unfunded pension plan balance at $127 million. It also owes the retirees $232 million in healthcare benefits.

A Retiree Committee was formed in February that quickly hired Flaster/Greenberg and Jenner & Block, two high-profile law firms, as representatives. Those lawyers racked up approximately $520 thousand in bills. The Committee sent it to Doweary. He turned to outgoing Chester Mayor Thaddeus Kirkland, telling him the cash would have to come from the city.

“The City is legally required to pay these legal fees subject to a reasonableness test,” said Doweary in an email to Kirkland. The mayor relayed the message to the city council last week. “I am, therefore, at this time, approving the payment of $100,000 per month going forward to the retiree professional group as a whole for the payment of fees.”

Kirkland feels otherwise, vowing the city never promised any money. He said it was Doweary who made the offer.

The Kirkland-Doweary relationship runs the gamut between heated (Doweary went to court over city officials’ salaries) and downright hostile (Kirkland once used a racial slur toward Doweary).

So, where did Doweary come up with the cash in his offer to the Retiree Committee in May? That is what Kirkland wants to know, given all the predictions of Chester’s fiscal doom.

Chester’s Official Retiree Committee hopes a federal bankruptcy judge will step in. Its attorneys asked the judge this week to tell the city and Doweary to show them the money.

“The Receiver represented to the Retiree Committee that the City could pay the fees and expenses of the Retiree Committee’s professionals and, implicitly, made the same representation to the Court by filing the Compensation Procedures Motion.,” said court documents filed Monday in bankruptcy court. “The Receiver was undoubtedly aware of what the City’s 2023 budget provided for when the Receiver filed the Compensation Procedures Motion. Whatever constraints there may be in that budget, these are not new developments. Therefore, the City’s bait-and-switch should be prohibited under the doctrine of judicial estoppel, as well as equitable estoppel and similar doctrines.”

The Committee’s attorneys accuse Doweary and his staff of not answering certain questions regarding the payments.

“On July 12, 2023, the Retiree Committee’s Professionals met via video conference with Ballard Spahr and Vijay Kapoor of Kapoor & Co. (the Receiver’s chief of staff) to discuss the issues raised in the letters… On July 27, 2023, the lead financial advisor to the Retiree Committee further discussed the issues with Mr. Kapoor and proposed a potential solution. To date, the Receiver has not responded to the proposal.”

The committee’s lawyers suggest Pennsylvania’s government may need to pony up funds. “If the City cannot fund the Chapter 9 process, it must look to the Commonwealth to meet its obligations in this case. The Commonwealth cannot properly avail itself and the City of the benefits of Chapter 9 bankruptcy while simultaneously failing to provide for the payment of the professionals who have been administering this case for the benefit of the City’s stakeholders.”

Their suggestion involved asking the Pennsylvania government to provide “debtor-in-possession financing” to Chester, specifically tied to “a liquidity or monetization occurs” involving the city’s water and sewer assets. Court documents claim Doweary and DCED balked at the suggestion.

“Initially, the Receiver refused to even broach the subject with the Commonwealth, opting instead to file the Compensation Procedures Motion,” said Committee attorneys in their filing. They contend that Doweary and DCED discussed their proposal last month but decided to play legal games. “It is unclear how enthusiastically the Receiver advocated for this concept (neither the Retiree Committee nor its Professionals were invited to participate in that discussion), but the DCED flatly rejected the proposal without offering any other solutions.”

Kirkland is pretty sure that Doweary is the one doing bait and switch. “I said it then, and I’ll say it now,” he told the City Council last week. “They said that we were going to be disincorporated…and all of a sudden, we got money to pay these bills. Legal fees for the retirees…over a half million dollars. But, some people fell off the okey-doke when they said that disincorporation stuff.”

He noted that disincorporation hadn’t been mentioned since he lost the Democratic primary in May.

The Receiver’s Office declined to respond to multiple requests for comment.

A spokesperson for Pennsylvania Governor Josh Shapiro referred questions on how much money Chester needs to clear out its debt to the Receiver’s Office. The spokesperson gave the same answer when asked where Doweary found the money.

