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Montgomery CFO: tax collections strong, sewer bills delayed after data from American Water
Summary
CFO Michael Pitts told the township committee the 2024 budget and capital ordinances were adopted and tax collections are strong (99.71% through June 30), but first-half sewer bills were delayed because American Water provided data late; the township expects tax and sewer bills to be mailed later this summer.
CFO Michael Pitts presented Montgomery Township’s second-quarter financial report and said the town expects strong year-end revenues after adopting the 2024 budget and capital ordinances earlier this spring. Pitts said municipal taxes — the township’s largest revenue source — stood at about $67.6 million through June 30 and the township’s tax-collection rate was at 99.71 percent for the year to date.
Pitts told the committee interest income and fees are up versus 2023, partly because interest rates have remained higher than expected and recreation program fees have rebounded post-pandemic. He warned that some shared-service revenues are lower than last year because contracts expired, but said the council’s appropriations are on track and no material misstatements have emerged during the current audit.
On sewer billing, Pitts explained the first-half sewer bills were delayed because the township must wait for meter and usage data from American Water; those bills were mailed the week of July 15 with a grace period through July 24. He said second-half sewer bills are expected on time (due Sept. 1) and that the township will communicate due dates clearly to residents.
Pitts also reviewed other timing issues: a smaller cable-franchise check this year is attributable to payment timing, and a forthcoming cell-tower contract is expected to add roughly $40,000 annually. He reminded the committee that delinquent taxes were higher than the prior year (about $1.2 million vs. $1.1 million) and that miscellaneous revenue is lower due to one-time items recorded in 2023 (sale of an ABC license).
The committee had no substantive objections and thanked finance staff for the update. Pitts said auditors were still finalizing their work and he planned to return in September with the audit results.
