Pottstown OS - PFM Municipal Bond Auction Website

Transcription

This Preliminary Official Statement and the information contained herein are subject to completion, amendment or other change without notice. The Bonds may not be sold nor may offers to buy be accepted
prior to the time the Preliminary Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor
shall there be any sale of the Bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such jurisdiction.
PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 9, 2016
NEW ISSUE-BOOK ENTRY ONLY
RATINGS: Moody’s:
(Underlying)
Moody’s:
(Insured)
In the opinion of Bond Counsel, assuming compliance by the Issuer with certain covenants and requirements of the Internal Revenue Code
of 1986, as amended (the “Code”), and applicable regulations thereunder, interest on and accruals of original issue discount with respect to the
Bonds are excluded from gross income for federal income tax purposes under existing law, as currently enacted and construed, and are not items
of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, with respect to
corporations (as defined for federal income tax purposes), such interest and accruals of original issue discount are taken into account in
determining adjusted current earnings for the purpose of the alternative minimum tax. This opinion of Bond Counsel is subject to continuing
compliance by the Issuer with its covenants to comply with requirements of the Code and applicable regulations thereunder.
The Bonds have been designated or deemed designated, by the Issuer as "qualified tax-exempt obligations," for purposes and effect
contemplated by Section 265 of the Internal Revenue Code of 1986, as amended (concerning interest expenses relating to tax-exempt income of
certain financial institutions).
The Bonds are exempt from personal property taxes in Pennsylvania; and the interest on the Bonds is exempt from the Commonwealth of
Pennsylvania’s Corporate Net Income Tax and from its Personal Income Tax, or by any of its political subdivisions, under present statutory and
case law (For further information concerning federal and state tax matters relating to the Bonds, see "TAX MATTERS" herein).
$9,750,000*
Borough of Chambersburg
Franklin County, Pennsylvania
General Obligation Bonds, Series of 2016
Dated: Dated Date
Principal Due: December 1
(as shown on inside cover)
Interest Payable: December 1 and June 1
First Interest Payment: June 1, 2017
GENERAL: The General Obligation Bonds, Series of 2016 (the “Bonds”) in the aggregate principal amount of $9,750,000* of the
Borough of Chambersburg, Franklin County, Pennsylvania (the “Borough”) will be issued in registered form, without coupons, in denominations
of $5,000 or any integral multiple thereof. The Bonds will be registered in the name of Cede & Co., as the registered owner and nominee of The
Depository Trust Company ("DTC"), New York, New York. Beneficial ownership of the Bonds may be acquired in denominations of $5,000 or
any integral multiple thereof only under the book-entry system maintained by DTC through its brokers and dealers who are, or act through, DTC
Participants. The purchasers of the Bonds will not receive physical delivery of the Bonds. For so long as any purchaser is the beneficial owner of
a Bond, that purchaser must maintain an account with a broker or a dealer who is, or acts through, a DTC Participant to receive payment of
principal of and interest on the Bonds. See "BOOK-ENTRY ONLY SYSTEM" herein. If, under the circumstances described herein, Bonds are
ever issued in certificated form, the Bonds will be subject to registration of transfer, exchange and payment as described herein. The principal of
the Bonds will be paid to the registered owners or transferees, when due, upon presentation and surrender of the Bonds at the corporate trust
office of U.S. Bank National Association, located in Pittsburgh, Pennsylvania. Interest on the Bonds is payable semiannually on December 1 and
June 1 of each year, beginning June 1, 2017, until the principal sum thereof is paid. Payment of interest on the Bonds will be made by check
drawn on the Paying Agent mailed to the registered owners of the Bonds as of the Record Date (as defined in the section titled "The Bonds"
infra).
REDEMPTION: The Bonds are subject to redemption, in whole or in part, prior to their stated maturity as more fully described herein.
SECURITY: The Bonds are general obligations of the Borough, secured by the full faith, credit and taxing power of the Borough. The
Borough has covenanted to pay, as and when due, the principal of and interest on the Bonds, to include in its annual budget such amounts when
due, and to appropriate such amounts for such payment, and for such budgeting, appropriation and payment the Borough has pledged irrevocably
its full faith, credit and taxing power, which taxing power presently includes the power to levy ad valorem taxes on all taxable property within the
Borough, presently unlimited as to rate or amount for such purpose.
PURPOSE OF THE ISSUE: Proceeds of the Bonds will be applied towards and in connection with: (i) certain capital projects as
described herein; and (ii) payment of the costs of issuing the Bonds.
AUTHORITY FOR ISSUANCE: The Bonds will be executed and delivered in accordance with the Local Government Unit Debt Act of
the Commonwealth of Pennsylvania, 53 Pa. Cons. Stat. Chs. 80-82 (the “Debt Act”), and pursuant to an ordinance (the “Ordinance”) duly
enacted by the Borough on September 19, 2016. As a condition to issuance, proceedings with respect to the issuance of the Bonds will have been
approved by the Department of Community and Economic Development of the Commonwealth of Pennsylvania pursuant to the Debt Act.
MATURITIES, AMOUNTS, RATES, YIELDS/PRICES AND CUSIPS
{As Shown on Inside Cover}
The Bonds are offered when, as and if issued, subject to withdrawal or modification of the offer without notice, and subject to the
approving legal opinion of Eckert Seamans Cherin & Mellott, LLC, of Harrisburg, Pennsylvania, Bond Counsel, to be furnished upon delivery of
the Bonds. Certain matters will be passed upon for the Borough by G. Bryan Salzmann, Esquire, Salzmann Hughes, P.C., of Chambersburg,
Pennsylvania, Borough Solicitor. Public Financial Management, Inc. will serve as the Borough’s Financial Advisor in connection with the
issuance of the Bonds. It is expected that the Bonds will be available for delivery in New York, New York, on or about October 27, 2016.
Public Financial Management, Inc.
Financial Advisor to the Borough
Dated:
*Estimated, subject to change.
$9,750,000*
Dated: Dated Date
Interest Payable: December 1 and June 1
Maturity
(December 1)
Year
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
Amounts
Principal Due: December 1
First Interest Payment: June 1, 2017
Rates
Yields
Prices
CUSIP(1)
(A portion of the Bonds may be structured as Term Bonds. See "Invitation to Bid".)
(1)
The above CUSIP (Committee on Uniform Securities Identification Procedures) numbers have been assigned by an
organization not affiliated with the Borough or the Underwriter, and such parties are not responsible for the selection or use of the
CUSIP numbers. The CUSIP numbers are included solely for the convenience of bondholders and no representation is made as
to the correctness of such CUSIP numbers. CUSIP numbers assigned to securities may be changed during the term of such
securities based on a number of factors including, but not limited to, the refunding or defeasance of such issue or the use of
secondary market financial products. Neither the Borough nor the Underwriter has agreed to, and there is no duty or obligation
to, update this Preliminary Official Statement to reflect any change or correction in the CUSIP numbers set forth above.
BOROUGH COUNCIL
Allen B. Coffman ..................................................
Heath E. Talhelm ..................................................
Samantha J. Bietsch...............................................
Sharon A. Bigler....................................................
Jeremy D. Cate ......................................................
Louisa C. Cowles ..................................................
Herbert R. Dolaway...............................................
Alice C. Elia ..........................................................
Kathy J. Leedy ......................................................
John A. Scott III ....................................................
Council President
Council Vice President
Member
Member
Member
Member
Member
Member
Member
Member
MAYOR
DARREN BROWN
BOROUGH ADMINISTRATION
Jeffrey M. Stonehill .......................................
David C. Finch ...............................................
Jason H. Cohen ..............................................
Jamia L. Wright .............................................
Borough Manager/Director of Utilities
Asst. Borough Manager/Public Works Director
Finance Director/Borough Treasurer
Borough Secretary
BOROUGH SOLICITOR
G. BRYAN SALZMANN, ESQUIRE
SALZMANN HUGHES, P.C.
Chambersburg, Pennsylvania
BOND COUNSEL
ECKERT SEAMANS CHERIN & MELLOTT, LLC
Harrisburg, Pennsylvania
FINANCIAL ADVISOR
PUBLIC FINANCIAL MANAGEMENT, INC.
Harrisburg, Pennsylvania
PAYING AGENT
U. S. BANK NATIONAL ASSOCIATION
Pittsburgh, Pennsylvania
BOROUGH ADDRESS
100 South Second Street
Chambersburg, Pennsylvania 17201-0909
No dealer, broker, salesman or other person has been authorized by the Borough to give information or to make any
representations, other than those contained in this Preliminary Official Statement. If given or made, such other information or
representations must not be relied upon as having been authorized by any of the foregoing. This Preliminary Official Statement
does not constitute an offer to sell or the solicitation of an offer to buy any security other than the Bonds, nor shall there be any
sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale.
The information set forth in this Preliminary Official Statement has been obtained from the Borough and other sources which are
believed to be reliable. Such information is not guaranteed as to accuracy or completeness. The information and expressions of
opinion in this Preliminary Official Statement are subject to change without notice and neither the delivery of this Preliminary
Official Statement nor any sale made under it shall, under any circumstances, create any implication that there has been no
change in the affairs of the Borough since the date hereof.
TABLE OF CONTENTS
Page
Page
Pennsylvania Tax Exemption ................................................ 15
Internal Revenue Code Covenants ........................................ 15
Qualified Tax-Exempt Obligations ....................................... 15
Federal Alternative Minimum Tax Calculations ................... 16
Taxable Social Security and Railroad Retirement Benefits
Calculation ............................................................................ 16
Property and Casualty Insurance Company Income Taxes .... 16
Tax on Excess Passive Net Income of S Corporation ............ 16
Branch Profits Tax ................................................................ 16
Interest Reporting Requirements ........................................... 16
Market Discount.................................................................... 16
Original Issue Discount ......................................................... 17
Tax Treatment of Premium ................................................... 17
INTRODUCTORY STATEMENT ............................................... 1
AUTHORITY FOR ISSUANCE ................................................... 1
PURPOSE OF THE ISSUE ........................................................... 1
Sources and Uses of Bond Proceeds ...................................... 1
THE BONDS...................................................................................2
General Description ............................................................... 2
Payment of Principal and Interest .......................................... 2
Transfer, Exchange and Registration of Bonds ...................... 2
BOOK-ENTRY ONLY SYSTEM ................................................. 3
REDEMPTION OF BONDS.......................................................... 5
Optional Redemption ............................................................. 5
Mandatory Redemption ......................................................... 5
Notice of Redemption ............................................................ 5
Manner of Redemption .......................................................... 5
CHANGE IN LAW ........................................................................ 17
CONTINUING DISCLOSURE UNDERTAKING ...................... 18
Continuing Disclosure Filing History.................................... 18
Bond Insurance Rating Downgrades and Upgrades
by S&P and/or Moody’s
Future Continuing Disclosure Compliance............................ 19
SECURITY FOR THE BONDS..................................................... 6
General Obligations ............................................................... 6
Sinking Fund .........................................................................6
NEGOTIABILITY ........................................................................ 19
THE BOROUGH............................................................................7
MUNICIPAL BANKRUPTCY LAW ........................................... 19
Introduction ...........................................................................7
RATING ......................................................................................... 20
BOROUGH FINANCES ................................................................ 7
General Operating Fund......................................................... 8
UNDERWRITING ........................................................................ 20
LEGAL OPINION ......................................................................... 20
TAXING POWERS OF THE BOROUGH ................................... 9
General ..................................................................................9
Real Estate Tax ......................................................................10
Real Property Market, Assessed Values and Land Use.......... 11
Real Estate Tax Collection..................................................... 11
FINANCIAL ADVISOR................................................................ 20
MISCELLANEOUS ...................................................................... 20
APPENDIX A - DEMOGRAPHIC AND ECONOMIC INFORMATION
RELATING TO THE BOROUGH OF CHAMBERSBURG
Introduction ........................................................................... A-1
Population ............................................................................. A-1
Employment .......................................................................... A-2
Commercial Activity ............................................................. A-4
Educational Institutions ......................................................... A-4
Utility Services...................................................................... A-4
Medical Facilities .................................................................. A-4
Transportation ....................................................................... A-4
DEBT AND DEBT LIMITS .......................................................... 12
Types of Indebtedness under the Debt Act ............................ 13
Borrowing Capacity ............................................................... 13
Future Financing .................................................................... 13
LABOR RELATIONS ................................................................... 14
Employees and Labor Contracts ........................................... 14
Pension Plans .........................................................................14
Pension Contributions............................................................ 14
Other Postemployment Benefits (OPEB) Other Than
Pension ..................................................................................14
APPENDIX B – FORM OPINION OF BOND COUNSEL
APPENDIX C – CONTINUING DISCLOSURE CERTIFICATE
LITIGATION .................................................................................15
APPENDIX D – BOROUGH OF CHAMBERSBURG
TAX MATTERS .............................................................................15
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2015
Federal Tax Exemption.......................................................... 15
i
[THIS PAGE INTENTIONALLY LEFT BLANK]
PRELIMINARY OFFICIAL STATEMENT
$9,750,000*
INTRODUCTORY STATEMENT
This Preliminary Official Statement, including the cover page and the Appendices hereto, is furnished in connection with the offering
of $9,750,000* aggregate principal amount of the Borough of Chambersburg, Franklin County, Pennsylvania (the “Borough”) General
Obligation Bonds, Series of 2016, dated as of the date of delivery (the "Bonds"). The Bonds are being issued pursuant to an Ordinance of the
Borough to be enacted September 19, 2016 (the “Ordinance”), and pursuant to the Local Government Unit Debt Act of the Commonwealth of
Pennsylvania, 53 Pa. Cons. Stat. Chs. 80-82 (the “Debt Act”). U.S. Bank National Association (the “Paying Agent”) will act as the Paying
Agent and Sinking Fund Depository for the Bonds.
The Bonds are general obligations of the Borough, and the full faith, credit and taxing power of the Borough are pledged for the
payment of the principal of and interest on the Bonds when due. The Bonds are payable from its tax and other general revenues, including
unlimited ad valorem taxes on all taxable real property in the Borough, which taxing power is presently without limitation as to rate or
amount for such purpose (See “Security” herein).
Neither the delivery of this Preliminary Official Statement nor any sale of the Bonds made hereunder shall, under any circumstances,
create any implication that thereafter there have been no changes in the affairs of the Borough since the date of this Preliminary Official
Statement or the earliest date as of which certain information contained herein is given.
AUTHORITY FOR ISSUANCE
The Bonds are issued in accordance with the requirements of the Debt Act and pursuant to the Ordinance. Issuance of the Bonds will
be approved by the Department of Community and Economic Development of the Commonwealth pursuant to the Debt Act.
PURPOSE OF THE ISSUE
Proceeds of the Bonds will be applied towards and in connection with: (i) financing certain projects for the Borough as part of its
recreational improvements capital plan, including, but not limited to, the acquisition, installation, equipping and construction of a new
community swimming pool; and (ii) payment of the costs of issuance of the Bonds.
Sources and Uses of Bond Proceeds
The following is a summary of the sources and uses of the proceeds from the issuance of the Bonds and other funds to be available for
the purposes.
SOURCES:
Bonds .................................................................................................
Net Original Issue Premium [Discount] .............................................
Accrued Interest .................................................................................
Total ...............................................................................................
USES:
Deposit to Capital Projects Fund ........................................................
Costs of Issuance(1).............................................................................
Total ...............................................................................................
(1)
Includes legal, financial advisor, printing, credit rating, underwriter discount, paying agent /redemption agent,
CUSIP and miscellaneous costs.
1
THE BONDS
General Description
The Bonds will be issued as fully registered bonds, without coupons, in the denominations of $5,000 and integral multiples thereof.
The Bonds will be issued as one fully registered Bond for each maturity of the Bonds in the name of Cede & Co., as nominee of The
Depository Trust Company, New York, New York (“DTC”), as registered owner of all Bonds. See “Book-Entry Only System” herein. The
Bonds will be dated as of the date of delivery, and will mature, subject to prior redemption as hereinafter described, in the principal amounts
on the dates, and will bear interest at the rates, set forth on the cover of this Preliminary Official Statement. Interest on the Bonds is payable
semiannually on December 1 and June 1 of each year, commencing June 1, 2017.
Payment of Principal and Interest
Subject to the provisions described under “Book-Entry Only System” below, principal of the Bonds will be payable upon maturity or
earlier redemption to the registered owner of each Bond, or assigns, upon presentation and surrender thereof at the specified corporate trust
office of the Paying Agent in Pittsburgh, Pennsylvania.
Interest is payable to the registered owner of a Bond from the interest payment date next preceding the date of registration and
authentication of the Bond unless: (a) such Bond is registered and authenticated as of an interest payment date, in which event such Bond
shall bear interest from said interest payment date, or (b) such Bond is registered and authenticated after a Record Date (hereinafter defined)
and before the next succeeding interest payment date, in which event such Bond shall bear interest from such interest payment date, or (c)
such Bond is registered and authenticated on or prior to the Record Date (hereinafter defined) next preceding June 1, 2017, in which event
such Bond shall bear interest from the date of delivery, or (d) as shown by the records of the Paying Agent, interest on such Bond shall be in
default, in which event such Bond shall bear interest from the date on which interest was last paid on such Bond. Interest shall be paid on the
Bond semiannually on December 1 and June 1 of each year, beginning June 1, 2017, until the principal sum is paid. Interest on each Bond is
payable by check drawn on the Paying Agent, which shall be mailed to the registered owner whose name and address shall appear, at the
close of business on the fifteenth (15th) day next preceding each interest payment date (the "Record Date"), on the registration books
maintained by the Paying Agent irrespective of any transfer or exchange of the Bond subsequent to such Record Date and prior to such
interest payment date, unless the Borough shall be in default in payment of interest due on such interest payment date. In the event of any
such default, such defaulted interest shall be payable to the person in whose name the Bond is registered at the close of business on a special
record date for the payment of such defaulted interest established by notice mailed by the Paying Agent to the registered owners of such
Bonds not less than fifteen (15) days preceding such special record date. Such notice shall be mailed to the persons in whose names such
Bonds are registered at the close of business on the fifth (5th) day preceding the date of mailing.
If the date for payment of the principal of or interest on any Bond shall be a Saturday, Sunday, legal holiday or a day on which banking
institutions in the municipality where the principal office of the Paying Agent is located are authorized by law or executive order to close,
then the date for payment of such principal or interest shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day
on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the
nominal date established for such payment.
Transfer, Exchange and Registration of Bonds
Subject to the provisions described below under “Book-Entry Only System”, Bonds are transferable or exchangeable by the registered
owners thereof upon surrender of Bonds to the Paying Agent, at its office in Pittsburgh, Pennsylvania, accompanied by a written instrument
or instruments in form, with instructions, and with guaranty of signature satisfactory to the Paying Agent, duly executed by the registered
owner of such Bond or his attorney-in-fact or legal representative. The Paying Agent shall enter any transfer of ownership of Bonds in the
registration books and shall authenticate and deliver at the earliest practicable time in the name of the transferee or transferees a new fully
registered bond or bonds of authorized denominations of the same maturity and interest rate for the aggregate principal amount which the
registered owner is entitled to receive. The Borough and the Paying Agent may deem and treat the registered owner of any Bond as the
absolute owner thereof (whether or not a Bond shall be overdue) for the purpose of receiving payment of or on account of principal and
interest and for all other purposes, and the Borough and the Paying Agent shall not be affected by any notice to the contrary.
The Borough and the Paying Agent will not be required (a) to register the transfer of or exchange any Bonds then considered for
redemption during a period beginning at the close of business on the fifteenth (15th) day next preceding any date of selection of Bonds to be
redeemed and ending at the close of the business day on which the applicable notice of redemption is mailed, or (b) to register the transfer of
or exchange any portion of any Bond selected for redemption until after the redemption date. Bonds may be exchanged for a like aggregate
principal amount of Bonds of other authorized denominations, of the same maturity and interest rate.
2
BOOK-ENTRY ONLY SYSTEM
The information in this section has been obtained from materials provided by DTC for such purpose. The Borough (herein referred to
as the “Issuer”) and the Underwriter do not guaranty the accuracy or completeness of such information, and such information is not to be
construed as a representation of the Borough or the Underwriter.
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as
fully-registered bonds registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an
authorized representative of DTC. One fully-registered Bond certificate will be issued for each series of the Bonds, each in the aggregate
principal amount of such issue, and will be deposited with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a
“banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing
corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions
of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.6 million issues of U.S. and nonU.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants
(“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other
securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’
accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S.
securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned
subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing
Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its
regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers,
banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either
directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are
on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on
DTC’s records. The Ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct
and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners
are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings,
from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in
the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates rep resenting their ownership interests in Bonds, except in the event that use of the book-entry
system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership
nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and
their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no
knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts
such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for
keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by
Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed
amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for
their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their
names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s practice is to
determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct
Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as
possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose
accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
3
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as
may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of
funds and corresponding detail information from Issuer or Agent, on payable date in accordance with their respective holdings shown on
DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the
case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such
Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time.
Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an
authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the
responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect
Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to
Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be
printed and delivered.
Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository).
In that event, Bond certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that Issuer believes
to be reliable, but Issuer takes no responsibility for the accuracy thereof.
NEITHER THE BOROUGH NOR THE PAYING AGENT WILL HAVE ANY RESPONSIBILITY OR OBLIGATION TO ANY
DTC PARTICIPANT, INDIRECT PARTICIPANT OR BENEFICIAL OWNER OR ANY OTHER PERSON WITH RESPECT TO: (1) THE
BONDS; (2) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DTC PARTICIPANT OR INDIRECT
PARTICIPANT; (3) THE PAYMENT BY DTC OR ANY DTC PARTICIPANT OR INDIRECT PARTICIPANT OF ANY AMOUNT DUE
TO ANY BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL OR REDEMPTION PRICE OF OR INTEREST ON THE BONDS;
(4) THE DELIVERY TO ANY BENEFICIAL OWNER BY DTC OR ANY DTC PARTICIPANT OR INDIRECT PARTICIPANT OF ANY
NOTICE WHICH IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE RESOLUTION TO BE GIVEN TO
BONDHOLDERS; (5) THE SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE EVENT OF ANY
PARTIAL REDEMPTION OF THE BONDS; OR (6) ANY OTHER ACTION TAKEN BY DTC AS BONDHOLDER.
The Issuer and the Paying Agent cannot give any assurances that DTC or the Participants will distribute payments of the principal
or redemption price of and interest on the Bonds paid to DTC or its nominee, as the registered owner of the Bonds, or any redemption or
other notices, to the Beneficial Owners or that they will do so on a timely basis, or that DTC will serve and act in the manner described in
this Preliminary Official Statement.
[THIS SECTION INTENTIONALLY LEFT BLANK]
4
REDEMPTION OF BONDS
Optional Redemption
The Bonds stated to mature on or after December 1, 2022 are subject to redemption prior to maturity, at the option of the Borough, as a
whole, on December 1, 2021, or on any date thereafter, or from time to time on December 1, 2021, or on any date thereafter, and, if in part, in
such order of maturity as selected by the Borough, in either case upon payment of a redemption price of 100% of the principal amount plus
accrued interest to the redemption date. In the event less than all Bonds of any particular maturity are to be redeemed, the Bonds to be
redeemed shall be drawn by lot by the Paying Agent.
Mandatory Redemption
Bidders may elect to structure the issue to include term Bonds, which term Bonds, if selected by the bidder, will be subject to
mandatory redemption prior to maturity, in the years and amounts as shown in the Invitation to Bid, upon payment of the principal amount of
Bonds to be redeemed, together with accrued interest to the date fixed for redemption, or upon maturity, as applicable. Bonds to be redeemed
shall be selected by lot by the Paying Agent.
In lieu of such mandatory redemption, the Paying Agent, on behalf of the Borough, may purchase from money in the Sinking Fund, at a
price not to exceed the principal amount plus accrued interest, or the Borough may tender to the Paying Agent, all or part of the Bonds subject
to being drawn for redemption in any such year.
Notice of Redemption
Notice of any redemption of Bonds shall be given by depositing a copy of the redemption notice by first class mail, postage prepaid not
more than forty-five (45) days and not less than twenty (20) days prior to the date fixed for redemption, addressed to each of the registered
owners of Bonds to be redeemed, in whole or in part, at the addresses shown on the registration books kept by the Paying Agent as of the date
such Bonds are selected for redemption. Neither the failure to mail notice of redemption nor any defect therein or in the mailing thereof shall
affect the validity of any proceeding for redemption of other Bonds called for redemption as to which proper notice has been given.
On the date designated for redemption, notice having been provided as aforesaid, and money for payment of the principal and accrued
interest being held by the Paying Agent, interest on the Bonds and portions thereof so called for redemption shall cease to accrue and such
Bonds and portions thereof so called for redemption shall cease to be entitled to any benefit or security under the Ordinance, and registered
owners of such Bonds shall have no rights with respect to such Bonds, except to receive payment of the principal of and accrued interest on
such Bonds to the date fixed for redemption.
If at the time of mailing of such notice of redemption, the Borough shall not have deposited with the Paying Agent funds sufficient to
redeem all of the Bonds called for redemption, such notice may state that it is subject to the deposit of redemption moneys with the Paying
Agent no later than the redemption date and that such notice will be of no effect unless such moneys are so deposited.
If the date fixed for redemption of a Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the
municipality where the principal office of the Paying Agent is located are authorized by law or executive order to close, then the date for
payment of such principal or interest upon such redemption shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or
a day on which such banking institutions are authorized by law or executive order to close, and payment on such day shall have the same
force and effect as if made on the nominal date established for such payment.
Manner of Redemption
If a Bond is of a denomination larger than $5,000, a portion of such Bond may be redeemed. For the purposes of redemption, a Bond
shall be treated as representing that number of Bonds which is obtained by dividing the principal amount thereof by $5,000, each $5,000
portion of such Bond being subject to redemption. In the case of partial redemption of a Bond, payment of the redemption price shall be
made only upon surrender of such Bond in exchange for Bonds of authorized denominations in aggregate principal amount equal to the
unredeemed portion of the principal amount thereof.
5
SECURITY FOR THE BONDS
General Obligations
The Bonds will be general obligations of the Borough, payable from its tax and other general revenues, which taxing power presently
includes ad valorem taxes which may be levied on all taxable real property within the Borough presently without limitation as to rate or
amount. The Borough has covenanted that it will provide in its budget for each year, and will appropriate from its general revenues in each
such year, the amount of the debt service on the Bonds for such year, and will duly and punctually pay or cause to be paid from its Sinking
Fund, as hereinafter defined, or any other of its revenues or funds, the principal of every maturity of the Bonds and the interest thereon at the
dates and place and in the manner stated on the Bonds, and for such budgeting, appropriation and payment the Borough irrevocably has
pledged its full faith, credit and taxing power.
Sinking Fund
A sinking fund designated “Borough of Chambersburg, Series of 2016 Bonds Sinking Fund” (the "Sinking Fund"), created under the
Ordinance shall be held by U.S. Bank National Association, located in Pittsburgh, Pennsylvania (the “Sinking Fund Depository”). The
Borough shall deposit in the Sinking Fund not later than each date when interest or principal is to become due on the Bonds, a sum which
together with any other available funds on deposit in the Sinking Fund shall be sufficient to pay in full interest and principal then due and
payable on the Bonds.
The Sinking Fund shall be secured and may be invested by the Sinking Fund Depository in securities or deposits authorized by the Debt
Act, upon direction of the Borough. Such deposits and securities, if any, shall be in the name of the Borough but subject to withdrawal or
collection only by the Sinking Fund Depository, and such deposits and securities, together with interest thereon shall be a part of the Sinking
Fund.
The Sinking Fund Depository is authorized, without further order from the Borough, to pay from the Sinking Fund the principal of and
interest on the Bonds when due and payable.
[THE REMAINDER OF THIS SECTION INTENTIONALLY LEFT BLANK]
6
THE BOROUGH
Introduction
The Borough was founded in 1764 and incorporated as a Borough in 1803. It is located in the south-central region of Pennsylvania and
is the County seat of Franklin County. The Borough covers an area of 6.58 square miles and lies approximately 50 miles southwest of
Harrisburg, 25 miles west of Gettysburg, 22 miles north of Hagerstown, Maryland. The Borough is contained in the Franklin and Fulton
Labor Market Area (the “LMA”).
BOROUGH FINANCES
The following Table shows the balance sheet of the Borough’s General Fund at December 31, 2011 through December 31, 2015.
CHAMBERSBURG BOROUGH
GENERAL FUND
BALANCE SHEET
(December 31)
ASSETS
Cash & equity in pooled cash
and investments .......................................
Taxes receivable, net ....................................
Receivable from other governments ............
Prepaid expenditures ....................................
Other receivables, net...................................
Total Assets .............................................
2011
2012
2013
2014
2015
$692,532
351,769
561,473
0
213,306
$1,819,080
$1,001,209
446,490
375,185
0
306,355
$2,129,239
$2,250,760
394,150
376,430
0
360,391
$3,381,731
$1,942,985
301,054
751,969
35,138
294,168
$3,325,314
$1,243,304
377,554
755,468
0
334,844
$2,711,170
LIABILITIES
Accounts Payable .........................................
Unearned revenue ........................................
Accrued wages, benefits and withholdings ..
Total Liabilities ......................................
$128,330
380,375
50,688
$559,393
$117,199
105,740
96,083
$319,022
$96,698
108,020
127,737
$332,455
$88,833
103,220
87,089
$279,142
$77,587
105,960
124,875
$308,422
DEFERRED INFLOWS
OF RESOURCES
Deferred tax revenue ....................................
Total Deferred Inflows of Resources ......
$350,375
$350,375
$359,957
$359,957
$302,597
$302,597
$513,518
$513,518
$409,508
$409,508
FUND BALANCEES
Non-spendable for long term receivables .....
Restricted .....................................................
Unassigned ...................................................
Total Fund Balances ..................................
$0
0
1,259,687
$1,259,687
$0
0
1,450,260
$1,450,260
$0
0
2,746,679
$2,746,679
$0
0
2,532,654
$2,532,654
$0
0
1,993,240
$1,993,240
Total Liabilities, Deferred Inflows of
Resources and Fund Balances ..................
$1,819,080
$2,129,239
$3,381,731
$3,325,314
$2,711,170
Source: Borough financial statements.
7
General Operating Fund
The Borough’s general government operations are carried out through the General Fund. The General Fund is used to account for all financial
resources and expenditures except those accounted for in the Borough’s enterprise funds and those required by law or contractual agreements to be
accounted for in another fund. The modified accrual basis of accounting is used for the audited General Fund. The following summaries were taken
from the Borough’s Financial Statements, audited by Smith Elliott Kearns & Company LLC, Certified Public Accountants, and the 2016 Budget as
presented to Town Council on December 21, 2015, as prepared on a cash basis by the Borough.
The two largest sources of revenue for 2015 are the taxes that account for 67.5 percent of total revenue and charges for services which account for
17.8 percent.
GENERAL FUND
Revenue and Expenditures*
(December 31)
Actual
Budget
REVENUE
Taxes .....................................................................
Licenses and permits..............................................
Fines and forfeits ...................................................
Investment earnings ...............................................
Intergovernmental ..................................................
Charges for services ...............................................
Miscellaneous ........................................................
2011
$6,357,131
320,776
122,283
5,517
967,146
1,638,809
135,794
2012
$6,372,441
349,126
147,438
4,923
780,001
1,840,196
142,560
2013
$6,771,173
381,972
169,126
2,563
796,741
1,844,936
205,113
2014
$7,201,144
332,478
182,691
5,791
798,844
2,062,651
144,856
2015
$7,652,811
380,070
174,703
15,583
910,468
2,016,983
182,908
2016(1)
$7,864,100
384,750
160,000
25,000
898,500
1,829,750
168,480
TOTAL REVENUE ........................................
$9,547,456
$9,636,685
$10,171,624
$10,728,455
$11,333,526
$11,330,580
EXPENDITURES
General and Administrative ...................................
Police .....................................................................
Emergency Services ...............................................
Building regulation, planning and zoning ..............
Highways ...............................................................
Parking and traffic control .....................................
Parks and recreation ...............................................
Miscellaneous ........................................................
$956,168
4,194,733
3,364,072
537,731
1,163,884
453,549
1,180,795
79,599
$997,301
4,012,384
3,177,737
329,461
1,000,230
0
1,106,547
43,431
$1,093,938
3,924,147
3,336,951
474,599
1,145,134
0
1,112,091
0
$1,158,058
4,155,744
3,555,762
432,463
1,276,832
0
1,182,204
0
$1,357,014
4,476,149
3,629,952
527,330
1,021,646
0
1,355,246
0
$1,421,930
5,127,400
3,642,875
519,925
972,450
0
1,529,575
0
TOTAL EXPENDITURES ............................
$11,930,531
$10,667,091
$11,086,860
$11,761,063
$12,367,337
$13,214,155
Excess (deficiency) of revenues over expenditures
$(2,383,075)
$(1,030,406)
$(915,236)
$(1,032,608)
$(1,033,811)
$(1,883,575)
OTHER FINANCING SOURCES (USES)
Inter-fund transfers in ............................................
Inter-fund transfers out ..........................................
TOTAL OTHER
FINANCING SOURCES (USES) ..................
$2,577,000
(309,272)
$1,644,298
(423,319)
$2,754,730
(543,075)
$2,841,863
(2,023,280)
$2,090,000
(1,595,603)
$2,135,525
(251,950)
$2,267,728
$1,220,979
$2,211,655
$818,583
$494,397
$1,883,575
Excess (deficiency) of revenues and other
sources over expenditures and other uses ..........
$(115,347)
$190,573
$1,296,419
$(214,025)
$(539,414)
$0
Fund Balance, January 1 .....................................
Fund Balance, beginning, as restated .....................
$1,375,034
0
$1,259,687
0
$1,450,260
0
$2,746,679
0
$2,532,654
0
$1,993,240
$0
Fund Balance, December 31 ................................
$1,259,687
$1,450,260
$2,746,679
$2,532,654
$1,993,240
$1,993,240
*Totals may not add due to rounding.
(1)
Budget, as adopted on December 21, 2015.
Source: Borough Financial Statements and Budget.