Doweary remains in good favor with the state. “The Shapiro Administration supports the extension of Michael Doweary as the Receiver,” said a DCED spokesperson in a statement. “The Department of Community and Economic Development’s Secretary filed the application with Commonwealth Court on July 25, 2023, to extend Chester’s receivership and Michael Doweary’s term as receiver for an additional two years.”

“How much money have they brought to this city to help this city financially?” asked Kirkland during last week’s city council meeting as he unloaded a rhetorical machine gun at Doweary. The Receiver did not appear before the council. “But we listen to this crap…to these folks that come in here and shove garbage down your throat, and we eat it. And they say it’s the truth when they’re lying to your faces.”

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Stefan Roots has beaten Mayor Thaddeus Kirkland in the Democratic primary for Chester mayor and will be on the ballot in November. And it’s possible Roots may be running against himself.

Without a Republican candidate in the race, the GOP nominee will be determined by the results of the 205 write-in ballots. And given that Roots has received a significant number of write-in votes from Republicans in the past, speculation is rife within City Hall that he is likely to be the GOP nominee, too.

Delaware County Spokeswoman Adrienne Marofsky said the county was still counting votes and could not confirm on Thursday whether the write-in Republican votes were for Roots or other candidates.

Roots told DVJournal on Wednesday that if he did get the most Republican write-in votes, it wasn’t part of his plan.

“I did not cross-file,” Roots said. “So, if Republicans voted for me, I’d be curious to know how many.”

“When I ran for council, I got 94 write-ins. Between then and now, I learned that if I’d gotten to 100, that would automatically put me on the ballot in the fall. I guess I’m a Republican and a Democrat. I’ll be competing against myself.”

Roots mentioned in a May 16 article that he was confident he would get enough Republican votes to run in November.

Asked about that article that mentions Republicans voting for him, Roots said it was not part of his strategy, but he would not be surprised, given that he had 94 Republican write-in votes when he ran for council, that more Republicans would write his name in.

“I assumed it was the same 94 plus at least six more,” he said when asked to clarify his remarks. Since he has been on council, he said more people know about him. “There was not any effort on my part. If they did it on their own, they did it on their own.”

On the Democrat side, Roots received 2,027 votes to Kirkland’s 730. Patricia Worrell tallied 552.

Kirkland did not respond to requests for comment.

Roots, a blogger and councilman, campaigned on the promise that he would offer a fresh start for the beleaguered city, which is under the control of a state Receiver because of longstanding financial difficulties.

“There will be changes,” said Roots. “I think the degree to which things will change will probably be more incremental than a big bang.”

Roots added, “There’s the Receiver, and court cases will be heard and hopefully settled even before I take office, which won’t be until January.”

“There’s a lot of moving parts,” said Roots. “You know, I wish I could wave a magic wand and throw all the appeals out the window and just focus on getting things right. But our mayor and council members have chosen to challenge receivership in the direction the courts want to go. I’m still a council person, and I can’t reverse any of that in the meantime.”

Asked about Covanta, the trash incinerator that has been an issue for many Chester residents, Roots said he would be more aggressive than Kirkland in demanding benefits for the city from Covanta.

“I’m looking to work with them to partner in beautifying Chester,” said Roots. “It’s long overdue. They want to be a partner, and I don’t think the city has asked enough of them up until now. They’re going to hear my knock at the door quite often.”

Roots said there are seven months for him and his team to make the transition to a new administration.

“The team I’ve assembled is champing at the bit,” said Roots. Chester has been losing “one brick at a time,” he said. “It’s time to put the pieces back together again in the other direction.”

As a little reward for winning, Roots went to his favorite shoe store Wednesday morning and bought himself a new pair of black dress shoes.

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The state Fraternal Order of Police and the Delaware County Council filed  friend of the court briefs in support of the Chester Receiver in a case pending in the state Supreme Court.

The Receiver is seeking to strip local elected officials from their roles as heads of city departments and instead appoint what he believes are qualified individuals to run Chester. That would affirm a January decision by a Commonwealth Court judge.

