CFO Richard Fromm reports city budget surplus and plans for additional capital investments

The Budget and Finance Committee of Chester, PA, held a meeting on December 16, 2024, where key financial updates and future plans were discussed, highlighting a positive financial outlook for the city. Chief Financial Officer Richard Fromm presented the financial status as of October, revealing a significant cash position of $23 million, which increased to $24.9 million by the end of November. This improvement reflects the city’s efforts to manage its finances effectively, moving from an anticipated deficit of $2.1 million at the beginning of the year to a projected operating surplus.

The committee reviewed the financial statements, noting that revenues remained stable at $56 million while expenses were consistent at $47 million. Notably, a portion of the expenses for October was attributed to pension contributions, indicating a commitment to long-term financial health. The city is also addressing staffing challenges, with 54 vacancies reported, which may impact service delivery.

A significant topic of discussion was the upcoming second budget amendment, which is set to be voted on this week. This amendment is designed to be neutral, balancing adjustments in expenses while allowing for increased investments in capital projects and pension funds. The committee emphasized that these changes are crucial for enhancing the city's infrastructure and ensuring the financial security of its employees.

Overall, the meeting underscored the city’s proactive approach to financial management, aiming to strengthen its fiscal position while addressing community needs through strategic investments. As Chester prepares for the new year, the focus remains on maintaining financial stability and improving services for residents.