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Chester finance chief says cash position improved but pensions, OPEB remain major liabilities
Summary
CFO Richard Troutman told the Budget & Finance Committee Chester had nearly $20 million in operating cash at the end of April and roughly five months of operating reserves, but actuarial pension and OPEB shortfalls (including a $341 million OPEB liability) continue to pose long-term fiscal pressure.
The Chester Budget & Finance Committee heard a detailed finance briefing on June 1 in which CFO Richard Troutman said the city’s short-term cash position has strengthened but long-term retirement obligations remain large.
"As of the end of April, we had almost $20 million worth of operating cash," Troutman told the committee, adding that by mid‑April operating cash had approached $25 million—roughly five months of operating cash, versus the two months many best-practice guides recommend.
Troutman said the general fund stands at roughly $62 million and that revenues to date are slightly favorable, boosted by about $620,000 in department permit revenues tied to larger projects starting in the city. He warned, however, that the operating side is about $379,000 unfavorable year‑to‑date, driven largely by several one-time costs.
When pressed about specific one-time expenses, Troutman cited roughly $150,000 for snow‑related responses, about $225,000 of higher permit‑related costs tied to project engineering and roughly $200,000 absorbed from highway‑related expenses such as streetlight and electrical bills.
Troutman outlined the longer-term challenges the city faces on retirement costs. He said pension assets total about $74.5 million—up roughly 37% over two years—but cited an actuarial liability (2022 audited valuation) of $128 million and an unfunded MMO component in the tens of millions. The city’s yearly MMO requirement is about $13.8 million, and