The FOP legal brief brandishes harsh wording, blaming Mayor Thaddeus Kirkland and city officials for the city’s dire financial straits. The county’s brief uses more measured language, saying it has a vested interest in Chester’s recovery.

“The recovery plan will be the only way the municipality will get back on its feet,” Delaware County said in its brief. “The only alternative to a successful Act 47 process is chaos. The Commonwealth cannot allow one of its cities to devolve into chaos.”

In her January ruling, Judge Ellen Ceisler blasted city officials for nepotism and self-dealing. She ordered them to step down and allow the Receiver to appoint qualified individuals to run the city’s departments.

“Unfortunately, the promise of a secure pension has been broken by the City of Chester,” the FOP brief said. “This matter involves, among other acts of malfeasance, the complete and utter failure of the city to comply with the statutory requirements relating to the financial solvency of defined benefit pensions for law enforcement officers such as those employed by the City of Chester and all law enforcement officers through the commonwealth.”

That has resulted in a $40 million deficit in the police pension plan, the filing stated. The deficit threatens the financial security of former and current police officers who are and have been employed by the city. The city’s conduct provides no realistic hope that “it will change its methods of operations and make the required MMO (minimum municipal obligation) payments.”

It also accuses the mayor of failing to make the payments with “full knowledge and intent.”

The county noted that other financially distressed cities, such as Harrisburg and Johnstown, have gone through the process with state control and come out of it with their problems resolved.

“This is a very important case, and it’s clear from the FOP’s and Delaware County’s filings that it’s not just the Receiver who recognizes that,” said Vijay Kapoor, chief of staff for Receiver Michael Doweary.

Last month Doweary said Chester’s government might have to be disincorporated or dissolved if it does not come out of insolvency by the end of the year. Former Gov. Tom Wolf appointed Doweary to help the cash-strapped municipality three years ago. But Doweary has claimed in court filings that city officials have thwarted him at every turn.

Frank Catania, a lawyer for the Chester Water Authority, said there is more to this situation than the court documents might suggest. Chester has been under state oversight for decades, said Catania. And instead of improving, the situation has gotten much worse.

“There’s a dispute as to how much of that (lack of retirement fund payments) is the city’s fault and how much of that is the state’s fault,” said Catania. “And neither filing addresses the issue of the state’s involvement or responsibility.”

“And I think it’s not fair to the city or the mayor to have him blamed for this when the city has been under Act 47 supervision for almost 30 years,” said Catania. “I mean, all of this happened when the state was supposedly overseeing (it),” he said. And about the county council’s filing, “It’s more politics than policy,” he said.

Council wants “regime change” in Chester, said Catania. “This is being done 13 days before the primary.”

“And I don’t read it as an expression of support for any particular policy,” said Catania. “I believe it to be a political act.”

Mayor Kirkland did not respond to requests for comment.

The state Supreme Court is set to hear arguments in the case on May 24.

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The official charged with overseeing the City of Chester’s dismal finances is predicting the city might reach the point where it will be disincorporated or dissolved.

Michael Doweary, the receiver appointed three years ago by former Gov. Tom Wolf to help pull the cash-strapped municipality out of insolvency, blamed elected city officials who filed appeals to block a bankruptcy and who also appealed court-approved modifications to the receiver’s plans.

Chester needs a plan by the end of 2023, or it will cease to exist as a municipality, Doweary said.

Vijay Kapoor, Doweary’s chief of staff, called the situation “sobering.”

“Chester is really running out of time,” Kapoor said. “There needs to be a focus right now on solving Chester’s problems. If a comprehensive solution is not found by the end of the year, there may be no alternative for Chester but disincorporation.”

If that were to happen, all municipal employees would be fired while the city’s elected officials would be dismissed. A state administrator would then oversee the municipality as a disenfranchised territory.

Kapoor claimed that if a bankruptcy lawyer had not brokered a bargain with bondholders, the city would be out of money by this September.

The city’s newly completed 2019 audit showed a $6.8 million loss and a negative $27.7 million fund balance. Also, the city has not made $40 million in payments to its pension fund.

Kapoor said Chester would need a $5 million loan in January to make its payroll.

