Chester has two options if it wants to avoid bankruptcy, according to the city’s state-appointed Receiver Michael Doweary.

Doweary has been working with Chester officials to reverse the city’s deteriorating finances. He hasn’t filed for bankruptcy but has state authorization to do so, writes Kenny Cooper for WHYY.

The city cannot pay retiree benefit costs and fund services for residents, according to Doweary’s chief of staff, Vijay Kapoor, speaking at a Financial Recovery Advisory Committee meeting.

To survive financially, Chester needs to find a way to monetize the Chester Water Authority.  It could sell the Authority, created by the city in 1939, to a private entity like Aqua Pennsylvania and use cash to pay for pension costs and other financial needs.

But CWA maintains it is not owned by the city and that Chester has no right to make the sale.

 Another option is to have the CWA pay the city, but maintain itself as its own public utility. The CWA has previously offered $60 million to Chester.

That option is favored by the receiver’s team.

“The system would stay in CWA’s hands here … and it would basically be up to the CWA to decide how to fund these payments,” Kapoor said.

Read more at WHYY about Chester’s financial situation.