Finance committee reports preliminary $2.25 million cash surplus, raises purchasing thresholds

The West Chester Finance & Revenue Committee heard that the borough ended 2025 with a preliminary cash‑basis surplus of $2,245,626.26 and moved to tighten procurement rules.

Finance Director Barb Leonte told the committee the figures are cash basis and will differ from audited (accrual) results: "This is on the cash basis. There's no accruals in these numbers," she said, adding audited financials will reflect accounts receivable, salaries and other accruals. Leonte also reported the Sewer Fund had a positive net position of $1,297,415.14 and the Parking Fund about $1,000,002.66 through Dec. 31.

Leonte reviewed January cash flows and said the borough began the month with about $27,000,282.36 in cash and ended with roughly $27,000,002.39 across funds. She noted a $352,131 due‑to balance from the capital fund to the general fund tied to grant‑reimbursed capital projects and said staff expect that balance to be resolved this year.

The committee approved several procurement policy changes intended to reduce risk and align thresholds with commonwealth standards. Under the revisions, single purchase‑order thresholds were raised from $2,500 to $5,000; POs from $5,000–$10,000 require finance director approval; POs over $10,000 require finance director and bureau manager signoff and appropriate borough council approvals. Purchases between $13,200 and $24,500 now require three written quotes; invoices alone will no longer suffice as procurement backup.

Leonte said P‑cards for department heads were reinstated in January and that department heads must sign a policy agreement to use cards only for borough business. She also described a proposed revolving loan fund to lend borough funds to local businesses for building renovations; loans would carry promissory notes and collateral and be reviewed quarterly by a committee comprising the borough manager, assistant manager, the finance director, a council member and John O'Brien.

A consent slate of purchase orders and software subscriptions was presented and amended during the meeting; staff adjusted one truck‑center PO upward and corrected a chemical‑equipment PO to the contracted amount. The committee raised no objections and the updates were accepted.

The committee chair closed the finance items and moved the meeting forward to other business.