Welcome back to Muni Matters, everyone. I'm Elliot Rhodes. And. And I'm Samantha Carter, your guide to the wild world of local government. Here to unpack the issues that matter most to you. Today, we're diving into a story that's got more twists and turns than. Than a pretzel factory. The saga of the Chester Stormwater Authority, or SAC as we'll call it for short. Sac? Yes, the agency test with managing all that rainwater and melted snow that flows. Through Chester, Pennsylvania, keeping things from flooding. Making sure that runoff doesn't pollute our waterways. Sounds straightforward enough, right? But as I dug into these news articles and blog posts, I gotta tell you, things got a little murky. We're talking accusations of financial mismanagement, questionable property deals. Really? And even council members potentially playing fast and loose with the city charter. Before we get lost in the weeds, Elliot, let's take a step back. I think it's important for us to explain why stormwater authorities even exist. Many people may not realize they even have one. Okay, back to basics. All right, lay it on me. So think about it this way. When we cover the ground with roads, buildings, parking lots, rainwater can't soak in naturally. It runs off, picking up all sorts of pollutants along the way. Oil, trash, fertilizers, you name it. It's not just water. It's like toxic soup. Exactly. And that soup can overwhelm sewer systems. It causes flooding, it pollutes our rivers and streams. That's where stormwater authorities come in. They're tasked with managing this runoff. So they're keeping our community safe and our water clean. That's the idea. Makes sense. But in Chester, it seems like this essential service has turned into a bit of a headache. Uh oh. I mean, one blog post we came across had the ominous title, chester Stormwater authority will take your house if you don't pay soon. Catchy title, right? Right. While a bit dramatic. Yeah. It highlights a crucial point. Stormwater authorities in Pennsylvania have the power to place ladies on properties for unpaid fees. Right. And if those ladens aren't addressed, yes, it can, in extreme cases, lead to foreclosure. Foreclosure? Wow. Wow, that's serious. Yeah. No wonder people are upset. And speaking of upset, a lot of Chester residents are feeling the squeeze from these SAC fees. They're saying they're paying too much for too little. You have to remember, Elliot, Chester has been dealing with financial difficulties for years. In fact, a state appointed receiver had to take over the city's finances back in 2020. Ah, the receiver. So, for our listeners who might not be familiar with that term, it's basically like a financial superhero sent in by the to rescue a city in distress. Okay? They have the power to take control of the city's finances, investigate potential wrongdoing, and develop a plan to get things back on track. Nicely put. Thank you. Thank you. So you can imagine how any new fees, especially ones that are perceived as high, would add fuel to the fire in a city already struggling financially. It's like trying to squeeze blood from a stone. Right. And to make matters worse, it seems like Chester residents are paying some of the highest stormwater fees in the entire country. That's right. And that raises serious questions about financial management. You know, SAC claims they're pouring money into improvements, but there are red flags about how the authority is handling its money. And get this. Okay. SAC actually had to borrow money from its own executive director. No way. And his church to make payroll. Oh, my. Now, I'm no financial expert, but that sounds awfully fishy to me. What do you think? It's definitely unusual, Elliot. You would think an authority responsible for managing millions of dollars wouldn't need to resort to borrowing from its own leadership, especially for something as basic as payroll. It definitely raises concerns about deeper financial issues. It's like robbing Peter to pay Paul. Right, Except Peter is the executive director and Paul is, well, still the authority. Just with less money. Less money. Right. It's a tangled web, that's for sure. But it doesn't stop there. The receiver actually had to take legal action to get SAC to hand over their financial records. It was quite the standoff. The receiver, rightfully so, wanted to understand SAC's financial status, how much money they have, where it's going, the whole nine yards. This information is crucial to developing a plan to get Chester out of bankruptcy. But SSC was dragging its feet, which forced the receiver to file a motion in federal court to demand access to those records. Talk about a power struggle. And these court ordered depositions. Well, let's just say they didn't paint a very pretty picture. The depositions revealed some rather questionable dealings, to say the least. One that really caught my eye was this whole property transfer situation. Okay, apparently, SAC's private partner, a company called Corvius Infrastructure Solutions, transferred a $400,000 building to the executive director's nonprofit organization. Wow. For a measly 10 bucks. 10 bucks? 