Board approves financial reports; members flag pending tax-rate legislation that could affect cash flow

At its Aug. 12 meeting, the Appoquinimink School District board voted to approve the district’s June monthly financial report, an internal accounts report and an August financial-position report that projects the district can meet one month of local payroll as of Oct. 15 under current law.

Chuck Longfellow presented the final-year totals and cautioned that a pending bill in the General Assembly could change how tax receipts are timed. “If something does pass, then we may have to, depending on the legislation, take measures to, borrow money from the state in order to make it through,” Longfellow said, noting the option in draft legislation would allow districts that reset tax rates to request and borrow from state funds to cover temporary cash-flow shortfalls.

Longfellow reported that total tax revenue, debt service, tuition and current expense added to $87,824,002.34 for the year. The board approved the June financial report and the internal accounts report after the financial advisory committee’s review.

On capital financing, the board approved staff’s recommendation to convert two bond anticipation notes to bonds — described by Longfellow as a conversion, not new debt. The first (series 2025A, No. 9529) carries a principal of $18,700,798 at an interest rate reported as 4.09 percent with annual installments around $935,039.90 through 2045. The second (series 2022A, No. 2529) converts $5,424,500 at about 2.28 percent with the final payment in 2042 and annual installments of roughly $271,225. Longfellow said payments are already funded through the district’s existing debt service and prior referendums.

Board members said they will discuss the pending tax-rate legislation at a community information night on Aug. 14 and, if authority is granted by the General Assembly, the board may call a special meeting within 10 business days to act on any changes.