8
TAXING POWERS OF THE BOROUGH
General
Town Council adopts an annual budget with respect to general government and enterprise (including the Electric, Gas, Water, Storm
Sewer and Sewer Funds) purposes, establishes user charges and levies local taxes prior to the beginning of the fiscal year on January 1.
Under provisions of 8 Pa. Cons. Stat. §§1302, 1304, the Borough may levy the following taxes:
Annual tax on all taxable real estate, not to exceed 30 mills for general borough purposes (plus an additional 5 mills with court
approval). The Council of any borough may levy different rates of taxation on all real estate classified as buildings and land. The following
additional taxes may be levied:
Purpose
General purposes .............................................................................................................................
Fire services ....................................................................................................................................
Firehouse, fire training school and center, lock-up and/or municipal building ...............................
Recreation .......................................................................................................................................
Ambulance and rescue Service........................................................................................................
Debt service.....................................................................................................................................
Pension and retirement ....................................................................................................................
Shade trees ......................................................................................................................................
Utilities............................................................................................................................................
Street lighting ..................................................................................................................................
Library purposes..............................................................................................................................
Levy
30.0 mills
3.0 mills
2.0 mills
unlimited
½ mill
unlimited
½ mill
1/10 mill
8.0 mills
8.0 mills
3.0 mills
Under the Act of December 31, 1966, P.L. 1257, effective December 1, 1966, the Pennsylvania Local Tax Enabling Act, additional
taxes may be levied by Boroughs (subject to division with other political subdivisions authorized to levy similar taxes on the same person,
subject, business, transaction or privilege), subject to the following limitations:
Tax
Per Capita ........................................................................................................................................
Wages, salaries, commissions and other earned income of individuals...........................................
Transfer of title of real property ......................................................................................................
Local services (maximum rate) .......................................................................................................
Admissions (except motion picture theaters) ..................................................................................
Occupation (if a millage or percentage of the assessed valuation of occupation is used as base) ...
(1)
Subject to sharing with the School District providing they levy the tax.
[THE REMAINDER OF THIS SECTION INTENTIONALLY LEFT BLANK]
9
Levy
$10.00(1)
0.5%
0.5%
$52.00(1)
10.0%
No limit
Real Estate Tax
The Borough levies a real estate tax of 20.0 mills for General Purposes. The following tables summarize recent trends in real estate tax
rates for the Borough and overlapping jurisdictions, and in real estate assessment and tax collections. The ten largest real estate taxpayers for
2015 are shown on an accompanying table. These ten taxpayers account for approximately 18.14 percent of the aggregate assessed value of
Borough property. The County recently changed the predetermined ratio, which was revenue neutral.
COMPARATIVE REAL ESTATE TAX RATES
(Mills on Assessed Value)
Borough of Chambersburg ..................................
Chambersburg Area School District ...................
Franklin County(2) ...............................................
2012
20.000
92.760
25.150
2013
20.000
93.690
25.650
2014
23.500(1)
96.120
25.650
2015
23.500
98.430
25.650
2016
25.500
98.426
27.600
(1)
Beginning in 2014, the Borough assessed the Richard Kasher Fire Tax @ 2.5 mills (included).
Library tax (excluded).
Source: Borough’s 2015 financial statements and the Franklin County website.
(2)
The ten largest taxpayers within the Borough and their assessed valuations are shown below:
TEN LARGEST REAL PROPERTY TAXPAYERS
(December 31)
Owner
Chambersburg Health Services/Chambersburg Hospital
Menno-Haven, Inc.(1)
Chambersburg MZL LLC(2)
Wilsey/Holsum-Ventura Food LLC
Icon Chambersburg
ProLogis
Wayne Avenue LLC
Cabot III
Chambersburg Cold Storage
Tanya K. Nitterhouse
Total
2016
Assessed Value
$18,612,380
5,485,560
4,946,620
2,849,540
2,349,800
1,770,950
1,628,060
1,558,460
1,491,010
1,472,060
$42,164,440
(1)
Menno Haven filed an appeal of its real estate tax status and requested an exemption before the Board of Assessment Appeals. The Board of
Assessment held a hearing on October 18, 2011. By decision dated November 30, 2011, the Board determined that none of Menno Haven’s
properties were entitled to real estate tax exemption. Menno Haven appealed the Board’s decision to the Court of Common Pleas at Docket No.
2011-5336.
(2)
On December 24, 2015, seven parcels along Norland Avenue, constituting the Norland Avenue Shopping Center, were sold by Chambersburg
Crossing, LP to Chambersburg MZL, LLC
Source:
Taxpayer’s and assessed values - Borough Officials.
Appeals – Solicitor’s office, receives notices from the Franklin County tax assessment office.
10
Real Property Market, Assessed Values and Land Use
REAL PROPERTY ASSESSMENT DATA
Year
2011
2012
2013
2014
2015
2016*
Market
Value
$1,251,229,767
1,252,334,339
1,260,575,377
1,275,489,941
1,286,565,290
1,297,372,446
Assessed
Value
$191,067,050
192,885,430
194,240,400
195,864,790
197,793,910
199,455,380
Ratio
15.27%
15.40%
15.41%
15.36%
15.37%
15.37%
*Market value estimated, based on prior year’s ratio, assessed value taken from the Borough’s Budget.
Source: The Tax Equalization Division (TED) (formerly PA State Tax Equalization Board (STEB))
ASSESSMENT BY LAND USE
Residential .........................
Trailers ..............................
Lots ....................................
Industrial............................
Commercial .......................
Agricultural .......................
Land ..................................
Total .............................
2011
$97,976,910
122,010
1,929,340
9,296,000
80,602,420
267,630
872,740
$191,067,050
2012
$98,556,790
122,010
1,926,350
9,006,850
82,147,740
267,630
858,060
$192,885,430
2013
$98,749,370
122,010
1,942,710
9,021,630
83,431,360
261,890
711,430
$194,240,400
2014
$99,047,640
122,010
1,858,410
9,647,700
84,175,730
261,890
751,410
$195,864,790
2015
$100,647,590
122,010
1,797,260
9,781,880
84,626,080
261,890
557,200
$197,793,910
Source: The Tax Equalization Division (TED) (formerly PA State Tax Equalization Board (STEB)) and Borough officials.
Real Estate Tax Collection
The Borough's real estate tax bills are mailed on or around March 1, and are due at par from May 1 to June 30 each year. Residents
who pay their taxes between March 1 and April 30 receive a 2% discount. Taxes paid after June 30 are assessed a 10% penalty. If the taxes
remain unpaid, the accounts are turned over to the County Tax Claim Office during January of the following year. The County Tax Claim
Office will proceed with collection efforts and sell the property at tax sale, if necessary to satisfy the lien.
REAL PROPERTY TAX COLLECTION DATA
Year
Taxes Levied
For the
Fiscal Year
Collections
Within the
Fiscal
Year
Of Levy
Collections
Within the
Fiscal Year
Of Levy
as a Percentage
of Levy
Total
Collections
To Date
Total
Collections
To Date
as a Percentage
of Levy
2011
2012
2013
2014(1)(2)
2015
$3,821,341
3,872,274
3,897,692
4,617,616
4,663,215
$3,523,898
3,593,392
3,650,686
4,387,275
4,377,257
92.22%
92.80%
93.66%
95.01%
93.87%
$3,815,372
3,872,274
3,893,301
4,510,604
4,377,257
99.84%
100.00%
99.89%
97.68%
93.87%
(1)
The Borough’s property tax mill rate increased from 20.0 to 21.0, an increase of 5.00%
Beginning in 2014, the Borough assessed the Richard Kasher Fire Tax.
Source: Borough’s 2015 CAFR.
(2)
11
DEBT AND DEBT LIMITS
The Table which follows shows the debt of the Borough as August 1, 2016, and includes the issuance of the Bonds.
BOROUGH OF CHAMBERSBURG
DEBT STATEMENT
(As of August 1, 2016)*
NONELECTORAL DEBT
General Obligation Bonds, Series of 2016 (last maturity 2041) ................................
General Obligation Notes, Series of 2014 (F& M Bank Loan)(last maturity 2035) ..
General Obligation Notes, Series of 2012 (F&M Bank Loan)(last maturity 2039) ...
TOTAL NONELECTORAL DEBT .....................................................................
Gross
Outstanding
$9,750,000
1,022,173
7,253,333
8,610,000
1,000,000
$27,635,506
LEASE RENTAL DEBT ..........................................................................................
0
TOTAL DIRECT AND LEASE RENTAL DEBT ...................................................
$27,635,506
OVERLAPPING DEBT
Franklin County, General Obligation(1) .....................................................................
Chambersburg Area School District(2) .......................................................................
TOTAL OVERLAPPING DEBT.........................................................................
$4,244,833
50,568,187
54,813,020
TOTAL DIRECT, LEASE AND OVERLAPPING DEBT ......................................
$82,448,526
DEBT RATIO
Per Capita (20,691 - 2015 Population) ......................................................................
Percent 2015 Assessed Value ....................................................................................
Percent 2015 Market Value .......................................................................................
$3,984.75
41.68%
6.41%
*Includes the Bonds being offered through this Preliminary Official Statement.
(1)
Pro rata 14.04 percent of outstanding general obligation debt in the principal amount of $30,240,000.
(2)
Pro rata 28.62 percent of outstanding general obligation debt in the principal amount of $176,679,982. Does not give effect to current
appropriations from payment of debt service, and expected future reimbursement of School District sinking fund payments based on current
State Aid Ratio.
12
Types of Indebtedness under the Debt Act
The Debt Act establishes three forms of debt for a local government unit: (i) electoral debt (debt incurred with the approval of the
electors for which there is no limitation on the amount that may be so incurred), (ii) nonelectoral debt (debt of a local government unit not
being electoral or lease rental debt for which the limitation on all such net debt which may be incurred is 250 percent of the borrowing base
for the Borough), and (iii) lease rental debt (the principal amount of municipal authority debt or debt of another local government unit to be
repaid by the local government unit pursuant to a lease, subsidy contract guarantee or other form of agreement where such debt is or may be
payable out of the tax revenues and other general revenues; the limitation on all such net debt which may be incurred, including any net
nonelectoral debt incurred, is 350 percent of the borrowing base for the Borough). Any debt which is approved by the Pennsylvania
Department of Community and Economic Development as subsidized or self-liquidating may be deducted or excluded from the determination
of any such debt incurred in determining the net debt of the local government unit to which such limitations are applicable. Certain other
deductions are allowed in determining net debt.
Borrowing Capacity
The Debt Act establishes debt limits for local government units. The basis for determining nonelectoral borrowing capacity is related
to adjusted revenues received over the most recent three fiscal years. The following is a calculation of the current “borrowing base”, which is
the arithmetic average of the total revenues of the Borough after adjustments by the exclusion of certain subsidies, reimbursements, pledged
revenues and non-recurring items:
Total Revenue for 2013............................................
Total ...................................................................
$58,002,270
59,486,469
60,905,538
$178,392,277
Annual Arithmetic Average (Borrowing Base) ........
$59,464,092
Source: Borough Finance Department
The following is a calculation of the Borough’s current net debt limitations.
Under the Act as presently in effect, (i) new nonelectoral debt may not be incurred if the net amount of such new nonelectoral debt plus
all outstanding net nonelectoral debt would cause total net nonelectoral debt to exceed 250% of the Borrowing Base and (ii) new lease rental
debt or new nonelectoral debt may not be incurred if the net amount of such new debt plus all outstanding net nonelectoral debt and net lease
rental debt would cause the total net nonelectoral plus net lease rental debt to exceed 350% of the Borrowing Base. The application of the
aforesaid percentages to the Borough's Borrowing Base produces the following products:
Legal
Limit
Net Debt
Outstanding*
Remaining
Borrowing
Capacity
Net Nonelectoral Debt Limit:
250% of Borrowing Base ..........................................................
$148,660,231
$27,635,506
$121,024,725
Net Nonelectoral and Lease Rental Debt Limit:
350% of Borrowing Base ..........................................................
$208,124,322
$27,635,506
$180,488,816
*Includes the estimated Bonds offered through this Preliminary Official Statement.
Source: Borough Finance Department
Future Financing
The Borough does anticipate issuing additional long-term debt in the not to exceed amount of $10,000,000 to fund certain of its capital
projects in the near future.
13
LABOR RELATIONS
Employees and Labor Contracts
There are presently 209 full and part time employees. The unionized Borough employees are the police, firemen and American
Federation of State, County and Municipal Employees (AFSCME) members who are currently working under contracts which expire as
follows:
Firemen
AFSCME
Police
December 31, 2016
January 11, 2021
December 31, 2020
Source: Borough officials.
Pension Plans
The Borough sponsors three single-employer defined benefit retirement plans which cover Bargaining and Administrative Employees,
Police Officers and Paid Firemen. Plan provisions are established by municipal ordinance with the authority for municipal contributions
required by Act 205 of the Commonwealth.
The Borough is currently in the process of implementing a defined contribution retirement plan, in which Bargaining and
Administrative Employees are eligible to enroll, in lieu of the defined benefit plan.
Pension Contributions
The Bargaining and Administrative Employees plan, the Police Officers plan, and the Paid Firemen plan require employee
contributions of 4%. The Borough is required to contribute the remaining amounts necessary to fund the plans, using the actuarial basis
specified by the plan. The average contribution rate was 7.56 percent of annual payroll for the Bargaining and Administrative Employees,
22.02 percent of annual payroll for the Police Officers, and 18.96 percent of annual payroll for the Paid Firemen. The employer
contributions for 2015 were $699,463 for the Bargaining and Administrative Employees, $498,970 for the Police Officers, and $299,092 for
the Paid Firemen. $999,813 of those contributions were funded via annual state funding for such purposes, while the remaining $497,712
represents the contribution of Borough funds.
Act 205 of the Commonwealth requires that annual contributions be based upon the calculation of the Minimum Municipal Obligation
(MMO). The MMO calculation is based upon the biennial actuarial valuation also required by Act 205. Employees are not required to
contribute under Act 205; such contributions are subject to collective bargaining. The Commonwealth allocates foreign fire and casualty
premiums to assist in pension funding. Any financial requirement above the Commonwealth allocation must be funded by the Borough.
Administrative costs, including investment services, custodial trustee and actuarial services are charged to the appropriate plan and
funded from investment earnings.
Upon implementation of the defined contribution plan, the Bargaining and Administrative Employees' contribution requirement to the
defined benefit plan will increase to 4.75%.
Other Postemployment Benefits (OPEB) Other Than Pension
The Borough provides postemployment benefits by permitting retired employees the ability to participate in the employee health plan.
Even though the retirees pay 102% of the Borough’s blended premium rate, the Borough is still providing an implicit rate subsidy to its
retirees. These benefits are financed on a pay-as-you-go basis. The Borough provides no other postemployment benefits for Borough
employees.
Source: Borough Financial Statements (for further details regarding the Borough’s pension and OPEB - see accompanying financial
statements in Appendix D).
14
LITIGATION
Borough officials and the Borough Solicitor will deliver a certificate upon issuance of the Bonds stating that there is no litigation of any
nature now pending or threatened, restraining or enjoining the issuance, sale, execution or delivery of the Bonds, or in any way contesting or
affecting the validity of the Bonds or any proceedings of the Borough taken with respect to the issuance or sale thereof.
TAX MATTERS
Federal Tax Exemption
Bond Counsel is expected to issue its opinion that, under existing law, the interest on and accruals of original issue discount with
respect to the Bonds (a) are excluded from gross income for Federal income tax purposes and (b) are not items of tax preference within the
meaning of Section 57 of the Internal Revenue Code of 1986, as amended (the “Code”), for purposes of the federal alternative minimum tax
imposed by Section 55 of the Code on individuals and corporations; however, it should be noted: with respect to corporations (as defined for
federal income tax purposes), such interest and accruals are taken into account in determining adjusted current earnings for the purpose of
computing the alternative minimum tax imposed by Section 55 of the Code on such corporations. Accruals of original issue discount with
respect to a Bond allocable to an owner of the Bond under a constant yield method of accrual (a) are not included in gross income for federal
income tax purposes, and (b) are added to such owner’s tax basis in the Bond for the purpose of determining gain or loss for federal income
tax purposes upon sale, exchange, redemption or other disposition of the Bond. The opinions set forth in the preceding two sentences are
subject to the condition that the Issuer comply with all requirements of the Code that must be satisfied subsequent to the issuance of the
Bonds in order that interest on and accruals of original issue discount with respect to the Bonds be (or continue to be) excluded from gross
income for federal income tax purposes. Failure to comply with such requirements could cause the interest on and accruals of original issue
discount with respect to the Bonds to be included in gross income retroactively to the date of issuance of the Bonds. The Issuer has
covenanted to comply with all such requirements. The Issuer has designated the Bonds as Qualified Tax-Exempt Obligations within the
meaning of Section 265(b)(3) of the Code. Bond Counsel expresses no opinion regarding other federal tax consequences arising with respect
to the Bonds.
The Issuer will issue its certificate to the effect that on the basis of the facts, estimates and circumstances in existence on the date of
delivery of the Bonds, it is not expected that proceeds of the Bonds will be used in a manner that would cause the Bonds to be or become
"arbitrage bonds" as described in Section 103(b)(2) and Section 148 of the Code, as contemplated by the United States Treasury regulations
relating to "arbitrage bonds."
Pennsylvania Tax Exemption
Bond Counsel is also of the opinion that the Bonds are exempt from personal property taxes in Pennsylvania; and the interest on the
Bonds is exempt from Pennsylvania Corporate Net Income Tax and from personal income taxation by the Commonwealth of Pennsylvania,
or by any of its political subdivisions, under present statutory and case law.
Internal Revenue Code Covenants
The Code contains provisions relating to the tax-exempt status of interest on obligations issued by government entities which apply to
the Bonds. These provisions include, but are not limited to, requirements relating to the use and investment of the proceeds of the Bonds and
the rebate of certain investment earnings derived from such proceeds to the United States Treasury Department on a periodic basis. These
and other requirements of the Code must be met by the Issuer subsequent to the issuance and delivery of the Bonds in order for interest
thereon to be and remain exempt from federal income taxes. The Issuer has covenanted that it will make no use of the proceeds of such issue
which would cause the Bonds to be arbitrage bonds, and has further covenanted to comply with the rebate and other requirements of Section
103 and 148 of the Code, and the regulations thereunder, during the term of such issue. Officers of the Issuer will execute a certificate
concerning the use of the Bonds in conformity with Section 103 and Section 141 through 150 of the Code and the regulations thereunder.
Qualified Tax-Exempt Obligations
Under the Code, financial institutions will be denied 100% of their interest expense deductions that are allocable, by formula, to tax
exempt obligations acquired after August 7, 1986; the former provisions of the Internal Revenue Code of 1954 with respect to a 20%
disallowance continues to apply with respect to tax-exempt obligations acquired on or before August 7, 1986. These provisions are effective
for tax years beginning after December 31, 1986.
The 20% disallowance rule applies in place of the 100% disallowance rule in the case of "qualified tax-exempt obligations" under
Section 265(b)(3) of the Code. The Issuer has designated the Bonds as Qualified Tax-Exempt Obligations within the meaning of Section
265(b)(3) of the Code. The Issuer reasonably anticipates that it, together with any subordinate entities, will not issue more than $10,000,000,
aggregate principal amount, of tax-exempt obligations during the calendar year 2016.
The Bonds described in this Preliminary Official Statement have been designated or have been deemed designated by the Issuer
as "Qualified Tax-Exempt Obligations” for purposes and effect contemplated by Section 265 of the Code (concerning expenses and
interest relating to tax-exempt income of certain financial institutions).
A financial institution purchasing or holding the Bonds may wish to consult its professional tax advisors to determine the effect on the
interest expense disallowance relating to tax-exempt obligations upon its federal income tax liability.
15
Federal Alternative Minimum Tax Calculations
Under the Code, the federal alternative minimum taxable income of a corporation is based in part upon the adjusted current earnings of
the corporation, which includes interest on and accruals of original issue discount with respect to the Bonds held by the corporation, although
such interest and accruals of original issue discount with respect to the Bonds may not be includable in gross income for calculations of
regular federal income tax liability.
A prospective corporate purchaser of the Bonds may wish to consult its professional tax advisors as to the potential impact upon its income
tax liability.
Taxable Social Security and Railroad Retirement Benefits Calculation
Interest on and accruals of original issue discount with respect to the Bonds are included in modified adjusted gross income in
determining the portion of Social Security or railroad retirement benefits to be included in an individual taxpayer's gross income for federal
income tax purposes.
A prospective purchaser of the Bonds who is receiving Social Security or railroad retirement benefits may wish to consult his or her
professional tax advisors as to the effect interest income derived from the Bonds may have upon his or her income tax liability.
Property and Casualty Insurance Company Income Taxes
Under the Code, a property and casualty insurance company, in any taxable year, must reduce its deduction for "losses incurred" by a
percentage of the tax-exempt interest received by such property and casualty insurance company during the taxable year.
In addition, a portion of the dividends received by a property and casualty insurer attributable to tax-exempt income is not deductible
by the insurer for federal income tax purposes.
The Code provides generally that these provisions are effective for tax years beginning after December 31, 1986, and with respect to
obligations acquired after August 7, 1986, but a property and casualty insurer should consult its professional tax advisors for a full
explanation of the effect of these provisions upon its income tax liability.
Tax on Excess Passive Net Income of S Corporation
An S Corporation may be subject to federal income taxation on passive investment income including interest on and accruals of
original issue discount with respect to the Bonds, if the S corporation has subchapter C earnings and profits at the close of the taxable year
and the S corporation's passive investment income exceeds 25% of its gross receipts for the taxable year.
A prospective purchaser of the Bonds which is an S Corporation should consult its professional tax advisors as to the effect of interest
income from the Bonds on its tax liability.
Branch Profits Tax
Interest on and accruals of original issue discount with respect to the Bonds held by a foreign corporation could be subject to a branch
profits tax imposed by Section 884 of the Code.
A prospective foreign corporate purchaser of the Bonds may wish to consult its professional tax advisors as to the impact of the branch
profits tax on its United States tax liability.
Interest Reporting Requirements
Under the Code, all taxpayers are required to report on their federal income tax returns the amount of interest received or accrued
during the year that is exempt from federal income tax. This provision applies to interest on all tax-exempt obligations including the Bonds.
Market Discount
A tax-exempt bond such as a Bond if acquired by purchase, other than at original issuance, is a "market discount bond" if the bond is
purchased at a price less than its stated principal amount (or, in the case of a bond issued with original issue discount, its issue price increased
for accruals of original issue discount), with such difference being the amount of "market discount". If a holder recognizes gain on the
disposition of a market discount bond (including by early redemption or gift), a portion of the gain (up to the amount of market discount that
accrued while the bond was held by such holder) will be treated as ordinary income and not as capital gain. For this purpose, market discount
accrues on a straight-line basis or, if elected by the holder, on a constant interest rate basis; the election, on a bond-by-bond basis, is
irrevocable once made.
16
The holder of a market discount bond may elect to include the market discount in income as taxable interest income as the market
discount accrues. The current inclusion election, once made, applies to all market discount obligations acquired by such holder on or after the
first day of the first taxable year in which the election applies, and may not be revoked without the permission of the Internal Revenue
Service. If the current inclusion election is made, the holder's tax basis in the market discount bond is increased by the amount of market
discount accruals included in income.
Original Issue Discount
The difference between the final offering price to the public of the Bonds maturing on ________ __, 20__ (the "OID Bonds") and the
maturity amount of such OID Bonds is treated as original issue discount.
Because of the possibility of transfers, redemption or other disposition prior to maturity, the Code provides rules for the accrual of
original issue discount on any tax-exempt obligation including any securities issued in the form of the Bonds. Original issue discount on the
OID Bonds is treated as accruing in the manner provided by the Code with respect to original issue discount on taxable securities, except that
the rules with respect to acquisition premium and de minimis original issue discount that apply to taxable securities will not apply to taxexempt securities. Generally, an appropriate portion (depending on the holding period of the OID Bond by each purchaser) of the total
amount of original issue discount payable at the maturity of the OID Bond will, upon disposition or payment of an OID Bond, be treated as a
return of capital, rather than as taxable gain, for federal income tax purposes. The portion so treated will be determined by allocating the
total original issue discount over the term of each OID Bond through a series of adjustments to the issue price for each accrual period. The
adjustment to the issue price for each accrual period is determined by multiplying the issue price at the beginning of such accrual period (the
issue price as increased by adjustments for all prior accrual periods) by the appropriate fraction of such OID Bond's original yield to maturity
and subtracting any current interest payment thereon during such accrual period.
Owners of OID Bonds should consult their professional tax advisors as to the precise determination for federal income tax purposes for
interest accrued on and original issue discount accrued with respect to such OID Bonds upon any purchase, sale, redemption or other
disposition or payment of such OID Bonds, and as to the state and local tax consequences of owning such OID Bonds.
Tax Treatment of Premium
The Bonds maturing on ________ __, 20__ will be reoffered at a price in excess of the principal amount thereof (the “Premium
Bonds”). Under the Code, the difference between the principal amount of a Premium Bond and the cost basis of such Premium Bond to an
owner thereof is “bond premium.” Under the Code, bond premium is amortized over the term of a Premium Bond (i.e., the maturity date of a
Premium Bond or its earlier call date) for federal income tax purposes. An owner of a Premium Bond is required to decrease his or her basis
in such Premium Bond by the amount of the amortizable bond premium attributable to each taxable year (or portion thereof) he or she owns
such Premium Bond. The amount of the amortizable bond premium attributable to each taxable year is determined on an actuarial basis at a
constant interest rate determined with respect to the yield on a Premium Bond compounded on each interest payment date. The amortizable
bond premium attributable to a taxable year is not deductible for federal income tax purposes. Owners of Premium Bonds (including
purchasers of Premium Bonds in the secondary market) should consult their own tax advisors with respect to the precise determination for
federal income tax purposes of the treatment of bond premium upon sale, redemption or other disposition of Premium Bonds and with respect
to the state and local consequences of owning and disposing of Premium Bonds.
THE FOREGOING IS NOT INTENDED AS AN EXHAUSTIVE LIST OF THE PROVISIONS OF FEDERAL TAX LAW WHICH MAY HAVE AN EFFECT ON
INDIVIDUALS AND CORPORATIONS HOLDING THE BONDS OR RECEIVING INTEREST THEREON. PROSPECTIVE PURCHASERS SHOULD CONSULT WITH
THEIR TAX ADVISORS REGARDING THE EFFECT OF HOLDING THE BONDS OR RECEIVING INTEREST THEREON MAY HAVE ON THEIR AFFAIRS,
INCLUDING, BUT NOT LIMITED TO, THE EFFECT OF STATE AND LOCAL TAX LAWS.
CHANGE IN LAW
From time to time, certain legislative proposals may be introduced, or may now be pending, in the Congress of the United States,
including some that carry retroactive effective dates, that, if, enacted, could alter or amend the federal tax matters described above or affect
the market value of the Bonds. No prediction can be made whether or in what form any such proposal or proposals might be enacted into law
or whether, if enacted, the same would apply to bonds issued prior to enactment.
Bond Counsel gives no assurance that any future legislation or clarifications or amendments to the Code, if enacted into law, will not
cause the interest on the Bonds to be subject, directly or indirectly, to federal income taxation, or otherwise prevent any beneficial owner of a
Bond from realizing the full current benefit of the tax status of the interest on the Bonds. Prospective purchasers of the Bonds are encouraged
to consult their own tax advisors regarding any pending or proposed federal legislation, as to which Bond Counsel expresses no view.
From time to time, certain legislative proposals may be introduced, or be pending, in the Pennsylvania General Assembly that if
enacted, could alter or amend the Issuer’s taxing authority. No prediction can be made whether or in what form any such proposal or
proposals might be enacted into law or whether, if enacted, the same would apply to bonds issued prior to enactment.
17
CONTINUING DISCLOSURE UNDERTAKING
In accordance with the requirements of the Rule 15c2-12 (the “Rule”) promulgated by the Securities and Exchange Commission (the
“SEC”) and the Resolution authorizing issuance of the Bonds, the Borough will execute and deliver a written continuing disclosure obligation
with respect to the Bonds in substantially the form of the Continuing Disclosure Certificate (the “Certificate”) attached as Appendix C to this
Preliminary Official Statement.
Under the terms of the Agreement, the Borough will undertake to file with the MSRB financial and other information concerning the
Borough, including but not limited to the annual audited financial statements, the budget, certain other financial and operating information
and notice of certain events affecting the Borough. The Borough’s obligations with respect to continuing disclosure as it relates to the Bonds
shall terminate upon the prior redemption or payment in full of all of the Bonds.
The MSRB has been designated by the SEC to be the central and sole repository for continuing disclosure information filed by issuers
of municipal securities since July 1, 2009. Information and notices filed by municipal issuers (and other “obligated persons” with respect to
municipal securities issues) are made available through the MSRB’s Electronic Municipal Market Access (EMMA) System, which may be
accessed on the internet at http://www.emma.msrb.org.
Continuing Disclosure Filing History
The Borough has previously entered into Continuing Disclosure Agreements with respect to each one of its previously issued bond
issues that are currently outstanding. The Borough’s filing history of its annual financial and operating information requirement during the
past five (5) years is outlined in the following table:
Fiscal
Filing
Deadline[1]
Comprehensive Financial
Statements
Budget
Operating Data
Filing Date
EMMA ID[2]
Filing Date
EMMA ID[2]
Filing Date
EMMA ID[2]
Year Ending
12/31/2011
7/28/2012
6/28/2012
ER507516
5/1/2012
[3]
Various[3]
Various[3]
12/31/2012
7/29/2013
7/11/2013
EA467744
7/19/2013
EA468518
Various[4]
Various[4]
[5]
12/31/2013
7/29/2014
6/20/2014
ER631076
6/20/2014
ER631083
Various
Various[5]
12/31/2014
7/29/2015
6/29/2015
ER713862
6/29/2015
ER713836
Various[6]
Various[6]
12/31/2015
7/28/2016
7/7/2016
ES647842
7/7/2016
ES647855
7/7/2016
Various[7]
Notes
[1]
For these purposes, assumes the shortest filing deadline of the Borough’s previous Continuing Disclosure Agreements
[2]
Submission ID is the EMMA Submission ID for each filing.
To access a filing, insert the Submission ID to the end of the web address below:
http://emma.msrb.org/ContinuingDisclosureView/ContinuingDisclosureDetails.aspx?submissionId=
[3]
The Borough’s Official Statement for the General Obligation Bonds, Series of 2012, posted to EMMA on 5/1/2012, included the summary of the budget, the tax and millage rates,
the top ten taxpayers and the tax collection results. The Borough filed a Notice of Reference to Other Submitted Documents on September 7, 2016 (EMMA ID EF659640). The
Borough filed the assessed and market values on 7/22/2013 (EMMA ID EA468626).
[4]
The Borough filed the assessed and market values, tax & millage rates, and top ten taxpayers on 6/20/2014 (EMMA ID ER631085) and the tax collection results were included in
the Borough’s CAFR filed to EMMA on 7/11/2013 (EMMA ID EA67744).
[5]
The Borough filed the assessed and market values, tax & millage rates, and top ten taxpayers on 11/7/2014 (EMMA ID ER653872) and the tax collection results were included in
the Borough’s CAFR filed to EMMA on 6/20/2014 (EMMA ID ER631076).
[6]
The Borough filed the assessed and market values, tax & millage rates, and top ten taxpayers on 7/14/2015 (EMMA ID EA596824) and the tax collection results were included in
the Borough’s CAFR filed to EMMA on 6/29/2015 (EMMA ID ER713862).
[7]
The Borough filed the assessed and market values, tax & millage rates, and top ten taxpayers on 7/7/2016 (EMMA ID ES647858) and the tax collection results were included in the
Borough’s CAFR filed to EMMA on 7/7/2016 (EMMA ID ES647842).
Based on the information above, the Borough’s annual financial and operating filing history over the past five (5) years can be
summarized as follows:
For year ending December 31, 2011, the Borough filed to EMMA its comprehensive financial statement and the summary of the budget
timely and a portion of the operating data was filed timely with the remaining filed on July 22, 2013.
For year ending December 31, 2012, the Borough filed to EMMA its comprehensive financial statement and budget report timely and a
portion of the operating data was filed timely with the remaining filed on June 20, 2014.
For year ending December 31, 2013, the Borough filed to EMMA its comprehensive financial statement and budget report timely and a
portion of the operating data was filed timely with the remaining filed on November 7, 2014.
For year ending December 31, 2014, the Borough filed to EMMA its annual financial information and operating data timely.
For year ending December 31, 2015, the Borough filed to EMMA its annual financial information and operating data timely.
18
Failure to Provide Annual Financial Information
As outlined in the table above, the Borough failed to provide certain annual financial information in a timely manner during the past (5)
five years. The Borough filed a “Failure to Provide Annual Financial Information” notice to EMMA on September 7, 2016.
Bond Insurance Rating Downgrades and Upgrades by S&P and/or Moody’s
Some of the Borough’s bond issues that have been outstanding during the past five (5) years have been insured by various bond
insurance companies that have received rating downgrades and upgrades by both S&P and Moody’s. This information was publicly available
from widely accepted information sources at the time of their respective downgrades or upgrades. For informational purposes, the Borough
has recently filed a summary of rating upgrades and downgrades relating to certain bond insurance companies.
Future Continuing Disclosure Compliance
The Borough has conducted a thorough review of its continuing disclosure obligations and submissions. Upon discovering any
inadvertent omissions with respect to these filings, the Borough, to the best of its knowledge, has attempted to bring its continuing disclosure
filings up to date.
In an effort to augment the Borough’s procedures and policies to maintain future compliance, the Borough has taken additional steps
intended to assure future compliance with its Continuing Disclosure Certificates. These steps include implementing the MSRB’s EMMA’s
internal notification system whereby the Borough has registered through the EMMA portal to receive timely email reminders a month in
advance for all of the Borough’s annual disclosure filings and coordinating with the Borough’s financial advisor to ensure all disclosure
obligations have been made on a timely basis and in all material respects.
