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Avon Grove updates tax collection, investment plan; officials describe state budget shortfall and pension payment impact
Summary
District finance staff said real estate tax collections are ahead of last year after a large $30 million deposit; the district will present its annual investment plan for board approval and reported state budget delays have reduced state receipts and altered pension payment timing.
District finance staff told the operations committee that real estate tax collections are running ahead of last year and that the annual investment plan required for board approval remains on the schedule for the legislative meeting. Officials also described the continuing impact of the state budget delay on district cash flow and on employer/employee retirement payments.
Collections and deposits: the district reported collections of $56,600,000 to date, compared with $51,700,000 at the same point last year, and said a $30,000,000 deposit received the prior Tuesday — likely from mortgage companies — had narrowed earlier lagging collections. "So we're about $4,900,000 ahead of where we were last year," a finance official said.
Investment plan: staff said the district uses the school district liquid asset fund for most deposits and investments, maintains a checking account with Truest and uses the PA INVEST TRUS T (PA investment trust) for many investments in the food service fund; most investments are CDs through the liquid asset fund. The annual district investment plan will be brought to the board for approval at the September legislative meeting.
State budget and pension payments: officials said delayed state budget action decreased state receipts this summer. By Sept. 16 of the prior year the district received $8,700,000 from the state; this summer it received $2,300,000 to date. The district reported a total public-school employee retirement-system liability for the quarter ending June 30 of about $3,600,000 and said it made a $1,500,000 payment that represented the employee portion only, as directed by state guidance amid budget delays. "So we are we are not making the state portion to them," a finance official said, explaining the district is following guidance that allows payment of local shares only during the impasse.
Why it matters: staff said they are not currently drawing on the general fund but noted other districts with different revenue mixes may be in worse cash-flow positions. Committee members asked clarifying questions; staff said they would continue to monitor collections and present the investment plan for board action.
