Finance director flags collections shortfalls, liquid-fuels overspend and new GASB liability

West Chester Finance Director Barbara Leonte reported at the Finance Committee meeting March 12 that the borough ended February with a slightly higher cash balance but faces several cash-collection and accounting challenges that could affect operations and this year’s audit.

Leonte told the committee the borough began the month with $24,471,388, booked receipts of $2,983,344 and recorded expenditures that left an ending cash balance of about $25,000,008.27. She said the general fund is showing a net loss of $485,464 through Feb. 28 and that earned income tax remains the main revenue source.

The director said the borough mailed real-estate tax bills in February and turned over more uncollected property taxes to collections at Portnoff than in prior years. "Normally, the amount that is uncollected is around 100ks. We turned over 200ks in uncollected property taxes," Leonte said. Committee members asked whether the in-house change to the collections process last year contributed; Leonte said the transition likely caused confusion and that staff sent letters in October and received many phone calls and emails in response.

Leonte said the borough has collected $34,773 year to date on…