In Re: Chester Water Auth; Cross Aplt. Chester Co.

Summary

The court interpreted the statutory scheme governing conveyance of municipal-authority projects and held that the conveyance provision does not give an incorporating municipality perpetual unilateral power to acquire an authority's projects. It concluded that the provision's reference to the municipality with present authority to establish, maintain, or operate a project adapts to changes in an authority's governing structure, so the restructuring of the Chester Water Authority made the City, Chester County, and Delaware County the relevant participating municipalities. The court also held that the cited precedent concerning authority approval was dicta and that the statutory text unambiguously assigns initiation of a conveyance to the governing authorities of the municipality or municipalities seeking it. Justice Mundy, concurring in part and dissenting in part, agreed regarding the dicta but would have affirmed the intermediate court because the City retained power to operate the projects under the related conveyance provisions.