And in 2025, Chester faces “a significant fiscal cliff,” said Doweary.

“If you’re out of money, you can’t keep the lights on. Chester’s financial situation is critical, and it is running out of time to find a solution,” he said.

When Kapoor said city officials had not devised their own plan, Mayor Thaddeus Kirkland objected.

“We provided the Receiver with two credible plans,” said Kirkland. Both involved deals with the Chester Water Authority (CWA), including selling it to Aqua PA.

“Offers to monetize (that asset) are not a comprehensive plan,” Doweary countered. “Those were just offers for the system, not a plan.

“Bankruptcy is the only thing to bring all of the creditors to the table.”

Elected officials have been unwilling to cut back on pensions, one of the biggest items of bloat in the city budget. Kirkland said one former employee, whose husband died, told him: “How am I going to make it if you cut my pension?”

CWA lawyer Frank Catania said CWA is the only entity that has offered to help Chester, proposing in 2019 to give the city $60 million in exchange for dropping any efforts to take over or sell the authority.

“It’s not a solution to sell (CWA) to Aqua,” he said of the city’s current fiscal crisis. Doing that “shifts the burden from Chester to the ratepayers.”

“The city (Chester) is in a bad spot (financially),” Catania said. He asked why the state has not given Chester a deal like those it gave to Philadelphia, Harrisburg, and Pittsburgh, which have also run into financial difficulties over the years.

Last year, the legislature and Wolf approved an extension of the Pennsylvania Intergovernmental Cooperation Authority’s oversight of Philadelphia until 2047.

“The state has overseen Chester for more than 25 years,” said Catania. “I think they have an obligation to help it, and rather than offer to help, they let the problem get much, much worse.

“It’s hard to conclude anything other than it was done on purpose.”

Catania also cited recent remarks by Philadelphia mayoral candidate Jeff Brown, saying many people in state government share his attitude.

A spokesperson for Gov. Josh Shapiro did not respond when asked about state help for Chester.

The state Supreme Court has agreed to hear appeals on the Chester cases. In the meantime, said Kapoor, elected officials have resumed their control of various city departments after a Commonwealth Court judge had ousted them.

In that ruling, Judge Ellen Ceisler blasted city officials for nepotism and self-dealing.

Also, federal grant programs that came online due to COVID are ending, so Chester may have to lay off some 20 people in January.

“We need to have a plan in place by the end of the year,” said Doweary.

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Commonwealth Court Judge Ellen Ceisler unloaded on Chester city leaders in a ruling expanding the state Receiver’s power over the financially-strapped government, accusing elected officials of nepotism and incompetence. While she did not grant Receiver Michael Doweary everything he wanted, she extended his authority to include the right to remove city council members from their city jobs and “put experienced professionals in their place.”

One example noted by the receiver was Councilman William Morgan, who fell for a phishing scheme that lost $400,000 in city funds. He failed to tell the Receiver about the loss for months.

“Councilmember Morgan can no longer serve as the head of finance and human resources,” the judge ruled. Ceisler also pointed to nepotism in her ruling, saying, “At the hearing, Receiver recounted that, at one point, the mayor’s former son-in-law, Ronald Starr, was placed in charge of economic development.”

While city officials and the Receiver all recognize the need for economic development, Ceisler wrote, “By all accounts, the only progress Mr. Starr made on that front during his tenure was to obtain a liquor license for one of his businesses.”

The state appointed Doweary to help the financially troubled city regain footing.  But he appealed to the Commonwealth Court, which has jurisdiction over him, for more control, claiming that city officials are not cooperating.

Ceisler agreed, vehemently.

“The Court concludes that all of this evidence, viewed together, demonstrates the city officials’ continued lack of transparency and lack of cooperation with (the) Receiver and his team. Even worse, Mayor Kirkland has verbally – and publicly –threatened and disrespected Receiver on more than one occasion,” Ceisler wrote.

According to testimony and court findings, Mayor Thaddeus Kirkland called Doweary the “N” word, told him to “watch your back” and “your days are numbered.” And Councilwoman Elizabeth Williams called Doweary “slave master.”

