Chester’s state-appointed receiver resigns. Pa. agency taps his No. 2 to take over

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Chester’s state-appointed receiver Michael Doweary — tasked with saving the bankrupt city’s finances — resigned Thursday.

Doweary accepted a position as the next chief financial officer of York College.

Rick Siger, secretary of Pennsylvania’s Department of Community and Economic Development, nominated Vijay Kapoor, Doweary’s chief of staff, to take the helm.

“Chester is a community that has had to fight simply to survive, enduring decades of disrespect in the process,” Kapoor said in a press release. “We have both statutory and moral obligations to ensure that Chester residents receive vital and necessary services, and we will not stop until that happens.”

The Commonwealth Court of Pennsylvania will review Siger’s petition. Doweary’s resignation will not take effect until July 1.

​​“We have always sought to put the residents of Chester first and to ensure they have a city that works for them, while making the hard decisions needed to ensure the city survives,” Doweary said in the release, calling Kapoor a “powerful advocate.”

Act 47 gives DCED the jurisdiction to assist financially distressed municipalities in Pennsylvania. Doweary will leave the office as the longest-serving Act 47 receiver in history.

The city of Chester’s fiscal problems are well-documented. In 2020, the DCED under Gov. Tom Wolf’s administration chose Doweary to steer the city out of a fiscal disaster, even if it meant bypassing uncooperative Chester officials.

During his tenure, Doweary clashed with city officials and elected leaders, highlighted instances of alleged corruption, cronyism and pension spiking — and ultimately filed for bankruptcy on behalf of Chester in November 2022.

​​“I am grateful that Mr. Doweary has been working towards Chester’s ultimate recovery and not just fixing the City’s debt problems,” first-term Chester Mayor Stefan Roots said in the release. “Michael has engaged with the Chester community, sorted out operational issues in City Hall, and taken his time to set the City up for long-term, sustainable success.”

In 2023, Chester’s money situation appeared grim as it teetered on the verge of disincorporation. However, the city has since managed to move on the path forward as the receiver’s office considers monetizing the city’s water assets.

The plan is not without its detractors on both sides. The Chester Water Authority has resisted it on the basis of protecting ratepayers from potential rising water bills. Meanwhile, the city’s retirees feel that monetizing the assets while keeping it publicly owned leaves too much money on the table.

“You’ll probably see a change in style, but not in substance. So, I will maintain the position that we have that we want to keep the water assets in public hands. That’s not changing,” Kapoor told WHYY News.

Active litigation over the water assets, blight and unexpected ambulance costs are likely to be Kapoor’s major obstacles. Kapoor said working in Chester has been the hardest, yet most rewarding, endeavor of his career.

He’s spent most of his time working in and around the public sector across the country, including two stints in Gov. Ed Rendell’s administration.

“I clearly want to see it through,” Kapoor said. “I love the community here and we want to just continue to relentlessly work on behalf of the residents here.”