Treasurer reports unusually low January property tax receipts; district expects larger February advance
Loading...
Summary
Treasurer Ted reported that January property tax receipts were far below typical levels, forcing the district to redeem investment funds to cover cash flow. A tax settlement and a larger February tax advance are expected to improve cash position.
Treasurer Mr. Boster reported to the Orange City School District Board on Feb. 10 that the district received only about $7,000 in real property tax revenue in January for the general fund, far below the typical January advance the district had expected.
"In January, we received, as president general fund, just $7,000 in property tax revenue that compares with a year ago just over 2,000,000 to, almost 3,300,000," Mr. Boster said, characterizing cash flow as "very tight right now." He said the district had redeemed funds from the investment portfolio to meet obligations and that a tax settlement was scheduled for Friday; staff expected to know the settlement amount by late Wednesday or Thursday.
Why it matters: property tax advances are a major source of district cash flow in winter months. Mr. Boster said the district is anticipating "a little over 12,000,000 in the February in advance" and is hopeful that will make up the January shortfall. The district also noted that expenditures remain on track with forecasts.
Board action: the board approved routine financial consent resolutions, including the monthly reports and a donation, by roll call.
Ending: Mr. Boster said the district's portfolio recently surpassed a 4% yield after redeeming lower-yield investments, which staff said should help lock in stronger returns on cash when the tax advances arrive.