A member of the Borough’s business office will be responsible for ensuring ongoing continuing disclosure compliance. Members of the
Borough’s business office will make an effort to participate in any ongoing continuing education regarding continuing disclosure undertaking
if offered by local groups or affiliated organizations such as MSRB or GFOA. The Borough may communicate with its financial advisor,
underwriter(s), bond counsel, or solicitor regarding any questions or concerns regarding ongoing continuing disclosure compliance. The
Borough may also communicate with its local auditor and advise of the Borough’s need for financial statements in a timely manner. In the
event audited financial statements are not available by the filing deadline, the Borough will file to EMMA, if available, its draft financial
statements as an interim filing until such audited financial statements are available. Some of the operating data requirements may be found
contained within the Borough’s financial statements or budget filing and may not be filed explicitly by themselves.
NEGOTIABILITY
The Bonds are investment securities under Article 8 of the Pennsylvania Uniform Commercial Code and are negotiable instruments to
the extent provided therein.
MUNICIPAL BANKRUPTCY LAW
The undertakings of the Borough and the security for the Bonds should be considered with reference to Chapter IX of the Bankruptcy
Act, United States Code Title 2, Section 301, et. seq., as amended by Public Law 94-260, approved April 8, 1978, effective October 1, 1979
(the “Bankruptcy Code”), and other laws affecting creditor’s rights and municipalities in general. The amendments of P.L. 94-260 replace the
former Chapter IX Legislation and permit a State, and if authorized by State law, a political subdivision, public agency or instrumentality that
is insolvent or unable to meet its debts, to file with the Bankruptcy Court a list of its creditors; provided that a petition filed under Chapter IX
shall operate as a stay of the commencement or continuation of any judicial or other proceedings against the petitioner; grant priority to debts
owed for service or materials actually provided within three months of the filing of the petition; direct a petitioner to file a plan for the
adjustment of its debts; and provide that the plan must be accepted in writing by or on behalf of creditors holding at least two-thirds in amount
and more than one-half in number of the listed claims.
Act No. 1987-47 (“Act 47”), of the Commonwealth of Pennsylvania (the “Commonwealth”) known as the “Distressed Municipalities
Act”, governs the ability of the Borough to declare bankruptcy under Federal law. Act 47 provides that no Municipality may file a municipal
debt adjustment action pursuant to the Bankruptcy Code unless one of the following conditions exists: (1) filing is recommended by a plan
coordinator appointed by the Pennsylvania Department of Community and Economic Development (the “Department”); (2) there is imminent
jeopardy of an action by a Creditor that is likely to substantially interrupt or restrict the continued ability of the Municipality to provide health
or safety services; (3) creditors have rejected a plan and unsuccessful negotiations have continued for ten days; (4) a condition of financial
distress is potentially soluble only by using a remedy exclusively available through the Federal Municipal Debt Readjustment Act; or (5) the
governing body of a Municipality determined by the Department to be financially distressed has failed to adopt a plan or carry out the
recommendations of such a plan coordinator. Act 47 also contains provisions and circumstances under which a Municipality may be declared
to be in “financial distress” making it eligible for interest free loans, grants and/or administrative assistance through adoption of a financial
plan and appointment of a plan coordinator. Such coordinator, appointed by the Department, would have the authority to recommend a plan
increasing taxes or other sources of revenues, reducing services, rescheduling obligations or merging Municipalities.
19
The above reference to the Federal Bankruptcy Code or Act 47 is not to be construed as an indication that the Borough expects to resort
to the provisions of such laws or that, if it did, any proposed plan or plans would include a dilution of the sources of payment of and the
security for the payment of the Bonds.
RATING
Moody’s Investor’s Service, Inc., which is expected to assign an underlying municipal bond rating of "
" to this issue of Bonds.
Such rating reflects only the view of such organization and any desired explanation of the significance of such rating should be obtained from
the rating agency furnishing the same, at the following address: Moody’s Investor’s Service, Inc., 7 World Trade Center at 250 Greenwich
Street, New York, New York 10007. Generally, a rating agency bases its rating on the information and materials furnished to it and on
investigations, studies and assumptions of its own. There is no assurance that any such rating will continue for any given period of time or
that it will not be revised downward or withdrawn entirely by the rating agency, if circumstances so warrant. Any such downward revision or
withdrawal of such rating may have an adverse effect on the market price of the Bonds.
UNDERWRITING
The Underwriter has agreed to purchase the Bonds from the Borough, subject to certain conditions precedent, and will purchase all of
the Bonds if any of such Bonds are purchased. The Bonds will be purchased for a purchase price of $
equal to the par value
of the Bonds less an underwriters discount of $
plus a net original issue premium of $
from the initial
public offering prices set forth on the cover page hereof.
LEGAL OPINION
The Bonds are offered subject to the receipt of the unqualified approving legal opinion of Eckert Seamans Cherin & Mellott, LLC,
Bond Counsel, of Harrisburg, Pennsylvania. Certain legal matters will be passed upon for the Borough by G. Bryan Salzmann, Esquire,
Salzmann Hughes, P.C., of Chambersburg, Pennsylvania, Borough Solicitor.
FINANCIAL ADVISOR
The Borough has retained Public Financial Management, Inc., Harrisburg, Pennsylvania, as financial advisor (the "Financial Advisor")
in connection with the preparation, authorization and issuance of the Bonds. The Financial Advisor is not obligated to undertake, and has not
undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness, or fairness of the information
contained in the Preliminary Official Statement. Public Financial Management, Inc. is an independent advisory firm and is not engaged in the
business of underwriting, trading or distributing municipal securities or other public securities.
MISCELLANEOUS
This Preliminary Official Statement has been prepared under the direction of the Borough by Public Financial Management, Inc.,
Harrisburg, Pennsylvania, in its capacity as Financial Advisor to the Borough. The information set forth in this Preliminary Official
Statement has been obtained from the Borough and from other sources believed to be reliable. Insofar as any statement herein includes
matters of opinion or estimates about future conditions, it is not intended as representation of fact, and there is no guarantee that it is, or will
be, realized. Summaries or descriptions of provisions of the Bonds, the Ordinance, and all references to other materials not purporting to be
quoted in full are only brief outlines of some of the provisions thereof. Reference is hereby made to the complete documents, copies of which
will be furnished by the Borough or the Financial Advisor upon request. The information assembled in this Preliminary Official Statement is
not to be construed as a contract with holders of the Bonds.
The Borough has authorized the distribution of this Preliminary Official Statement.
By:
President, Town Council
20
APPENDIX A
Demographic and Economic Information
Relating to the Borough of
Chambersburg
Introduction
The Borough of Chambersburg, the county seat of Franklin County, Pennsylvania, is the historic and commercial center of
the region characterized by varied small and medium industrial enterprises, a rich agriculture area and residential areas.
Population
Table A-1 below shows recent population trends for the Borough, Franklin County and the Commonwealth of
Pennsylvania. Table A-2 shows 2010 age composition and average number of persons per household in Franklin County and for
the Commonwealth. Average household size is also shown on Table A-2.
TABLE A-1
RECENT POPULATION TRENDS
Area
Borough ................................................................
Franklin County ....................................................
Pennsylvania .........................................................
2010
20,268
149,618
12,702,379
2014 (est.)
20,430
151,517
12,758,729
Compound Average Annual
Percentage Change
2010-14 (est.)
0.20%
0.32%
0.11%
Source: 2010 U.S. Bureau of the Census and 2010-2014 American Community Survey 5-year estimates.
TABLE A-2
AGE COMPOSITION
Borough ......................................................
Franklin County ..........................................
Pennsylvania ...............................................
Source: 2010 U.S. Bureau of the Census.
0-17
Years
20.4
24.4
23.5
18-64
Years
57.3
61.2
61.1
65+
Years
22.3
14.5
15.4
Persons Per
Household
2.19
2.59
2.57
Employment
Overall employment data are compiled for the Chambersburg-Waynesboro Metropolitan Statistical Area (the “MSA”) (an
area which includes the Borough).
TABLE A-3
DISTRIBUTION OF EMPLOYMENT BY INDUSTRY
CHAMBERSBURG-WAYNESBORO METROPOLITAN STATISTICAL AREA
(Franklin County)
APRIL 2016
NONFARM JOBS – NOT SEASONALLY ADJUSTED
Establishment Data
Total Nonfarm ......................................................
Total Private .........................................................
Goods-Producing ..................................................
Mining, Logging, and Construction ...................
Manufacturing ...................................................
Service-Providing .................................................
Private Service-Providing ....................................
Trade, Transportation and Utilities ...................
Wholesale Trade ......................................
Retail Trade .............................................
Transportation, Warehousing, and Utilities
Professional and Business Services .....................
Education and Health Services ............................
Leisure and Hospitality ........................................
Government ..........................................................
Federal Government ..........................................
State Government ..............................................
Local Government .............................................
Data benchmarked to March 2015
Industry Employment
April
March
February
April
2016
2016
2016
2015
61,500
61,600
61,200
59,600
53,700
53,700
53,500
51,600
11,500
11,400
11,300
11,700
2,100
2,000
1,900
2,000
9,400
9,400
9,400
9,700
50,000
50,200
49,900
47,900
42,200
42,300
42,200
39,900
15,700
15,600
15,700
14,800
1,900
1,900
1,900
1,900
7,500
7,400
7,500
7,000
6,300
6,300
6,300
5,900
5,900
5,800
5,700
5,900
10,100
10,100
10,000
9,800
4,900
5,400
5,300
4,900
7,800
7,900
7,700
8,000
2,100
2,200
2,100
2,200
1,000
1,000
1,000
1,000
4,700
4,700
4,600
4,800
***Data changes of 100 may be due to rounding***
Net Change From:
March
April
2016
2015
-100
1,900
0
2,100
100
-200
100
100
0
-300
-200
2,100
-100
2,300
100
900
0
0
100
500
0
400
100
0
0
300
-500
0
-100
-200
-100
-100
0
0
0
-100
Source: Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis website.
Major Employers
Major employers located within the Borough include:
Employer
Summit Health Services
Chambersburg Area School District
County of Franklin
Menno Haven, Inc.
Ventura Foods
Staples Direct
T.B. Woods, Inc.
Knouse Foods
Farmers & Merchants Trust Co.
Employees
3,000
1,100
690
608
400
315
300
265
252
209
A-2
Table A-4 shows recent trends in labor force, employment and unemployment for Franklin County and the
Commonwealth. The unemployment rate for Franklin County has been lower than the statewide average.
TABLE A-4
TRENDS IN LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT
Time Period
2011
2012
2013
2014
2015
April 2016
FRANKLIN COUNTY
Labor Force
Employed
Unemployed
75,500
70,000
5,500
76,300
71,000
5,400
76,500
71,500
5,000
76,100
72,100
4,000
77,700
74,000
3,700
79,100
75,300
3,800
Unemployment Rate
7.3%
7.0%
6.6%
5.3%
4.8%
4.8%
Time Period
2011
2012
2013
2014
2015
April 2016
PENNSYLVANIA
Labor Force
Employed
6,395,000
5,888,000
6,465,000
5,957,000
6,442,000
5,964,000
6,378,000
6,009,000
6,424,000
6,094,000
6,479,000
6,142,000
Unemployment Rate
7.9%
7.9%
7.4%
5.8%
5.1%
5.2%
Unemployed
507,000
508,000
478,000
370,000
330,000
338,000
Income
The data on Table A-5 shows trends in per capita income for the Borough, Franklin County and the Commonwealth
over the 2000-2010 period. Per capita income in the Borough is higher than per capita income in the County and the
Commonwealth. Per capita income in the Borough has increased at a faster rate than that in the County, but is lower than per
capita in the Commonwealth.
TABLE A-5
TRENDS IN PER CAPITA INCOME*
Borough ................................................
Franklin County ....................................
Pennsylvania .........................................
2000
$20,750
19,339
20,880
2010
$21,351
25,307
27,049
Compound Average Annual
Percentage Change
2000-2010
0.29%
2.73%
2.62%
*Income is defined by the Bureau of the Census as the sum of wage and salary income, non-farm self-employment income, net
self-employment income, Social Security and Railroad retirement income, public assistance income, interest, dividends,
pensions, etc. before deductions for personal income taxes, Social Security, etc.
Source: U.S. Census Bureau, 2006-2010 American Community Survey.
A-3
Commercial Activity
Table A-6 represents retail sales estimates for Franklin County and for Pennsylvania.
TABLE A-6
TOTAL RETAIL SALES
2011
Franklin County .................
$ 2,181,253
188,193,104
Pennsylvania ......................
Source: The Nielsen Company.
$
2012
2,180,578
188,149,727
$
2013
2,107,748
187,412,600
$
2014
2,185,510
199,975,257
2015
$ 2,343,657
198,215,135
Educational Institutions
Located within the Borough is Wilson College a private college of liberal arts and science. Also within a 70 mile radius of
the Borough are a number of institutions of higher learning, including Shippensburg University, Dickinson College, Dickinson
School of Law of the Pennsylvania State University, Pennsylvania State University Mont Alto Campus, the Penn State University
Milton S. Hershey Medical Center, the Harrisburg Area Community College, Messiah College and Widener Law School, all
located in Pennsylvania, and Frostburg State University, Western Maryland University, Mount St. Mary's College of Maryland,
Hood College, and Shepherd College which are located in the Maryland and West Virginia area also within the 70 mile radius of
the Borough.
Utility Services
Electric, gas, water, storm sewer, sewer and sanitation are provided by the Borough.
Medical Facilities
The Chambersburg Hospital, located within the Borough, is a 257-bed facility with a 24-hour emergency room, intensive
care, special pediatric and coronary care units. Penn State-Hershey and John Hopkins Medical Centers are within 70 miles of the
Borough.
Transportation
The Borough residents are within commuting distance of the Harrisburg International Airport, Hagerstown Regional
Airport, Dulles International and Baltimore-Washington International Airport which are within 75 miles of the Borough. Both
Norfolk Southern and CSX rail service serve Borough businesses. For bus transportation, the Union Bus Terminal maintains a
terminal within the Borough and transportation is provided by Capitol Trailways. The Borough lies at the intersection of US
Route 30 and Interstate 81 and is served by two exits off Interstate 81.
A-4
APPENDIX B –
Form Opinion of Bond Counsel
Eckert Seamans Cherin & Mellott, LLC
213 Market Street
8th Floor
Harrisburg, PA 17101
TEL 717 237 6000
FAX 717 237 6019
www.eckertseamans.com
FORM OF OPINION OF BOND COUNSEL
The form of the approving legal opinion of Eckert Seamans Cherin & Mellott, LLC, Bond Counsel, is set forth
below. The actual opinion will be signed and delivered on the date of delivery of the Bonds and may vary from the
form set forth to reflect circumstances both factual and legal at the time of such delivery. Recirculation of this
Preliminary Official Statement or Official Statement shall create no implication that Eckert Seamans Cherin &
Mellott, LLC, has reviewed any of the matters set forth in such opinion subsequent to the date thereof.
$_,___,___
FRANKLIN COUNTY, PENNSYLVANIA
GENERAL OBLIGATION BONDS, SERIES OF 2016
To the Purchasers of the
Above-Described Bonds:
___________, 2016
We have acted as Bond Counsel in connection with the issuance and sale by the Borough of
Chambersburg, Franklin County, Pennsylvania (the "Issuer") of $_,___,___ aggregate principal amount of
its General Obligation Bonds, Series of 2016 (the "Bonds"). The Bonds have been issued pursuant to an
ordinance (the "Ordinance") duly enacted on September __, 2016, are issuable in the denominations of
$5,000 and integral multiples thereof, and are in fully registered form. The Bonds bear interest from
___________, 2016, payable initially on June 1, 2017, and on each June 1 and December 1 thereafter,
until payment of the principal thereof has been duly made or provided for. The Bonds bear interest at the
rates, mature on the dates and in the amounts, and are subject to redemption prior to maturity as set forth
in the Ordinance.
As Bond Counsel, we have examined, among other things, originals or certified copies of the approval of
the Issuer's incurrence of nonelectoral debt by the Department of Community and Economic
Development of the Commonwealth of Pennsylvania, constitutional and statutory provisions and other
certificates, instruments and documents as we have deemed necessary or appropriate in order to enable us
to render an informed opinion as to the matters set forth herein.
We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the
Official Statement, dated ____________, 2016 (the "Official Statement"), or other offering material
relating to the Bonds (except to the extent, if any, stated in the Official Statement), and we express no
opinion relating thereto (excepting only the matters set forth as our opinion in the Official Statement).
As to questions of fact material to our opinion, we have relied upon the representations of the Issuer
contained in the proceedings relating to the issuance of the Bonds and other certifications of public
officials furnished to us without undertaking to verify the same by independent investigation.
The Bonds have been designated by the Issuer as Qualified Tax-Exempt Obligations within the meaning
of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code").
Above-Described Bonds
_________, 2016
Page 2
We have examined the law and such certified proceedings and other papers as we deem necessary to
render this opinion. Based on our examination, we are of the opinion, as of the date hereof and under
existing law, as follows:
1.
The Bonds are valid and binding general obligations of the Issuer.
2.
All taxable real property in the territory of the Issuer is subject to ad valorem taxation without
limitation as to rate or amount to pay debt service on the Bonds. The Issuer has effectively
covenanted to include the amounts of the debt service on the Bonds for each fiscal year in which
such sums are due in its budget for that year, to appropriate such amounts to the payment of such
debt service and to punctually pay or cause to be paid the debt service on the Bonds at the dates
and places and in the manner stated in the Bonds.
3.
Interest on and accruals of original issue discount with respect to the Bonds (a) are excluded from
gross income for federal income tax purposes, and (b) are not items of tax preference within the
meaning of Section 57(a)(5) of the Code for purposes of the federal alternative minimum tax
imposed by Section 55 of the Code on individuals and corporations; however, it should be noted
that with respect to corporations (as defined for federal income tax purposes), such interest and
accruals are taken into account in determining adjusted current earnings for the purposes of
computing the alternative minimum tax imposed on such corporations by Section 55 of the Code.
Accruals of original issue discount with respect to a Bond allocable to an owner of the Bond
under a constant yield method of accrual (a) are not included in gross income for federal income
tax purposes, and (b) are added to such owner’s tax basis in the Bond for the purpose of
determining gain or loss for federal income tax purposes upon sale, exchange, redemption or
other disposition of the Bond. The opinions set forth in the preceding two sentences are subject
to the condition that the Issuer comply with all requirements of the Code that must be satisfied
subsequent to the issuance of the Bonds in order that interest on and accruals of original issue
discount with respect to the Bonds be (or continue to be) excluded from gross income for federal
income tax purposes. Failure to comply with such requirements could cause the interest on and
accruals of original issue discount with respect to the Bonds to be included in gross income for
federal income tax purposes retroactive to the date of issuance of the Bonds. The Issuer has
covenanted to comply with such requirements.
4.
The Bonds are Qualified Tax-Exempt Obligations under Section 265(b)(3) of the Code.
5.
The Bonds are exempt from personal property taxes in Pennsylvania; the interest on the Bonds is
exempt from Pennsylvania Corporate Net Income Tax and from Pennsylvania state and local
personal income tax.
6.
Under the Probate, Estates and Fiduciaries Code of Pennsylvania, the Bonds are authorized
investments for fiduciaries and personal representatives, as defined in said Code, in Pennsylvania.
No opinion is expressed as to other tax consequences that may accrue to an owner of the Bonds as a result
of purchase or ownership of the same except as specifically set forth herein.
Above-Described Bonds
_________, 2016
Page 3
It is understood that the rights of the holders of the Bonds and the enforceability thereof may be subject to
bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights
heretofore or hereafter enacted to the extent constitutionally applicable and that their enforcement also
may be subject to the exercise of judicial discretion in appropriate cases.
Very truly yours,
ECKERT SEAMANS CHERIN & MELLOTT, LLC
APPENDIX C –
Continuing Disclosure Certificate
[FORM OF CONTINUING DISCLOSURE CERTIFICATE]
$_,___,___
FRANKLIN COUNTY, PENNSYLVANIA
GENERAL OBLIGATION BONDS, SERIES OF 2016
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (this “Disclosure Certificate”) is made by the Borough of
Chambersburg, Franklin County, Pennsylvania (the “Issuer”) as of the ____ day of October, 2016, in
connection with the issuance of its $_,___,___, aggregate principal amount, General Obligation Bonds,
Series of 2016, dated October __, 2016 (the “Bonds”). The Bonds are being issued pursuant to an
Ordinance enacted by the Town Council of the Issuer on September __, 2016 (the “Ordinance”).
Capitalized terms used in this Disclosure Certificate that are not otherwise defined herein (including,
without limitation, in Article IV hereof) shall have the meanings ascribed to such terms in the Ordinance.
In consideration of the purchase of the Bonds by the Underwriter (as defined below), the Issuer
agrees as follows:
ARTICLE I
The Undertaking
Section 1.1.
Purpose. This Disclosure Certificate shall constitute a written undertaking for the
benefit of the holders of the Bonds, and is being executed and delivered solely to assist the Underwriter in
complying with subsection (b)(5) of the Rule.
Section 1.2.
Annual Financial Information. (a) The Issuer shall provide Annual Financial
Information with respect to each fiscal year of the Issuer, commencing with fiscal year ended December
31, 2016, by no later than two hundred and ten (210) days after the end of the respective fiscal year, to the
MSRB through the EMMA System.
(b)
The Issuer shall provide, in a timely manner, notice of any failure of the Issuer to provide
the Annual Financial Information by the date specified in subsection (a) above, in substantially the form
attached as Exhibit A hereto, to the MSRB through the EMMA System.
Section 1.3.
Audited Financial Statements. If not provided as part of the Annual Financial
Information by the date required by Section 1.2 hereof, the Issuer shall provide Audited Financial
Statements when and if available, to the MSRB through the EMMA System.
Section 1.4.
Disclosure Event Notices. (a) If a Disclosure Event occurs, the Issuer shall
provide, in a timely manner not in excess of ten (10) business days after the occurrence of the event,
notice of such Disclosure Event to the MSRB through the EMMA System.
(b)
Any such notice of a defeasance of Bonds shall state whether the Bonds have been
escrowed to maturity or to an earlier redemption date and the timing of such maturity or redemption.
Section 1.5.
Additional Disclosure Obligations. The Issuer acknowledges and understands
that other state and federal laws, including, but not limited to, the Securities Act of 1933 and Rule 10b-5
promulgated under the Securities Exchange Act of 1934, may apply to the Issuer and that, under some
circumstances, additional disclosures or other action may be required to enable the Issuer to fully
discharge all of its duties and obligations under such laws.
Section 1.6.
Additional Information. Nothing in this Disclosure Certificate shall be deemed to
prevent the Issuer from disseminating any other information, using the means of dissemination set forth in
this Disclosure Certificate or any other means of communication, or including any other information in
any Annual Financial Information or notice of Disclosure Event hereunder, in addition to that which is
required by this Disclosure Certificate. If the Issuer chooses to do so, the Issuer shall have no obligation
under this Disclosure Certificate to update such additional information or include it in any future Annual
Financial Information or notice of a Disclosure Event hereunder.
Section 1.7.
No Previous Non-Compliance. Except as disclosed in the Official Statement
dated October __, 2016, relating to the Bonds (the “Official Statement”), the Issuer represents that it has
not failed to comply in any material respect with any previous undertaking in a written contract or
agreement specified in paragraph (b)(5)(i) of the Rule.
ARTICLE II
Operating Rules
Section 2.1.
Reference to Other Documents. It shall be sufficient for purposes of Section 1.2
hereof if the Issuer provides Annual Financial Information by specific reference to documents (i) either
(1) provided to the MSRB through the EMMA System, or (2) filed with the SEC, or (ii) if such document
is a Final Official Statement, available from the MSRB.
Section 2.2.
Submission of Information. Annual Financial Information may be provided in
one document or multiple documents, and at one time or in part from time to time.
Section 2.3.
Disclosure Event Notices. Each notice of a Disclosure Event hereunder shall be
captioned “Notice of Disclosure Event” and shall prominently state the title, date and CUSIP numbers of
the Bonds.
Section 2.4.
Transmission of Information and Notices. Unless otherwise required by law and,
in the Issuer’s sole determination, subject to technical and economic feasibility, the Issuer shall employ
such methods of information and notice transmission as shall be requested or recommended by the hereindesignated recipients of the Issuer’s information and notices.
Section 2.5.
Fiscal Year. (a) The Issuer's current fiscal year is January 1 to December 31, and
the Issuer shall promptly provide written notice of each change in its fiscal year. The Issuer shall provide
such notice to the MSRB through the EMMA System.
(b)
Annual Financial Information shall be provided at least annually notwithstanding any
fiscal year longer than 12 calendar months.
ARTICLE III
Effective Date, Termination, Amendment, Default and Enforcement
Section 3.1.
Effective Date, Termination. (a) This Disclosure Certificate shall be effective
upon the issuance of the Bonds.
2
(b)
The Issuer’s obligations under this Disclosure Certificate shall terminate upon a legal
defeasance, prior redemption or payment in full of all of the Bonds or on the date that the Issuer shall no
longer be deemed an “obligated person” with respect to the Bonds within the meaning of the Rule.
(c)
This Disclosure Certificate, or any provision hereof, shall be null and void in the event
that (1) the Issuer receives an opinion of Counsel to the effect that those portions of the Rule which
require this Disclosure Certificate, or such provision, as the case may be, do not or no longer apply to the
Bonds, whether because such portions of the Rule are invalid, have been repealed, or otherwise, as shall
be specified in such opinion, and (2) the Issuer delivers a copy of such opinion to the MSRB through the
EMMA System.
Section 3.2.
Amendment. (a) This Disclosure Certificate may be amended, without the
consent of the holders of the Bonds, if all of the following conditions are satisfied: (1) such amendment is
made in connection with a change in circumstances that arises from a change in legal (including
regulatory) requirements, a change in law (including rules or regulations) or in interpretations thereof, or
a change in the identity, nature or status of the Issuer or the type of business conducted thereby, (2) this
Disclosure Certificate as so amended would have complied with the requirements of the Rule as of the
date of this Disclosure Certificate, after taking into account any amendments or interpretations of the
Rule, as well as any change in circumstances, (3) the Issuer shall have received an opinion of Counsel to
the same effect as set forth in clause (2) above, (4) the Issuer shall have received an opinion of Counsel or
a determination by a person, in each case unaffiliated with the Issuer (such as bond counsel or the paying
agent) and acceptable to the Issuer, addressed to the Issuer, to the effect that the amendment does not
materially impair the interests of the holders of the Bonds, and (5) the Issuer shall have delivered copies
of such opinion(s) and amendment to the MSRB through the EMMA System.
(b)
In addition to subsection (a) above, this Disclosure Certificate may be amended without
the consent of the holders of the Bonds, if all of the following conditions are satisfied: (1) an amendment
to the Rule is adopted, or a new or modified official interpretation of the Rule is issued, after the effective
date of this Disclosure Certificate which is applicable to this Disclosure Certificate, (2) the Issuer shall
have received an opinion of Counsel to the effect that performance by the Issuer under this Disclosure
Certificate as so amended will not result in a violation of the Rule, and (3) the Issuer shall have delivered
copies of such opinion and amendment to the MSRB through the EMMA System.
(c)
To the extent any amendment to this Disclosure Certificate results in a change in the type
of financial information or operating data provided pursuant to this Disclosure Certificate, the first
Annual Financial Information provided thereafter shall include a narrative explanation of the reasons for
the amendment and the impact of the change in the type of operating data or financial information being
provided.
(d)
If an amendment is made to the accounting principles to be followed by the Issuer in
preparing its financial statements, the Annual Financial Information for the fiscal year in which the
change is made shall present a comparison between the financial statements or information prepared on
the basis of the new accounting principles and those prepared on the basis of the former accounting
principles. Such comparison shall include a qualitative and, to the extent reasonably feasible, quantitative
discussion of the differences in the accounting principles and the impact of the change in the accounting
principles on the presentation of the financial information.
Section 3.3.
Default. In the event of a failure of the Issuer to comply with any provision of
this Disclosure Certificate, the rights of the holders of the Bonds to enforce the provisions of this
Disclosure Certificate shall be limited solely to the right, by action in mandamus or for specific
performance, to cause the Issuer to comply with obligations under this Disclosure Certificate. The sole
3
remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this
Disclosure Certificate shall be an action to compel performance, and no person or entity shall be entitled
to recover monetary damages under this Disclosure Certificate.
Section 3.4.
Benefit: Third-Party Beneficiaries: Enforcement. (a) The provisions of this
Disclosure Certificate shall constitute a contract with and inure solely to the benefit of the Underwriter
and the holders from time to time of the Bonds, except that beneficial owners of Bonds shall be thirdparty beneficiaries of this Disclosure Certificate and shall be deemed to be holders of Bonds for purposes
of Section 3.4(b) hereof. The provisions of this Disclosure Certificate shall create no rights in any person
or entity except as provided in this subsection (a).
(b)
The obligations of the Issuer to comply with the provisions of this Disclosure Certificate
shall be enforceable in the case of enforcement of obligations to provide financial statements, financial
information, operating data and notices, by any holder of the Bonds. The holders’ rights to enforce the
provisions of this Disclosure Certificate shall be limited solely to a right, by action in mandamus or for
specific performance, to compel performance of the Issuer’s obligations under this Disclosure Certificate.
(c)
This Disclosure Certificate shall be construed and interpreted in accordance with the laws
of the State, and any suits and actions arising out of this Disclosure Certificate shall be instituted in a
court of competent jurisdiction in the State; provided, however, that to the extent this Disclosure
Certificate addresses matters of federal securities laws, including the Rule, this Disclosure Certificate
shall be construed in accordance with such federal securities laws and official interpretations thereof.
ARTICLE IV
Definitions
Section 4.1.
Definitions. The following terms used in this Disclosure Certificate shall have the
following respective meanings:
“Annual Financial Information” means, collectively,
(i)
Statements;
(ii)
the Audited Financial Statements, if available, or Unaudited Financial
a copy of (or summary of) the budget for the current fiscal year; and
(iii)
the information regarding amendments to this Disclosure Certificate required
pursuant to Sections 3.2(c) and (d) of this Disclosure Certificate.
In the event that the financial information and operating data constituting Annual Financial
Information contained in clause (ii) above can no longer be generated because the operations to which
they relate have been materially changed or discontinued, or because information is instead being
presented in a different format, a statement to that effect shall be provided in lieu of such information.
“Audited Financial Statements” means the annual financial statements, if any, of the Issuer,
audited by the Issuer's independent public accountants. Audited Financial Statements shall be prepared in
accordance with GAAP.
“Counsel” means any nationally recognized bond counsel or counsel expert in federal securities
laws.
4
“Disclosure Event” means any of the following events with respect to the Bonds, whether
relating to the Issuer or otherwise:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
Principal and interest payment delinquencies;
Non-payment related defaults, if material;
Unscheduled draws on debt service reserves reflecting financial difficulties;
Unscheduled draws on credit enhancements reflecting financial difficulties;
Substitution of credit or liquidity providers, or their failure to perform;
Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other
material notices or determinations with respect to the tax status of the Bonds, or other
material events affecting the tax status of the Bonds;
Modifications to rights of security holders, if material;
Bond calls, if material, and tender offers;
Defeasances;
Release, substitution, or sale of property securing repayment of the Bonds;
Rating changes;
Bankruptcy, insolvency, receivership or similar event of the obligated person;
The consummation of a merger, consolidation, or acquisition involving an obligated
person or the sale of all or substantially all of the assets of the obligated person, other
than in the ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such actions,
other than pursuant to its terms, if material; and
Appointment of a successor or additional trustee or the change of name of a trustee, if
material.
For the purposes of the event identified in paragraph (12) above, the event is considered
to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar
officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other
proceeding under state or federal law in which a court or governmental authority has assumed
jurisdiction over substantially all of the assets or business of the obligated person, or if such
jurisdiction has been assumed by leaving the existing governing body and officials or officers in
possession but subject to the supervision and orders of a court or governmental authority, or the
entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or
business of the obligated person.
“EMMA System” means the MSRB’s Electronic Municipal Market Access system
(http://emma.msrb.org/), or such other electronic system designated by the MSRB.
“Final Official Statement” means a “final official statement,” as defined in paragraph (f)(3) of
the Rule.
“GAAP” means generally accepted accounting principles as prescribed from time to time by the
Financial Accounting Standards Board or any successor to the duties or responsibilities thereof.
“MSRB” means the Municipal Securities Rulemaking Board established pursuant to Section
15B(b)(1) of the Securities Exchange Act of 1934.
“Rule” means Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934
(17 CFR Part 240, §240.15c2-12), as in effect on the date of this Disclosure Certificate, including any
5
official interpretations thereof issued either before or after the effective date of this Disclosure Certificate
which are applicable to this Disclosure Certificate.
“SEC” means the United States Securities and Exchange Commission.
“Unaudited Financial Statements” means the same as Audited Financial Statements, except that
they shall not have been audited.
“Underwriter” shall have the meaning given thereto under Rule 15c2-12, or any successor to
such underwriter or underwriters known to the Issuer.
ARTICLE V
Miscellaneous
Section 5.1. Disclosure Dissemination Agent. The Issuer may appoint a disclosure dissemination
agent to assume the responsibilities for compliance with disclosure requirements pursuant to the Rule
performed by the Issuer under this Disclosure Certificate for the benefit of the holders of the Bonds and
Underwriter.
Section 5.2. Severability. If any provision hereof shall be held invalid or unenforceable by a
court of competent jurisdiction, the remaining provisions hereof shall survive and continue in full force
and effect.
6
IN WITNESS WHEREOF, the Issuer has caused its duly authorized representative to execute this
Disclosure Certificate as of the day and year first written above.
By:
President, Town Council
7
EXHIBIT A
FORM OF NOTICE OF FAILURE TO FILE ANNUAL FINANCIAL INFORMATION
Name of Issuer:
Borough of Chambersburg, Franklin County, Pennsylvania
Name of Bond Issue:
Borough of Chambersburg, Franklin County, Pennsylvania General
Obligation Bonds, Series of 2016
Date of Issuance:
October __, 2016
NOTICE IS HEREBY GIVEN that the above-named Issuer has not provided the Annual Financial
Information with respect to the above-named Bonds as required by the Continuing Disclosure Undertaking
dated October __, 2016. Said Issuer anticipates that the Annual Financial Information will be filed by
.