Other issues that arose during the three-day hearing included payments to a former employee in jail on child rape charges and a police chief who allowed his friends to work excessive overtime in the last year before retirement to increase their retirement pay.

The judge also agreed with Doweary’s request to have the city’s chief operating officer become its chief administrator to provide a “clear chain of command” for employees.

“We are grateful for the court’s decision which we believe brings desperately needed clarity to city operations and the ability to ensure professional management all to the benefit of City residents,” said Vijay Kapoor, chief of staff to the Receiver for the City of Chester.

Kirkland referred all questions to township solicitor Ken Schuster.

Schuster said, “The city and the elected officials are carefully reviewing the Court’s decision.”

Doweary has also filed a separate bankruptcy case on behalf of the city, which is ongoing.

Frank Catania, the lawyer for Chester Water Authority, said his organization is watching the Receiver’s actions closely after attempts to pull the authority’s assets into a resolution of the city’s financial crisis. He said he does not know if the allegations about city officials are true, but he found the timing curious.

“If the Receiver’s description is correct, then this has been a problem for months — years, really. But they get this ruling now, just weeks before the filing period opens to get on the ballot for the upcoming municipal elections?”

The first day to circulate and file nomination petitions is February 14.

“You can’t ignore the fact that this is an election year, and the judge isn’t doing these city officials any favors. The timing is curious, at least,” Catania said.

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When Receiver Michael T. Doweary filed for Chapter 9 bankruptcy last Thursday for the City of Chester, he said it was the only way to resolve the city’s ongoing fiscal crisis.

“Chester’s financial and operational problems are far worse than my team of professionals has ever encountered. The status quo has not worked, is not working, and will not work. The residents of Chester deserve better,” Doweary said in a press release. He pointed to a projected $46.5 million deficit in 2023, including $39.8 million in past-due pension payments.

But representatives for the Chester Water Authority (CWA), locked in a struggle against the city’s bid to sell the CWA to Aqua PA, it was just the latest misstep by the city’s state-appointed overseer. And it leaves far too many unanswered questions.

“The Receiver has had two and half years to turn Chester around,” said CWA attorney Frank Catania, pointing to several high-profile fiascos like the city losing $400,000 through an internet phishing scam on the Receiver’s watch.

And, Catania added, Doweary did not tell the Commonwealth Court that Chester stands to gain $70 million through the sale of DELCORA (Delaware County Regional Water Quality Control Authority) to Aqua or, alternatively, get its sewer systems back so it could sell them itself.

“It’s a robbery in progress,” said Catania of Doweary’s revised Receivership document. Doweary is “trying to shift the burden (of paying for water and sewer) from government to citizens,” both in Chester and in parts of Delaware and Chester counties. Some 80 percent of CWA customers are suburban and if Doweary has his way, those customers will subsidize the city.”

“The Receiver uses bank robber’s logic: I need money. You have money. I’m taking it.”

Doweary declined to respond to repeated requests for comment. In a press release, he said he avoided bankruptcy as long as possible, and he pointed fingers at city officials.

“Since my appointment over two-and-a-half years ago, I have worked to avoid this day,” Doweary said. “However, Chester has a severe structural deficit that cannot be addressed by one-time fixes, has unaffordable retiree benefit liabilities, and cannot reliably provide vital and necessary services to its residents.”

According to Doweary, Chester’s elected officials and employees are not cooperating with his stewardship. For example, Councilman William Morgan lost the money to the phishing scam — involving a fake request for payment — in June, but he was not notified until three months later. He also pointed to a $750,000 IRS penalty against Chester for incorrect payroll taxes and to a salary being paid to an incarcerated former employee.

Doweary acknowledges he is seeking more control over city operations and also wants the court to award him control over the CWA. He also asked the court to tell employees and elected officials that they must not interfere with the directives of the chief operating officer or the Receiver.

What the Receiver won’t discuss, however, is the city’s outstanding debt for the high-powered law firm, Greenberg Traurig, for a $1 million contingency fee. How could Chester, struggling to pay its bills, afford to pay $1 million?