10 bucks. Wow. And to add another layer of intrigue, the executive director's nonprofit doesn't even have any employees. What? So it's no wonder the receiver's attorney found this transaction ethically concerning. I mean, you're giving away a valuable asset for practically nothing, and it ends up in the hands of someone closely connected to the authority. That raises all sorts of red flags. Yeah, I'd say so. Red flags, Flashing lights, sirens blaring, the whole shebang. Right. It's like they're trying to win a game of how many ethical violations can we cram into one property deal? Oh, my. But hold on, folks, because we're just getting started. Okay? Remember that whole debate about whether the stormwater fee is actually a tax? Oh, yes, that's a big one. A court ruled that a similar fee in Westchester is legally attacks. And guess what? What? That case is now before the state Supreme Court. And that's where things get really interesting. Because if the Supreme Court upholds that ruling, it could have massive implications for stormwater authorities across the state. You see, Elliot, if the fee is considered a tax, then tax exempt organizations like churches and universities wouldn't have to pay. And that would blow a huge hole in the budgets of these authorities, making it even harder for them to provide essential services. So it's like a domino effect. One court ruling could trigger a financial earthquake for stormwater management across Pennsylvania. Talk about high stakes. But wait, there's more. Let's not Forget about those two city council members who were sitting on SAC's paid board. That whole situation was messier than a dropped plate of spaghetti. It certainly added another layer of complexity. Remember, Chester's mayor accused those council members of violating the city charter by holding two paid position positions simultaneously. Right. They initially resigned, but then in a move that would make even a seasoned politician blush, they came back to the board claiming they were within their rights. Bold move. And remember that quote from the mayor? He said even a fifth grader could understand that the city charter prohibits council members from holding other paid positions. So it makes you wonder, what were they thinking? It's a tangled web of conflicting interests, questionable actions, potential legal pitfalls, and it's all playing out against the backdrop of a city fighting for its financial services. Okay, so we've got financial woes, potential ethical breaches, and a legal battle that could rewrite the rules of the game. I don't know about you, but I'm feeling a little overwhelmed a little bit. Where do we even go from here? Well, that's what we're going to unpack next. We'll delve deeper into SAC's finances, examine the potential fallout from the rain tax lawsuit, and try to make sense of this whole council member controversy. Sounds like a plan. Stay tuned, folks, because things are about to get even more interesting. It's good to end. All right, let's try to untangle this web, shall we? So, sac, the Chester Stormwater Authority, is tasked with managing all that rainwater runoff, but it seems like they've gotten themselves into quite a financial pickle. That's putting it mildly. From what we've gathered, SAC initially projected needing around $1.25 million for projects to bring the city into compliance with state environmental regulations. Right? 1.25 million. That seems almost reasonable. Right, but then they went and borrowed a whopping $43 million from Pennvest, the state agency that provides loans for water infrastructure projects. How does that even happen? Did they suddenly discover a hidden underground river made of liquid gold? I wish it were that simple. According to deposition transcripts, the former executive director argued that the initial $1.25 million estimate was way off the mark. He described Chester's stormwater infrastructure as the most deplorable infrastructure ever anywhere in Delaware County. Wow. He even said that people were literally falling into storm drains. Okay, I get it. Crumbling infrastructure is a problem. But a $43 million problem? Right? That's a huge leap. It's like going to the grocery store for a gallon of milk and coming home with a whole dairy farm. That's a good one. You got to wonder, where was the oversight? Did no one bat an eye at this massive increase in borrowing? That's a great question, and one the receiver is trying to answer. Remember, the receiver's main job is to get Chester's finances back on track. And part of that means scrutinizing every expenditure, especially those involving large sums of money. And speaking of scrutiny, the receiver's attorney was particularly interested in whether SAAC conducted a formal rate study to justify those sky high fees they're charging residents. You know, like, did they actually do the math to show that these fees were necessary? Exactly. A rate study would analyze the costs associated with managing stormwater and determine how much revenue is needed to cover those costs. It's a standard practice for utilities and authorities. But the kicker is, the former executive director claimed a study was done, but no one can seem to find it. Oh, no. It's like the case of the missing homework assignment. That's a pretty apt comparison. And without that rate study, it's hard to know whether those fees are justified or whether residents are being overcharged. Remember those blog posts we mentioned earlier? The ones where residents were complaining that their Rates had doubled. Yeah, I bet they're feeling pretty frustrated right now. I can understand their frustration. It's like being asked to pay more for a service without any transparency about how that money is being used. It all boils down to trust, right? If you're going to ask people to fork over their hard earned money, you better be able to show them where it's going and why it's necessary. Absolutely. Transparency and accountability are essential, not just in times of crisis, but as a fundamental principle of good governance. Well said. And this case really highlights how things can go wrong when those principles are ignored. But let's zoom out a bit. We've talked a lot about SEC's finances, but what about the actual impact on stormwater management? You know, the whole reason this authority even exists? That's a crucial point. While the financial and ethical controversies are certainly attention grabbing, we can't lose sight of SSC's core mission. Protecting Chester's environment and preventing flooding. So what's the situation on the ground? Are they actually making progress in improving the city's stormwater infrastructure? That's hard to say. For certain, SSC claims to be investing heavily in improvements, but without access to all their records, it's difficult to assess the effectiveness of those investments. And let's not forget that looming state Supreme Court case about the rain tax. If the