Dated:
By:
A-1
APPENDIX D –
Comprehensive Annual Financial Report
For the Year Ended
December 31, 2015
CONTENTS
I.
INTRODUCTORYSECTION(UNAUDITED)
LetterofTransmittal
BoroughofChambersburgOrganizationChart
MayorandTownCouncil
ListofBoroughOfficersandOfficials
II. FINANCIALSECTION
INDEPENDENTAUDITOR’SREPORT
MANAGEMENT’SDISCUSSIONANDANALYSIS(UNAUDITED)
BASICFINANCIALSTATEMENTS
Government‐wideFinancialStatements
Statementofnetposition
Statementofactivities
FundFinancialStatements
Balancesheet–governmentalfunds
Reconciliationofgovernmentalfundsbalancesheettothestatementof
netposition
Statementofrevenues,expendituresandchangesinfundbalance‐
governmentalfunds
Reconciliationofstatementofrevenues,expendituresandchangesin
fundbalanceofgovernmentalfundstothestatementofactivities
Statementofnetposition‐proprietaryfunds
Statementofrevenues,expensesandchangesinfundnetposition‐
proprietaryfunds
Statementofcashflows‐proprietaryfunds
Statementoffiduciarynetposition
Statementofchangesinfiduciarynetposition
NotestoFinancialStatements
REQUIREDSUPPLEMENTARYINFORMATION(UNAUDITED)
UnauditedscheduleofchangesintheBorough’snetpensionliabilityand
relatedratios–pensiontrustfunds
UnauditedscheduleofBoroughcontributions–pensiontrustfunds
Unauditedscheduleofinvestmentreturns–pensiontrustfunds
Unauditedrequiredscheduleoffundingprogress‐OPEB
Budgetarycomparisonschedule‐generalfund
Budgetarycomparisonschedule–specialrevenuefund‐grantprograms
OTHERSUPPLEMENTARYINFORMATION‐COMBININGANDINDIVIDUAL
NONMAJORFUNDFINANCIALSTATEMENTSANDSCHEDULES
OtherGovernmentalFunds
Combiningbalancesheet–othergovernmentalfunds
Combiningstatementofrevenues,expendituresandchangesinfund
balances–othergovernmentalfunds
Budgetarycomparisonschedule–specialrevenuefund‐liquidfuels
Budgetarycomparisonschedule‐specialrevenuefund‐Richard
Kasherfiretaxfund
Budgetarycomparisonschedule–capitalreservefund
I‐VI
VII
VIII
IX
1‐3
4‐17
18
19
20
21
22
23
24
25
26
27
28
29‐66
67
68
69
70
71
72
73
74
75
76
77
78
CONTENTS(CONTINUED)
OtherEnterpriseFunds
Combiningstatementofnetposition–otherenterprisefunds
Combiningstatementofrevenues,expensesandchangesinfundnet
position–otherenterprisefunds
Combiningstatementofcashflows–otherenterprisefunds
79
80
InternalServiceFunds
Combiningstatementofnetposition‐internalservicefunds
Combiningstatementofrevenues,expensesandchangesinfundnet
position‐internalservicefunds
Combiningstatementofcashflows‐internalservicefunds
83
84
81
82
TrustandAgencyFunds
Combiningstatementoffiduciarynetposition–pensiontrustfunds
Combiningstatementofchangesinfiduciarynetposition‐pension
trustfunds
Combiningstatementoffiduciarynetposition‐privatepurposetrust
funds
Combiningstatementofchangesinfiduciarynetposition–private
purposetrustfunds
Combiningstatementofchangesinassetsandliabilities–allagency
funds
ScheduleofTaxesReceivable
85
86
87
88
89
90
91
92
93
III. STATISTICALSECTION(UNAUDITED)
Schedule1‐Netpositionbycomponent
Schedule2‐Changesinnetposition
Schedule3‐Fundbalances‐governmentalfunds
Schedule4‐Changesinfundbalances‐governmentalfunds
Schedule5‐Programrevenuesbyfunction
Schedule6‐Taxrevenuesbysource‐governmentalfunds
Schedule7‐Propertytaxrates‐directandoverlappinggovernments
Schedule8‐Assessedvalueandactualvalueoftaxableproperty
Schedule9‐Principaltaxpayers
Schedule10‐Propertytaxleviesandcollections
Schedule11‐Municipalearnedincometaxrevenuebaseandcollections
Schedule12‐Earnedincometaxstatistics
Schedule13‐Ratiosofoutstandingdebtbytype
Schedule14‐Ratiosofgeneralbondeddebtoutstanding
Schedule15‐Legaldebtmargininformation
Schedule16‐Computationofdirectandoverlappingdebt
Schedule17‐Debtcapacityinformation‐pledged‐revenuecoverage
Schedule18‐Demographicandeconomicstatistics
Schedule19‐Principalemployers
Schedule20‐Full‐timeequivalentmunicipalemployeesbyfunction/program
Schedule21‐Operatingindicatorsbyfunction/program
Schedule22‐Capitalassetstatisticsbyfunction/program
94
95‐96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
Introductory
Section
Celebrating 50 years of consumer owned gas service
and over 100 years of consumer owned electric service
LetterofTransmittalfor2015ComprehensiveAnnualFinancialReport
June29,2016
TotheHonorableMayor,TownCouncilandtheCitizensoftheBoroughofChambersburg,Pennsylvania.
TheComprehensiveAnnualFinancialReportoftheBoroughofChambersburgfortheyearended
December31,2015,isherebysubmittedforyourreview.ThisreportrepresentsthecommitmentoftheBorough
ofChambersburgtoadheretonationallyrecognizedstandardsofexcellenceinfinancialreporting.
BoroughofChambersburgstaffpreparedallstatements,schedules,andotherpresentationsinthis
report.Managementisresponsibleforboththeaccuracyofthedataandthecompletenessandfairnessofthe
presentation,includingalldisclosures.Webelievethatthedatapresentedinthisreportisaccurateinallmaterial
respectsandisreportedinamannerthatpresentsfairlythefinancialpositionandresultsofoperationsofthe
Borough.Further,webelievethatalldisclosuresnecessarytoenablethereadertogainanunderstandingofthe
BoroughofChambersburg’sactivitieshavebeenincluded.
TheComprehensiveAnnualFinancialReport(CAFR)incorporatesfinancialreportingstandards
establishedbyGovernmentalAccountingStandardsBoard(GASB)StatementNo.34,BasicFinancialStatements‐
andManagement’sDiscussionandAnalysis‐forStateandLocalGovernments.StatementNo.34wasdeveloped
tomakeannualfinancialreportsofgovernmentsmorecomprehensiveandeasiertounderstandanduse.All
requiredelementsofStatementNo.34,includingretroactiverestatementofgeneralinfrastructureassetsarenow
requiredinthisreportandareincludedinthisreportastheywereinthepreviousyears’reports.
PleasereviewtheManagement’sDiscussionandAnalysis(MD&A)whichislocatedintheFinancial
SectionoftheCAFR.TheMD&Aismanagement’sanalysisofthemunicipality’sfinancialpositionbasedon
currentlyknownfactsasofthedateoftheauditor’sreport.Itisrequiredtoprecedethefinancialstatementsand
providethefollowinganalysis:

Management’sanalysisoftheorganization’sfinancialpositionandresultsofoperations

Comparisonofcurrentyearassets,liabilities,revenuesandexpensestotheprioryear

Explanationofsignificantchangesinfundbasedfinancialresultsandbudgetaryinformation

Descriptionofcapitalassetandlongtermdebtactivityduringtheyear

Descriptionofcurrentlyknownfacts,decisionsorcircumstancesexpectedtohaveasignificant
effectonthefutureoverallfinancialactivitiesofthemunicipality
| I
THEBOROUGHOFCHAMBERSBURG
GeneralInformation
TheBoroughofChambersburg,oneoftheearliestpermanentsettlementswestoftheSusquehannaRiver,
wasfoundedin1764byBenjaminChambersonlandgrantedtohimbythePennProprietors.Chambersburgwas
incorporatedasaBoroughbyanActoftheStateLegislatorsonMarch21,1803.ItislocatedonInterstate81in
thesouth‐centralregionofPennsylvaniaandisthecountyseatofFranklinCounty.TheBoroughcoversanareaof
6.58squaremilesandliesapproximately50milessouthwestofHarrisburg,25mileswestofGettysburg,and22
milesnorthofHagerstown,Maryland.Itisthehistoricandcommercialcenteroftheregioncharacterizedby
variedsmallandmediumindustrialenterprises,arichagriculturalarea,andresidentialgrowth.
AccordingtotheU.S.BureauoftheCensus,theBorough’spopulationincreasedfrom20,268to20,691,
between2010and2015;anincreaseof2.1percentduringtheperiod.
MunicipalServicesandFacilities
TheBoroughisatotalservicecommunityprovidingabroadrangeofservicesforthecitizensof
Chambersburg,includingthefollowinggeneralgovernmentfunctions:policeandfireprotection,emergency
medicalservices,streetconstructionandmaintenance,stormwatermanagement,parksandrecreationfacilities
andcodeenforcement.
TheBoroughisuniqueinPennsylvaniainthatitownsandoperateselectric,gas,water,sewer,sanitation,
stormsewer,andparkingfacilities.TheBoroughisthelargestmunicipalelectricsystem,andtheonlyelectricity
producing,consumer‐owned,systemintheCommonwealthofPennsylvania.TheChambersburgElectric
Departmentisinitstwenty‐secondyearofitssecondcenturyofservicetothecitizensofChambersburg,andthe
Borough’sGasDepartmenthasbeenprovidingmunicipalgasforover50years.OnAugust20,1875,thecitizens
ofChambersburgvotedinfavorofabondissuetoconstructawatersystem,andsewerservicewasinitiatedon
August1,1912.
GovernmentalOrganization
TheActofIncorporationin1803providedfor“theBurgessandTownCounciloftheBoroughof
Chambersburgastheonebodypoliticandcorporateinlaw”.ThetitleBurgesswaschangedtoMayorin1961.
TheMayoriselectedatlargeeveryfouryears.HisdutiesareoutlinedintheBoroughCodeandincludethe
oversightofthePoliceDepartment.TheMayorvotesonactionsbeingconsideredbyTownCouncilonlytobreak
tievotes.
ThelegislativeandexecutiveauthorityoftheBoroughisvestedinaten‐memberCouncil.Two
councilmenareelectedfromeachofthefivewards,onecouncilmanfromeachwardbeingelectedateachbiennial
election.Councilmembersareelectedtooverlappingfour‐yearterms.Thecouncilenactslegislationtoprovide
forBoroughservices,adoptsbudgets,leviestaxes,borrowsmoney,licensesandregulatesbusinessesandtrades,
andperformssuchotherdutiesconsistentwiththeBoroughCode.ThepresidingofficeroftheCouncilisthe
PresidentofCouncil,whoisamemberofCouncil,andelectedtothatpositionbyavoteofCouncilmembers.
ByanordinanceapprovedinDecemberof1975,TownCouncilcreatedtheofficeoftheBoroughManager.
TheBoroughManageristheChiefAdministrativeOfficeroftheBorough,andisresponsibletotheTownCouncil
asawholefortheproperandefficientadministrationoftheaffairsoftheBorough.Themanagerisappointedfor
anindefinitetermandservesatthepleasureofCouncil.
TheDirectorofFinance,whoisappointedbytheBoroughManager,istheChiefFinancialOfficerofthe
Borough.TheDirectorofFinanceexercisesthepowersotherwisegrantedtotheBoroughTreasurerposition
underthelawsoftheCommonwealthofPennsylvania.Assuch,theDirectorofFinanceischargedwiththe
responsibilityofreceiving,disbursing,andmaintainingcustodyofallfundsoftheBorough,andservesasPension
FundsChiefAdministrativeOfficer.TheDirectorofFinanceadvisestheBoroughManagerandTownCouncil
concerningfinancialmattersandassiststheBoroughManagerinthepreparationoftheannualbudget.
| II
DepartmentalHighlight–ChambersburgStormSewerDepartment
EachyearwespotlightoneoftheBorough’smanydepartmentsbyreviewingthehistory,activitiesand
accomplishmentsoftheselecteddepartment.Lastyear’sreportfocusedontheSanitationDepartment.This
year’sreporthighlightsourStormSewerDepartment.
LikemanycommunitiesinPennsylvania,theBoroughofChambersburg(Borough)hasseenmany
changesrelatedtothestormsewersystemandrespectiveutilitydepartment.Someimprovementsdatebackto
the1800’sinordertoaddresshightrafficareasintown:‘Thefirststeptowardthecorrectionoftheseconditions
wastakenin1813withtheawardingofacontractforstreetrepairs.Butthefundamentalproblemofsurface
drainagewasnotapproacheduntil1823,whenastormsewerwasconstructedinBurkhartAvenuebetweenMain
StreetandtheConococheagueCreek’(Chambersburg,It’sRecordandIt’sProspect).Thestormsewer
improvementsinthe1800’sweremuchdifferentthansimilarimprovementstoday.Theoldestpartsof
Chambersburghavelittletonostormwatermanagement.Generallyspeaking,thestormwaterisconveyedalong
thecurbandroadway,intoasystemofdrainsandpipes,andintostreams.ThenewerpartsofChambersburg
havestormwaterbestmanagementpracticesthatareconstructedtomanagetherateandvolumeofstormwater,
aswellasprovidewaterqualitypriortoenteringthestream.
TheBoroughcurrentlyoperatesunderaMunicipalSeparateStormSewerSystem(MS4)permitthatwas
originallyauthorizedin2003.Permitrenewalsoccurredin2008and2013respectively.Arenewalalongwith
anticipatedchangestotheMS4programwilloccuragainin2018.TheBoroughadoptedaStormwater
ManagementOrdinanceonJune20,2004.TheOrdinancewasoriginallydraftedandadoptedaccordingtotheAct
167ConococheagueCreekWatershedPlanasapprovedbythePennsylvaniaDepartmentofEnvironmental
ProtectiononNovember10,2003.ThepurposeoftheOrdinanceistopromotepublichealth,safetyandwelfare
withintheBorough,byminimizingdamagesthroughprovisionsdesignedto:
A) Manageacceleratedrunoff,erosionandsedimentation,scour,aggradationanddegradationproblems
attheirsourcebyregulatingactivitiesthatcausetheseproblems
B) Utilizeandpreservetheexistingnaturaldrainagesystems
C) Encouragerechargeofgroundwaterwhereappropriateandpreventdegradationofgroundwater
quality
D) Maintainexistingflowsandqualityofstreamsandwatercoursesinthewatershed
E) Preserveandrestoretheflood‐carryingcapacityofstreams(BoroughofChambersburgStormSewer
UtilityFeasibilityReport)
OnOctober13,2014,theBoroughManager’sofficecompletedaStormSewerUtilityFeasibilityReport
andpresentedthereporttoTownCouncil.TheobjectiveofthereportwastoprovideTownCouncilwith
justificationastowhyitwouldbeinthebestinterestoftheBoroughtocreateastormsewerutility.Following
theReportpresentation,TownCouncilvoted(8‐0‐2)toadvertiseanewlocallawtoestablishastormsewer
utilityasaseparatearticleofChapter251.TheutilitywentintoeffectonJanuary1,2015.OnApril1,2015a
StormSewerSystemManagerwashired.Theyareresponsiblefortheday‐to‐daymanagementofthestorm
sewerutility,stormsewersystem,andstormwatermanagementprogram.TheBoroughison‐targettocomplete
thescheduleof5yeartasksasoutlinedintheFeasibilityReport,andcontinuestotakethenecessarystepsin
ordertoimprovetheutilityandmaintaincompliancewiththeregulatoryauthorities.
EconomicEnvironment‐Historical
Chambersburg’shistoryasastrongcommercialcenterisrootedinitsstrategiclocation.Itwasa
crossroadsofcommercealmostfromitsfounding.SituatedinthecenteroftheCumberlandValley,itbecamethe
countyseatofthenewlycreatedFranklinCountyin1784.Scotch‐IrishandGermansettlerspredominatedthe
earlymigrationintothecounty.TheScotch‐Irishbeganasfarmersfromthesheernecessityofsurvival,butmany
driftedintopoliticalandmilitaryoccupations.ThemethodicalandindustriousGermansquicklyandsuccessfully
assumedthedevelopmentofagricultureinthecommunity.
Bycongressionalresolutionin1788,ChambersburgwasplacedonthepostroutebetweenPhiladelphia
andPittsburgh.Thecountry’spost‐RevolutionaryWarexpansiontothenewwesternfrontierswasbeneficialto
Chambersburg.Atfirst,packtrains,andthenthestagecoachandConestogawagonswerecommonvehiclesof
trafficthroughthetown.ThedemandsforthemovementofgoodsmanufacturedintheEasttotheWestandthe
productsfromthefrontierwerebeneficialtoChambersburg.Itwasreportedofeverytenthhousebeingusedasa
hostelry,withtheyardsbeingfillednightlytooverflowingwithwagons.
| III
Aswagontrafficincreasedinvolume,thedemandforbetterroadsarose.Manyofthestate’searliest
roadswereundertakenbytheprivatesector.Accedingtopublicdemands,theStateLegislaturemadelarge
appropriationsavailableforhighwayconstructionbetween1814and1821.$275,000wasavailablefor
improvementsofsectionsoftheCarlisletoChambersburgandtheChambersburgtoBedfordsectionsofthe
turnpikes.In1877,thirty‐nineoftheeighty‐eightmilesofturnpikeinFranklinCountywereonroadsconverging
onChambersburg.By1944,therewere228milesofmainhighwaysand338milesofimprovedsecondaryroads
inFranklinCounty.
In1837,theCumberlandValleyRailroadwasextendedfromHarrisburgtoChambersburgwhereitjoined
theturnpiketoPittsburgh.TherailroadextendeddowntheCumberlandValleyandcrossedthePotomacRiverin
1870andeventuallywasextendedtoWinchester,Virginiain1889.
ThePennsylvaniaTurnpikewascompletedthroughtheCountyin1940.Thecountyhadtwo
interchangeslocatedwithinthegeneralareaofChambersburg.ThedevelopmentofthelargestU.S.Army
Ordnancedistributionfacilityofitskindin1942illustratedthepossibilitiesoftheareadevelopingasacenterof
distribution.Chambersburg’slocationinrelationtoseaports,metropolitanmarketsandindustrialareaswas
evidentfromthebeginning.
EconomicEnvironment‐Today
Theconstructionoftheinterstatehighwaysysteminthe1960’sresultedinInterstate81beingonthe
easternedgeoftheBorough.Chambersburghasbecomeamagnetfordistributionwarehousestofacilitatethe
flowofgoodsontheEastCoast.AuthoritiesareexaminingtheiroptionsonhowInterstate81canbeimprovedto
handletheabundanttrucktrafficthattransversesthehighwaydaily.Thisaccesstomajorhighwaysandrailroads
coupledwithChambersburg’slocationhascreatedopportunitiesforourcontinuedprosperity.Otherfactorsthat
maketheBoroughagoodplacetodobusinessarecompetitivelylowutilityrates,qualitymunicipalservices,
amplepowersupplies,affordablehousing,askilledanddiversifiedworkforce,alowcrimerate,andaprogressive
schooldistrict.
The10largestemployersoperatingintheBoroughin2015were:
AVERAGENUMBER
EMPLOYER
PRIMARYBUSINESS
OFEMPLOYEES
SummitHealthServices
HealthCare
3,000
ChambersburgAreaSchoolDistrict
PublicEducation
1,100
CountyofFranklin
Government
690
MennoHaven,Inc.
RetirementCommunity
608
VenturaFoods
FoodPackaging
400
Staples
Retailing
315
T.B.Woods,Inc.
PowerTransmissionEquipment
300
KnouseFoods
FoodPackaging
265
F&MTrustCompany
FinancialServices
252
BoroughofChambersburg
MunicipalGovernment
209
TheBoroughofChambersburgisconsideredtheemploymentcenterfortheregion.Between16,000and
20,000peopleworkintheBoroughonadailybasis.
However,withinjustfivemilesofChambersburgthereareanumberofsignificantemployersthataddto
thevitalityofthecommunity.Thoseemployersareasfollows:
EMPLOYER
LetterkennyArmyDepot/Tenants
TargetDistributionCenter
MartinsFamousPastryShop
Walmart
UltaBeauty
IngramBookGroupInc.
ValleyQuarries
PRIMARYBUSINESS
AVERAGENUMBER
OFEMPLOYEES
RepairMilitaryVehiclesandMissiles/Misc.
DistributionWarehousing
PotatoBreadandRolls
Retailing
DistributionCenter
BookDistribution
StoneandAsphaltProducts
3,400
590
480
360
350
270
250
| IV
FINANCIALINFORMATION
BoroughmanagementhastakentheinitiativetoprepareaComprehensiveAnnualFinancialReport
(CAFR)startingwithfiscalyearending12/31/2004,andeachyearthereafter.TheCAFRprovidesreadersofour
financialstatementswithmuchadditionalinformationrelatingtothefinancialconditionoftheBoroughof
Chambersburg.Amongtheseincludeinformationregardingourlocaltaxpayers,employersandaplethoraof
similarinformationencompassingthepasttenyears.Wearehonoredandpleasedthatoureffortshaveresulted
inourreceivingtheCertificateofAchievementforExcellenceinFinancialReportingfromtheGovernment
FinanceOfficersAssociation(GFOA)foreachyearaCAFRhasbeenprepared.Weareagaincognizantofthe
implicationsofourcontinuingtostriveforsuchaprestigiousaward,andwillcontinuetopursueit.Withthis
award,wehavebeendesignatedashavingattainedthe“higheststandardsingovernmentalaccountingand
financialreporting”.
Accounting/BudgetaryControlSystem
InternalControls.Toprovidereasonableassuranceofthereliabilityoftheinformationunderlyingthe
BoroughofChambersburg’sfinancialstatements,managementoftheBoroughisresponsibleforthe
establishmentandmaintenanceofaninternalcontrolsystemthatprovidesreasonable,butnotabsolute,
assurancethat:
1.
TheBorough’sassetsareprotectedagainstlossandunauthorizeduseordisposition:and
2.
Adequateaccountingdataarecompiledtoallowforthepreparationoffinancialstatementsin
conformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica
Theconceptofreasonableassurancerecognizesthat:
1.
Thecostofcontrolshouldnotexceedthebenefitslikelytobederived;and
2.
Thevaluationofcostsandbenefitsrequiresestimatesandjudgmentsbymanagement
Asarecipientoffederalandstatefinancialassistance,theBoroughisresponsibleforensuringthat
adequatecontrolsareinplacetoensureanddocumentcompliancewithapplicablelawsandregulationsrelated
totheseprograms.
BudgetaryControls.TownCouncilapprovesanannualbudgetforallfundsandapprovessubsequent
adjustmentstothatbudgetasneeded.The“legallevelofcontrol”isthelevelofdetailasapprovedbyCouncilin
itsappropriationactionsandordinances.Totalexpendituresandencumbrancescannotexceedtheamount
approvedbyCouncilatthelegallevelofcontrol.LegallevelofcontrolfortheBoroughisbasedondepartmental
level.
Apurchasingcontrolsystemismaintainedwhichgenerallyrequiresthatanapplicableappropriationbe
controlledthroughtheissuanceofencumbrances,authorizedpurchaseordersandworkordersbeforeapurchase
maybemadeoracontractexecuted.
LongTermFinancialPlanning
TheBoroughofChambersburgCapitalImprovementsPlanisafive‐yearplanreflectingtheprogramming
andprioritizationofcapitalimprovementneedsbeginninginthecurrentyear.Theplanisnotabudgetbutrather
amulti‐yearapproachtocapitalimprovementsplanningandanalysis.Theplanincorporatesprojectsand
proposalsthatmay,infinalanalysis,notreceivefundingorthatmaybeprogrammedforafutureyear.
Theplandefinescapitalprojectsaccordingly:





AprojectrelatedtoafixedassetaccordingtotheFixedAssetPolicyadoptedbyTownCouncil.
Aprojectthataddsvalueorusefullifetoafixedasset.
Aprojectinvolvingbuildings,facilities,landoreasementsaslongastitledoesnotexpireinlessthan
twenty‐oneyears.
Aprojectinvolvingbuildings,facilities,landoreasementsaslongastheusefullifeofsuchistwenty
yearsorgreaterandthefairmarketvalueisgreaterthan$2,500.
Aprojectinvolvingtechnology,vehiclesorequipmentaslongastheusefullifeofsuchistwoyearsor
greaterandthefairmarketvalueisgreaterthan$2,500.
| V
Capitalimprovementneedsforaparticularfiscalyeararebudgetedinavarietyofaccountsduetothe
complexityoftheBoroughbudget.Regardlessoftheirplacementinthebudget,projectsrequiretheapprovalof
TownCouncilinschedulingandappropriation.Shouldtheprojectbeapprovedinafuturebudget,the
recommendedfundingsourcewillbeset.Assuch,theplanissubjecttochangeasTownCounciladjustsspending
limitsgoingforward.
CHANGESINFINANCIALPOLICIES
InJune2013,theGASBissuedStatementNo.68,AccountingandFinancialReportingforPensionPlans.
Theobjectiveofthisstatementistoimprovefinancialreportingbystateandlocalgovernmentplansbyproviding
decision‐usefulinformation,supportingassessmentsofaccountabilityandinter‐periodequity,andcreating
additionaltransparency.Thecurrentperiod’sfinancialstatementsincorporatethechangestotheFinancial
Statements,theNotestoFinancialStatements,theRequiredSupplementaryInformation,andtheNotestothe
RequiredSchedules,asrequiredbyStatementNo.68.
INDEPENDENTAUDIT
Theindependentaccountingfirm,SmithElliottKearns&Company,LLC,auditedthebasicfinancial
statementsoftheBoroughofChambersburgforfiscalyear2015.Thefinancialstatementshavereceivedan
unmodifiedopinionindicatingthat,inallmaterialrespects,theBorough’sbasicfinancialstatementsare
presentedfairlyandinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.
AuditingstandardsgenerallyacceptedintheUnitedStatesofAmericawereusedbytheauditorsinconducting
theengagement.
ACKNOWLEDGMENTS
ThepreparationofthisCAFRwouldnothavebeenpossiblewithouttheconsistentlymeticuloushard
workofeverymemberoftheFinanceDepartment.Thiseffortrequiresasignificantinvestmentoftimeand
resourcesonbehalfofmany,aboveandbeyondtheirroutineresponsibilities.Recognition is also due to Rachel
Krum – Assistant Director of Finance, for the efforts that she devotes annually, to ensure the exemplary quality of this
finished product. AppreciationisalsoduetotheDepartmentHeads,AssistantDepartmentHeads,Departmental
Secretaries,employeesofthevariousdepartmentsoftheBorough,andourauditorsSmithElliottKearns&
Company,LLC,fortheirdedicatedeffortsinassistinginthepreparationofthisreport.
IwouldliketoexpressourappreciationtoourBoroughManager,JeffreyStonehill,whohasshown
continuedconfidencein,andconsistentsupportof,theFinanceDepartment.Withtheplannedimplementationof
additionalnewtechnologiesandprocessesinthenearfuture,itisencouragingthatwehaveaBorough
Manager/DirectorofUtilitiesatourhelm,whichiscognizantofboththeneedfor,andvalueof,state‐of‐the‐art
technologiesandindustrybestpractices.
Finally,IwishtothanktheMayorandmembersofTownCouncilfortheirleadershipandsupport,and
particularlyfortheirfaithintheabilitiesanddedicationofBoroughstafftostrivefor,andtocontinuetomeet,the
highperformancestandardsthathavecometobethenorminourorganization.
Respectfullysubmitted,
JasonH.Cohen,MPA
DirectorofFinance
| VI
ChambersburgBoroughOrganization
Chambersburg Borough Citizens Franklin County Officials District Magistrate Judge Chambersburg Borough Council Borough Treasurer Boards and Commissions Borough Secretary Assistant Secretary Borough Secretary Borough Solicitor 
Emergency Services Tax Collector Chambersburg Area School District Police Chief* Borough Solicitor Assistant Solicitors Chambersburg Borough Manager Assistant Borough Manager Information Technology Police Department* Mayor Advisory Committees Personnel Land Use and Public Works, Community Sanitation & Motor Electric Gas Department Department Development Equipment Sewer and Water Department Administrative Services and Finance Recreation Department Per the Borough Code, the Chambersburg Police Department is supervised by the Mayor for day‐to‐day operation and the Borough Manager for administrative and financial management June 2013
|VII
2016 ROSTER
MAYOR AND MEMBERS OF TOWN COUNCIL
OF THE BOROUGH OF CHAMBERSBURG, PENNSYLVANIA
MAYOR
Darren Brown
916 South Fifth Street
Chambersburg, PA 17201
2014 - 2017
Mayors Office 261-3243
[email protected]
COUNCILMEN
Alice C. Elia
First Ward - 2016-2019
[email protected]
Samantha J. Bietsch
Second Ward - 2016-2019
[email protected]
Kathy J. Leedy
Third Ward - 2016-2019
(r) 267-0580
[email protected]
Sharon A. Bigler
359 High Street
Fourth Ward - 2016-2019
(r) 263-5524
[email protected]
Herbert R. Dolaway
1135 Brookwood Drive
Fifth Ward - 2016-2019
(r) 264-9058
[email protected]
Allen B. Coffman
112 Pennsylvania Avenue
First Ward - 2014-2017
(r) 267-2739
[email protected]
John A. (Sean) Scott
473 East Liberty Street
Second Ward - 2014-2017
(r) 263-7365
[email protected]
Louisa C. (Lou) Cowles
535 Oak Street
Third Ward - 2014-2017
(r) 267-2769
[email protected]
Jeremy D. Cate
75 West Queen Street
Fourth Ward - 2014-2017
(r) 414-1918
[email protected]
Heath E. Talhelm
840 Brandon Drive
Fifth Ward - 2014-2017
(r) 263-1108
[email protected]
Council Meetings - 7:00 P.M.
Regular Public: 2nd and 4th Mondays - Council Chambers
OFFICE ADDRESS: 100 SOUTH SECOND STREET, CHAMBERSBURG, PA 17201 * OFFICE PHONE: (717) 264-5151 EXT. 3201 OR 3254
|VIII
BOROUGHOFFICERSANDOFFICIALS
JeffreyStonehill
BoroughManager
DirectorofUtilities
(b)261‐3245
DavidC.Finch
AssistantBoroughManager
PublicWorksDirector
(b)261‐3200
PhilWolgemuth
AssistanttotheBoroughManager/
LandUseandDevelopmentDirector
(b)261‐3232
G.BryanSalzmann
BoroughSolicitor
(b)263‐2121
WeltonJ.Fischer
AssistantBoroughSolicitor
(b)264‐8020
JamiaL.Wright
BoroughSecretary
(b)261‐3254
KristineM.Baker
AssistantBoroughSecretary
(b)261‐3201
JasonH.Cohen
DirectorofFinance/BoroughTreasurer
(b)261‐3248
RachelKrum
AssistantDirectorofFinance/AssistantTreasurer
(b)261‐3255
RonPezon
ElectricSuperintendent
(b)261‐3238
JeffHeverley
AssistanttotheElectricSuperintendent
(b)261‐3236
JohnLeary
GasSuperintendent
(b)261‐3234
JonMason
AssistantGasSuperintendent
(b)263‐6385
LanceAnderson
WaterandSewerSuperintendent
(b)709‐2285
TravisAmsley
AssistanttotheWaterandSewerSuperintendent
(b)261‐3237
A.ElwoodSord
AssistantPublicWorksDirector
(b)261‐3233
AndyStottlemyer
StormSewerSystemManager
(b)709‐2289
H.ButchLeonhard
EmergencyServicesChief
(b)261‐3230
DustinUlrich
AssistantEmergencyServicesChief
(b)261‐3230
RichardMorrissette
InterimPoliceChief
(b)264‐4131
GuyShaul
RecreationSuperintendent
(b)261‐3275
JulieRedding
AssistantRecreationSuperintendent
(b)261‐3275
WilliamF.Dubbs,Jr.
PropertyMaintenanceCodeOfficer
(b)261‐3262
KathyNewcomer
CommunityDevelopmentSpecialist
(b)261‐3208
PaulCullinane
EconomicDevelopmentSpecialist
(b)264‐5151
JamesS.Clapper
WageTaxCollector
(b)263‐5141
BrendaHill
BoroughTaxCollector
(b)263‐6565
|IX
Financial
Section
INDEPENDENTAUDITOR'SREPORT
TotheMayorandBoroughCouncil
Chambersburg,Pennsylvania
REPORTONTHEFINANCIALSTATEMENTS
Wehaveauditedtheaccompanyingfinancialstatementsofthegovernmentalactivities,the
business‐typeactivities,eachmajorfund,andtheaggregateremainingfundinformationoftheBorough
ofChambersburg,Pennsylvania,asofandfortheyearendedDecember31,2015,andtherelatednotes
tothefinancialstatements,whichcollectivelycomprisetheBorough’sbasicfinancialstatements,as
listedinthetableofcontents.
Management’sResponsibilityfortheFinancialStatements
Managementisresponsibleforthepreparationandfairpresentationofthesefinancial
statementsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesof
America;thisincludesthedesign,implementation,andmaintenanceofinternalcontrolrelevanttothe
preparationandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,
whetherduetofraudorerror.
Auditor’sResponsibility
Ourresponsibilityistoexpressopinionsonthesefinancialstatementsbasedonouraudit.We
conductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesof
America.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassurance
aboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsand
disclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,
includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherdue
tofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevantto
theentity’spreparationandfairpresentationofthefinancialstatementsinordertodesignaudit
proceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinion
ontheeffectivenessoftheentity’sinternalcontrol.Accordingly,weexpressnosuchopinion.Anaudit
alsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessof
significantaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationof
thefinancialstatements.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovidea
basisforourauditopinions.
|1
Opinions
Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,
therespectivefinancialpositionofthegovernmentalactivities,thebusiness‐typeactivities,eachmajor
fund,andtheaggregateremainingfundinformationoftheBoroughofChambersburg,Pennsylvania,as
ofDecember31,2015,andtherespectivechangesinfinancialpositionand,whereapplicable,cash
flowsthereoffortheyearthenendedinaccordancewithaccountingprinciplesgenerallyacceptedin
theUnitedStatesofAmerica.
