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Court sets up receivership for Petersburg payments

10/7/2016, 7:43 p.m.
Petersburg residents don’t have to worry anymore about getting their sewage treated. On Tuesday, a Petersburg Circuit Court judge set …

Petersburg residents don’t have to worry anymore about getting their sewage treated.

On Tuesday, a Petersburg Circuit Court judge set up a receivership to ensure that the monthly fee that residents pay for the service through their utility bill flows to the regional authority that treats the city’s household and business waste.

The ruling by Judge Joseph M. Teefey Jr. was a victory for the South Central Wastewater Authority, which has struggled in recent months to get Petersburg to pay up.

In its suit, the authority claimed the cash-strapped city had failed to pay $1.4 million for service rendered in recent months, instead diverting residents’ payments to cover other pressing bills in violation of its agreement.

The authority argued that Petersburg’s failure to pay threatened the authority’s solvency because the city is its largest customer. The authority urged the court to appoint a receiver to ensure the city paid what is owed.

Judge Teefey ordered Petersburg Treasurer Kevin Brown to place the portion of utility payments collected on behalf of the authority into a new account. The judge also named Bruce Matson of Richmond-based LeClair Ryan law firm as a special receiver to oversee the account and ensure proper payments to the authority.

It is not yet clear how much the city may have to pay into the account to begin paying off the $1.4 million that is past due.

The decision was handed down just a few days after the Petersburg City Council voted 6-1 to hire former Delegate Joseph Preston as city attorney. Mr. Preston accepted an annual salary of $155,500, which is to be reduced 10 percent, or $15,500, to reflect the recent reduction imposed on all employees. — JEREMY M. LAZARUS