Board presses city over delayed tax collections, considers moving collection to Bank of Utica

Board members and staff spent a substantial portion of the meeting discussing persistent delays in tax remittances from the City of Utica and potential operational alternatives.

Finance staff reported that the district received a March payment of $378,924 and laid out unpaid balances by school year: approximately $643,000 for 2021–22, $978,000 for 2022–23, and roughly $2,670,000 for 2023–24 in delinquent or trickling receipts. The finance presenter said the city typically remits main tax payments after the fact (monthly) and that the district is pursuing shelter rents and delinquent pilot collections with counsel.

Board members and staff said the city’s practice of holding tax receipts reduces the district's ability to invest funds and costs the district interest income; staff reported placing investments in treasuries earning around 5% when cash is available. One board member said the district has had to borrow (a short‑term tax anticipation loan) and pay interest because of timing issues with city remittances.

Staff and board discussed contingency options including contracting with the Bank of Utica for collection services. Staff warned that moving collection would require time‑consuming reconciliation (matching parcel numbers, payer names and over/underpayments) and could require third‑party assistance for reconciliation. They said the city is obligated under a two‑year procedure to make the district whole for delinquent collections prior to foreclosure, but regular tax payments are expected to be advanced every five days under statute for the main tax cycle.

Board members said they have contacted the mayor and requested the city's controller engage; staff will prepare a timeline and a proposal to return to the board if the city does not agree to contract terms.

No final decision was made at the meeting; staff were asked to draft a timeline and proposal for consideration at the next meeting.