Emphasis‐of‐Matter
AsdiscussedinNote7andNote13tothefinancialstatements,theBoroughadoptednew
accountingguidance,GovernmentAccountingStandardsBoard(“GASB”)StatementNo.68,Accounting
andFinancialReportingforPensions,asofJanuary1,2015.Ouropinionhasnotbeenmodifiedwith
respecttothismatter.
OtherMatters
RequiredSupplementaryInformation
AccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericarequirethatthe
management’sdiscussionandanalysisonpages4through17,thescheduleofchangesintheBorough’s
netpensionliabilityandrelatedratiosonpage67,scheduleofBorough(pension)contributionson
page68,scheduleofinvestmentreturnsonpage69,scheduleoffundingprogress–OPEBonpage70,
andbudgetarycomparisoninformationonpages71through72bepresentedtosupplementthebasic
financialstatements.Suchinformation,althoughnotapartofthebasicfinancialstatements,isrequired
bytheGovernmentalAccountingStandardsBoard,whoconsidersittobeanessentialpartoffinancial
reportingforplacingthebasicfinancialstatementsinanappropriateoperational,economic,or
historicalcontext.Wehaveappliedcertainlimitedprocedurestotherequiredsupplementary
informationinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica,
whichconsistedofinquiriesofmanagementaboutthemethodsofpreparingtheinformationand
comparingtheinformationforconsistencywithmanagement’sresponsestoourinquiries,thebasic
financialstatements,andotherknowledgeweobtainedduringourauditofthebasicfinancial
statements.Wedonotexpressanopinionorprovideanyassuranceontheinformationbecausethe
limitedproceduresdonotprovideuswithsufficientevidencetoexpressanopinionorprovideany
assurance.
OtherInformation
Ourauditwasconductedforthepurposeofformingopinionsonthefinancialstatementsthat
collectivelycomprisetheBoroughofChambersburg,Pennsylvania’sbasicfinancialstatements.The
introductorysection,combiningandindividualnonmajorfundfinancialstatementsandschedules,and
statisticalsectionarepresentedforpurposesofadditionalanalysisandarenotarequiredpartofthe
basicfinancialstatements.
|2
Thecombiningandindividualnonmajorfundfinancialstatementsandschedulesarethe
responsibilityofmanagementandwerederivedfromandrelatedirectlytotheunderlyingaccounting
andotherrecordsusedtopreparethebasicfinancialstatements.Suchinformationhasbeensubjected
totheauditingproceduresappliedintheauditofthebasicfinancialstatementsandcertainadditional
procedures,includingcomparingandreconcilingsuchinformationdirectlytotheunderlying
accountingandotherrecordsusedtopreparethebasicfinancialstatementsortothebasicfinancial
statementsthemselves,andotheradditionalproceduresinaccordancewithauditingstandards
generallyacceptedintheUnitedStatesofAmerica.Inouropinion,thecombiningandindividual
nonmajorfundfinancialstatementsandschedulesarefairlystated,inallmaterialrespects,inrelation
tothebasicfinancialstatementsasawhole.
Theintroductoryandstatisticalsectionshavenotbeensubjectedtotheauditingprocedures
appliedintheauditofthebasicfinancialstatementsand,accordingly,wedonotexpressanopinionor
provideanyassuranceonthem.
Chambersburg,Pennsylvania
June29,2016
|3
BOROUGHOFCHAMBERSBURG,PENNSYLVANIA
Management'sDiscussionandAnalysis‐Unaudited
YearEndedDecember31,2015
ThemanagementoftheBoroughofChambersburgprovidesthefollowinginformationasan
introduction,overview,andanalysisoftheBorough’sfinancialstatementsfortheyearended
December31,2015.Readersshouldalsoreviewthebasicfinancialstatementsandrelatedfootnoteson
pages18‐66tofurtherenhancetheirunderstandingoftheBorough’sfinancialperformance.
TheManagementDiscussionandAnalysis(MD&A)isanelementofthereportingmodel
adoptedbytheGovernmentalAccountingStandardsBoard(GASB)intheirStatementNo.34,Basic
FinancialStatements‐andManagement'sDiscussionandAnalysis‐forStateandLocalGovernments.
Certaincomparativeinformationbetweenthecurrentyearandtheprioryearisrequiredtobe
presentedintheMD&A.
UsingthisAnnualFinancialReport
Thisannualreportconsistsofaseriesoffinancialstatementsandnotestothosestatements.
ThesestatementsareorganizedsothereadercanfirstunderstandtheBoroughofChambersburgasa
financialwhole.Thestatementsthenproceedtoprovideanincreasinglydetailedlookatspecific
financialconditions.
TheStatementofNetPositionandStatementofActivities(referredtocollectivelyasthe
government‐widestatements)provideinformationabouttheactivitiesasanentireoperatingentity,
presentingbothanaggregateviewoftheBorough’sfinancesandalonger‐termviewofthoseassetsand
liabilities.Majorfundstatementsprovidethenextlevelofdetail.Forgovernmentalfunds,these
statementstellhowserviceswerefinancedintheshort‐termaswellaswhatdollarsremainforfuture
spending.Theproprietaryfundsstatementsarepreparedonthesamebasisasthegovernment‐wide
statements.
ReportingontheBoroughofChambersburgasaWhole
StatementofNetPositionandStatementofActivities
Thesegovernment‐widestatementsanswerthequestion“HowdidtheBorough,asawhole,
performfinanciallyduring2015?”Theyarepreparedontheaccrualbasisofaccounting,inmuchthe
samewayasaprivateenterprise.Thisbasisofaccountingincludesallassetsandliabilitiesandtakes
intoaccountallofthereportingyear’srevenuesandexpenses,regardlessofwhenthecashwas
receivedorpaid.

TheStatementofNetPosition.Thisstatement(page18)reportsallassetsandliabilities
oftheBoroughasofDecember31,2015.Thedifferencebetweentotalassetsplusdeferred
outflowofresourcesandtotalliabilitiesplusdeferredinflowsofresourcesisreportedas
“netposition”.Increasesinnetpositiongenerallyindicateanimprovementinfinancial
standingwhiledecreasesmayindicateadeteriorationoffinancialposition.

TheStatementofActivities.Thisstatement(page19)servesthepurposeofthe
traditionalincomestatement.Itprovidesconsolidatedreportingoftheresultsofall
activitiesoftheBoroughfortheyearendedDecember31,2015.Changesinnetpositionare
recordedintheperiodinwhichtheunderlyingeventtakesplace,whichmaydifferfromthe
periodinwhichcashisreceivedordisbursed.TheStatementofActivitiesdisplaysthe
expenseoftheBorough’svariousprogramsnetofrelatedrevenues,aswellasaseparate
presentationofrevenuesavailableforgeneralpurposes.
AmoredetailedexplanationofthesestatementsisfoundinNote1onpages29‐43intheNotes
totheFinancialStatements.
|4
ReportingontheBoroughofChambersburg’sMostSignificantFunds
FundFinancialStatements
ThesestatementsprovidethefinancialpositionandresultsofoperationsoftheBorough’s
majorfunds.Afundisanaccountingentitycreatedtoaccountforaspecificactivityorpurpose.Major
fundsoftheBoroughofChambersburgaretheGeneralFund,SpecialRevenueFund–GrantProgram,
ElectricFund,GasFund,WaterFund,andSewerFund.Thecreationofsomefundsismandatedbylaw,
whileothersarecreatedbymanagementtodemonstratefinancialcompliancewithbudgetaryorlegal
requirements.Fundsareclassifiedintothreebroadcategories:governmentalfunds,proprietary
funds,andfiduciaryfunds.

Governmentalfunds.Governmentalfundsareusedtoaccountfor“governmental‐type”
activities.Unlikethegovernment‐widefinancialstatements,governmentalfundstatements
usea“flowoffinancialresources”measurementfocus.Thatistosay,theoperating
statementofagovernmentalfundattemptstoanswerthequestion“Aretheremoreorless
resourcesthatcanbespentinthenearfutureasaresultofeventsandtransactionsofthe
reportingperiod?”Increasesinspendableresourcesarereportedintheoperating
statementas“revenues”or“otherfinancingsources.”Decreasesinspendableresourcesare
reportedas“expenditures”or“otherfinancinguses.”Wedescribethedifferencesbetween
governmentalfundsandgovernmentalactivities(reportedintheStatementofNetPosition
andtheStatementofActivities)inreconciliationspresentedonpages18and19.
TheBoroughofChambersburgmaintainsseparategovernmentalfunds.Thegovernmental
fundfinancialstatementsonpages20through23separatelydisplaythegovernmental
fundsconsideredtobemajorfunds.Allothergovernmentalfunds‐the“non‐major”funds‐
arecombinedintoasinglecolumn.Detailedfinancialdataforeachofthenon‐major
governmentalfundsisprovidedincombiningstatementsinthesupplementaryinformation
sectionofthisreport.

Proprietaryfunds.Therearetwotypesofproprietaryfunds:enterprisefundsand
internalservicefunds.
Enterprisefunds‐Thesefundsareusedtoaccountforoperationsthatarefinancedand
operatedinamannersimilartoprivatebusinessenterprisesforwhicheither1)theintent
isthatthecosts(expenses,includingdepreciation)berecoveredprimarilythroughuser
charges,or2)determinationofnetincomeisappropriateformanagementcontrol,
accountabilityorotherpurposes.
TheBoroughofChambersburg’sElectric,Gas,Water,andSewerFundsareallconsideredto
bemajorfundsandaredisplayedseparatelyintheproprietaryfundstatementsonpages24
through26.TheBoroughhasthreeotherproprietaryfunds,Sanitation,StormSewer,and
Parking,Traffic&StreetLights,theactivitiesofwhicharecombinedintoonecolumnfor
non‐majorfunds.
InternalServicefunds‐Often,governmentswishtoallocatethecostofprovidingcertain
centralizedservices(e.g.,motorpools,dataprocessing,warehouses)totheother
departmentsofthegovernmentalentitythatusetheservices.Aninternalservicefundis
theappropriateaccountingmechanismwhenitistheintentofthegovernmenttorecover
thefullcostofprovidingtheservice,throughuserchargestootherdepartments.
|5
TheBoroughofChambersburg’ssixinternalservicefundsarecombinedintoasingle
columnintheproprietaryfundfinancialstatements.Detailedfinancialdataforthosefunds
canbefoundinthecombiningstatementsinthesupplementaryinformationsectionofthis
report.

Fiduciaryfunds.Fiduciaryfundsareusedtoaccountforresourcesheldforthebenefitof
partiesoutsideoftheBorough’sgovernment.Fiduciaryfundsarenotreflectedinthe
government‐widefinancialstatementsbecausetheresourcesofthosefundsarenot
availabletosupporttheBorough’sownprograms.Theaccountingusedforfiduciaryfunds
ismuchlikethatusedforproprietaryfunds.
Fiduciaryfundstatementsareonpages27‐28ofthisreport.
OtherInformation
NotestotheBasicFinancialStatements
Thenotesprovideadditionalandexplanatorydata.Theyareanintegralpartofthebasic
financialstatements.
RequiredSupplementaryInformation
Inadditiontothebasicfinancialstatementsandnotes,thisreportalsocontainsrequired
supplementaryinformation(RSI).RSIincludesschedulesofpensioninformation,OPEBrequired
scheduleoffundingprogressandbudgetaryschedulesfortheGeneralFundandgrantprogramsfund.
Thisdataisonpages67through72ofthisreport.
|6
TheBoroughofChambersburgasaWhole
ThefollowingtablepresentscondensedinformationonnetpositionasofDecember31,2015
and2014.
NetPosition
December31,2015and2014
2015
2014
2015
Governmental Governmental Business‐Type
Activities
Activities
Activities
2014
Business‐Type
Activities
2015
Total
2014
Total
Assets
Currentandotherassets
Capitalassets
Totalassets
$13,593,119
20,587,825
34,180,944
$12,655,138
22,937,365
35,592,503
$48,925,527
133,072,582
181,998,109
$50,008,582
117,375,334
167,383,916
$62,518,646
153,660,407
216,179,053
$62,663,720
140,312,699
202,976,419
DeferredOutflowsofResources
Deferredoutflowsrelatedtopensionliability
Deferredchargeonbondrefunding
Totaldeferredoutflowsofresources
1,620,470
‐
1,620,470
‐
‐
‐
1,236,536
180,720
1,417,256
241,515
241,515
2,857,006
180,720
3,037,726
‐
241,515
241,515
Liabilities
Currentliabilities
Otherliabilities
Totalliabilities
894,642
7,911,425
8,806,067
841,492
1,953,973
2,795,465
8,223,297
25,118,899
33,342,196
9,798,214
20,085,073
29,883,287
9,117,939
33,030,324
42,148,263
10,639,706
22,039,046
32,678,752
DeferredInflowsofResources
Deferredinflowsrelatedtopensionliability
Totaldeferredinflowsofresources
395,728
395,728
‐
‐
‐
‐
‐
‐
395,728
395,728
‐
‐
NetPosition:
Netinvestmentincapitalassets
Restricted
Unrestricted
Totalnetposition
20,494,089
5,972,633
132,897
$26,599,619
22,850,486
5,431,916
4,514,636
$ 32,797,038
111,221,937
‐
38,851,232
$ 150,073,169
94,346,244
‐
43,395,900
$ 137,742,144
131,716,026
5,972,633
38,984,129
$176,672,788
117,196,730
5,431,916
47,910,536
$ 170,539,182
Thebreakdownofnetpositionisasfollows,asofDecember31,2015:
GovernmentalActivities
Netposition
0.5%
Business‐TypeActivities
Netposition
Investedin
capitalassets
22.5%
Investedin
capitalassets
25.9%
Restricted
Restricted
Unrestricted
Unrestricted
74.1%
77.0%
Intotal,combinednetpositionequaled$176.7millionasofDecember31,2015.
|7
Thefollowingtablespresentcondensedinformationonthechangesinnetpositionfortheyears
endedDecember31,2015,and2014,respectively.
ChangesinNetPosition
FortheYearEndedDecember31,2015
Governmental Business‐Type
Activities
Activities
Revenues
Programrevenues:
Chargesforservices
Operatinggrantsandcontributions
Capitalgrantsandcontributions
Generalrevenues:
Propertytaxes,leviedforgeneralpurposes
Propertytaxes,leviedforspecificpurposes
Realestatetransfertax
Earnedincometax
Localservicestax
Othertaxes
Unrestrictedinvestmentearnings
Miscellaneousincome
Totalrevenues
Expenses
Generalgovernment
Publicsafety
Publicworks
Communitydevelopment
Cultureandrecreation
Electric
Gas
Water
Sewer
Otherbusiness‐typeactivities
Totalexpenses
Excessbeforetransfers
Transferofcapitalassets
Transfers
Changeinnetposition
Netposition‐beginning,asrestated
Netposition‐ending
Total
Activities
$2,723,113
1,688,126
253,796
$48,191,265
239,650
11,740,114
$50,914,378
1,927,776
11,993,910
4,142,267
491,328
779,004
1,853,327
702,097
74,975
35,331
39,477
$12,782,841
‐
‐
‐
‐
‐
‐
101,695
30,679
$60,303,403
4,142,267
491,328
779,004
1,853,327
702,097
74,975
137,026
70,156
$73,086,244
$1,320,836
8,722,730
1,483,408
297,047
1,561,445
‐
‐
‐
‐
‐
13,385,466
(602,625)
(3,076,765)
2,323,202
(1,356,188)
27,955,807
$26,599,619
$‐
‐
‐
‐
‐
26,082,326
5,513,289
3,394,584
5,891,206
3,727,230
44,608,635
15,694,768
3,076,765
(2,323,202)
16,448,331
133,624,838
$150,073,169
$1,320,836
8,722,730
1,483,408
297,047
1,561,445
26,082,326
5,513,289
3,394,584
5,891,206
3,727,230
57,994,101
15,092,143
‐
‐
15,092,143
161,580,645
$176,672,788
|8
FortheYearEndedDecember31,2014
Activities
Activities
Total
Activities
Revenues
Programrevenues:
Chargesforservices
Generalrevenues:
Earnedincometax
Localservicestax
Othertaxes
Miscellaneousincome
Totalrevenues
$2,715,013
2,431,255
964,645
$52,010,824
284,758
11,506,390
$ 54,725,837
2,716,013
12,471,035
4,079,972
486,642
317,334
1,840,955
797,699
60,819
20,707
16,612
$13,731,653
‐
‐
‐
‐
‐
‐
90,602
23,638
$63,916,212
4,079,972
486,642
317,334
1,840,955
797,699
60,819
111,309
40,250
$ 77,647,865
Expenses
Generalgovernment
Publicsafety
Publicworks
Electric
Gas
Water
Sewer
Otherbusiness‐typeactivities
Totalexpenses
Excessbeforetransfers
Transfers
Changeinnetposition
Netposition‐beginning
$1,871,895
8,044,957
1,728,115
498,846
1,383,781
‐
‐
‐
‐
‐
13,527,594
204,059
882,914
1,086,973
31,710,065
$32,797,038
$‐
‐
‐
‐
‐
27,588,665
7,263,637
3,296,954
5,555,216
3,322,497
47,026,969
16,889,243
(882,914)
16,006,329
121,735,815
$137,742,144
$ 1,871,895
8,044,957
1,728,115
498,846
1,383,781
27,588,665
7,263,637
3,296,954
5,555,216
3,322,497
60,554,563
17,093,302
‐
17,093,302
153,445,880
$170,539,182
Netpositionincreasedby$15.09millionin2015for“totalactivities”comparedtoanincrease
of$17.09millionin2014forthesame“totalactivities”,savetheadditionof3.5milsofpropertytax,
beginningin2014.Thisisa$2milliondecreaseinoverallperformancefor2015comparedto2014and
istheresultofandecreaseinrevenuesof$4.56millionwithacorrespondingdecreaseinexpensesof
$2.56million.Inthebusiness‐typeactivitiestransferslineitem,therewere$2,323,202oftransfersto
governmentalactivities.Thisrepresentsnettransfersfromthebusiness‐typeactivitiesfundstothe
governmentalactivitiesfund(GeneralFund),themajorityofwhich($1,510,000)consistsofoperating
transfers(PaymentsinLieuofGrossReceiptsTax)fromtheElectricandGasDepartmentstothe
GeneralFund.Additionally,a$3,076,765transferofCapitalAssetsfromGovernmentalActivitiesto
Business‐TypeActivitiesisillustrativeofthetransferofinfrastructureassetstothenewly‐created
StormSewerFund.
|9
TheBorough’slargestgovernmentalactivitiesrevenuesource:realestatetaxes,increasedby
$66,981or1.47%in2015.Thiswasasignificantlysmallerincreasethanthe17.97%increaseforthe
yearendedDecember31,2014.Thesignificantincreaseinrealestaterevenuesin2014wasduetoan
increaseinthepropertytaxmillagerateofthreeandonehalf(3.5)mils,while2015figuresrepresenta
marginalincreaseinrealestatetaxrevenue,baseduponthesamemillagerate.Theearnedincometax
receiptsincreased$12,372or0.67%in2015,whiletherealestatetransfertaxincreasedby$461,670
or145.48%in2015.Thisdramaticincreasewasdue,inlargepart,tothesaleofseveralhigh‐value
parcelscontainingshoppingcentersanddistributionwarehouses.TheLocalServicesTaxyield
decreasedby$95,602,or11.98%,in2015.Whilethisdepictsamoderatedecrease,theLocalServices
Taxisinclinedtoebbandflow,dependinguponvariouseconomicconditions,asevidencedbythe
9.31%increasein2014.
Expensesofgovernmentalactivitiesbreakdownasfollows:
GovernmentalExpensesbyProgram
2015
11.7%
2.2%
9.8%
Generalgovernment
Publicsafety
11.1%
Publicworks
65.2%
Totalgovernmentalexpensesfor2015were$13.38million,downfrom$13.52millionin2014.
Publicsafety,whichconsistedprimarilyofpolice,fire,andambulanceservices,comprised65.2%ofthe
totalgovernmentalexpenses.Publicworksexpenses,whichincludestreetsoverlayingandrepairs,
were11.1%.Leisuretimeactivitiesrepresentedbythecultureandrecreationportionofexpenses
were11.7%ofthetotal.Generalgovernmentexpenseswere9.8%.Communitydevelopment
comprised2.2%oftotalexpenses.
TheStatementofActivitiesreportsexpensesofeachofthegovernmentalactivitiesprograms
andtherelatedprogramrevenuethatoffsetsthecostofeachprogram.Theamountbywhichthecost
ofaparticularprogramexceedsitsprogramrevenuerepresentstheextenttowhichthatprogrammust
besubsidizedbygeneralrevenues,suchaspropertytaxes,earnedincometaxes,localservicestaxes,
deedtransfertaxes,andothers.
|10
Thefollowingtablesandgraphsummarizethenetcostofeachprogram:
ExpensesandProgramRevenue‐GovernmentalActivities
Operating
Capital
Chargesfor
Grantsand
Grantsand
Expenses
Services
Contributions Contributions
Functions/Programs
Governmentalactivities
Generalgovernment
Publicsafety
Publicworks
$1,320,836
8,722,730
1,483,408
1,561,445
297,047
$ 471,697
1,883,333
2,695
365,388
‐
$37,594
758,180
520,597
144,866
226,889
TotalGovernmentalActivities
$13,385,466
$2,723,113
$1,688,126
Net
(Expense)
Revenue
$‐
‐
253,796
‐
‐
$ (811,545)
(6,081,217)
(706,320)
(1,051,191)
(70,158)
$253,796
$(8,720,431)
.
ExpensesandProgramRevenue‐GovernmentalActivities
Operating
Capital
Chargesfor
Grantsand
Grantsand
Expenses
Services
Functions/Programs
Generalgovernment
Publicsafety
Publicworks
$1,871,895
8,044,957
1,728,115
1,383,781
498,846
$ 360,506
1,997,494
1,784
355,229
‐
$33,709
1,276,767
475,640
89,748
555,391
TotalGovernmentalActivities
$13,527,594
$2,715,013
$2,431,255
Net
(Expense)
Revenue
$‐
‐
964,645
‐
‐
$(1,477,680)
(4,770,696)
(286,046)
(938,804)
56,545
$964,645
$(7,416,681)
.
TheabovechartandgraphillustratestheprioritythatChambersburgplacesonthesafetyofitscitizens.
|11
Business‐typenetpositionincreasedby$16.45millionin2015.ElectricDepartmentrevenues
decreased4.45%,GasDepartmentrevenuesdecreased31.23%,WaterDepartmentrevenuesdecreased
0.25%,SewerDepartmentrevenuesdecreased3.55%,SanitationDepartmentrevenuesdecreased
1.42%,andtheParking,Traffic&StreetLightsDepartmentrevenuesdecreased4.65%.Thetotal
decreaseinrevenueswas$3,819,559or7.34%.ThesignificantdeclineinGasDepartmentrevenuesis
attributedtodecreasednaturalgaspurchaseandsalesprices,whichalsoresultedinlowerexpensesfor
theGasDepartment.
Thefollowingtableandgraphsummarizetheexpensesandprogramrevenuesforbusiness‐
typeactivities:
ExpensesandProgramRevenue‐Business‐TypeActivities
ForYearEndedDecember31,2015
Operating
Capital
Grantsand
Grantsand
Chargesfor
Expenses
Services
Net
(Expense)
Revenue
Electric
Gas
Water
Sewer
Sanitation
Parking,traffic&st.lights
StormSewer
$26,082,326 $30,286,293 $35,142
5,513,289 6,261,957 15,911
3,394,584 3,142,529 19,846
5,891,206 5,567,270 149,520
2,493,738 2,440,813 16,813
968,851 197,041 2,418
264,641
295,362 ‐
$41,000 $4,280,109
23,500 788,079
123,500 (108,709)
11,305,264 11,130,848
225,000 188,888
21,850 (747,542)
‐
30,721
Totalbusiness‐typeactivities
$44,608,635 $48,191,265 $239,650 $11,740,114 $15,562,394
ExpensesandProgramRevenue‐Business‐TypeActivities
ForYearEndedDecember31,2014
Operating
Capital
Chargesfor
Grantsand
Grantsand
Expenses
Services
Net
(Expense)
Revenue
Electric
Gas
Water
Sewer
Sanitation
Parking,traffic&st.lights
StormSewer
$27,588,665 $31,695,974 $51,748
7,263,637 9,105,354 23,430
3,296,954 3,150,530 26,327
5,555,216 5,376,373 109,686
2,465,248 2,475,937 70,006
857,249 206,656 3,561
‐
‐
‐
$‐
$4,159,057
53,750 1,918,897
‐
(120,097)
11,439,605 11,370,448
‐
80,695
13,035 (633,997)
‐
‐
$47,026,969 $52,010,824 $284,758 $11,506,390 $16,775,003
|12
IndividualFundsSummaryandAnalysis
Governmentalfundsfocusonspendableresourcesandnear‐terminflowsandoutflowsofthose
resources.Assuch,fundbalanceisgenerallyagoodindicatorofnetresourcesavailableforspendingat
theendofthefiscalyear,subjecttoanystatedrestrictionsonitsuse.
ThecombinedfundbalancesoftheBorough’sgovernmentalfundsasofDecember31,2015
were$8.0million,ascomparedto$7.5millionasofDecember31,2014.
TheGeneralFundistheprimaryoperatingfundoftheBoroughofChambersburg,accounting
forsuchactivitiesaspoliceandfireprotection,ambulanceservices,highways,parksandrecreation,
andgeneralgovernmentalservices.TheGeneralFundbalancedecreasedfrom$2,532,654to
$1,993,240,entirelyasaresultofthedecisiontoagaintransferanun‐budgeted$1.1millionintothe
GeneralCapitalReserveFund(in2014,atransferof$1.4millionwasmadeinthesamemanner).Had
thesefundsremainedintheGeneralFund,theGeneralFundbalancewouldhaveincreasedto
$3,093,240.
BudgetVariations
OperationsfortheBorough’sGeneralFundresultedinanoverallunfavorablenetbudget
varianceof$539,414fortheyearendedDecember31,2015.Thatmeansthatwehad$539,414lessin
netchangeinfundbalancethanwebudgeted.Thebudgetwasbalanced,withrevenuesequaling
expenditures,butfinishedtheyearwithanactualnetdeficitof($539,414)(negative).Total
expendituresexceededtotalrevenuesby$1,033,811andnetinter‐fundtransfersfromotherBorough
fundsamountedto$494,397,creatingtheoverallnegativeresultsof($539,414)(negative)fornet
receiptsor“netchangeinfundbalance”.
Whilewehadafavorablebudgetvarianceof$680,488or5.22%,oftotalbudgetedoperating
expenditures($13,047,825),wealsohadafavorablebudgetvarianceof$1,209,376or11.95%oftotal
budgetedoperatingrevenues($10,124,150).Additionally,therewasanunfavorablebudgetvariance
of$1,259,278,or374%,ofthebudgetedtransfersoutoftheGeneralFund,aswellasanunfavorable
budgetvarianceof$1,170,000,or35.89%,ofthebudgetedtransfersintotheGeneralFund,resultingin
anegativenetbudgetvarianceof$2,429,278,or83.09%,ofbudgetednettransfers.Thevarianceof
thebudgetedtransfersoutoftheGeneralFundisaresultofaconsciousdecision,asapprovedby
BoroughCouncil,totransferanadditional$1.1millionintotheGeneralCapitalReserveFundina
|13
continuedefforttoensureadequatereserves,astheGeneralFundwasinapositiontoabsorbsucha
transferfromitsfundbalance,whilethevarianceofthebudgetedtransfersintotheGeneralFundisa
resultofadecisiontoforgothetransferof$1,170,000ofLiquidFuelsfundsintotheGeneralFund,and
insteadtransfer(aportionof)thosefundsintotheGeneralCapitalReserveFund.
Thefavorablevariance($1,209,376)inrevenuescanbetiedtothehigher‐than‐anticipated
revenuesfrompropertyandwagetaxes,inadditiontoDeedTransferTaxrevenuecominginatgreater
thantwoandonehalftimesthebudgetedamount.Ontheexpenditureside,thefavorablevariance
($680,488)canbeprimarilyattributedtosalarycostsavingswithinthePoliceDepartmentdueto
employeeretirement/turnover,decreaseduseofpart‐timeemployees,andfillinganewpositionlater
intheyearthananticipated,whichalsoresultedinlowerthananticipatedpersonnelcosts.Lesser‐
than‐budgetedstreet,swimmingpool,recreationcenter,andparkmaintenancecosts,alsocontributed
tothevariance.
ChangesinRevenueandExpenditureLevels
InlookingattheperformanceoftheGeneralFundfor2015,wehadanoveralldeclineof
$325,389in2015,ascomparedto2014,forthenetchangeinfundbalance(ncfb).In2015,wefinished
theyearwithanegativencfbof$539,414comparedtoanegativencfbof$214,025for2014.This
declinecanbelargelyattributedtoadecreaseinrevenues;primarilyduetotheexpirationoftheSafer
Grantin2014,butalsoduetonoincomingLiquidFuelstransferin2015,incombinationwithincreased
personnelcostsinGeneralFunddepartmentsotherthanthePoliceDepartment,includingthosepaidto
theAdministrativeServicesFund.Additionally,in2015BoroughCouncilagainmadetheconscious
decisiontotransferanun‐budgeted$1.1millionintotheGeneralCapitalReserveFund(in2014,a
transferof$1.4millionwasmadeinthesamemanner).HadthesefundsremainedintheGeneralFund,
theGeneralFundwouldhaverealizedapositivencfbof$560,586,allelseremainingthesame.While
theBoroughcouldhavechosentoforgothetransfertothereservefund,therebyendingtheyearwitha
positivenetchangeinfundbalance,wecontinuetopro‐activelysetasidefundsforanticipatedfuture
capitalassetandinfrastructureneeds.AlthoughtheBoroughinsistsonsettingfundsasideforsuch
futureneeds,ultimately,asthefundsintheCapitalReserveFundarenotrestricted,theywouldbe
availableforGeneralFundoperations,ifthatwereeverdeemednecessary.
Intheabsenceoftransferstoandfromotherdepartments,wewouldhaveendedtheyearwith
ancfbof($1,033,811)(negative)for2015,intheGeneralFund.Comparedtothesamefor2014,of
($1,032,608)(negative),2015is$1,203more.In2015therewasbudgetedanet$2,923,675transfer
intothegeneralfund,whereasin2014,budgetednetwas$2,496,520.Thebasisforthisbudgeted
increaseof$427,155innettransfersisduetoincreasedtransferamountsfromtheLiquidFuelsFund,
andPaymentsInLieuofGrossReceiptsTax,respectively,andadecreaseintheamountof$311,850in
transfersouttotheWorkersCompensationFund,fromthePoliceandEmergencyServices
Departments,combined.ThesefactorsweremitigatedbytheabsenceofgrantrevenuefromtheSafer
Grantbeingbudgetedasatransferin,asthegrantwasfullyexpendedin2014.
|14
ChangesinFundBalance
ThefundbalanceintheGeneralFunddecreasedby$539,414in2015.Thiswasbecausetotal
expenditures($12,367,337)exceededtotalrevenues($11,333,526)by$1,033,811,whilenettransfers
($494,397)fromotherdepartmentsoffsetapproximatelyhalfofthedeficiency,leaving($539,414)(negative)
asthenetdecreaseinfundbalancefortheGeneralFund.Aspreviouslydiscussed,thisdeficiencyistheresult
oftheBorough’scontinuedcommitmenttoadequatelyfundthefuturecapitalimprovementsoftheBorough
anditsinfrastructure.
ThefundbalanceintheSpecialRevenueFund–GrantFunds,decreasedby$73,018in2015.Revenues
decreasedby$943,330to$248,838in2015,whileexpendituresdecreasedby$180,201,to$330,363.
However,thisnetdecreaseinresourcesof$81,525wasmitigatedbynettransfersin,intheamountof$8,507,
resultinginadecreaseofthefundbalanceintheamountof$73,018,relateddirectlytopending
reimbursementsofgrantfundsthatwereexpendedinthecurrentyear.Thisisincomparisontoanincreasein
fundbalanceof$63,842for2014,stemmingfromreceivingreimbursementsforgrantfundsexpendedinthe
prioryear.
Thenetpositionintheenterprisefundsincreasedby$16,335,748,or13.32%,in2015,comparedtoan
increaseof$14,504,489,or13.07%,in2014.Operatingrevenuesintheenterprisefundsdecreasedby
$3,671,023,or7.12%.Thedecreaseinoperatingrevenuesfor2015canbeattributedalmostentirelytoa
declineinGasDepartmentrevenues,whichwasduetodecreasednaturalgaspurchaseandsalesprices,which
alsoresultedinlowerexpensesfortheGasDepartment.TheElectricDepartmentexperienceddeclinesin
revenuesandexpensesforthesamereason,butwithrespecttoelectricity.Operatingexpensesdecreasedby
$2,276,879,or4.85%,whichiscomprisedofacombinationofdecreasesintheoperatingexpensesofthe
ElectricFundby5.16%,andtheGasFundby23.63%,andincreasesintheoperatingexpensesoftheWater
Fundby3.69%,theSewerFundby6.16%,respectively,andOtherEnterpriseFunds,collectively,by12.65%.
ThenetpositionoftheSewerDepartmentincreasedby$10,951,595,or28.73%,in2015.The
substantialimprovementinthenetpositionoftheSewerDepartmentistheresultoftheadditionofcapital
assetsviathecontinuedconstructionoftheJ.HaseMowreyRegionalWastewaterTreatmentPlant,forwhich
theneighboringtownshipsarepayingaportionoftheconstructioncosts,whiletheBoroughretainsthefull
valueoftheasset.
NetpositionoftheGasDepartmentincreasedby$284,454,or2.03%;whilethatoftheWater
Departmentdecreasedslightlyby$341,797,or1.24%;andElectricincreasedagain;thisyearby$1,923,371,or
5.00%.Additionally,thenetpositionoftheOtherEnterpriseFunds(Sanitation,Parking,Traffic&StreetLights,
andStormSewer)increasedby$3,518,125,or75.75%,whichisduealmostentirelytothecreationofthe
StormSewerFundin2015,itsgeneratedrevenue,andthetransferinofcapitalassetsintheamountof
$3,076,765.
