Chester-Upland board, receiver approve $19.25 million tax‑anticipation note amid state budget delay

Chester — The elected Chester‑Upland School District board and the district receiver unanimously approved a resolution Aug. 28 authorizing a $19,250,000 tax and revenue anticipation note to cover short‑term cash‑flow needs while the district awaits state subsidy payments.

The special public meeting, advertised in the Delaware County Times and held at the district administrative offices, was called specifically to consider “a short term tax anticipation” borrowing under the Pennsylvania Local Government Unit Debt Act (Act 53) to bridge expenses if the Commonwealth’s budget and subsidy payments are delayed.

At the meeting a resident, Sylvia Richbill of Glenolden, asked whether collateral would back the loan. The receiver responded that the district’s real‑estate tax receipts would serve as the collateral, and that the note “is not callable until 12/30/2025.”

Richbill also asked about affordability and whether the district could sustain itself if the state budget remained unsigned when a loan payment became due. The receiver said the district expects that the first state subsidy payment, when received, would be used to repay the loan in full, but added that the loan documents include provisions allowing extension of the loan period if the state budget does not pass.

The business office representative confirmed the interest rate on the note as 5.33 percent. During public comment Richbill estimated interest costs “roughly $1,200,000, $1,300,000,” a figure the receiver said was not calculated in the meeting and declined to confirm.

Board members and the receiver spent several minutes resolving a numeric discrepancy in paperwork. The resolution initially presented to the board contained differing figures (19,200,000 and 19,250,000 appear in versions of the documents). A district representative said the loan documents and lender authorization reflected $19,250,000; the board moved and seconded an amendment to correct the resolution to $19,250,000, and the amendment passed unanimously. The board then voted unanimously to approve the amended resolution.

The resolution authorizes the incurrence of non‑electoral debt by the school district pursuant to the Pennsylvania Local Government Unit Debt Act for issuance of “School District Tax and Revenue Anticipation Note, Series 2025.” The meeting record includes proof of publication in the Delaware County Times and availability of the resolution as advertised at the administrative offices during business hours.

Meeting officials did not state a lender name on the public record at the meeting. The record shows the lender had authorized a figure the district referenced as $19,000,002.50 in an earlier discussion of documents, but the board acted to set the authorized note amount at $19,250,000 in the final resolution.

The meeting closed after the roll call showed unanimous approval. The receiver formally confirmed: “Action item B‑1 is hereby approved.”

The district’s reliance on real‑estate tax receipts to collateralize the note and the stated contingency language in the loan documents mean the timing of Commonwealth subsidy payments remains the principal implementation risk for the district’s near‑term finances. The board did not adopt additional budget changes or supplementary fiscal measures during the special meeting.