Delaware Valley SD finance staff recommended the board approve a transfer of recent surplus funds into the district capital projects fund and asked the board to place the transfer on the agenda for a vote next week.

The recommendation, presented during the board work session, summarized revenue and expense variances that produced the surplus: roughly $810,000 in revenue over budget (including about $484,000 in delinquent taxes that are hard to predict); expenditures under budget by about $354,000; and a health‑insurance funding adjustment of about $829,000 that affected fiscal accounting. Staff said those three components together explain the roughly $1.99 million of funds under discussion and recommended moving funds to capital to cover anticipated capital projects.

Board members pressed staff on timing and cash flow. A staff member said the district must file its AFR (Annual Financial Report) by Oct. 31 and recommended finalizing the 24/25 financials at next week’s regular meeting. Several board members, including one who identified himself as Bill, urged caution about moving all available surplus into a capital reserve before the state budget is passed, saying the district could face cash‑flow pressure in January or February if state aid is delayed.

Board members discussed options including: (a) approving the transfer now and delaying the physical disbursement of checks until after the state budget clears, (b) postponing the transfer one to three months to confirm cash‑flow projections, or (c) approving the transfer with a contingency tied to the state budget timetable. Staff noted that, by rule, once funds are placed into a dedicated capital reserve they may not be withdrawn for other uses without following statutory restrictions.

No final vote occurred during the work session. The board agreed to place the proposed transfer and related budget transfer requests on the October regular meeting agenda, and at least one board member asked for additional documentation and clarity on the AFR filing implications and the exact dollar amounts that would be moved. Staff said numbers were mostly final but might be tweaked slightly before next week’s packet.

The discussion also touched on impact aid and other revenue timing: staff reported that impact aid appears likely to be protected and that most local tax revenues are front‑loaded through September, which provided some cushion. Bank partners and state temporary loan programs were discussed as potential stopgap options if cash flow became constrained.

Board members asked staff to provide final transfer amounts and the accounting treatment that will be used in the AFR so the board can make an informed vote at the next meeting.