Chester stormwater authority must stop paying board salaries, Pennsylvania court rules

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Big changes are coming to the Stormwater Authority of the City of Chester.

The authority must reduce the size of its board from nine to five members, and the remaining board members will no longer receive salaries.

Commonwealth Court of Pennsylvania Judge Matthew S. Wolf issued an order Friday granting the state-appointed receiver’s wishes of reeling in the agency.

Wolf wrote, “the credible evidence of record demonstrates that SAC’s Board is operating outside of the law and its own governing documents.”

Chester’s state-appointed receiver previously alleged the authority conducted an unauthorized board expansion and doled out $816,000 in “improper salary payments” to board members since 2017. Former receiver Michael Doweary ordered SAC leadership in March to make changes, but his directive went ignored.

Vijay Kapoor, newly minted receiver and Doweary’s former chief of staff, views the Commonwealth Court opinion as a positive for city residents.

“It will improve the financial condition of the stormwater authority, but I think first and foremost, it’s really about reaffirming the principle of the need to follow the law,” Kapoor said.

SAC officials and solicitor Steven Hann did not immediately respond to email requests for comment.

Prior to his departure from the office, Doweary filed a modification in May to the bankrupt city’s recovery plan asking the court to prohibit board member salaries, ban the city’s elected officials from serving on paid boards and limit SAC to the five board seats defined in its articles of incorporation.

Attorneys for SAC asserted that the receiver’s proposed ethics initiatives fell outside his power under state law.

“Based on a thorough review of the parties’ filings and the evidence adduced, the Court concludes that SAC has offered no clear and convincing evidence that the initiatives proposed in the Plan Modification are arbitrary, capricious, or wholly inadequate to alleviate the City’s fiscal emergency,” Wolf wrote. “Rather, the credible evidence establishes that the initiatives will promote the integrity and fiscal health of SAC, an authority of the City.”

Wolf is ordering SAC to shrink the board to its original size within 60 days. The trimmed-down board will consist of Joan Neal, William Riley, John Shelton, Livia Smith and a vacancy.

SAC officials previously dismissed the receiver’s interest in the authority as politically motivated.

In April 2024, Mayor Stefan Roots accused city Councilmembers Fred Green and Portia West of violating the city charter for receiving double salaries for serving on both council and SAC’s board. Green and West did not respond to a request for comment about the ruling.

City Controller Joy Taylor, who also served on SAC’s board, issued a public response on Facebook.

“I had no issue resigning from the SAC Board—I did so immediately after the City Solicitor’s legal opinion was issued,” Taylor wrote. “Many of us have stepped up in good faith to serve our city without guidance, training, or clear boundaries. This moment underscores the importance of structural clarity and collaborative governance.”