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West Chester finances: general fund and sewer receivables improve; revolving loan fund policy proposed
Summary
Finance staff reported year‑to‑date net income across funds and a sizable reduction in sewer receivables, proposed a 3% revolving loan fund for façade and building improvements limited to borough property owners, and warned December–March cash tightness pending real estate tax timing.
Chair Brian McGinnis convened the West Chester Borough Finance & Revenue Committee on Dec. 10 as finance staff presented the monthly financial report and year‑end projections. Staff said the borough began the month with roughly $28,000,003 in cash across funds; year‑to‑date net income on a cash basis was reported at $3,113,030 for the general fund, $3,765,169 for wastewater, and $1,095,347 for the parking fund.
Staff reported collections work reduced sewer receivables from $764,880 to $466,466 as of Nov. 30 and credited employee Carrie Foster for collection efforts. About $298,414 was collected; unpaid 2024 real estate taxes were forwarded to Portnoff and staff said roughly $120,000 more in uncollected taxes is expected to be sent in January 2026.
The report noted interfund due‑to/due‑from balances have been largely reconciled, although one residual due‑from the capital fund remains. Staff said $237,300 in grant reimbursement connected to Hoops Park remains outstanding. On year‑end cash, staff projected the general fund net income on a cash basis between $600,000 and $1,000,000 but warned that December–March is typically tight because real estate tax revenues arrive later in the cycle; department heads were asked to delay non‑grant capital projects through March.
Council was told the borough has established a revolving loan fund for building and façade improvements to be available only to borough property owners. Loans would be secured by collateral and a promissory note, carry a 3% interest rate, and be reviewed quarterly by a committee consisting of the borough manager, assistant manager, a finance staff member, John O'Brien and a borough council member. Staff expects a policy for council review in February.
Staff also flagged check‑register items showing internal transfers made to cover debt service due Nov. 15; a general fund check of $554,872.51 was used to cover the borough’s portion of a 2016 principal and interest payment and a parking fund ACH covered the parking portion. Staff explained limited balances at a TD Bank parking account necessitated the interfund movement.
The committee asked clarifying questions about the revolving loan fund and confirmed staff will return with the loan policy for formal review. Several items from the financial report were slated for further review at the work session.
