Once one of the nation’s most important shipbuilding centers, Chester has taken on so much financial water that its very existence as a city is seriously threatened, the state official who filed for bankruptcy on the city’s behalf said Tuesday.
Only 31 of the nation’s 38,000 municipalities have filed for bankruptcy.
Mayor Thaddeus Kirkland said the city had submitted a rescue plan that the receiver’s office ignored. Doweary, however, said the city’s only proposal involved the controversial sale of the Chester Water Authority to Aqua Pennsylvania and was not a long-term solution to fiscal problems that have been festering for decades.as its once-robust manufacturing base evaporated.disincorporation at Tuesday’s meeting.
She also cited “unauthorized payroll payments to an incarcerated employee” and the city’s default on pension payments. After Chester appealed, the state Supreme Court issued a stay of her order, temporarily restoring council’s power. Oral arguments are scheduled on the appeal on May 24. It is not known when the court might rule.“Time is running out,” said Vijay Kapoor, the receiver’s chief of staff. “We want our focus to be on finding a comprehensive solution to Chester’s financial and operational problems, not on having to deal with court appeals. Nobody wins if Chester is effectively disincorporated.
He said he knew of no instances of disincorporation in Pennsylvania. However, a 2012 Yale Law Review article noted that the nation has had a long history of municipalities that ceased to exist for any number of reasons, including the loss of tax base or population. It said that since 2000, 130If Chester were disincorporated, the receiver’s office said, it would become an “unincorporated service district” and “all city employees would be laid off.
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