Also,thenetpositionintheinternalservicefundsincreasedby$840,212,or5.73%,comparedtoan
increaseof$1,281,888,or8.48%in2014.Operatingrevenuesincreasedby$380,939,or5.38%,while
operatingexpensesincreasedby$574,432,or8.51%.Theincreaseinrevenuescontinuestobeduelargelyto
theincreaseduseoftheMotorEquipmentFundandEngineeringDepartmentassetsonbehalfofother
departments,inadditiontoanincreasinglymoreaccurateassessmentoftheuseandfuturereplacementcosts
ofvehiclesandequipmenttotherespectivedepartmentsmakinguseofthem,viatherentalratespaidtothe
MotorEquipmentFund.Increasedexpensesaredueprimarilytoalargerthanusualreimbursementofprior
year’sexpenses.
|15
CapitalAssetandDebtAdministration
CapitalAssetActivity
In2015,ChambersburgBoroughcontinueditsambitiousmulti‐yearplantoprovideitsresidents,
businesses,patrons,andvisitorswithtop‐notchinfrastructureaccommodations,viasignificantupgrades,by
utilizingaccumulatedreservesinutilityfundsandspecialaccounts,theissuanceofaGeneralObligationNote,
andfinancingpartnershipswithstateandfederalagencies.
TheGasDepartmentcontinuedtoundertakesignificantmainextensionsandserviceline
improvementsinordertoimprovethesafetyofthesystem.Majorpipereplacementprojectswerecompleted
onUSRoute11,Federal,ReservoirandRiddleStreets,HighlandandEdgarAvenues,andKenwoodRoad.Due
toever‐increasingdemandsforservice,newgasmainswerealsoinstalledinordertoexpandservicetoparts
ofStoufferandKraissAvenues,andOrchardDrive.Additionally,theyearsawseveralnewstreetimprovement
projectsmakinguseofLiquidFuelsfunds;includingthefull‐depthreclamationofportionsofEdgar,
Heintzelman,Ohio,andPennsylvaniaAvenues,FederalandReservoirStreets,andKenwood,Riddle,and
ScotlandRoads.TheBoroughalsooverlaidaportionofWalkerRoad.Manymorestreetprojectsareplanned
for2016,withtheBoroughcontinuingtomakeuseofcostsavingtechnology/techniquessuchascoldin‐place
asphaltrecyclingforportionsofKing,Seventh,andEighthStreets,andCumberlandandHighlandAvenues,the
applicationofultra‐thinfrictioncoursetoasectionofWalkerRoad,thereconstructionofseveralblocksof
HighlandAvenue,andcostsharingarrangementswithstateandfederalagencies.
TheElectricDepartmentundertooksubstantialupgradesattheOrchardParkandFallingSpring
generatingstations.Watertreatmentplantfilteringsystemupgradeswerecompletedon3of4filtersatthe
JulioD.LecuonaWaterTreatmentPlantin2015.Theprojectwascompletedinearly2016.Additionally,the
WaterDepartmentcompletedthedemolitionoftworesidentialhomesadjacenttoBoroughHall,and
commissionedaDesignDevelopmentPhaseinlightofthe2013purchaseofthesetwoproperties,withthe
intentoffutureutilitybuildingexpansion,ultimatelyresultinginadditionalrevenuefortheWaterDepartment
viatheassessmentofrenttootherdepartmentsmakinguseofthefacility,keepinginlinewiththeBorough’s
cost‐basedaccountingphilosophy.
In2015,theBoroughcontinuedthelargestpublicworksprojectinBoroughhistory;renovationstothe
J.HaseMowreyRegionalWasteWaterTreatmentPlant,whichwillvirtuallydoublethetreatmentcapacityof
theplant,therebyallowingthereceptionandtreatmentoftheregion’ssanitarysewage,whilecontinuingto
meetcurrentandanticipatednutrientdischargelimitsintothefuture.Theprojectisexpectedtobecompleted
in2016.TheBorough'sportionofthecostsassociatedwiththeWasteWaterTreatmentPlantupgradeisbeing
fundedbyaportionoftheBorough’s2012,$8milliondebtoffering.
Also,in2015,theBoroughcompletedthedevelopmentoftheGreenYardWasteFacilityinadjacent
HamiltonTownshiptosatisfytheconcernsofthePennsylvaniaDepartmentofEnvironmentalProtectionwith
regardstotheBorough’spre‐existinglandfill,atwhichBoroughresidentshadbeenpermittedtodropoffyard
wasteformanyyearsprior.
AdditionaldetailonthecapitalassetactivityfortheyearendedDecember31,2015ispresentedinthe
NotestotheBasicFinancialStatementsinnote4.
|16
Debt
AsummaryofoutstandingdebtatDecember31,2015and2014,respectively,isasfollows:
GeneralObligationBonds/Notes
Business‐typeactivities
Totaloutstandingdebt
December31,2015
December31,2014
$ ‐ 19,647,212
$ ‐ 20,329,202
$19,647,212
$20,329,202
AdditionaldetaileddataforalldebtoftheBoroughofChambersburgispresentedintheNotestothe
BasicFinancialStatementsinnote5.
ContactingtheBorough’sManagement
Thisfinancialreportisdesignedtoprovideourcitizens,taxpayers,customers,investorsandcreditors
withanoverviewoftheBorough’sfinances.Ifyouhavequestionsorneedadditionalfinancialinformation,
pleasecontacttheDirectorofFinance,BoroughofChambersburg,100SouthSecondStreet,Chambersburg,PA
17201.
|17
BOROUGHOFCHAMBERSBURG
StatementofNetPosition
December31,2015
Activities
Activities
ASSETS
Currentassets
Cashandequityinpooledcashandinvestments
Taxesreceivable,netofallowance
Accountsreceivable,netofallowance
Duefromothergovernments
Otherreceivables
Inventories
Prepaidexpenses
Totalcurrentassets
Noncurrentassets
Noncurrentreceivables
Prepaidbondinsurance
Capitalassetsnotbeingdepreciated:
Land
Constructioninprogress
Capitalassetsnetofaccumulateddepreciation:
Utilityplantinservice
Landimprovements
Buildingsandimprovements
Machinery,equipmentandfurniture
Infrastructure
Totalnoncurrentassets
Totalassets
DEFERREDOUTFLOWSOFRESOURCES
Totalassetsanddeferredoutflowsofresources
LIABILITIES
Currentliabilities
Accountspayable
Accruedwagesandwithholdings
Accruedinterestexpense
Unearnedrevenues
Long‐termliabilities:Duewithinoneyear
Bondsandnotespayable
Compensatedabsences
Liabilityforself‐insuredlosses
Totalcurrentliabilities
Total
$10,879,905 $40,782,337 $51,662,242
422,333 ‐
422,333
351,629 4,678,278 5,029,907
819,440 892,109 1,711,549
544,257 105,705 649,962
371,271 2,410,350 2,781,621
368 51,560 51,928
13,389,203 48,920,339 62,309,542
203,916
‐
‐
5,188
203,916
5,188
402,325
332,116
1,512,507
37,034,950
1,914,832
37,367,066
‐
1,585,719
1,176,606
1,618,523
15,472,536
20,791,741
85,839,092
2,707,503
981,063
4,997,467
‐
133,077,770
85,839,092
4,293,222
2,157,669
6,615,990
15,472,536
153,869,511
34,180,944
181,998,109
216,179,053
1,620,470
‐
1,620,470
1,236,536
180,720
1,417,256
2,857,006
180,720
3,037,726
$35,801,414 $ 183,415,365 $219,216,779
$189,363 $4,687,500 $4,876,863
150,472 227,161 377,633
‐
113,508 113,508
105,960 654,599 760,559
Noncurrentliabilities
Long‐termliabilities:Dueinmorethanoneyear
Compensatedabsences
Netpensionobligation
NetOPEBobligation
Totalnoncurrentliabilities
Totalliabilities
DEFERREDINFLOWSOFRESOURCES
Deferredinflowsrelatedtopensionliability
NETPOSITION
Restricted
Highwayprojects
Capitalimprovements
Grants
Fireexpenses
Unrestricted
Totalnetposition
Totalliabilities,deferredin lowsofresources,andnetposition
‐
373,642
75,205
894,642
1,895,987
457,434
187,108
8,223,297
1,895,987
831,076
262,313
9,117,939
‐
306,148
6,277,543
1,176,827
150,907
7,911,425
17,831,984
390,707
5,550,355
970,400
375,453
25,118,899
17,831,984
696,855
11,827,898
2,147,227
526,360
33,030,324
8,806,067
33,342,196
42,148,263
395,728
‐
395,728
20,494,089
111,221,937
131,716,026
419,631
5,188,913
343,974
20,115
132,897
26,599,619
‐
‐
‐
‐
38,851,232
150,073,169
419,631
5,188,913
343,974
20,115
38,984,129
176,672,788
$35,801,414 $ 183,415,365 $219,216,779
TheNotestoFinancialStatementsareanintegralpartofthisstatement.|18
StatementofActivities
Governmental
Activities
Business‐type
Activities
$‐
‐
253,796
‐
‐
253,796
$(811,545)
(6,081,217)
(706,320)
(1,051,191)
(70,158)
(8,720,431)
$‐
‐
‐
‐
‐
‐
$(811,545)
(6,081,217)
(706,320)
(1,051,191)
(70,158)
(8,720,431)
35,142
15,911
19,846
149,520
16,813
2,418
‐
239,650
41,000
23,500
123,500
11,305,264
225,000
21,850
‐
11,740,114
‐
‐
‐
‐
‐
‐
‐
‐
4,280,109
788,079
(108,709)
11,130,848
188,888
(747,542)
30,721
15,562,394
4,280,109
788,079
(108,709)
11,130,848
188,888
(747,542)
30,721
15,562,394
$ 1,927,776
$11,993,910
$(8,720,431) $ 15,562,394
$ 6,841,963
$4,142,267
491,328
779,004
1,853,327
702,097
74,975
35,331
39,477
(3,076,765)
2,323,202
7,364,243
$4,142,267
491,328
779,004
1,853,327
702,097
74,975
137,026
70,156
‐
‐
8,250,180
Functions/Programs
Primarygovernment
Generalgovernment
Publicsafety
Publicworks
Totalgovernmentalactivities
$1,320,836
8,722,730
1,483,408
1,561,445
297,047
13,385,466
$471,697
1,883,333
2,695
365,388
‐
2,723,113
$37,594
758,180
520,597
144,866
226,889
1,688,126
Electric
Gas
Water
Sewer
Sanitation
Parking,trafficandstreetlights
StormSewer
26,082,326
5,513,289
3,394,584
5,891,206
2,493,738
968,851
264,641
44,608,635
30,286,293
6,261,957
3,142,529
5,567,270
2,440,813
197,041
295,362
48,191,265
$ 57,994,101
$ 50,914,378
Totalprimarygovernment
Expenses
ProgramRevenues
CapitalGrants
Operating
and
Grantsand
Chargesfor
Services
Generalrevenuesandtransfers:
Taxes:
Earnedincometax
Localservicestax
Paymentsinlieuoftaxes
Miscellaneousincome
Transfers
Totalgeneralrevenuesandtransfers
Changeinnetposition
Netposition‐beginning,asrestated
Net(Expense)RevenueandChangesinNet
Position
PrimaryGovernment
$‐
‐
‐
‐
‐
‐
101,695
30,679
3,076,765
(2,323,202)
885,937
(1,356,188) 16,448,331
Total
15,092,143
27,955,807 133,624,838 161,580,645
$26,599,619 $ 150,073,169 $ 176,672,788
BalanceSheet‐GovernmentalFunds
December31,2015
GeneralFund
SpecialRevenue
Other
Fund‐Grant Governmental
Programs
Funds
Total
Governmental
Funds
ASSETS
Taxesreceivable,net
Receivablefromothergovernments
Otherreceivables,net
Totalassets
$1,243,304 $112,056 $5,365,307 $6,720,667
377,554 ‐
44,779 422,333
755,468 73,421 ‐
828,889
334,844 160,591 585,673 1,081,108
$ 2,711,170 $346,068 $5,995,759 $ 9,052,997
LIABILITIES
Accountspayable
Unearnedrevenue
Accruedwages,benefitsandwithholdings
Totalliabilities
$77,587 $2,068 $93,566 $173,221
105,960 ‐
248,528 354,488
124,875 26 171 125,072
308,422 2,094 342,265 652,781
Unavailabletaxrevenue
FUNDBALANCES
Nonspendableforlongtermreceivables
Restricted
Unassigned
Totalfundbalances
Totalliabilities,deferredinflowsofresources
andfundbalances
409,508
409,508
‐
‐
24,835
24,835
434,343
434,343
‐
‐
1,993,240
1,993,240
45,158
298,816
‐
343,974
158,758
5,469,901
‐
5,628,659
203,916
5,768,717
1,993,240
7,965,873
$2,711,170 $346,068 $5,995,759 $9,052,997
ReconciliationofGovernmentalFundsBalanceSheettotheStatementofNetPosition
December31,2015
Totalfundbalance‐governmentalfunds
$ 7,965,873
AmountsreportedforgovernmentalactivitiesintheStatementofNetPositionare
differentbecause:
Capitalassetsusedingovernmentalactivitiesarenotcurrentfinancialresourcesand
thereforearenotreportedinthisfundfinancialstatement,butarereportedinthe
governmentalactivitiesoftheStatementofNetPosition.
Costofassets
Accumulateddepreciation
34,533,318
(14,887,153)
19,646,165
Taxesreceivablewillbecollectedinthefuture,butarenotavailablesoonenoughtopay
forthecurrentperiod'sexpenditures,andthereforearenotrecordedinthefund
434,343
Grantreceivableswillbecollectedinthefuture,butarenotavailablesoonenoughto
payforthecurrentperiod'sexpenditures,andthereforearenotrecordedinthefund
248,528
NetOtherPostEmploymentBenefits(OPEB)obligationdoesnotrequiretheuseof
currentfinancialresourcesand,therefore,isnotreportedasaliabilityinthe
governmentalfunds.
(1,057,533)
DeferredOutflowsofResourcesdoesnotrequiretheuseofcurrentfinancialresources
and,therefore,isnotreportedasanassetinthegovernmentalfunds.
1,468,460
NetPensionObligationdoesnotrequiretheuseofcurrentfinancialresourcesand,
therefore,isnotreportedasaliabilityinthegovernmentalfunds.
(5,595,226)
DeferredInflowsofResourcesrelatedtopensionliabilitiesdoesnotrequiretheuseof
currentfinancialresourcesand,therefore,isnotreportedasaliabilityinthe
governmentalfunds.
(395,728)
Long‐termliabilitiesarenotdueandpayableinthecurrentperiod,andthereforeare
notreportedasliabilitiesinthefunds.Long‐termliabilitiesatyearendconsistof
compensatedabsences.
(559,428)
Internalservicefundsareusedbymanagementtochargethecostsofcertainactivities,
suchasinsurance,motorequipment,engineering,andothers,toindividualfunds.A
portionoftheseassetsandliabilitiesoftheinternalservicefundsareincludedinthe
governmentalactivitiesandareallocatedbasedontheusageofthosefundsbythe
governmentalfunds.
4,444,165
Totalnetposition‐governmentalactivities
$26,599,619
StatementofRevenues,ExpendituresandChangesinFundBalance‐GovernmentalFunds
GeneralFund
REVENUES
Taxes
Licensesandpermits
Finesandforfeits
Investmentearnings
Intergovernmental
Chargesforservices
Contributionsanddonations
Miscellaneous
Totalrevenues
SpecialRevenue
Other
Fund‐Grant Governmental
Programs
Funds
Total
Governmental
Funds
$ 7,652,811
380,070
174,703
15,583
910,468
2,016,983
‐
182,908
11,333,526
$‐
‐
‐
520
231,793
‐
‐
16,525
248,838
$488,067
‐
‐
11,434
797,207
‐
71,190
13,156
1,381,054
$ 8,140,878
380,070
174,703
27,537
1,939,468
2,016,983
71,190
212,589
12,963,418
1,357,014
81,111
73,919
1,512,044
EXPENDITURES
Generalgovernment
PublicSafety
Policedepartment
Emergencyservices
Planningandzoning
Publicworks
Highways
Totalexpenditures
4,476,149
3,629,952
527,330
2,400
12,300
‐
1,841
98,987
‐
4,480,390
3,741,239
527,330
1,021,646
1,355,246
‐
12,367,337
8,676
‐
225,876
330,363
1,374,837
130,995
32,500
1,713,079
2,405,159
1,486,241
258,376
14,410,779
Excess(deficiency)ofrevenuesover
expenditures
(1,033,811) (81,525) (332,025) (1,447,361)
OTHERFINANCINGSOURCES(USES)
Transfersin
Transfersout
Totalotherfinancingsourcesanduses
2,090,000 8,507
(1,595,603) ‐
494,397 8,507
Netchangeinfundbalances
(539,414) (73,018) 1,045,799
Fundbalances‐beginning,asrestated
Fundbalances‐ending
2,994,278 5,092,785
(1,616,454) (3,212,057)
1,377,824 1,880,728
433,367
2,532,654 416,992 4,582,860 7,532,506
$ 1,993,240 $343,974 $5,628,659 $ 7,965,873
ReconciliationofStatementofRevenues,ExpendituresandChangesinFundBalanceof
GovernmentalFundstotheStatementofActivities
Netchangeinfundbalances‐totalgovernmentalfunds:
$433,367
AmountsreportedforGovernmentalActivitiesintheStatementofActivitiesare
differentbecause:
Capitaloutlaysarereportedingovernmentalfundsasexpenditures.However,in
thestatementofactivities,thecostofcapitalassetsisallocatedovertheirestimated
usefullivesasdepreciationexpense.Thisistheamountbywhichdepreciation
expensediffersfromcapitaloutlaysintheperiod.
Depreciationexpense
(1,176,918)
Capitaloutlays
1,804,526
627,608
Inthestatementofactivities,onlythegainonthesaleofcapitalassetsisreported,
whereasinthegovernmentalfunds,theproceedsfromthesaleincreaseother
financingsources.Thus,thechangeinnetpositiondiffersfromthechangesinthe
fundbalancebythecostofthecapitalassetssold.
(40,113)
Inthecurrentyear,therewerecapitalassetstransferredfromthegovernmental
activitiestothebusiness‐typeactivitiesforpropertythatwillbeutilizedbythe
StormSewerFund.Thisisthenetamountoftheassetsbeingtransferredwhich
werenotreportedinthegovernmentalfunds.
(3,076,765)
Governmentalfundsdonotpresentrevenuesthatarenotavailabletopaycurrent
obligations.Incontrast,suchrevenuesarereportedintheStatementofActivities
whenearned.
(281,416)
Inthestatementofactivities,compensatedabsencesaremeasuredbytheamounts
earnedduringtheyear.Inthegovernmentalfunds,however,expendituresforthese
itemsaremeasuredbytheamountoffinancialresourcesused(essentially,the
amountsactuallypaid).Thisisthenetamountearnedor(used):
(34,470)
NetOtherPostEmploymentBenefits(OPEB)obligationdoesnotrequiretheuseof
currentfinancialresourcesand,therefore,isnotreportedasanexpenseinthe
governmentalfunds.
410,489
NetPensionObligationdoesnotrequiretheuseofcurrentfinancialresourcesand,
therefore,isnotreportedasanexpenseinthegovernmentalfunds.
(122,517)
Internalservicefundsareusedbymanagementtochargethecostsofcertain
activitiestoindividualfunds.Thenetrevenue(expense)ofcertaininternalservice
fundsisreportedwithgovernmentalactivities.
727,629
Changeinnetposition‐governmentalactivities
($1,356,188)
StatementofNetPosition‐ProprietaryFunds
December31,2015
EnterpriseFunds
ElectricFund
ASSETS
Currentassets
Accountsreceivable,net
Receivablesfromothergovernments
Otherreceivables
Inventories
Prepaidexpenses
Totalcurrentassets
Noncurrentassets
Prepaidbondinsurance
Land
Capitalassetsbeingdepreciated:
Buildingsandsystem
Improvementsotherthanbuildings
Machineryandequipment
Lessaccumulateddepreciation
Totalcapitalassets
Totalassets
Totalassetsanddeferredoutflows
ofresources
LIABILITIES
Currentliabilities
Accountspayable
Accruedwagespayable
Accruedinterestpayable
Unearnedrevenue
Compensatedabsences‐current
Liabilityforselfinsuredlosses‐current
Bonds,notesandloanspayable‐current
Compensatedabsences
Liabilityforselfinsuredlosses
NetOPEBobligation
Bonds,notesandloanspayable
Totalliabilities
NETPOSITION
Unrestricted
Totalnetposition
Totalliabilitiesandnetposition
GasFund
WaterFund
SewerFund
Other
Enterprise
Funds
Total
Internal
ServiceFunds
$8,202,670 $4,046,794 $7,857,913 $7,415,281 $2,911,635 $30,434,293 $14,507,282
2,629,144 785,486 271,231 766,878 224,993 4,677,732 765
‐
‐
‐
665,988 225,366 891,354 1,059
27,026 18,672 16,468 15,401 6,439 84,006 30,421
934,808 399,501 58,027 94,305 ‐
1,486,641 1,294,980
38,590 2,874 3,282 4,916 983 50,645 1,283
11,832,238 5,253,327 8,206,921 8,962,769 3,369,416 37,624,671 15,835,790
3,329
‐
‐
1,859
‐
5,188
‐
447,512
418,854
37,716
1,190,152
269,820
943,913
24,299
34,304,694
723,185
177,337
1,502,532
37,034,950
13,984
‐
75,071,419
45,308
632,824
(33,271,144)
43,344,773
43,348,102
14,967,405
4,839
263,885
(6,285,340)
10,178,657
10,178,657
31,990,611
1,028
477,800
(13,814,103)
19,869,069
19,869,069
43,714,527
‐
530,930
(28,200,798)
50,373,652
50,375,511
1,419,989
4,083,055
3,985,566
(3,425,522)
6,963,610
6,963,610
167,163,951
4,134,230
5,891,005
(84,996,907)
130,729,761
130,734,949
155,804
‐
8,766,546
(5,651,853)
3,284,481
3,284,481
55,180,340
15,431,984
28,075,990
59,338,280
10,333,026
168,359,620
19,120,271
290,130
125,393
415,523
130,698
‐
130,698
145,219
‐
145,219
168,393
55,327
223,720
123,900
‐
123,900
858,340
180,720
1,039,060
530,206
‐
530,206
$55,595,863 $15,562,682 $28,221,209 $59,562,000 $10,456,926 $169,398,680 $19,650,477
$1,451,880 $441,490 $205,333 $2,492,080 $56,557 $4,647,340 $56,302
51,080 24,442 28,305 30,946 29,195 163,968 88,593
102,949 ‐
‐
10,559 ‐
113,508 ‐
34,189 35,712 ‐
584,698 ‐
654,599 ‐
115,321 42,920 52,125 53,908 35,621 299,895 220,860
‐
‐
‐
‐
‐
‐
262,313
1,482,856 ‐
‐
362,899 50,232 1,895,987 ‐
3,238,275 544,564 285,763 3,535,090 171,605 7,775,297 628,068
104,268
‐
1,302,287
227,687
10,356,975
11,991,217
30,271
‐
586,653
102,568
‐
719,492
46,629
‐
651,837
113,963
‐
812,429
35,388
‐
755,854
132,150
6,038,028
6,961,420
32,234
‐
556,142
97,234
1,436,981
2,122,591
248,790
‐
3,852,773
673,602
17,831,984
22,607,149
198,958
526,360
2,379,899
416,092
‐
3,521,309
15,229,492
1,264,056
1,098,192
10,496,510
2,294,196
30,382,446
4,149,377
31,628,880
8,737,491
40,366,371
10,173,944
4,124,682
14,298,626
19,691,392
7,431,625
27,123,017
41,698,958
7,366,532
49,065,490
5,685,942
2,476,788
8,162,730
108,879,116
30,137,118
139,016,234
3,284,481
12,216,619
15,501,100
$55,595,863 $ 15,562,682 $ 28,221,209 $ 59,562,000 $10,456,926 $169,398,680 $ 19,650,477
Someamountsreportedforbusiness‐type
activitiesinthestatementofnetpositionare
differentbecausecertaininternalservicefunds'
assetsandliabilitiesareincludedwithbusiness‐
typeactivities
11,056,935
Netpositionofbusiness‐typeactivities
$150,073,169
StatementofRevenues,ExpensesandChangesinFundNetPosition‐ProprietaryFunds
EnterpriseFunds
ElectricFund
OPERATINGREVENUES
Chargesforservices
Miscellaneous
Totaloperatingrevenues
OPERATINGEXPENSES
Production,gathering,treatmentand
transmission
Operationandmaintenance
Collectionanddisposal
Purchaseofenergyforsale
Customeraccountingandadministrative
Claimpaymentsandspecialservices
Increase(decrease)inexpectedunpaidlosses
Depreciationandamortization
Totaloperatingexpenses
Operatingincome(loss)
NONOPERATINGREVENUES(EXPENSES)
Connectionfees
Interestandinvestmentrevenue
Gain(loss)onsaleofassets
Reimbursementofprioryearexpense
Othernonoperatingrevenues
Intergovernmentalrevenues
Interestexpenseanddebtissuancecosts
Totalnonoperatingrevenues(expenses)
Income(loss)beforecontributions
andtransfers
Capitalcontributionsandgrants
Transfersin
Transfersout
Transferofcapitalassetsfromgovernmentalactivities
Changeinnetposition
Totalnetposition‐beginning,asrestated
Totalnetposition‐ending
GasFund
WaterFund
SewerFund
Other
Enterprise
Funds
Total
InternalService
Funds
$28,763,421 $ 6,224,692 $2,853,866 $ 5,453,301 $2,762,063 $46,057,343 $ 7,446,593
1,512,536 36,776 101,945 50,890 105,258 1,807,405 8,634
30,275,957 6,261,468 2,955,811 5,504,191 2,867,321 47,864,748 7,455,227
2,813,221
‐
‐
18,502,865
2,643,559
‐
‐
2,109,892
26,069,537
593,916
‐
‐
3,315,792
1,303,876
‐
‐
392,778
5,606,362
1,623,524
‐
‐
‐
1,177,573
‐
‐
687,610
3,488,707
2,443,862
‐
878,686
‐
966,542
‐
‐
1,467,090
5,756,180
‐
680,609
2,217,278
‐
541,240
‐
‐
277,909
3,717,036
4,206,420
655,106
(532,896)
(251,989) (849,715) 3,226,926
127,709
‐
15,857
(16,403)
‐
15,365
35,142
(278,693)
(228,732)
‐
13,608
(14,174)
‐
503
15,911
‐
15,848
164,916
19,741
(14,278)
‐
37,374
19,846
‐
227,599
59,621
27,596
(14,169)
‐
6,042
149,520
(208,290)
20,320
‐
27,184
24,470
741,012
5,573
68,667
‐
866,906
‐
5,503
(13,914)
‐
‐
19,231
(27,587)
(16,767)
7,474,523
680,609
3,095,964
21,818,657
6,632,790
‐
‐
4,935,279
44,637,822
224,537
82,305
(72,938)
‐
59,284
239,650
(514,570)
18,268
‐
5,795,565
‐
‐
790,853
509,641
(295,791)
527,250
7,327,518
3,977,688
670,954
(305,297) (231,669) (866,482) 3,245,194
994,615
41,000
‐
(2,095,317)
‐
23,500
‐
(410,000)
‐
123,500
‐
(160,000)
‐
11,305,264
‐
(122,000)
‐
246,850
1,096,242
(35,250)
3,076,765
11,740,114
1,096,242
(2,822,567)
3,076,765
‐
578,097
(732,500)
‐
1,923,371
284,454
(341,797)
10,951,595
3,518,125
16,335,748
840,212
38,443,000 14,014,172 27,464,814 38,113,895 4,644,605 122,680,486 14,660,888
$40,366,371 $ 14,298,626 $ 27,123,017 $ 49,065,490 $8,162,730 $139,016,234 $ 15,501,100
Someamountsreportedforbusiness‐typeactivities
inthestatementofactivitiesaredifferentbecausethe
netrevenue(expense)ofcertaininternalservice
fundsisreportedwithbusiness‐typeactivities
112,583
Changeinnetpositionofbusiness‐typeactivities
$16,448,331
StatementofCashFlows‐ProprietaryFunds
EnterpriseFunds
Cashflowsfromoperatingactivities:
Receiptsfromcustomers/interfund
servicesprovided
Paymentstosuppliers
Paymentstoandonbehalfofemployees
Netcashprovided(used)byoperatingactivities
Cashflowsfromcapitalandrelatedfinancingactivities:
Grantsandreimbursementsreceived
Proceedsfromcapitaldebt
Purchaseofcapitalassets
Proceedsfromsaleofassets
Proceedsfromtapfees
Principalpaidoncapitaldebt
Interestandfiscalchargespaidoncapitaldebt
Netcashprovided(used)bycapitalandrelated
financingactivities
Cashflowsfromnon‐capitalfinancingactivities:
Transferfromotherfunds
Transfertootherfunds
Refundreceivedforhealthinsurance
Grantsreceived
Netcashprovided(used)bynon‐capital
financingactivities
ElectricFund
GasFund
WaterFund
SewerFund
Other
Enterprise
Funds
$30,796,885
(21,642,216)
(2,079,181)
7,075,488
$6,819,446
(4,157,500)
(811,125)
1,850,821
$3,021,777
(1,611,302)
(1,096,405)
314,070
$5,564,641
(2,842,693)
(1,253,729)
1,468,219
$2,845,943
(2,238,442)
(1,142,251)
(534,750)
$49,048,692
(32,492,153)
(6,382,691)
10,173,848
$7,434,176
(3,206,092)
(3,420,629)
807,455
‐
‐
(865,729)
‐
‐
(886,923)
(270,525)
‐
‐
(684,892)
‐
‐
‐
‐
‐
‐
(763,374)
‐
164,916
‐
‐
10,013,101
‐
(13,966,059)
‐
59,621
(668,078)
(175,122)
‐
885,798
(1,393,783)
‐
‐
(12,787)
(27,587)
10,013,101
885,798
(17,673,837)
‐
224,537
(1,567,788)
(473,234)
‐
‐
(649,306)
25,480
‐
‐
‐
Total
Internal
ServiceFunds
(2,023,177) (684,892) (598,458) (4,736,537) (548,359) (8,591,423) (623,826)
‐
(2,095,317)
‐
35,142
1,096,242
(35,250)
‐
19,231
1,096,242
(2,822,567)
‐
239,650
(2,060,175) (394,089) (140,154) 27,520
1,080,223
(1,486,675) 654,217
Cashflowsfrominvestingactivities:
Interestanddividendsreceived
Netcashprovided(used)byinvestingactivities
2,436
2,436
7,301
7,301
8,842
8,842
10,660
10,660
48,590
48,590
8,497
8,497
Netincrease(decrease)incashandcashequivalents
2,994,572
779,141
(415,700) (3,221,447) 7,774
144,340
846,343
Cashandcashequivalents‐beginningoftheyear
5,208,098
3,267,653
8,273,613
10,636,728
2,903,861
30,289,953
13,660,939
Cashandcashequivalents‐endoftheyear
$ 8,202,670
$ 4,046,794
$ 7,857,913
$ 7,415,281
$2,911,635
$ 30,434,293
$ 14,507,282
Reconciliationofincome(loss)fromoperationstonetcashprovided
(used)byoperatingactivities
Adjustmentstoreconcileoperatingincome(loss)tonetcash
provided(used)byoperatingactivities:
Depreciationandamortizationexpense
Miscellaneousnonoperatingincome
(Increase)decreasein:
Accountsreceivable
Inventories
Prepaidexpenses
Increase(decrease)in:
Accountspayableandaccruedexpenses
Netpensionliabilityandrelateddeferredoutflowsandinflows
Unearnedrevenue
Non‐cashinvesting,capitalandnon‐capitalfinancingactivities
Donatedassetsfromdevelopers
‐
(410,000)
‐
15,911
‐
(160,000)
‐
19,846
‐
(122,000)
‐
149,520
19,351
19,351
578,097
(732,500)
741,012
67,608
$ 4,206,420 $655,106 ($ 532,896) ($ 251,989) ($849,715) $ 3,226,926 $127,709
2,109,892
15,365
392,778
503
687,610
37,374
1,467,090
6,042
277,909 4,935,279
(9,310) 49,974
527,249
3,037
499,716 572,236 28,592 54,408 (21,706) 1,133,246 1,735
91,194 312,856 (1,455) 635 ‐
403,230 (24,251)
(1,283) (34) (59) (123) (1) (1,500) (17)
(68,080)
59,665
162,599
$ 7,075,488
(84,576)
26,878
(24,926)
$ 1,850,821
65,038
29,866
‐
$ 314,070
157,524
34,632
‐
$ 1,468,219
42,591
25,482
‐
$(534,750)
112,497
176,523
137,673
$ 10,173,848
62,951
109,042
‐
$ 807,455
$ 41,000
$ 23,500
$ 123,500
$ 92,867
$21,850
$ 302,717
$‐
StatementofFiduciaryNetPosition
December31,2015
PensionTrust PrivatePurpose
Funds
TrustFunds
AgencyFunds
ASSETS
Mutualfunds‐U.S.Securities
Mutualfunds‐Corporatebonds
Mutualfunds‐Stocks
Mutualfunds‐Realestatesecurities
Contributionreceivable‐planmember
Otherreceivables
Totalassets
$185,594 $36,630 $978,569
6,937,014 ‐
‐
4,626,960 ‐
‐
21,701,175 ‐
‐
1,051,064 ‐
‐
1,429 ‐
‐
‐
22 2,037
$ 34,503,236 $36,652 $ 980,606
LIABILITIES
Consumerdeposits
Otherpayables
Totalliabilities
$‐
‐
‐
NETPOSITION
Heldintrustforbenefitsandotherpurposes
34,503,236
16,322
‐
$ 34,503,236
$36,652
$ 980,606
$‐ $980,606
20,330 ‐
20,330 980,606
StatementofChangesinFiduciaryNetPosition
PensionTrust PrivatePurpose
Funds
TrustFunds
ADDITIONS
Contributions
Employer
Planmember
Publiccontributionsandotherrevenue
Totalcontributions
Investmentincome
Netappreciation(depreciation)infairvalueof
investmentsandgain(loss)onsaleofinvestments
Interest,dividends,andother
Totalnetinvestmentearnings
$1,497,525
563,533
‐
2,061,058
$‐
‐
16,434
16,434
(1,333,030) ‐
659,198 161
(673,832) 161
Totaladditions
1,387,226
16,595
DEDUCTIONS
Benefits
Administrativeexpenses
Miscellaneousexpenses
Totaldeductions
2,422,355
28,231
‐
2,450,586
‐
46,518
20,435
66,953
Changeinnetposition
(1,063,360) (50,358)
35,566,596
$ 34,503,236
66,680
$16,322
December31,2015
NOTE1
SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES
NatureofOperations
ThefinancialstatementsoftheBoroughofChambersburghavebeenpreparedinconformity
withgenerallyacceptedaccountingprinciples(GAAP)asappliedtogovernmentalunits.The
GovernmentalAccountingStandardsBoard(GASB)istheacceptedstandard‐settingbodyfor
establishinggovernmentalaccountingandfinancialreportingprinciples.Themoresignificant
ofthegovernment’saccountingpoliciesaredescribedbelow.
