City of Chester files for Chapter 9 bankruptcy
CHESTER, Pennsylvania (WPVI) -- The City of Chester filed for Chapter 9 bankruptcy on Thursday.
Officials say the city is broke and on track to fall into a $46 million deficit next year on a $55 million budget. Roughly $39 million of that is from past-due pension payments.
On Wednesday night before the filing, city workers filled Chester City Hall to voice their frustrations.
Due to the financial crisis, eliminating retiree health care, cutting the city's costs for active employees' medical benefits and reducing the city's pension and debt-service costs are potentially on the chopping block.
SEE ALSO: Chester employees could lose benefits, pensions due to city's financial concerns
Alan Davis, a retired police captain who was shot on the job, could be affected.
"I ended up with two bullets, one blew my arm apart," said Davis.
He says losing his benefits would be catastrophic.
In 1995, faced with multi-million dollar deficits and past due obligations, and after nearly four decades of decline, the City was designated as a distressed city under Act 47 and subjected to financial oversight by the Commonwealth of Pennsylvania, according to the bankruptcy filing.
The city has remained in various forms of supervision as a distressed city under Act 47 since 1995, a period of over 27 years.
