One of the interesting backdrops to the battle royal swirling around the Chester Water Authority is the dire finances of the city the company calls home.
It's not exactly a secret that Chester has been struggling mightily to escape from the state's "distressed city" tag slapped on it under Act 47. In fact they are under a deadline to show progress.
But their financial picture would not be nearly as dire if it were not for a crucial change in the way "host agreement funds" tied to the casino industry in the state are doled out.
Act 42 of 2017 expanded gaming in the state to include online gambling and sports wagering.
But instead of going directly to the city, these funds instead now are funneled to the Commonwealth Financing Authority. The city works with them, as opposed to getting the money directly as they do with funds from slots and table game activities.
The city first broached the idea of its right to sell the company after the Chester Water Authority Board rejected an unsolicited offer of $320 million from Aqua Pa.
Then the city and Chester Water struck a deal that would see the company kick in $60 million to the city coffers while the city would relinquish its right to sell off any assets. In order to raise the money, Chester Water would increase rates 10 percent.
But that brought Aqua back into the picture. Since they are a customer of CWA, they went to court to block the deal.
The city, apparently anxious to get its hands on the revenue, is now again soliciting bids from folks interested in buying Chester Water, despite the company's clear belief they do not have the legal right to do so.
Stay tuned.
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