ReportingEntity
TheGASBdefinesthecriteriausedtodeterminethecompositionofthereportingentity.It
requiresthatthereportingentityinclude(a)theprimarygovernment,(b)organizationsfor
whichtheprimarygovernmentisfinanciallyaccountable,(c)organizationsthatarefiscally
dependentontheprimarygovernmentandafinancialbenefitorburdenexists,and(d)other
organizationsforwhichthenatureandsignificanceoftheirrelationshipwiththeprimary
governmentaresuchthatexclusionwouldcausethereportingentity’sfinancialstatementsto
bemisleadingorincomplete.
Thedefinitionofthereportingentityisbasedprimarilyonthenotionoffinancial
accountability.Aprimarygovernmentisfinanciallyaccountablefortheorganizationsthat
makeupitslegalentity.Itisalsofinanciallyaccountableforlegallyseparateorganizationsifits
officialsappointavotingmajorityofanorganization’sgoverningbodyandifitisabletoimpose
itswillonthatorganizationorthereisapotentialfortheorganizationtoprovidespecific
financialbenefitsto,ortoimposespecificfinancialburdenson,theprimarygovernment.A
primarygovernmentmayalsobefinanciallyaccountableforthegovernmentalorganizations
thatarefiscallydependentonit.
Aprimarygovernmenthastheabilitytoimposeitswillonanorganizationifitcansignificantly
influencetheprograms,projects,oractivitiesof,orthelevelofservicesperformedorprovided
by,theorganization.Afinancialbenefitorburdenrelationshipexistsiftheprimary
government(a)isentitledtotheorganization'sresources;(b)islegallyobligatedorhas
otherwiseassumedtheobligationinsomemannerforthedebtoftheorganization;or(c)is
obligatedinsomemannerforthedebtoftheorganization.
Someorganizationsareincludedascomponentunitsbecauseoftheirfiscaldependencyonthe
primarygovernment.Anorganizationisfiscallydependentontheprimarygovernmentifitis
unabletoadoptitsbudget,levytaxesorsetratesorcharges,orissuebondeddebtwithout
approvalbytheprimarygovernment.
Basedupontheapplicationofthesecriteria,thefollowingcomponentunitmeetsthecriteriafor
blendingandisincludedwithinthereportingentity:
TheMunicipalAuthorityoftheBoroughofChambersburg(the“Authority”)isgovernedbya
BoardappointedbyBoroughCouncil.TheAuthorityexiststoprovideservicesentirelyto
benefittheBorough.TheAuthorityhadnofinancialactivityduring2015.SeeNote11for
additionalinformation.
|29
December31,2015
NOTE1
SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)
FundAccounting
TheBoroughusesfunds,eachofwhichisconsideredaseparateaccountingentity.The
operationsofeachfundareaccountedforwithaseparatesetofself‐balancingaccountsthat
compriseitsassets,liabilities,fundbalance/netposition/(deficit),revenue,and
expenditures/expenses.Thevariousfundsoftheprimarygovernmentaregroupedintothe
categoriesofgovernmental,proprietary,andfiduciary.
GovernmentalFunds
GovernmentalFundsarethosethroughwhichmostgovernmentalfunctionsoftheBorough
arefinanced.Themeasurementfocusisontheflowofexpendableresources,ratherthan
onnetearningsdetermination.
TheBoroughreportsthefollowingmajorgovernmentalfunds:
GeneralFund–TheGeneralFundisthegeneraloperatingfundoftheBorough.This
fundisusedtoaccountforallfinancialtransactionsexceptthoserequiredtobe
accountedforinanotherfund.Thisisabudgetedfund,andanyunrestrictedfund
balancesareconsideredasresourcesavailableforuse.
SpecialRevenueFund‐GrantPrograms‐GrantProgramsareusedtoaccountforthe
proceedsofamajorityspecificrevenuesourcesfromgrantsusedtofinancespecific
activitiesasrequiredbylaworadministrativeregulationobtainedbytheBoroughfor
thegovernmentalactivities.
Additionally,theBoroughreportsthefollowingnon‐majorgovernmentalfunds:
SpecialRevenueFunds–Thesefundsareusedtoaccountforproceedsofspecific
revenuesourcesusedtofinancespecificactivitiesasrequiredbylaworadministrative
regulation.TheBoroughhasthreeSpecialRevenueFunds,theGrantProgramFund
aboveandthefollowing:
LiquidFuelsFundisusedtoaccountforstateliquidfuelstaxrevenueusedprimarily
forbuilding,improving,andmaintaininglocalroadsandbridges.
RichardKasherFireTaxFundisusedtoaccountforrealestatetaxrevenueused
primarilyforfiredepartmentsupport.
CapitalReserveFund–Thisfundisusedtoaccountforfinancialresourcestobeused
fortheacquisitionorconstructionofmajorcapitalfacilities(otherthanthosefinanced
byenterprisefunds).
ProprietaryFunds
Proprietaryfundsareusedtoaccountforactivitiessimilartothosefoundintheprivate
sector,wherethefocusofproprietaryfundsisonthedeterminationofnetearningsand
capitalmaintenance.Goodsorservicesfromsuchactivitiescanbeprovidedeitherto
outsideparties(enterprisefunds)ortootherdepartmentsoragenciesprimarilywithinthe
government(internalservicefunds).
|30
December31,2015
NOTE1
FundAccounting(Continued)
ProprietaryFunds(Continued)
TheBoroughreportsthefollowingmajorenterprisefunds:
ElectricDepartment–ProvideselectricpowerandrelatedservicestotheBoroughof
Chambersburgandallcustomers,bothresidentialandcommercial,throughoutthe
Borough.
GasDepartment–ProvidesnaturalgasandrelatedservicestotheBoroughof
Chambersburginadditiontoitsresidentialandcommercialcustomersthroughoutthe
Boroughandwithinitsproximity.
WaterDepartment–Provideswaterandrelatedservices,includinglaboratory
analyses,totheBoroughofChambersburg,itsresidents,businessestablishmentsand
variouscustomerswithintheproximityoftheBorough.
SewerDepartment–ProvideswastewatertreatmentservicesfortheBoroughof
Chambersburg,itsresidents,commercialestablishmentsandvariouscustomerslocated
withintheneighboringareasofGreeneTownship,GuilfordTownship,Hamilton
TownshipandLetterkennyTownship.
TheBoroughreportsthefollowingnon‐majorenterprisefunds:
SanitationDepartment–ProvidestrashandgarbageremovalfortheBoroughof
Chambersburg,itsresidentsandcommercialestablishmentsthroughouttheBorough.
Parking,TrafficandStreetLightsDepartment–Regulatesandcontrolsvehicle
parking,trafficandstreetlightsthroughouttheBoroughofChambersburg.
StormSewerDepartment–ProvidesstormwaterremovalfortheBoroughof
Chambersburg,itsresidentsandcommercialestablishmentsthroughouttheBorough.
ClassificationofRevenues‐Forproprietaryfunds,theBoroughhasclassifiedits
revenuesaseitheroperatingornonoperatingrevenuesaccordingtothefollowing
criteria:
OperatingRevenues‐Operatingrevenuesincludeactivitiesthathavethe
characteristicsofexchangetransactions,suchas(1)utilitybillings;(2)penaltiesand
latecharges;and(3)othermiscellaneoussales.
NonoperatingRevenues‐Nonoperatingrevenuesincludeactivitiesthathavethe
characteristicsofnon‐exchangetransactions(inwhichtheBoroughreceivesvalue
withoutdirectlygivingequalvalueinreturn),suchascontributionsandgrants,and
otherrevenuesthataredefinedasnonoperatingrevenuesbyGASB
pronouncements,suchasinvestmentearnings.Tapfeesarealsoconsidered
nonoperatingsincetheyarechargedbasedonfuturecapacityneedsofthesystem
andarenotbasedonanexchange‐typetransaction.
|31
December31,2015
NOTE1
FundAccounting(Continued)
ProprietaryFunds(Continued)
Internalservicefundsofagovernment(whichtraditionallyprovideservicesprimarilyto
otherfundsofthegovernment)arepresented,insummaryform,aspartoftheproprietary
fundfinancialstatements.Sincetheprincipalusersoftheinternalservicesarea
combinationoftheBorough'sgovernmentalandenterprisefunds,financialstatementsof
internalservicefundsareallocatedbasedontheusageofthosefundsandincludedinthe
governmentalandbusiness‐typecolumnwhenpresentedatthegovernment‐widelevel.
Thecostsoftheseservicesareallocatedtotheappropriatefunctionalactivity.
TheBorough'sinternalservicefundsconsistof:
StoresFund–TheStoresDepartmentisresponsibleforthepurchase,storage,and
disbursalofinventorywhichisusedtosupporttheconstructionandmaintenance
functionsoftheBoroughutilities.
MotorEquipmentFund–ThisfundsupportstheactivitiesoftheMotorEquipment
Departmentwhichmanagesarollingstockofmorethan120vehicles.
Self‐insuranceFund–Thisfundisusedforthepurposeoffundingriskwhichthe
Boroughdoesnottransfertocommercialinsurancecarriersorinsurancepools.
EngineeringFund–ThisfundsupportstheactivitiesoftheEngineeringDepartment
whichisresponsibleforfurnishingengineering,surveying,drafting,andutilitylocation
informationtootherdepartments.Thedepartmentalsodesignsandinspectspublic
worksprojects.
Worker’sCompensation–ThisfundunderwritestheriskstotheBoroughresulting
fromjob‐relatedinjuryorillnesstoitsemployees.
AdministrativeServicesFund–AdministrativeServicesissynonymouswiththe
FinanceDepartmentwhichisresponsibleforthecompletefinancialreportingand
utilitymeterreading,aswellastheoperationandmaintenanceofBoroughHall.
Themajorfundconceptdoesnotapplytointernalservicefunds.
FiduciaryFundTypes
Fiduciaryfundreportingfocusesonnetpositionandchangesinnetposition.Thefiduciary
fundcategoryissplitintofourclassifications:pensiontrustfunds(Firemen’s,Police,and
BargainingandAdministrativeEmployees),investmenttrustfunds,private‐purposetrustfunds
(Citizen’sReward,SisterCityandProjectHeat),andagencyfunds(PayrollClearing,Consumer
Deposit).
TrustfundsareusedtoaccountforassetsheldbytheBoroughunderatrustagreementfor
individuals,privateorganizations,orothergovernmentsandarethereforenotavailableto
supporttheBorough'sownprogram.Agencyfundsarecustodialinnature(assetsequal
liabilities)anddonotinvolvemeasurementofresultsofoperations.
|32
December31,2015
NOTE1
FiduciaryFundTypes(Continued)
TheBorough'sfiduciaryfundsconsistof:
PolicePensionFund‐Thisfundisusedtoaccountfortheaccumulationofresourcesfor
pensionbenefitpaymentstoqualifiedpublicsafety(police)employees.
BargainingandAdministrativeEmployeesPensionFund‐Thisfundisusedtoaccount
fortheaccumulationofresourcesforpensionbenefitpaymentstoqualifiedemployeesof
theBoroughotherthanpoliceorfiredepartmentemployees.
Firemen'sPensionFund‐Thisfundisusedtoaccountfortheaccumulationofresources
forpensionbenefitpaymentstoqualifiedFireDepartmentemployees.
Citizen'sRewardFund‐Trustfundusedtoholdcontributionsfromprivatecitizensforthe
purposeofrewardingpoliceinformantsfortheirassistanceinsolvingcrime.
SisterCityFund‐Trustfundusedtoholdmoneythataccumulatesforthespecificpurpose
of"sistercity"activities.OursistercityisGotemba,Japan.
ProjectHEATFund‐Trustfundtoholdcontributionsfromcitizensforthepurposeof
assistingotherspaytheirutilitybills.
PayrollClearingFund‐Anaccounttotemporarilyholdeverydollarexpendedthroughthe
payrollsystem.Thisincludesnetpayroll,alltaxeswithheld,miscellaneousdeductionsand
employers'shareofSocialSecurity/Medicareexpense.Theoretically,everydollar
containedwithintheaccountwilleventuallybepaidoutinnetpay,taxesorother
deductions.
ConsumerDepositsFund‐Agencyfundusedtoholddepositsonbehalfofutility
customers.Interestisearnedand"tracked"forindividualcustomersattheBorough's
compositeinterestrate.Thesefundscanbeusedtosettleanoutstandingaccountor
returnedtothecustomerwhenevera"goodcredithistory"recordisattained.Thesefunds
arealsoreturnedtothecustomerwhenevertheymoveoutsidetheBorough.Occasionally,
somedepositsandordownpaymentsfromotherindividualsandorganizationsforother
purposesaredepositedinthisaccountandhelduntilfinalresolutionhasoccurred.
BasisofPresentation
Government‐wideFinancialStatements–Thestatementofnetpositionandthestatementof
activitiesdisplayinformationabouttheBoroughasawhole.Thesestatementsincludethe
financialactivitiesoftheprimarygovernment,exceptforfiduciaryfunds.Thestatements
distinguishbetweenthoseactivitiesoftheBoroughthataregovernmentalandthosethatare
consideredbusiness‐typeactivities.
Thegovernment‐widestatementsarepreparedusingtheeconomicresourcesmeasurement
focus.Thisisthesameapproachusedinthepreparationoftheproprietaryfundfinancials,but
differsfromthemannerinwhichgovernmentalfundfinancialsareprepared.Governmental
fundfinancialstatementsthereforeincludeareconciliationwithbriefexplanationstobetter
identifytherelationshipbetweenthegovernment‐widestatementsandstatementsfor
governmentalfunds.
|33
December31,2015
NOTE1
BasisofPresentation(Continued)
Thegovernment‐widestatementofactivitiespresentsacomparisonbetweendirectexpenses
andprogramrevenuesforeachsegmentofthebusiness‐typeactivitiesoftheBorough,andfor
eachfunctionorprogramoftheBorough’sgovernmentalactivities.Directexpensesarethose
thatarespecificallyassociatedwithaservice,program,ordepartmentandthereforeclearly
identifiabletoaparticularfunction.Programrevenuesincludechargespaidbytherecipientfor
thegoodsorservicesofferedbytheprogramandgrantsandcontributionsthatarerestrictedto
meetingtheoperationorcapitalrequirementsofaparticularprogram.Revenueswhicharenot
classifiedasprogramrevenuesarepresentedasgeneralrevenuesoftheBorough,withcertain
limitedexceptions.Thecomparisonofdirectexpensesandprogramrevenuesidentifiesthe
extenttowhicheachbusinesssegmentorgovernmentalfunctionisself‐financingordraws
fromthegeneralrevenuesoftheBorough.
FundFinancialStatements–Fundfinancialstatementsreportdetailedinformationaboutthe
Borough.Thefocusofthegovernmentalandproprietaryfundfinancialstatementsisonmajor
fundsratherthanreportingfundsbytype.Eachmajorfundispresentedinaseparatecolumn.
Nonmajorfundsareaggregatedandpresentedinasinglecolumn.Themajorfundconceptdoes
notapplytointernalservicefundswhichareconsideredproprietaryfundsandarepresented
withenterprisefunds.Fiduciaryfundsarereportedbyfundtype.
Theaccountingandfinancialreportingtreatmentappliedtoafundisdeterminedbyits
measurementfocus.Allgovernmentalfundtypesareaccountedforusingaflowofcurrent
financialresourcesmeasurementfocus.Thefinancialstatementsforgovernmentalfundsarea
balancesheet,whichgenerallyincludesonlycurrentassetsandcurrentliabilities,anda
statementofrevenues,expenditures,andchangesinfundbalances,whichreportsonthe
sources(i.e.,revenuesandotherfinancingsources)anduses(i.e.,expendituresandother
financinguses)ofcurrentfinancialresources.
Allproprietaryfundsareaccountedforonaflowofeconomicresourcesmeasurementfocus.
Withthismeasurementfocus,allassetsandliabilitiesassociatedwiththeoperationofthese
fundsareincludedonthestatementofnetposition.Thestatementofchangesinfundnet
positionpresentsincreases(i.e.,revenues)anddecreases(i.e.,expenses)innettotalposition.
ThestatementofcashflowsprovidesinformationabouthowtheBoroughfinancesandmeets
thecashflowneedsofitsproprietaryactivities.
Fiduciaryfundsarereportedusingtheeconomicresourcesmeasurementfocus.However,
agencyfundshavenomeasurementfocus.
|34
December31,2015
NOTE1
BasisofAccounting
Thegovernment‐wide,proprietary,andfiduciaryfund(exceptagencyfund)financial
statementsarereportedusingtheeconomicresourcesmeasurementfocusandtheaccrual
basisofaccounting.Revenuesarerecordedwhenearnedandexpensesarerecordedwhena
liabilityisincurred,regardlessofthetimingofrelatedcashflows.Propertytaxesare
recognizedasrevenuesintheyearforwhichtheyarelevied.Grantsandsimilaritemsare
recognizedasrevenueassoonasalleligibilityrequirementsimposedbytheproviderhave
beenmet.Netposition(totalassetsplusdeferredoutflowsofresourceslesstotalliabilitiesand
deferredinflowsofresources)isusedasapracticalmeasureofeconomicresourcesandthe
operatingstatementincludesalltransactionsandeventsthatincreasedordecreasednet
position.Depreciationischargedasexpenseagainstcurrentoperationsandaccumulated
depreciationisreportedonthestatementofnetposition.Thegovernmentalfundfinancial
statementsarereportedusingthecurrentfinancialresourcesmeasurementfocusandthe
modifiedaccrualbasisofaccounting.Revenuesarerecognizedassoonastheyareboth
measurableandavailable.Revenuesareconsideredtobeavailablewhentheyarecollectible
withinthecurrentperiodorsoonenoughthereaftertopayliabilitiesofthecurrentperiod.For
thispurpose,thegovernmentconsiderstaxrevenuetobeavailableifcollectedwithin60days
oftheendofthefiscalperiod.Revenuefromfederal,state,andothergrantsdesignatedfor
paymentofspecificBoroughexpendituresisrecognizedwhentherelatedexpendituresare
incurred;accordingly,whensuchfundsarereceived,theyarerecordedasunearnedrevenues
untilearned.Iftimeeligibilityrequirementsarenotmet,adeferredinflowofresourceswould
berecorded.Expendituresgenerallyarerecordedwhenaliabilityisincurred,asunderaccrual
accounting.However,debtserviceexpenditures,aswellasexpendituresrelatedto
compensatedabsencesandclaimsandjudgments,arerecordedonlywhenpaymentisdue.
Budgets
Budgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples.
Annualappropriatedbudgetsareadoptedforthegeneralfund,liquidfuelsfund,capital
projects,grantprogram,andproprietaryfunds.Allannualappropriationslapseatyearendand
mustbereappropriated.Budgetsarenotrevisedduringtheyear.Encumbranceaccountingis
utilizedforinternalmanagementpurposes,butnotforfinancialreporting.Thebudgetis
preparedandapprovedatthedepartmentallevel.ThedepartmentspresentedintheBudgetary
ComparisonSchedulesincludedasrequiredsupplementaryinformationrepresentthelegal
levelofbudgetarycontrol.
UseofEstimates
Thepreparationoffinancialstatementsinconformitywithgenerallyacceptedaccounting
principlesrequiresmanagementtomakeestimatesandassumptionsthataffectthereported
amountsofassetsandliabilities,andthedisclosureofcontingentassetsandliabilities,ifany,at
thedateofthefinancialstatements,andthereportedamountsofrevenuesandexpensesduring
thereportingperiod.Actualresultscoulddifferfromthoseestimates.
|35
December31,2015
NOTE1
Cash,CashEquivalentsandInvestments
Cashandcashequivalentsincludecashonhand,demanddeposits,andinaccordancewith
GASBpronouncements,eachfund’sequityintheBorough’sinvestmentpoolsinceeachfundcan
depositoreffectivelywithdrawcashatanytimewithoutpriorwrittennoticeorpenalty.Cash
andcashequivalentsontheProprietaryFunds'cashflowstatementsareinagreementwiththe
amountslistedontherelatedstatementofnetpositionas“cashandequityinpooledcashand
investments”.
Investmentsarereportedatfairvaluebasedonquotedvaluesfromestablishedmarkets.
Managedfundsrelatedtotheretirementsystemsnotlistedonanestablishedmarketare
reportedatestimatedfairvalueasdeterminedbytherespectivefundmanagersbasedon
quotedsalespricesoftheunderlyingsecurities.Income,includingthechangeinfairvalue,
frominvestmentsheldbytheindividualfundsisrecordedintherespectivefundasitisearned.
AllotherinvestmentsownedbytheBoroughareaccountedforinpooledcashandtemporary
investmentaccounts.Incomeearnedfromthispoolingofinvestmentsisallocatedmonthlyto
therespectivefundsbaseduponmonthendbalances.
Inventories
InventoriesheldbytheElectric,Gas,Water,Sewer,andStoresFunds,aswellasfuelinthe
MotorEquipmentFundarepricedusingthemovingweighted‐averagemethod.Inventoriesof
partsheldbytheMotorEquipmentFundarestatedatthelowerofcostormarket,costbeing
determinedusingthefirst‐in/first‐out(FIFO)method.
CapitalAssets
Generalcapitalassetsarethoseassetsnotspecificallyrelatedtoactivitiesreportedinthe
proprietaryfunds.Theseassetsgenerallyresultfromexpendituresinthegovernmentalfunds.
Theseassetsarereportedinthegovernmentalactivitiescolumnofthegovernment‐wide
statementofnetpositionbutarenotreportedinthefundfinancialstatements.Capitalassets
utilizedbytheproprietaryfundsarereportedbothinthebusiness‐typecolumnofthe
government‐widestatementofnetpositionandintherespectivefund.
Allcapitalassetsarecapitalizedatcost(orestimatedhistoricalcost)andupdatedforadditions
andretirementsduringtheyear.Donatedfixedassetsarerecordedattheirfairvaluesasofthe
datereceived.TheBoroughmaintainsacapitalizationthresholdof$2,500.Improvementsare
capitalized;thecostsofnormalmaintenanceandrepairsthatdonotaddtothevalueofthe
assetormateriallyextendanasset’slifeareexpensed.Interestcostsincurredduringthe
constructionofcapitalassetsiscapitalizedforbusiness‐typeactivitiesandenterprisefundsand
expensedforgovernmentalactivities.
Infrastructureassetsthathavebeenacquiredsince1980havebeenrecordedinaccordance
withGASBrequirements.Theseconsistmainlyofhighwayimprovements.
|36
December31,2015
NOTE1
CapitalAssets(Continued)
Allreportedcapitalassetsaredepreciated.Improvementsaredepreciatedovertheremaining
usefullivesoftherelatedcapitalassets.Depreciationiscomputedusingthestraight‐line
methodoverthefollowingusefullives:
Landimprovements
Buildings
Infrastructure‐railroads
Infrastructure‐highways
Infrastructure‐other
Governmental
Activities
Business‐Type
Activities
10‐20years
40‐50years
8‐40years
20‐50years
25years
25years
5‐50years
10‐20years
40‐50years
8‐40years
20‐50years
N/A
N/A
N/A
DeferredOutflowsandInflowsofResources
Inadditiontoassets,thestatementofnetpositionwillsometimesreportaseparatesectionfor
deferredoutflowsofresources.Thisseparatefinancialstatementelement,deferredoutflowsof
resources,representsaconsumptionofnetpositionthatappliestoafutureperiod(s)andsowill
notberecognizedasanoutflowofresources(expense)untilthen.TheBoroughhasseveral
itemsthatqualifyforreportinginthiscategory,includingthedeferredchargeonbond
refunding,amountsdeferredduetodifferencesbetweentheexpectedandactualexperiencefor
pensionplansandthenetdifferencebetweenprojectedandactualearningsonpensionplan
investments.Theseamountswillbeamortizedinfutureperiods.Adeferredchargeonbond
refundingresultsfromthedifferenceinthecarryingvalueofrefundingdebtandits
reacquisitionprice.Thisamountisdeferredandamortizedovertheshorterofthelifeofthe
refundedorrefundingdebt.
Inadditiontoliabilities,thestatementofnetpositionwillsometimesreportaseparatesection
fordeferredinflowsofresources.Thisseparatefinancialstatementelement,deferredinflowsof
resources,representsanacquisitionofnetpositionthatappliestoafutureperiod(s)andsowill
notberecognizedasaninflowofresources(revenue)untilthattime.TheBoroughhas
unavailabletaxrevenuethatisreportedasdeferredinflowsofresourcesinthegovernmental
fundsbalancesheet.TheBoroughreportsthepensionplandifferencesbetweentheexpected
andactualexperienceandchangesinassumptionsasdeferredinflowsofresourcesonthe
statementofnetpositions.
InterfundTransactions
Advancesbetweenfundsareaccountedforintheappropriateinterfundreceivableandpayable
accounts.Advancesbetweenfundswhicharenotexpectedtoberepaidareaccountedforas
transfers.Interfundbalancesandtransactionsareeliminatedinthegovernment‐widefinancial
statements.
|37
December31,2015
NOTE1
InterfundTransactions(Continued)
Exchangetransactions,ifany,betweenfundsarereportedasrevenuesinthesellerfundsandas
expenditures/expensesinthepurchaserfunds.Flowsofcashorgoodsfromonefundto
anotherwithoutarequirementforrepaymentarereportedasinterfundtransfers.Interfund
transfersarereportedasotherfinancingsources/usesingovernmentalfundsandareshown
separatelyinproprietaryfunds.
AllowanceforUncollectibleAccounts
TheBoroughprovidescredittoitscustomersinthenormalcourseofbusiness.Receivablesare
generallyduethirtydaysafterbilled.TheBoroughprovidesanallowanceforuncollectible
accountsequaltotheestimatedlossesbasedonhistoricalcollectionexperiencethatwillbe
incurredinthecollectionofallreceivables.
LoansReceivable
Loansreceivableonthestatementofnetposition(classifiedin“otherreceivables”)represent
loansmadetolowincomeresidentsunderarevolvingloanprogramfundedbythe
PennsylvaniaDepartmentofCommunityandEconomicDevelopment(DCED)andtheFederal
HOMEProgram,aswellasaloanagreementwiththeChambersburgAreaDevelopment
CorporationfortherenovationoftheHeritageCenterfundedbyDCED.
Long‐TermObligations
Inthegovernment‐widefinancialstatements,long‐termdebtandotherlong‐termobligations
arereportedasliabilitiesintheapplicablegovernmentalorbusinesstypeactivitycolumnsin
thestatementofnetposition.Thissametreatmentalsoappliestoproprietaryfundfinancial
statements.
Bondpremiumanddiscounts,deferredchargeonbondrefunding,aswellasprepaidbond
insurancecosts,aredeferredandamortizedoverthelifeofthebondsusingthestraight‐line
method.Bondspayablearereportednetoftheapplicablebondpremiumordiscount.The
deferredchargeonbondrefundingisreportedasdeferredoutflowsofresourcesandamortized
overthetermoftherelateddebt.Prepaidbondinsurancecostsarereportedasanassetand
amortizedoverthetermoftherelateddebt.
Inthefundfinancialstatements,governmentalfundtypesrecognizebondpremiumsand
discountsduringthecurrentperiod.Thefaceamountofdebtissuedisreportedasother
financingsourceswhilediscountsondebtissuancesarereportedasotherfinancinguses(if
resultingfromadisparityininterestrates)orasdebtserviceexpenditures(ifresultingfrom
underwriter'sfees).Issuancecosts(includingprepaidbondinsurance),whetherornot
withheldfromtheactualdebtproceedsreceived,arereportedasdebtserviceexpenditures.
|38
December31,2015
NOTE1
NetPosition
Inthegovernment‐widefinancialstatementsandproprietaryfundfinancialstatements,net
positionisclassifiedinthefollowingcategories:
NetInvestmentinCapitalAssets:Thiscategorygroupsallcapitalassets,including
infrastructure,intoonecomponentofnetposition.Accumulateddepreciationandthe
outstandingbalancesofdebtandaccountspayableandretainagepayablethatare
attributabletotheacquisition,constructionorimprovementoftheseassetsreducethis
category.NetInvestmentinCapitalAssetsconsistsofthefollowingatDecember31,2015:
Government‐WideActivity
Capitalassets
Deferredchargeonbond
refunding
Accountsandretainagepayable
relatedtocapitalassets
Unspentnoteproceeds
Activities
Activities
$20,587,825 $ 133,072,582
‐
(19,727,971)
‐
180,720
(93,736) (2,512,939)
‐
209,545
$20,494,089 $ 111,221,937
ProprietaryFunds
Capitalassets
Deferredchargeonbond
refunding
Unspentnoteproceeds
Electric
Gas
Fund
Fund
$43,344,773 $ 10,178,657
(11,839,831) ‐
Water
Fund
$ 19,869,069
‐
Parking,Traffic,
andStreet
Sewer
Sanitation
StormSewer
LightsFund
Fund
Fund
Fund
$50,373,652 $ 1,332,484.00 $2,561,175 $ 3,069,951
(6,400,927) (1,487,213) ‐
‐
125,393
‐
55,327
‐
‐
(1,455) (4,713) (177,677) (2,329,094) ‐
‐
‐
‐
‐
209,545
$31,628,880 $ 10,173,944 $ 19,691,392 $41,698,958 $54,816
‐
‐
‐
‐
$2,561,175
‐
‐
$ 3,069,951
Capitalassets
Stores
Fund
$2,110
‐
Motor
Equipment
Fund
$ 3,257,565
‐
Engineering
Fund
$10,868
‐
Administrative
ServicesFund
$ 13,938
‐
‐
‐
‐
‐
‐
$2,110
‐
$ 3,257,565
‐
$10,868
‐
$ 13,938
Restricted:Thiscategorypresentsexternalrestrictionsimposedbycreditors,grantors,
contributorsorlawsorregulationsofothergovernmentsandrestrictionsimposedbylaw
throughconstitutionalprovisionsorenablinglegislation.Thefollowingdetailsrestricted
netposition:
Restrictedforcapitalimprovements
Restrictedforgrantexpenses
Restrictedforhighwayimprovements/projects
Restrictedforfireexpenses
$5,188,913
343,974
419,631
20,115
$5,972,633
|39
December31,2015
NOTE1
NetPosition
Unrestricted:Thiscategoryofnetpositionisthenetamountofassets,deferredoutflowsof
resources,liabilities,anddeferredinflowsofresourcesthatarenotincludedinthe
determinationofnetinvestmentincapitalassetsortherestrictedcomponentofnet
position.
NetPositionFlowAssumption:Sometimesthegovernmentwillfundoutlaysfora
particularpurposefrombothrestricted(e.g.restrictedbondorgrantproceeds)and
unrestrictedresources.Inordertocalculatetheamountstoreportasrestricted‐net
positionandunrestrictednetposition,aflowassumptionmustbemadeabouttheorderin
whichtheresourcesareconsideredtobeapplied.ItistheBorough’spolicytouse
restrictedresourcesfirst,thenunrestrictedresourcesastheyareneeded.
DeficitNetPosition
TheAdministrativeServicesFundandWorker’sCompensationFund(internalservicefunds)
havedeficitnetpositionbalancesof$2,182,054and$373,054respectively,atDecember31,
2015.Inaddition,theProjectHeatFund(privatepurposetrustfund)hasadeficitnetposition
balanceof$20,330atDecember31,2015.
FundBalance–GovernmentalFunds
Governmentalfundsclassifyfundbalancebasedontherelativestrengthofthespending
constraintsplacedonthepurposeforwhichresourcescanbeused.Theclassificationsareas
follows:
Nonspendable:Thisclassificationincludesamountsthatcannotbespentbecausetheyare
either(1)notinspendableformor(2)legallyorcontractuallyrequiredtobemaintained
intact.Thisclassificationincludesitemssuchasprepaidamounts,inventories,andthelong
termportionofloansandnotesreceivable.Thisalsoincludesthecorpus(orprincipal)of
permanentfunds.
Restricted:Thisclassificationincludesamountswheretheconstraintsplacedontheuseof
resourcesareeither(1)externallyimposedbycreditors(suchasthroughdebtcovenants),
grantors,contributors,orlawsorregulationsofothergovernments;or(2)imposedbylaw
throughconstitutionalprovisionsorenablinglegislation.Enablinglegislationauthorizes
thegovernmenttoassess,levy,changeormandatepaymentandincludesalegally
enforceablerequirementontheuseofthesefunds.Thefollowingdetailsrestrictedfund
balance:
Restrictedforcapitalimprovements
Restrictedforgrantexpenditures
Restrictedforhighwayimprovements/projects
Restrictedforfireexpenditures
$5,030,155
298,816
419,631
20,115
$5,768,717
|40
December31,2015
NOTE1
FundBalance–GovernmentalFunds(Continued)
Committed:Thisclassificationincludesamountsthatcanonlybeusedforspecificpurposes
pursuanttoconstraintsimposedbyformalactionoftheBorough’shighestlevelofdecision‐
makingauthority.Thisformalactionisintheformofaresolutionwhichismadebythe
BoroughCouncil.Onceanamountiscommitted,itcannotbeusedforanyotherpurpose
unlesschangedbythesametypeofformalactionusedtoinitiallyconstrainthefunds.
