Chester committee: city on track for year‑end budget despite departmental revenue shortfall

The Chester Budget and Finance Committee on May 19 heard a presentation from Chief Financial Officer Richard Troutman showing the city remains on track to meet its year‑end budget despite a shortfall in departmental revenues.

"We have sufficient cash, 17,400,000.0 of operating cash, 17,800,000.0 in specialty funds," CFO Richard Troutman told the committee as he reviewed March financial statements. He said the city is $3,700,000 favorable to budget year to date and is projecting to finish the year at budget "to be conservative."

The nut of the presentation, Troutman said, is that while overall revenues and expenses are favorable to budget through March, several specific lines require monitoring. Real estate tax receipts started a month earlier this year, increasing early cash flow. Parking revenues are consistently lagging the forecast as enforcement efforts continue, and "the real negative that we're focused on is the departmental revenues," Troutman said, attributing much of that shortfall to building- and permit-related fees in one department.

Troutman said cash decreased by about $1,700,000 in March, but that reflected transfers between operating and specialty funds (including ARPA and capital funds), and that the city's cash position has otherwise been maintained since February. He also highlighted efforts to give departments more operational data—particularly on departmental revenues and overtime—and said overtime reports are now provided to managers after each payroll.

During public comment, a first-time attendee identified as Dr. Motley asked several clarifying questions about overtime, health insurance and earmarked taxes. "I saw on one of the slides that there was an overage for something related to the summer in overtime, but the summer hasn't happened yet," Motley said. Troutman responded that the line labeled for "summer" combines staffing for multiple departments and that the facilities overtime referenced staffing for the municipal building rather than seasonal work. Motley also asked whether the city's health insurance plan is self‑funded; Troutman confirmed that it is.

Motley asked about a line item labeled for Crozer Library; Troutman explained that residents pay an earmarked tax that is collected by the city and then sent to Crozer Library. Motley also asked why companies labeled Harris and Covanta appear on the budget; Troutman said their payments are required under "Commonwealth statutes" and were established as part of agreements made when those companies began operations.

Committee members asked whether recent hires affect payroll capacity; Troutman said the city can make payroll and that three of the six vacancies reported for March were filled in early April, with the remaining vacancies contributing to favorable budget variance. The committee did not take additional formal action on policy items during the meeting.

The committee approved minutes from the April 14, 2025 meeting and then adjourned after questions and comments concluded.