Township Debt

Print

Township of Lower Merion, PA

The Township’s issues debt to finance its capital expenditures. The following information is aimed at providing citizens and stakeholders with a clear, concise non-technical summary of the Township’s outstanding debt, credit rating, annual debt service payments and legal debt margin.

Most of the information contained on this page is from the Township’s annual Comprehensive Annual Financial Report (CAFR). This information is not provided to satisfy formal compliance to potential investors, rather it is a supplement to the Township’s ongoing disclosure compliance efforts. Any questions regarding the Township’s disclosure efforts to the municipal market or the Township’s credit should be directed to the Township’s Chief Financial Officer.

Township Debt Management Policy

The Township originally adopted a Debt Management Policy in 2009. The Debt Management Policy was then revised and adopted by the Board of Commissioners on June 15, 2016.

Debt Management Policy (PDF)

Current Rating Agency Reports

Moody’s Report (PDF) 
Standard & Poor’s Report (PDF)

Township Outstanding Debt

The current outstanding debt as of December 31, 2015 is $106,240,000. Of this total $15,043,368 is allocated to business-type activities which refers to the Township’s Sanitary Sewer Fund. The debt is paid for through the Sewer Rates charged to sewer customers. The remaining total outstanding debt of $91,196,632 is governmental debt which includes all non-sewer debt. This debt is paid through the Township’s General Fund.

The bonds currently outstanding as of December 31, 2015 are as follows:

Description Average
interest
rate
Maturity
dates
through
Balance
outstanding

Series A of 2010

3.91

2026

$14,150,000

Series B of 2010

3.10

2020

5,800,000

Series C of 2010

5.15

2031

14,540,000

Series A of 2011

3.25

2023

10,755,000

Series B of 2011

3.36

2028

10,420,000

Series A of 2012

3.86

2027

10,575,000

Series A of 2013

1.86

2033

9,855,000

Series A of 2014

2.74

2029

7,300,000

Series B of 2014

3.01

2034

9,055,000

Series A of 2015

3.86

2020

4,195,000

Series B of 2015

3.65

2035

9,595,000

Total general obligation bonds

106,240,000

Less allocation to business-type activities

15,043,368

Total governmental activities
general obligation bonds

$91,196,632

Ten-year history of Township’s outstanding debt (PDF)

Township Debt Service

The annual debt service payments for the Township’s outstanding debt as of December 31, 2015 are shown in the chart below.

  Governmental Activities Business-type Activities
  Principal Interest Principal Interest

Year ending December 31: 

2016

$6,639,531

3,543,687

1,170,469

604,897

2017

6,614,841

3,017,113

1,160,159

517,556

2018

6,520,197

2,783,200

1,139,803

477,644

2019

6,465,797

2,549,658

1,189,203

436,023

2020

6,545,037

2,283,446

1,174,963

387,784

2021 to 2025

31,390,965

7,733,271

5,074,035

1,295,520

2026 to 2030

19,632,264

2,931,234

3,222,736

475,593

2031 to 2035

7,388,000

506,554

912,000

58,767

Total

$91,196,632

25,348,163

15,043,368

4,253,783

 

Legal Debt Margin

The Township’s legal debt limit (excluding lease rental debt), as defined in Section 102 of the Local Government Unit Debt Act of the Commonwealth of Pennsylvania (Act 52), to be used for capital projects without electorate approval as specifically itemized in a capital budget, was $209,002,218 as of December 31, 2015. The Township’s total outstanding nonelectoral debt of $106,240,000 as of December 31, 2015 represents 51% of its legal debt margin.

 

 

Free viewers are required for some of the attached documents.
They can be downloaded by clicking on the icons below.

Acrobat Reader Flash Player QuickTime Windows Media Player Microsoft Silverlight Word Viewer Excel Viewer PowerPoint Viewer