court rules that stormwater fees are actually taxes, that could throw a wrench into SEC's entire funding model. Absolutely. A ruling in favor of the rain tax argument could create a significant funding gap for stormwater authorities across Pennsylvania. And that funding gap could have serious consequences for our environment. Think about it. Less money for stormwater management could mean more flooding, more polluted waterways, and a greater risk of damage to property and infrastructure. Exactly. And the potential impact goes beyond just Chester. We could see similar challenges emerge in communities across the state. So this is a story with far reaching implications. It's about more than just questionable financial dealings. It's about the health of our environment and the well being of our communities. You're absolutely right. This case raises fundamental questions about how we manage stormwater, how we fund essential services, and how we ensure transparency and accountability in local government. Whoo. It's a lot to digest, isn't it? But I think it's crucial that we keep digging, keep asking questions and keep demanding answers, because ultimately, this is about protecting our communities and ensuring a sustainable future. So we've uncovered a lot of unsettling information about the Chester Stormwater Authority. What I keep coming back to is what happens next. That's the million dollar question. And right now, it's a waiting game. A waiting game? Yeah. The receivers investigation is still ongoing. Right. And that state Supreme Court case about stormwater fees could really shake things up. It's like we're standing at a crossroads with two paths ahead of us, both leading into uncertain territory. Okay, that's a good way to put it. Let's talk about those paths. Okay. First, the receivers investigation. They're looking into SAC's finances with a fine tooth comb, trying to understand if there is any wrongdoing. Right. Depending on what they find, they could recommend some major changes. We're talking restructuring the authority, bringing in new leadership, maybe even dissolving SAC altogether. Dissolving the authority? Wow. That's a drastic measure. What would happen to Chester's stormwater management if that happened? It would definitely be a significant shift. The city would likely have to take over stormwater management itself or potentially partner with another municipality or a county agency. Right. It would require a lot of planning and resources to ensure a smooth transition. And let's not forget about the other path, the rain tax lawsuit. If the Supreme Court rules that stormwater fees are actually taxes, well, that could blow a massive hole in the budgets of stormwater authorities all over Pennsylvania. You're absolutely right. If tax exempt organizations like churches and universities are no longer required to pay these fees, it could lead to a significant funding gap for stormwater management. And that could have a ripple effect, potentially impacting everything from infrastructure improvements to water quality testing. So we're talking potential financial chaos, major restructuring, and a whole lot of uncertainty. It's enough to make your head spin. But what I really want to know is what does all of this mean for the average Chester resident? Well, in the short term, it means their stormwater fees are likely to remain in place, at least until the receiver or the courts decide otherwise. But in the long term, it's hard to say. The outcome of the receiver's investigation in the Supreme Court case could drastically change how stormwater is managed and funded in Chester and possibly across the entire state. So it's a time of transition, of waiting and watching. But one thing's for sure, the residents of Chester deserve answers. They deserve to know how their money is being spent, whether those fees are truly justified, and what steps are being taken to ensure transparency and accountability moving forward. I couldn't agree more. And this is where the power of citizen engagement comes in. It's crucial for residents to stay informed, to ask questions and to make their voices heard. Attend city council meetings, reach out to your elected officials and make it clear that you expect transparency and accountability from those in positions of power. That's a powerful message. It's a reminder that we're not just passive bystanders in this process. We have a role to play in shaping the future of our communities. Absolutely. And sometimes just being aware of the issues, having those conversations with your neighbors and friends can make a difference. It all starts with asking questions, right? Questions like, what happens if SAC is found to be mismanaged? What are the viable alternatives to the current stormwater management system? What can we as residents do to ensure our voices are heard in this process? Those are excellent questions. And while we don't have all the answers today, we hope this episode has sparked some critical thinking and encouraged our listeners to dig deeper to explore those questions and to become active participants in shaping the future of their communities. Because at the end of the day, this isn't just about stormwater. It's about good governance, transparency, and holding those in power accountable. Well said. And that's something we should all be passionate about. And that's a wrap for this episode of Muni Matters. We've covered a lot of ground today, but as always, we've only scratched the surface. There's so much more to uncover, so many questions left unanswered, which is why. We want to hear from you. What are your thoughts on the Chester Stormwater Authority situation? What questions are swirling in your mind? Join the conversation on social media, drop us an email, or start a discussion in your own community. Because this is a conversation that deserves to continue. Because the more we talk about these issues, the more likely we are to find solutions that work for everyone. Thanks for tuning into Muni Matters. We'll see you next time.