Chester’s New Chief Financial Officer is Ready to Navigate City’s Financial Future

City of Chester Chief Financial Officer Richard B. Troutman bristles at the perception that the role of a CFO is to be Dr. No.

Sometimes that is the case, of course. Financial discipline is needed for any organization to be successful. But that’s only half the story. A good CFO knows that strategic and effective investment is critical and works to find solutions to do that.

“Everybody thinks City Administrations are adversarial, and in particular, that the role of the CFO is to say no to spending and no to investing,” he said. “In actuality, everyone is rooting for success.”

Troutman, who took over as CFO on 5/20/24, is a well-rounded financial executive with experience across government, education, non-profit, and commercial settings. He has vast experience in traditional accounting, budgeting, finance, strategic planning, operations, and board relations.

In addition to managing the finances of Coatesville and large urban school districts, Troutman has experience in starting up and leading entities ranging from small startups to multi-billion-dollar organizations. He takes a hands-on approach, driven by his passion for service and a strong belief in leadership, integrity, and the value of people. 

Troutman recently discussed his role, qualifications, and why he chose to work for Chester.

Can you provide an overview of your professional experience and qualifications as a CFO? What have been some of your key achievements in previous CFO roles?

I am classically trained in public accounting, and my experience has led to CPA and then CMA certifications. I have extensive depth and breadth of professional experience in a multi-billion-dollar corporate environment responsible for multiple $500 million divisions serving primarily k-12 school districts and higher ed. Most of the focus was in large urban cities within traditional accounting and finance, architectural and engineering, landscape and operational support.

I also have multi-state charter school experience, generally in large urban settings with multiple millions of grant management and annual audits given to numerous individual clients. I have start-up and turnaround experience as a CFO/senior financial person. My most relevant work to the City of Chester would be in the City of Coatesville as the senior financial person for the last five years. The City was in financial distress, incurring 15%-20% structural deficits for about a decade, hidden by using up their cash reserves. We turned it round and have had legitimate balanced budgets and positive cash flow for the past 5 years.

How many situations have you been in that involved distressed companies or government bodies?

I have been involved in several turnaround situations, specifically Chester School District Receiver and Coatesville. 

What are some of the biggest misconceptions about receiverships and the role of a CFO?

Everything! The most successful turnarounds are finding ways that tactically identify opportunities and then leverage those opportunities to invest in areas with paybacks that, in turn, create additional investable opportunities. To a lesser extent, thinking that changes can be made immediately, or vast numbers can be managed easily, ignoring contracts that may have over five years left or taking on too many corrections at one time may mean some or none get done right.

Given your experience, what is your vision for how the receivership process can best support the City of Chester and its stakeholders?

There are a tremendous number of competent leaders trying to make a difference. They need accurate, timely financial information that can be relied upon to make sound decisions. We can provide financial leadership directly and pair accountants with departments to support them in accomplishing needed goals. 

How do you intend to engage with the various stakeholders in the city of Chester, such as local businesses and residents?

It is a three-fold process: treat stakeholders with dignity in instances directly involving finances; listen and respond promptly.  

Internal customers, typically employees, support best practices for those on the front lines serving residents and all stakeholders. Employees who are empowered, trained, and not worried about their matters will serve better.

Providing help and financial resources will instill confidence among stakeholders that their support will be well-spent and utilized as intended.

What drew you to taking the role?

I saw an urban distressed environment and an opportunity to help with public money. I grew up in inner-city Harrisburg, with parents working five jobs to put food on the table, a sister and me needing significant medical support provided by PA; my family didn't need a handout, but they did need a fair chance. I know firsthand the struggles and frustration the people of Chester are going through, so I have a personal connection and motivation to help put the city back on track.

How do you maintain the highest ethical standards?

I take a Servant Leader approach. This is the City of Chester’s money. People are working hard to put food on the table and keep a roof over their families' heads. I think of it like this - treat it as if it's grandma's cookie jar money. It is precious and should only be used to benefit Grandma or, in this case, Chester. Their money is their money. Many of the staff are residents. They want the city to be prosperous.