Township Debt

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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.  The policy was modified slightly when the Board of Commissioners completed a comprehensive revision to the Township's Financial Policies in August 2017.

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, 2017 is $107,520,000. Of this total $18,046,740 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 $89,473,260 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, 2017 are as follows:

Description Average
interest
rate
Maturity
dates
through
Balance
outstanding

Series A of 2010

4.11

2026

$11,675,000

Series C of 2010

5.17

2031

14,540,000

Series A of 2011

3.33

2023

6,925,000

Series B of 2011

3.51

2028

10,330,000

Series A of 2012

3.93

2027

7,690,000

Series A of 2013

2.00

2033

9,750,000

Series A of 2014

2.70

2029

5,590,000

Series B of 2014

2.90

2034

8,195,000

Series A of 2015

4.40

2020

3,140,000

Series B of 2015

3.78

2035

9,010,000

Series A of 2016
 4.00  2020  3,655,000
Series B of 2016
 2.04  2036  7,215,000
Series A of 2017
2.61
2037
9,805,000

Total general obligation bonds

107,520,000

Less allocation to business-type activities

18,046,740

Total governmental activities
general obligation bonds

$89,473,260

 

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, 2017 are shown in the chart below.

  Governmental Activities Business-type Activities
  Principal Interest Principal Interest

Year ending December 31: 

2018

$6,959,197

$3,056,476

$1,345,803

$607,426

2019

6,913,797

2,805,418

1,396,203

562,824

2020

7,010,037

2,524,277

1,389,963

507,052

2021

7,085,659

2,261,989

1,339,341

455,980

        2022

7,011,864  1,996,626  1,353,136  404,005

2023 to 2027

30,972,353

6,460,620

5,697,647

1,364,367

2028 to 2032

17,133,853

2,276,397

3,651,147

547,722

2033 to 2037

6,386,500

372,587

1,873,500

137,409

Total

$89,473,260

$21,754,390

$18,046,740

$4,586,785

 

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 $218,144,630 as of December 31, 2017. The Township’s total outstanding nonelectoral debt of $107,520,000 as of December 31, 2016 represents 49% of its legal debt margin.

 

 

 

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