Receivership Information
What is Receivership?
Receivership is a legal process, which involves a court-appointed third-party Receiver to manage an entity’s finances.
In this case, Secretary Dennis M. Davin with the Department of Community & Economic Development (DCED) petitioned Commonwealth Court for the appointment of a Receiver for the City of Chester and on June 22, 2020, Judge J. Andrew Crompton with Commonwealth Court granted the Order making Mr. Doweary Receiver for the City of Chester.
The Receiver’s team will bring objectivity and experience to the City of Chester. Each member brings their own area of expertise to address Chester’s intricate and unique financial and infrastructure issues, and together their knowledge of municipal finance, workforce, policy and community development will be a great asset to Chester.
A Message from Receiver Michael Doweary
City of Chester,
My name is Michael Doweary. Governor Wolf has appointed me to be the Receiver for the City of Chester, and Judge Crompton of the Pennsylvania Commonwealth Court has confirmed my appointment. Only one other city in Pennsylvania has entered receivership, and it did so under very different circumstances than we face here in Chester.
Many of you are understandably nervous and concerned about what receivership will mean to Chester as a whole, and also to you and your families. I want to provide my perspective and explain where I'm coming from, how we can engage in constructive dialogue, and what I plan to do.
Let me start with some basic facts:
Barring an unforeseen change, Chester will struggle to pay its bills and its employees for the rest of the year, and it is at risk to run out of cash before the year is over;
The police pension is close to depleted, with only a couple of more months until it runs out of money to make payments to retired officers.
Chester has been in state oversight for over 25 years. Bill Clinton was the President when that occurred. COVID-19 only increased the terrible financial position of the City. But I am not just concerned about the financial state.
Chester's murder rate is among the highest in the state. Several children were shot and killed this year, and we are only halfway through 2020. Our youth poverty rate is among the highest in the State. Almost half of our, your - Chester's kids live below the poverty line.
All of this must change. The children and the families of Chester deserve the same opportunities that any other Pennsylvanian child and family have.
There is no one clear answer on a way out. I do not have any preconceived ideas about actions to take, and everything is on the table. My decisions will be made based on the answer to this question: Is it in the best interest of Chester residents?
I am not alone in this. Everyone on the team is committed to the same goal, serving the interests of the residents of Chester. There is no fanfare in the position that we find ourselves in, yet, our intention is to position the City for success.
In the coming weeks and months, we will be developing a plan to get Chester out of receivership and put it back on its feet. As I mentioned previously, everything is on the table. We will start by listening, and we will be meeting many people, including spending time with residents and various stakeholder community groups. We will need your help, and we will need the help of others. We realize the challenge that is in front of us, and I look forward to working with you to address it.
Thank you.