West Chester reports $3.0 million general fund net income; warns on sewer receivables and audit findings

Finance director Barb Liante reported to West Chester Borough Council that the borough’s general fund had a net income of $3,000,004.98 as of April 30.

Liante said revenue highlights included stronger-than-expected real estate tax collections for 2025 and “prior real estate taxes are also doing well compared to last year.” She also told council that business privilege and interest earnings are ahead of budget.

“Looking at the expenses for the general fund, everything seems to be in line, but I do want to caution about the housing department,” Liante said, adding that building, mechanical and electrical permit revenues were trailing expectations through April 30. She said the borough had “put some big numbers in the revenue line items to help offset some of the third party costs, and expenses are still coming in.”

Liante flagged two audit findings in the borough’s special revenue funds. The liquid fuels fund showed a net income of $1,331,422 through April 30, but the auditor general’s office identified (1) a late deposit of the annual liquid fuels allocation and (2) a nonconformity related to salt purchases that did not follow the borough’s purchasing policy. Liante said the late deposit was caused by delayed submission of required forms and that the borough will transfer $33,000 for a 2022 issue noted in the audit.

On enterprise funds, Liante said wastewater had a net income of $23,009.39 and the parking fund had modest positive results. She warned that wastewater revenues were “a little lighter than what I would expect at this point in time” because the fund is facing capital expenses.

To shore up the wastewater fund, Liante said she recently transferred $1,500,000 in sewer cash from a Santander account to Cliggett to earn interest, and that the borough has been moving sewer balances to Portnoff for collections. “We are sending out monthly letters,” she said, and added that she is exploring alternative collections options because Portnoff prefers annual handling of accounts.

Liante also said the borough’s audit field work for the fiscal year is nearly complete but that the borough still needs the actuary’s 2024 financials to finalize the valuation and employee pension statements. She said she plans to revise the chart of accounts to conform with the Pennsylvania Department of Community and Economic Development (DCED) and to pursue a Government Finance Officers Association (GFOA) distinguished budget award in future years.

Council members asked questions about typical receivable patterns and collection vendors. In response, Liante said sewer receivables “have been issues for years,” and described past remedies including liens and outsourcing collections.

No formal council action was taken on the financial report; the item was presented for information and discussion.