Chester Issued Stern Warning From State Receiver Over Finances

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Chester City Hall at East 4th Street and Avenue of the States
Image via Emma Lee, WHYY
Chester City Hall

Chester’s finances need a solution, and the state receiver working on the dilemma put out a dire warning to underline the seriousness of the problem.

Receiver Michael Doweary, who filed for bankruptcy on behalf of the city in November, laid out a worst-case scenario in which he would be forced to disincorporate the city, which would mean Chester would lose its charter and no longer exist as a city, writes Kenny Cooper for WHYY.

“We are desperately trying to avoid disincorporation. It is the worst possible outcome for everybody involved,” said Doweary’s chief of staff Vijay Kapoor said.

Agreements between Chester’s bankruptcy counsel and some creditors kept Chester from running out of money in September, Kapoor said.

The receiver’s team has also improved the city’s police pension plan, but as of March, there are only 16 months of benefits left.

With Chester’s funds remaining critically low and with operating deficits in 2024 and 2025, a solution is needed soon, Doweary said.

“We need to have a plan of adjustment in place by the end of this year, considering how long it will take to implement the plan. We don’t have a choice,” Doweary said.

Read more about Chester’s finances at WHYY.

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