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Retirees press for transparent water‑asset sale process; receiver says he will not sell to private company
Summary
Retiree committee filed a bankruptcy complaint over the receiver’s handling of potential sales of the city’s water assets and asked council for a sit‑down. The receiver told council he will not sell the Chester Water Authority to a private company and outlined legal and practical constraints on monetization.
A committee representing Chester retirees told the City Council on July 9 that it filed a complaint in bankruptcy court and is seeking a broader, more open review of potential buyers for the city’s water assets.
Joseph Morris, representing the Official Committee of Retirees, said the committee filed a complaint on June 11, 2025 that raises “serious concerns” about how the receiver is conducting solicitation for the Chester Water Authority (CWA). Morris said the complaint urges that all potential bidders — public, private and municipal — be considered and that a sale process should seek maximum fair‑market value while protecting residents and retirees.
The committee said it is not advocating for any particular buyer; rather, it wants the sale process to be open to private and public bidders. Morris told council the retirees would accept a private meeting with city officials to discuss their concerns.
Receiver’s response and policy on privatization The receiver (referred to in the meeting as “mister Vijay”) responded that he had been named in related bankruptcy litigation and confirmed his position — consistent with the prior receiver’s stance — that he will not sell the CWA to a private company. The receiver said he and his predecessor had limited solicitations to public or municipal buyers to protect residents from potential rate increases. He added that even if privatization were considered, legal constraints and regulatory approvals would apply: the Pennsylvania Supreme Court litigation and approval by the Pennsylvania Public Utility Commission (PUC) are relevant steps before any sale could be consummated.
The receiver explained the common alternative suggested by retirees — a rate‑stabilization fund funded from sale proceeds — typically reduces the sale price and is finite; after the fund is exhausted rate increases often follow. He said the receiver’s office is focused on balancing competing creditor interests and minimizing long‑term rate impacts for residents.
Process and next steps Morris said the retiree committee invited elected officials, their legal teams and the receiver to a meeting; council and staff agreed to make time to meet. The receiver noted a public Municipal Financial Recovery Advisory Committee (MRAC) meeting will include a deeper discussion of monetization on July 29, 2025, and the presentation was shared with council.
Why it matters: Monetizing the water system is a major potential revenue source and affects retiree benefits, operational funding and residential rates. Speakers emphasized that any sale process must balance maximizing proceeds, maintaining affordable rates and protecting retiree benefits.
