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Finance director warns tax‑appeal uncertainty despite strong collections; board approves February report
Summary
Finance Director Mr. McCoy said the district has collected 98.9% of its current expense tax through February but warned more than 400 ongoing assessment appeals (≈$240 million in assessment) and $3.4 million in unpaid taxes create uncertainty; the board approved the February 28, 2026 monthly financial report subject to audit.
Finance Director Mr. McCoy told the Brandywine School District board that February collections look strong but uncertainty remains because of ongoing property‑assessment appeals and unpaid taxes.
“Through February, we have received 98.9% of our current expense tax,” McCoy said, but he cautioned that the district still faces more than 400 appeals affecting roughly $240 million of assessed value. Those appeals, he said, could reduce revenues depending on whether property owners seek refunds or credits for future tax years. McCoy also reported $3.4 million in unpaid BSD taxes as of March 24, up from $1.4 million at the same time the prior year.
The director highlighted other revenue items: a $975,000 state share of minor capital funds and one‑time state payments for literacy emergency funds and a midyear unit count, and he said the projected year‑end cash balance rose to about $9.275 million (up from $8.76 million in the prior month) because of stronger than budgeted tax collections. He noted one operating unit appears overspent due to budget placement of expenditures and that, overall, the budget has the funds needed to cover those expenses.
Board members asked for clarity about how refunds tied to successful appeals are processed. McCoy explained that Newcastle County typically offsets refunds from monthly collections, so the district’s cash flows reflect those adjustments when the county processes them. The board then moved, seconded and approved the February 28, 2026 monthly financial report, subject to audit; the transcript records a voice vote but no roll‑call tally.
McCoy said appeals could continue into the next fiscal year and that the district is tracking unpaid taxes and legislative activity related to reassessments and tax‑rate volatility.