DVJournal has requested the underlying documents related to retaining Greenburg Traurig, but the Receiver has declined to provide them or explain what work the firm was supposed to provide to the taxpayers of Chester.

CWA is in litigation with the Receiver. Oral arguments in that case are scheduled before the state Supreme Court on Nov. 30.  However, a bankruptcy filing stays other court cases. Lawyers are meeting with a bankruptcy court on Tuesday.  Also, at 1 p.m. on Tuesday, the Municipal Financial Recover Advisory Committee will meet. That meeting will be streamed. 

“[Doweary] is court shopping,” said Catania. “He wants to avoid the Supreme Court and go to Commonwealth Court.”

“He’s going to try to convince (the Commonwealth Court) judge that he should be in charge of CWA,” added Catania.  “He couldn’t even make sure the city that Chester had proper insurance coverage and he wants to sell the water authority and serve 200,000 customers fresh drinking water? It’s outrageous. He’s got to be stopped. He did not tell the court the whole story that Chester stands to get $70 million from the sale of DELCORA.”

Instead of a Receiver, the state should step up for Chester, like it previously did Philadelphia, Pittsburgh, and Harrisburg, said Catania.

“This is an orchestrated crisis,” said Catania. “And whenever it’s convenient, Doweary brings the city retirees out for public relations purposes.

“He treated Chester retirees as hostages,” he said.

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It’s been a great first year writing a column for this new and much needed media outlet. Most of my columns have been about alerting readers to any number of negative things happening across the Delaware Valley. I thought for the last column of the year, I’d give you some rays of life that I see developing in our area. I’m not talking about the bright sunshine of an 80-degree day on a Wildwood beach but some hopeful bits of sunshine that might brighten up in 2022.

The best example of this is the recent pushback against Larry Krasner for his attempts recently to minimize the violence and chaos that have overrun Philadelphia. On my radio show I was joined by former District Attorney Seth Williams, former Governor Ed Rendell, and former Mayor Michael Nutter. All three were personally offended by Krasner and Nutter was particularly offended by Krasner posturing as the Great White Hope in Black and Brown communities.

Williams made the case that Krasner’s pride and ideology were blocking Philadelphia from implementing the strategies that the City of Chester is using to significantly lower violent crime, particularly homicides. Essentially, law enforcement is targeting those in Chester who are most likely to be carrying illegal guns and commit a murder. They tell these people that they will help them get a job and an education but if they are caught with a gun, they will get the most severe penalty. Krasner will not sign off on a plan like Chester’s. These results in Chester demand that we use them to turn up the heat on Krasner.

Pennsylvania Attorney General Josh Shapiro is running for governor as a Democrat who wants to use every means to turn around homicide rates in Philadelphia. He is great at posing in this role, but he refuses to call out Krasner. I’m hoping that a strong field of Republican candidates will be able to use this dilemma to defeat Shapiro in what I view is the most important race in America. The reason is that which ever party wins will control the election infrastructure for the big presidential race in 2024.

A big ray of light in 2021 came through the person of Clarice Schillinger who organized thousands of parents into a group Back to School Pa. that fought to stop shutdowns of schools. She then went on to quarterback the winning of 133 school board seats in Pennsylvania in the most recent election cycle. Watch for her as a force in Pennsylvania politics in an even bigger way in 2022.

In New Jersey newly elected state Senator Ed Durr was Gloucester County will be a big force in New Jersey politics. I’ve interviewed him twice and he has a tremendous sense of the hope he represents for people who have suffered under extremely progressive rule in New Jersey. He knows that those progressive elements will do anything to snuff out this hope and he is positioning himself already for his next race in a few years. Of course, he’ll stay grounded by still driving a furniture truck as his day job.

Maybe the most hopeful signal for the next year is that Pennsylvania Governor Tom Wolf has been stopped from continuing his one-man rule of Pennsylvania that unnecessarily shut down schools and businesses. Many school districts across the area have decided to empower parents to make the choice about whether or not to have their kids wear masks while in school.

I am very hopeful that 2022 will be a good year that will see better safety and prosperity for everyone across the Delaware Valley.

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