In the bankrupt City of Chester, where more than one in four households live in poverty, the state receiver and the mayor are demanding that the stormwater authority release details on how it is spending the “rain tax” fees it is collecting from residents and businesses. The fees rank among the highest in the country. The receiver’s office “is absolutely concerned about the burdens on Chester’s ratepayers, most of whom already pay high taxes,” said Vijay Kapoor, the receiver’s chief of staff. He added that the board’s refusal to produce financial details “makes it all but impossible for them to know what they are getting for their money.” In response, the board said it is “under no obligation” to comply with the requests. “We don’t have a problem releasing financial documents,” said Horace Strand, who is head of the Stormwater Authority of the City of Chester, “but all requests have to be done properly.” The receiver countered last week by asking U.S. Bankruptcy Court to order the authority, which has borrowed more than $30 million from the state — a debt borne by ratepayers whose monthly fees doubled in October — to release its financial details. It argued that under state law, the authority, established in 2016, was obligated to do so. Read more here.
Source: Philadelphia Inquirer; 5/14/2024