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City of Chester finance staff projects near break-even for 2025, flags pension liability and rising delinquencies
Summary
City finance staff told the Budget & Finance Committee on Oct. 20 that revenues are lagging but expected to catch up, that the city now reports delinquent tax balances, and that a $40 million pension liability sits outside the year-end projection.
City of Chester finance staff told the Budget & Finance Committee on Oct. 20 that the city is projecting to finish 2025 roughly at budget — neither a large surplus nor a significant shortfall — but that a separate $40 million pension liability remains on top of that projection.
Trautman, a city staff member who presented the monthly financial slides, said the presentation was “a continuation of the July and prior months” and that the city expects expenses to escalate toward year end while timing gaps in revenue collections are closing. Trautman said the committee will begin to see a new line in the financials reporting delinquent tax balances; he said August collections included about $250,000 connected to that effort.
The presentation showed three favorable expenditure groupings driven in part by vacancies, timing of medical claims and lower-than-budgeted legal fees. Trautman said one fund set aside in connection with ongoing litigation or debt stands at more than $3 million until that matter is resolved. When the committee asked whether the city would close the year in surplus, Councilman Fred Green asked, “So we're gonna close off a year in a surplus with the exception of the 40,000,000 owed to the pension?” Trautman replied that the projection is “about break even” and that the $40 million sits on top of the operating picture.
Trautman outlined a proposed 2026 budget schedule: staff expect to present a first draft of rate-setting ordinances and the budget at the council’s second meeting in November, allow a 10‑day public review period, then aim for a final reading in mid‑December. He said working sessions with mayor and council would be scheduled late October or early November so members can review details before formal readings.
Committee members pressed for more detail on collections and the new delinquent-tax reporting: Trautman said the city has recently escalated collection efforts and engaged a contractor, Ecollect, which will pursue unpaid balances and that those enhanced collections are expected to raise collections next year. He also clarified that some revenue previously budgeted to the general fund should have been budgeted to capital and therefore will appear in a different fund presentation.
Votes at a glance: The committee approved the minutes from its Sept. 8, 2025 meeting by voice vote; individual roll-call votes were not recorded in the transcript. The committee later approved a motion to adjourn by voice vote.
The committee did not take further formal action on budget rates or adoption at the Oct. 20 meeting; staff said ordinances and the draft budget will be returned for council consideration in November and December.
