Chester finance committee: city on track for near break-even as delinquent tax reporting improves

The City of Chester Budget & Finance Committee heard Oct. 20 that overall performance for 2025 remains largely consistent with prior months and staff expect the year to close near break-even.

Finance presenter Mr. Trautman said the city has 'sufficient cash' and introduced a new line in the financials to track delinquent tax and rubbish balances. He told the committee August collections were 'approximately a quarter million dollars' and that more reliable delinquency reporting will show rising collections as collection efforts intensify.

The update included a banking slide showing healthy cash balances in some funds and a 'bankruptcy accounts' reserve of '3 plus million dollars set aside' related to ongoing debt litigation, which Trautman said remains until those matters are resolved. On expenditures, Trautman said favorable variances are driven largely by vacancies, timing of medical claims and lower-than-expected legal fees.

When an unidentified committee member asked whether the city would end the year in surplus 'with the exception of the $40,000,000 owed to the pension,' Trautman replied he expected the operating budget to be about 'break even' and said the pension obligation 'sits on top of everything.'

Staff outlined the 2026 budget timetable: initial materials will be shared late October or early November, with a first reading at the second council meeting in November, a required public-review period and final reading in early–mid December. Councilwoman Portia West asked for a copy of the handout and requested close working sessions with staff, the mayor and council to review the draft budget.

The committee did not take formal action on the budget at the meeting; staff said the draft ordinances and rates would be brought forward for council direction if the council wants to pursue new revenue options for 2026.