Chester reviews proposed 2025 budget; council schedules first readings of tax, fee ordinances

City of Chester officials reviewed the proposed 2025 budget during a Nov. 25, 2024 deliberative meeting and the solicitor announced first readings of several ordinances that would set taxes, fees and the master fee schedule for the 2025 calendar year.

The solicitor listed first readings for Bill 11 (2025 budget appropriation), Bill 12 (2025 salary ordinance), Bill 13 (2025 business privilege tax), Bill 14 (2025 earned income tax), Bill 15 (2025 local services tax), Bill 16 (2025 real estate tax levy), Bill 17 (refuse collection fee), Bill 18 (Master Fee Schedule) and Bill 19 (2024 budget second amendment). The meeting record shows those items were placed on the agenda for first reading; no council vote on final adoption was recorded at the meeting.

Why it matters: Finance staff told council the city will have $6.9 million less revenue to work with in 2025 compared with 2024 and that unpaid prior-year pension minimum municipal obligations (MMOs) total $43.2 million. The chief financial officer outlined capital needs and said most capital spending would be funded by grants or outside sources rather than the city’s general fund. Council members asked for more time to review the packet before voting.

Finance overview and specifics

Chief Financial Officer Justin Troutman presented an overview and said the proposed 2025 budget includes no increase in the real estate or library tax rates and adds eight new positions classified as police or fire cadets. Troutman identified a range of planned capital investments — bridges, demolition, equipment, roads, traffic lights and vehicles — and said most of that spending is expected to come from external grants and PennDOT funding rather than the city’s operating revenues.

Troutman told council that major revenue reductions include $4 million less in ARPA general-purpose funds, $3 million less in state transportation aid (the “tran”), and $350,000 less in grants routed through the general fund. He also said a state loan the city typically receives will be reduced from $5 million to $2 million and that the reduced loan is expected to arrive around Jan. 2, creating tighter cash flow for the city.

Troutman highlighted that benefits account for nearly $29 million — roughly half of operating expenses — and that the budget as presented balances revenues and expenditures while fully disclosing the unpaid pension liabilities.

Trash fee and tax-billing timing changes

The budget as presented includes a $50 increase in refuse/trash collection fees for 2025, the meeting record shows. Staff also proposed changing the property tax billing cycle for taxes levied in 2025 (payable in 2026) to align with a more typical February–December cycle: bills issued on or about Feb. 1 with discount, face and late periods falling in February–May and delinquency starting Jan. 1, 2026. Staff said the city will coordinate the change with its third-party collector and communicate through multiple channels.

Process, schedule and council requests

Solicitor and staff explained that items on the deliberative meeting agenda would proceed to a formal council meeting on Wednesday for first reading; a second reading and potential final vote is scheduled for Dec. 11 if the council proceeds on schedule. Council members repeatedly asked for additional time and for clearer highlights of what changed in the budget packet; several said they received the packet shortly before the meeting and requested line-item change highlights before voting. The solicitor and staff responded that changes by department and line-item are included in the packet and that council may propose amendments between first and second readings.

Legal timing and consequences

The solicitor said state law requires the council to approve a balanced budget by Dec. 31 and that the budget as presented is documented to show revenues and expenses in balance while also disclosing the unpaid pension figures. Council members discussed options for amending or delaying the budget; staff said amendments can be made after passage if necessary but urged timely approval to avoid operating without an adopted budget.

Next steps

Staff asked council to review the packet and said the administration aims to present the budget for first reading at the upcoming council meeting and a final vote in December, with the goal of avoiding a Dec. 26 meeting. Council members asked for additional time to “grill” department heads and the CFO on details and to receive highlighted changes to the packet before casting votes.