Assigned:Thisclassificationincludesspendableamountsthatarereportedin
governmentalfundsotherthanintheGeneralFund,thatareneitherrestrictednor
committed,andamountsintheGeneralFundthatareintendedtobeusedforaspecific
purpose.TheintentofanassignedfundbalanceshouldbeexpressedbytheBorough
Council.Theassignmentoffundbalancecannotresultinanegativeunassignedfund
balance.
Unassigned:Thisclassificationrepresentstheportionofaspendablefundbalancethathas
notbeencategorizedasrestricted,committed,orassigned.Thegeneralfundistheonly
fundwhichwouldincludeapositiveunassignedfundbalanceasallotherfundtypesmust
categorizeamountswithintheotherclassifications.Anegativeunassignedfundbalance
mayoccurinanyfundwhenthereisanoverexpenditureofrestrictedorcommittedfund
balance.Inthiscase,anyassignedfundbalance(andunassignedfundbalanceinthe
generalfund)wouldbeeliminatedpriortoreportinganegativeunassignedfundbalance.
MinimumFundBalance
TheBorough’spolicyistomaintainaminimumof5%ofthetotalbudgetedexpenditures
(includinginterfundtransfersout)astheresidualunassignedfundbalanceatyearend.Three
methodsthatcanbeemployedinincreasingfundbalanceifitweretofallbelowtheminimum
thresholdare:1)increasegeneralfundrevenuesviataxorotherrevenueincrease(chargesfor
service),2)decreasinggeneralfundexpenditures,or3)increasingtransfersfromother
Boroughfunds.
OrderofSpendingPolicy
TheBorough’spolicyforspendingorderwhenfundbalanceresourcesareavailablefora
specificpurposeinmultipleclassificationsistouserestrictedresourcesfirstandthenapply
unrestrictedresourcesinthefollowingorder:unassigned,assigned,andcommitted.
PensionTrustFunds
InJune2013,theGASBissuedStatementNo.68,AccountingandFinancialReportingforPension
Plans.Theobjectiveofthisstatementistoimprovefinancialreportingbystateandlocal
governmentplansbyprovidingdecision‐usefulinformation,supportingassessmentsof
accountabilityandinterperiodequity,andcreatingadditionaltransparency.Thefinancial
statementsincorporatethechangesrequiredbyStatementNo.68.
TheGASBrequiresastatementofplannetpositionandastatementofchangesinplannet
position.Theseareshownaspartofthefiduciarystatements.Italsorequiresplaninvestments
toberecordedattheirfairvalueandestablishesstandardsforthemeasurement,recognition,
anddisplayofpensionexpenseandrelatedliabilities,assets,andnotedisclosures.
|41
December31,2015
NOTE1
DeferredCompensationPlan
TheBoroughhasestablishedadeferredcompensationplanunderInternalRevenueCode
Section457whichcoversallemployees.Allassetsandincomeoftheplanareheldforthe
exclusivebenefitoftheplan’sparticipantsandtheirbeneficiaries.Inaccordancewiththe
provisionsoftheGASB,theassetsandliabilitiesoftheplanarenotreportedonthefinancial
statementsoftheBorough.
CompensatedAbsences
Liabilityforcompensatedabsencesisaccountedforinaccordancewiththeprovisionsofthe
GASB,whichrequireentitiestoaccrueforemployees’rightstoreceivecompensationfor
vacationleave,orpaymentsinlieuofaccruedvacationorsickleave,assuchbenefitsareearned
andpaymentbecomesprobable.
UndertermsoftheBorough’semploymentagreements,employeesaregrantedvacationand
sickleaveinvaryingamounts.VacationdaysnotusedbyDecember31arelostunless
otherwiseapproved,orareretainedifemployedforatleast20yearsbytheBorough.All
employees(includinguniformedpolice)arepermittedtoaccumulateunlimitedsickdays.Upon
retirementfromtheBorough,employeeswithacertainnumberofyearsofcontinuousservice
arereimbursedasfollowsfortheiraccumulatedsickleave:
 Non‐BargainingandPolice‐employeesmayaccrueandbankunlimitedsickleavetime
butsaidtimeshallbeunderstoodtohavenocashvalue.Asawellnessincentive,the
Boroughshallpaytoanemployeewithatleastfive(5)yearsofcontinuousemployment
withtheBorough,apost‐separationlumpsumpaymentof1%ofsuchemployee’sunused
accumulatedsickleaveforeachyearofthattheemployeehasbeenemployedwiththe
Borough.(Example:Anemployeewhohasbeenemployedfor15yearswiththeBorough
wouldbeentitledto15%oftheemployee’sunusedaccumulatedsickleave,subjecttothe
maximumpaymentamountsetforthbelow).Suchpaymentshallbebaseduponthe
employee’shourlyrateatthetimeofseparation.However,anyemployeewhois
terminatedduetogrossneglect,fraud,dishonesty,orwillfulfailuretoperformsuch
employee’sduties,shallforfeitallrightstosuchlumpsumpaymentforunusedsickleave
(thewellnessincentive).Additionally,employeesshallonlybeeligibleforthewellness
incentiveif,uponseparation,theemployeehasaccumulatedinexcessoffivehundred(500)
hoursofsickleave.Themaximumamounttobepaidtoanyemployeeforsuchwellness
incentiveshallbeTenThousandDollars($10,000).
 Bargaining‐1%peryearofserviceofunusedsickleaveuptoamaximumof90dayspay
foremployeeswithatleastfive(5)yearsofcontinuousemployment.
 Fire‐15%to27.5%ofaccumulatedsickleavebasedonyearsofservice.
OtherPostemploymentBenefitsOtherThanPension
TheBoroughprovidespostemploymentbenefitsbypermittingretiredemployeestheabilityto
participateintheemployeehealthplan.Eventhoughtheretireespay102%oftheBorough’s
blendedpremiumrate,theBoroughisstillprovidinganimplicitratesubsidytoitsretirees.
Thesebenefitsarefinancedonapay‐as‐you‐gobasis.TheBoroughprovidesnoother
postemploymentbenefitsforBoroughemployees.
|42
December31,2015
NOTE1
StatementofCashFlows‐ProprietaryFunds
BecausetheBoroughaccountsforalldepositsandinvestmentsthroughaCentralTreasury
function,allinvestmentsareconsideredtobecashequivalentsforpurposesofthestatementof
cashflows.
Reclassifications
Certainamountsinthe2014financialstatementshavebeenreclassifiedtoconformtothe2015
presentation.
NOTE2
CASHANDCASHEQUIVALENTS
TheBoroughisauthorizedtoinvestinthefollowing:
 U.S.TreasuryBills.
 Short‐termobligationsoftheU.S.Governmentoritsagencies.
 DepositsinsavingsaccountsorcertificatesofdepositinsuredbytheFDICorNCUSIFtothe
extentthatsuchaccountsaresoinsuredandforanyamountsabovetheinsuredmaximum,
providedthatapprovedcollateralasprovidedbylawshallbepledgedbythedepository.
 ObligationsoftheU.S.Government,CommonwealthofPennsylvania,oranyagency,
instrumentality,orpoliticalsubdivisionthereof,backedbythefullfaithandcreditofthe
applicablegovernment.
 SharesofaninvestmentcompanyregisteredundertheInvestmentCompanyActof1940,
whosesharesareregisteredundertheSecuritiesActof1933.
Deposits
CustodialCreditRisk–Deposits
Custodialcreditriskistheriskthatintheeventofabankfailure,theBorough’sdeposits
maynotbereturnedtoit.TheBoroughdoesnothaveawrittenpolicyforcustodialcredit
risk.AsofDecember31,2015,theBoroughhasabankbalanceof$9,264,490.Ofthis
balance,$677,500iscoveredbyFDICinsuranceandtheremainingbalanceof$8,586,990
iscollateralizedbysecuritiesheldbythepledgingfinancialinstitution,notintheBorough’s
name.
|43
December31,2015
NOTE2
CASHANDCASHEQUIVALENTS(CONTINUED)
Investments
AsofDecember31,2015,theBorough’sinvestmentswereasfollows:
InvestmentType
PLGIT/PLGITPLUS
PLGIT‐CD'sandTermCD's
ValleyForge‐USgovernmentalobligations
ValleyForge‐NegotiableCD's
FairValue
$1,001,790
2,973,904
37,730,195
2,149,189
CreditQuality
Rating
AAAm
AAAm
AA+
NotRated
ThecertificatesofdepositheldatPLGITandValleyForgewereallcoveredbyFDIC
insurance.
CreditRisk–Investments
TheBoroughhasnoinvestmentpolicythatwouldlimititsinvestmentchoicestocertain
creditratings.
Includedincashandcashequivalentsonthestatementofnetpositionarepooled
investmentsinthePennsylvaniaLocalGovernmentInvestmentTrust(PLGIT)of
$1,001,790.Thesefundsarebasicallymutualfundsthatconsistofshort‐termmoney
marketinstrumentsandseektomaintainaconstantnetassetvalueof$1pershare.
ConcentrationsofCreditRisk–Investments
TheBoroughplacesnolimitontheamountitmayinvestinanyoneissuer.AtDecember31,
2015,88%oftheBorough’sinvestmentsareheldinU.S.GovernmentObligationswhich
includesFederalHomeLoanBank(24%),FederalFarmCreditBank(16%),Federal
NationalMortgageAssociation(14%),FederalHomeLoanMortgageCorporation(20%)
andFreddieMac(14%),while12%areheldinnegotiablecertificatesofdepositwith
variousbanks.
InterestRateRisk–Investments
Thefollowinginvestmentsaresubjecttointerestraterisk:
PLGIT‐CD'sandTermCD's
ValleyForge‐USgovernmentalobligations
ValleyForge‐NegotiableCD's
InvestmentMaturities
Total
(inYears)
Fair
Less
Value
Than1
1‐5
$2,973,904 $2,973,904 $‐
37,730,195 397,094 37,333,101
2,149,189 729,736 1,419,453 TheBoroughdoesnothaveaformalinvestmentpolicythatlimitsinvestmentmaturitiesas
ameansofmanagingitsexposuretofairvaluelossesarisingfromincreasinginterestrates.
TheBoroughhas$37,333,101investedinU.S.governmentalobligationswithcalldatesin
excessofoneyearasofDecember31,2015.Subsequenttoyearenduponreceiving
additionallegaladvice,itwasdeterminedtheseareconsideredunallowableinvestments.
Theseinvestmentswerethensoldandreplacedwithallowableinvestments.
|44
December31,2015
NOTE2
CASHANDCASHEQUIVALENTS(CONTINUED)
Investments(Continued)
MunicipalPensionPlans
Investmentsheldbythetrusteesofthepensionplansareasfollows:
MoneyMarketFunds
CorporateBondMutualFunds
OpenEndMutualFunds
Total
TotalFair
Investment
Value
Maturities
$185,594
N/A
4,626,961 LessThan1Year
N/A
29,689,252
$34,501,807
ConcentrationsofCreditRisk–PensionPlanInvestments
AtDecember31,2015,thefollowinginvestmentswereinexcessof5%oftheplannet
position:Short‐TermInvestment‐GradeAdmiral(16.84%),VanguardValueIndexFund
AdmiralShares(14.35%),VanguardInstitutionalIndexFund(14.23%),DimensionalFunds
AdvisorOneYearFixedIncomePortfolioInstitutionalClass(13.48%),VanguardMid‐Cap
ValueIndexFundAdmiralShares(9.26%),DimensionalFundsAdvisorU.S.SmallCapValue
PortfolioInstitutional(8.98%),DimensionalFundsAdvisorInternationalValuePort
Institutional(6.01%),andDimensionalFundsAdvisorInternationalSmallCapValue
PortfolioInstitutional(5.53%).
CreditRisk‐PensionPlans
TheBoroughdoesnothaveaformalpolicypertainingtocreditrisk.Thecorporatebond
mutualfundscreditratingisdetailedbelow:
Institution
Vanguard
Vanguard
DFA
Description
CreditQuality
GNMAFundAdmiralShares
AA
Short‐TermInvestment–GradeAdmiral
A
OneyearFixedIncomePortfolio–Instl
AA
ForeignSecuritiesandCurrenciesRisk‐PensionPlans
Foreignsecuritiespricesmaydeclineorfluctuatebecauseofeconomicorpoliticalactionsof
foreigngovernmentsorthepossibilitythatforeigncurrencywillfluctuateinvalueagainstthe
U.S.dollar.Includedinthe$29,689,252ofOpenEndMutualFundsshownaboveare
InternationalMutualFundswithafairvalueof$4,288,987.TheInternationalMutualFunds
maybesubjecttoforeignsecuritiesandcurrenciesrisk.
|45
December31,2015
NOTE3
TAXESANDOTHERRECEIVABLES
PropertytaxesareleviedonMarch1forthetaxyear.Taxesarepayableata2%discountif
paidbeforeMay1andata10%penaltyifpaidaftertheduedateofJune30.Outstandingreal
estatetaxesareturnedovertoadelinquenttaxcollectoronJanuary15ofeachyear.After
propernotificationismadetoapropertyowner,alienisfiledonoraboutMay1andmust
remainineffectforaperiodoftwoyearsbeforeataxsalemayoccur.
TaxesarerecordedinthefundsasrevenuebytheBoroughwhenreceivedfromthetax
collector,andaccrualsarerecordedatyear‐endfortaxesexpectedtobereceivedwithin60
daysofDecember31inaccordancewiththemodifiedaccrualbasisofaccounting.TheBorough
hasnotestablishedanallowanceforuncollectibletaxessinceexperiencehasdemonstratedthat
substantiallyalltaxesareultimatelycollectible.
ReceivablesasofDecember31,2015fortheBorough’sgovernmentalactivities,includingthe
applicableallowancesforuncollectibleaccounts,areasfollows:
Realestate
Earnedincometax
Ambulancebillings
Loansreceivable
Grantsreceivable
Contributionreceivable
Other
Allowanceforuncollectibleaccounts
$422,333
490,154
229,049
481,686
291,954
63,668
408,536
237,904
(283,709)
Receivables‐fullaccrualbasis
2,341,575
Allocationofinternalservicefundsreceivablesnotrecordedin
thegovernmentalfundfinancialstatements
(9,245)
Receivables‐modifiedaccrualbasis
$2,332,330
|46
December31,2015
NOTE4
CAPITALASSETS
CapitalassetactivityfortheBoroughconsistsofthefollowingfortheyearendedDecember31,
2015:
Beginning
Balance
Additions
Deletions
Transfers
Ending
Balance
GovernmentalActivities:
Cost:
Capitalassetsnotbeingdepreciated
Land
Construction‐in‐progress
Capitalassets
Landimprovements
Buildings
Totalcost
$402,325
1,198,919
$‐
134,590
$‐
$‐
(1,001,393) ‐
$402,325
332,116
3,517,605
4,840,703
5,045,056
15,734,865
2,478,702
6,214,950
39,433,125
157,531
‐
296,175
‐
2,312,326
91,449
2,992,071
(1,981)
(462)
(241,381)
‐
‐
‐
(1,245,217)
(518,874)
‐
‐
‐
(2,221,282)
(1,344,460)
(4,084,616)
3,154,281
4,840,241
5,099,850
15,734,865
2,569,746
4,961,939
37,095,363
Lessaccumulateddepreciation:
Landimprovements
Buildings
Totalaccumulateddepreciation
(1,425,363)
(3,562,725)
(3,402,158)
(1,735,090)
(4,439,536)
(1,825,858)
(16,390,730)
(192,604)
(101,112)
(280,401)
(99,148)
(503,659)
(151,156)
(1,328,080)
1,987
202
201,232
‐
‐
‐
203,421
47,418
‐
‐
‐
799,693
160,740
1,007,851
(1,568,562)
(3,663,635)
(3,481,327)
(1,834,238)
(4,143,502)
(1,816,274)
(16,507,538)
Capitalassets,net
$ 23,042,395
$ 1,663,991
$(1,041,796) $(3,076,765) $ 20,587,825
Business‐TypeActivities:
Cost:
Capitalassetsnotbeingdepreciated
Land
Construction‐in‐progress
Capitalassets
Landimprovements
Buildings
Totalcost
$900,475
23,858,028
$612,032
14,988,883
$‐
$‐
(1,811,961) ‐
$1,512,507
37,034,950
162,299,346
543,898
1,403,787
11,342,765
200,348,299
2,232,392
850,176
20,266
1,218,749
19,922,498
(20,326)
‐
(4,839)
(417,330)
(2,254,456)
1,344,460
2,740,156
‐
‐
4,084,616
165,855,872
4,134,230
1,419,214
12,144,184
222,100,957
Lessaccumulateddepreciation:
Landimprovements
Buildings
Totalaccumulateddepreciation
(75,545,621)
(471,133)
(406,093)
(6,655,148)
(83,077,995)
(4,494,788)
(108,483)
(32,058)
(676,036)
(5,311,365)
23,629
‐
‐
345,207
368,836
‐
(847,111)
‐
(160,740)
(1,007,851)
(80,016,780)
(1,426,727)
(438,151)
(7,146,717)
(89,028,375)
Capitalassets,net
$ 117,270,304
$ 14,611,133
$(1,885,620) $3,076,765
$ 133,072,582
|47
December31,2015
NOTE4
CAPITALASSETS(CONTINUED)
IncludedintheaboveadditionsforBusiness‐TypeActivitiesandretirementsforGovernmental
Activitiesareassetsandrelatedaccumulateddepreciationthatwastransferredfromthe
GovernmentalActivitiestotheStormSewerFundinthecurrentyear.Thistransferisrecorded
inthegovernmentalactivitiesandbusiness‐typeactivities;howeveritisnotshownasa
transferofassetsfromthegovernmentalactivitiesonthefundlevelfinancialstatementssince
capitalassetsarenotrecordedonthegovernmentalfundlevel.Thistransferwasnecessaryfor
theestablishmentoftheStormSewerFundinthecurrentyear.
SeeNote10forprojectcommitments.
DepreciationexpensefortheyearendedDecember31,2015waschargedtoexpensefunctions,
includingtheinternalservicefundallocations,asfollows:
Generalgovernment
Publicsafety
Publicservices
Parksandrecreation
Electric
Gas
Water
Sewer
Sanitation
StormSewer
Governmental
Activities
$418,576
165,268
540,869
203,367
‐
‐
‐
‐
‐
‐
‐
$ 1,328,080
Business‐Type
Activities
$‐
‐
‐
‐
2,264,639
451,566
747,031
1,515,017
121,339
126,054
85,719
$5,311,365
InternalServiceFundAllocation
Thecapitalassetinformationshownaboveforgovernmentalactivitiesandbusiness‐type
activitiesincludestheallocationofcapitalassets,accumulateddepreciationandcurrentyear
depreciationexpenseofinternalservicesfunds.Thisallocationisbasedontheapplicableusage
ofeachinternalservicefundbythegovernmentalactivities(29%)andthebusiness‐type
activities(71%).Theseallocationschangedin2015comparedto2014,thusthebeginning
balancesdonotmatchthepreviousyearfinancialstatementsduetoreallocatingthebeginning
balanceoftheinternalservicefundsusingthenewallocations.
|48
December31,2015
NOTE5
LONG‐TERMLIABILITIES
Thechangesinlong‐termliabilitiesduringtheyearendedDecember31,2015wereasfollows:
Beginning
Balance
Additions
GovernmentalActivities:
Compensatedabsences
$310,916
631,390
$‐
518,321
$(84,804) $226,112
(469,921) 679,790
Totallong‐termliabilities
$942,306
$ 518,321
(B) Sewer2009GOBond
(D) Sewer2012GONote
(A) Electric2007GOBond
(B) Electric2009GOBond
(C) Electric2012GOBond
(D) Electric2012GONote
(E) Sanitation2014GONote
Subtotal‐bondsandnotes
$766,800
6,296,894
40,000
1,373,200
9,775,000
1,463,106
614,202
20,329,202
Compensatedabsences
Totallong‐termliabilities
Unamortized
BondPremium
andDiscount
Current
Portion
Long‐term
Portion
$‐
‐
$75,205
373,642
$150,907
306,148
$(554,725) $ 905,902
$‐
$448,847
$ 457,055
$‐
‐
‐
‐
‐
‐
885,798
885,798
$(408,412)
(259,666)
(40,000)
(731,588)
(55,000)
(60,335)
(12,787)
(1,567,788)
$5,310
‐
‐
9,509
65,940
‐
‐
80,759
$178,658
184,241
‐
319,877
1,120,170
42,809
50,232
1,895,987
$185,040
5,852,987
‐
331,244
8,665,770
1,359,962
1,436,981
17,831,984
773,548
786,265
‐
522,773
(210,987) 562,561
(460,897) 848,141
‐
‐
187,108
457,434
375,453
390,707
$21,889,015
$ 1,408,571
$ (2,239,672) $ 21,057,914
$80,759
$2,540,529
$ 18,598,144
Reductions
Ending
Balance
$358,388
6,037,228
‐
641,612
9,720,000
1,402,771
1,487,213
19,647,212
TheGeneralFundandInternalServiceFundshavebeenusedinprioryearstoliquidatethe
liabilityforcompensatedabsencesintheGovernmentalActivities.Inadditiontothelong‐term
liabilitieslistedabove,theBoroughhasanetpensionobligationandanetOPEBobligation.See
Note7andNote8foradditionaldetails.TheGeneralFundandtheInternalServiceFundhave
beenusedinprioryearstoliquidatethenetpensionliabilityandnetotherpostemployment
benefitobligationintheGovernmentalActivities.
InternalServiceFundAllocation
Theliabilityforself‐insuredlossesandcompensatedabsencesinformationshownabovefor
governmentalactivitiesandbusiness‐typeactivitiesincludestheallocationofself‐insured
lossesanduseofcompensatedabsencesofinternalservicefunds.Thisallocationisbasedon
theapplicableusageofeachinternalservicefundbythegovernmentalactivities(29%)andthe
business‐typeactivities(71%).Theseallocationschangedin2015comparedto2014,thusthe
beginningbalancesdonotmatchthepreviousyearfinancialstatementsduetoreallocatingthe
beginningbalanceoftheinternalservicefundsusingthenewallocations.
(A)
GeneralObligationBonds–Seriesof2007–OnJune1,2007,theBoroughissued
GeneralObligationBondsintheprincipalamountof$10,000,000tobeusedfora
partialrefundingoftheGeneralObligationBonds,Seriesof2002and2003andthecosts
ofissuingtheBonds.AnnualinstallmentsofthedebtwerepaidfromtheElectricFund
andvariedfrom$30,000to$1,475,000andwereduethroughSeptember1,2015.
Interestratesvariedfrom3.60%to4.00%.InterestwaspayableeveryMarch1and
September1.
|49
December31,2015
NOTE5
LONG‐TERMLIABILITIES(CONTINUED)
InternalServiceFundAllocation(Continued)
(B)
GeneralObligationBonds–Seriesof2009–OnMarch1,2009,theBoroughissued
GeneralObligationBondsintheprincipalamountof$10,000,000tobeusedforafull
refundingoftheGeneralObligationBonds,Seriesof2002and2003,apartialrefunding
oftheGeneralObligationBonds,Seriesof2004andthecostsofissuingtheBonds.
AnnualinstallmentsofthedebtaretobepaidfromtheElectricandSewerFunds,which
varyfrom$510,000to$1,530,000andareduethroughSeptember1,2017.Interest
ratesvaryfrom2.50%to3.00%.InterestispayableeveryMarch1andSeptember1.
(C)
GeneralObligationBonds–Seriesof2012–OnMay29,2012,theBoroughissued
GeneralObligationBondsintheprincipalamountof$9,785,000tobeusedforapartial
refundingoftheGeneralObligationBonds,Seriesof2007andthecostsofissuingthe
bonds.AnnualinstallmentsofdebtaretobepaidfromtheElectricFunds,whichvaryin
amountsfrom$5,000to$1,500,000andareduethroughJuly1,2022.Interestrates
forthebondsare2.00%.InterestispayableeveryJanuary1andJuly1.
(D)
GeneralObligationNotes–Seriesof2012–OnOctober5,2012,theBoroughissueda
GeneralObligationNoteinthetotalof$8,000,000tobeusedforvariousprojects.The
drawdownperiodonthenotewasthroughApril31,2014.Thefundswillbeutilizedby
theSewerandElectricFunds.PrincipalisduemonthlybeginningonMay1,2014.
Interestratesforthenoteis2.46%forthefirsteightyears,followedby66%ofU.S.
primerate,less0.25%withafloorof1.98%andaceilingof2.51%forthenext3.5years
and66%oftheU.S.primerateless0.25%withafloorof1.98%andaceilingof5.3%for
theremaining15years.ThematuritydateoftheprincipalisOctober1,2038.
(E)
GeneralObligationNotes–Seriesof2014–OnMarch31,2014,theBoroughissueda
GeneralObligationNoteinthetotalof$1,500,000tobeusedforthepurposeof
financingtheconstructionofanewgreenwasterecyclingfacility.Thedrawdown
periodonthenotewasthroughNovember30,2015.Thefundswillbeutilizedbythe
SanitationFund.PrincipalisduemonthlybeginningonNovember1,2015.Interest
ratesforthenoteare3.17%forthefirst11yearsandsixmonths,followedby66%of
U.S.primerate,less0.25%withafloorof1.98%andaceilingof5.30%forthe
remaining10years.ThematuritydateoftheprincipalisOctober1,2035,basedonthe
loanbeingfullydrawn.
Thegeneralobligationbondsandgeneralobligationnotesaresecuredbythefullfaith,credit,
andtaxingpoweroftheBorough.Theprincipalandinterestpaymentsofthe2007and2009
GeneralObligationbondsarealsoguaranteedunderfinancialguaranteeinsurancepolicies.
|50
December31,2015
NOTE5
LONG‐TERMLIABILITIES(CONTINUED)
Thefollowingisaschedulebyyearsandintheaggregateoffutureminimumbondandnote
principalandinterestpaymentsrequiredatDecember31,2015:
Electric
2016
2017
2018
2019
2020
2021‐2025
2026‐2030
2031‐2035
2036‐2039
Seriesof2009Bonds
Principal
Interest
$314,400 $18,780
327,212 9,820
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
$641,612 $28,600
Seriesof2012Bonds
Principal
Interest
$ 1,110,000 $ 194,400
1,365,000 172,200
1,395,000 144,900
1,420,000 117,000
1,450,000 88,600
2,980,000 89,600
‐
‐
‐
‐
‐
‐
$ 9,720,000 $ 806,700
Seriesof2012Note
Principal
Interest
$ 42,809 $ 31,291
47,920 32,917
49,112 31,725
50,334 30,503
51,595 29,299
261,012 173,144
287,975 202,655
375,137 115,493
236,877 16,937
$ 1,402,771 $ 663,964
Sewer
2016
2017
2018
2019
2020
2021‐2025
2026‐2030
2031‐2035
2036‐2039
Seriesof2009Bonds
Principal
Interest
$175,600 $10,485
182,788 5,480
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
$358,388 $15,965
Seriesof2012Note
Principal
Interest
$ 184,241 $ 134,671
206,235 141,669
211,367 136,538
216,625 131,279
222,055 126,098
1,123,338 745,176
1,239,376 872,189
1,614,497 497,066
1,019,494 73,340
$ 6,037,228 $ 2,858,026
Sanitation
Seriesof2014Note
Principal
Interest
$ 50,232 $42,687
56,632 44,734
58,454 42,913
60,334 41,033
62,274 39,092
341,429 167,170
379,830 180,059
478,028 65,069
‐
‐
$ 1,487,213 $622,757
Total
$2,309,596
2,592,607
2,070,009
2,067,108
2,069,013
5,880,869
3,162,084
3,145,290
1,346,648
$24,643,224
|51
December31,2015
NOTE6
INTERFUNDACTIVITY
Interfundtransfersconsistedofthefollowingduring2015:
TransfersIn
Majorgovernmentalfunds:
Generalfund
Specialrevenuegrantprograms
Nonmajorgovernmentalfunds:
Specialrevenueliquidfuels
SpecialrevenueRichardKasherFiretax
Capitalreserve
Majorproprietaryfunds:
Electric
Gas
Water
Sewer
Nonmajorproprietaryfunds:
Sanitiation
StormSewer
Internalservicefunds:
Motorequipment
Selfinsurance
Engineering
Worker'scompensation
Administrativeservices
TransfersOut
$2,090,000 $1,595,603
8,507 ‐
‐
‐
2,994,278
1,130,000
478,947
7,507
‐
‐
‐
‐
2,095,317
410,000
160,000
122,000
‐
875,242
221,000
7,250
23,000
5,000
526,947 632,500
10,000 ‐
‐
50,000
41,150 ‐
50,000
‐
$6,767,124 $6,767,124
Transfersweremadetohelpfinanceoperationsofthegeneralorotherfunds.Transferswere
alsomadeduringthecurrentyeartoestablishreservesforvariousfuturecapital
improvements.Alltransfersareconsideredroutine.
|52
December31,2015
NOTE7
PENSIONPLANS
SummaryofSignificantAccountingPolicies
PlanDescription
TheBoroughsponsorsthreesingle‐employerdefinedbenefitretirementplanswhichcover
BargainingandAdministrativeEmployees,PoliceOfficersandPaidFiremen.Plan
provisionsareestablishedbymunicipalordinancewiththeauthorityformunicipal
contributionsrequiredbyAct205oftheCommonwealth.
PlanMembership
AtDecember31,2015,theparticipationineachplanisasfollows:
Participants:
Retireesandbeneficiaries
Vestedformermembers
Activeemployees
Total
Bargainingand
Administrative
Employees
Police
90
12
149
251
23
1
35
59
Firemen
17
‐
23
40
BenefitsProvided
Allregularfull‐timeandcertainpart‐timeemployeesareeligibletoparticipateintheplans.
BenefitsvestaftertwelveyearsofserviceforBargainingandAdministrativeEmployees,
PaidFiremenandPoliceOfficers.BargainingandAdministrativeEmployeesareeligiblefor
normalretirementafterattainingagesixty‐five.Eligibilityfornormalretirementunderthe
PoliceOfficersandPaidFiremenplansisattainedatagefiftyandcompletionoftwenty‐five
yearsofservice.BenefitsundertheBargainingandAdministrativeEmployeesplanare
basedon1.5%ofaveragemonthlypaytimesthenumberofyearsofservicenottoexceed
thirty‐fiveyears.Averagemonthlypayisbasedonthethreeyearsofhighestpayoutofthe
lastfiveyearsofemployment.BenefitsunderthePoliceOfficersandPaidFiremenpensions
arebasedon50%ofaveragemonthlypayduringthelastthirty‐sixmonthsandtheaverage
monthlypayofthethreehighestyearsofcompensation,respectively.Inaddition,police
officersreceiveaserviceincrementequalto$100permonthformemberswhocomplete
26ormoreyearsofbenefitservice.TheBargainingandAdministrativeEmployeesPlanand
thePoliceOfficersPlanalsoincludeadisabilitybenefitandsurvivorbenefits.Ifapolice
memberretiresonorafterJanuary1,2000,orafiremanretiresonorafterJanuary1,2008,
anannualcost‐of‐livingadjustmentismadetohispensionequaltothepercentageincrease
intheConsumerPriceIndexfortheprecedingcalendaryear,withamaximumtotalcost‐of‐
livingincreaseof30%,andamaximumpensionbenefitof75%ofthesalaryusedfor
computingtheinitialretirementbenefit.
|53
December31,2015
NOTE7
PENSIONPLANS(CONTINUED)
SummaryofSignificantAccountingPolicies(Continued)
FinancialReports
Therearenoseparate,auditedGAAP‐basispensionplanreportsforthedefinedbenefit
plans,asallnecessaryinformationisdisclosedherein.
Contributions
TheBargainingandAdministrativeEmployeesplan,thePoliceOfficersplan,andthePaid
Firemenplanrequireemployeecontributionsof4%.TheBoroughisrequiredtocontribute
theremainingamountsnecessarytofundtheplans,usingtheactuarialbasisspecifiedby
theplan.Theaveragecontributionratewas7.56percentofannualpayrollforthe
BargainingandAdministrativeEmployees,22.02percentofannualpayrollforthePolice
Officers,and18.96percentofannualpayrollforthePaidFiremen.Theemployer
contributionsfor2015were$699,463fortheBargainingandAdministrativeEmployees,
$498,970forthePoliceOfficers,and$299,092forthePaidFiremen.
Act205oftheCommonwealthrequiresthatannualcontributionsbebaseduponthe
calculationoftheMinimumMunicipalObligation(MMO).TheMMOcalculationisbased
uponthebiennialactuarialvaluationalsorequiredbyAct205.Employeesarenotrequired
tocontributeunderAct205;suchcontributionsaresubjecttocollectivebargaining.The
Commonwealthallocatesforeignfireandcasualtypremiumstoassistinpensionfunding.
AnyfinancialrequirementabovetheCommonwealthallocationmustbefundedbythe
Borough.
Administrativecosts,includinginvestmentservices,custodialtrusteeandactuarialservices
arechargedtotheappropriateplanandfundedfrominvestmentearnings.
Investments
MethodUsedtoValueInvestments
Investmentsarereportedatfairvalue.Shortterminvestmentsarereportedatcost,which
approximatesfairvalue.Fairvalueisdeterminedbyquotedmarketprice.
RateofReturn
FortheyearendedDecember31,2015,theannualmoneyweightedrateofreturnon
pensionplaninvestments,netofpensionplaninvestmentexpensewasnegative(1.9)
percentforthebargainingandadministrativeplan,negative(1.9)percentforthepolice
officersplan,andnegative(1.0)percentforthepaidfiremenplan.Themoney‐weighted
rateofreturnexpressesinvestmentperformance,netofinvestmentexpense,adjustedfor
thechangingamountsactuallyinvested.
|54
December31,2015
NOTE7
NetPensionLiability,PensionExpense,andDeferredOutflowsofResourcesand
DeferredInflowsofResourcesRelatedtoPensions
AtDecember31,2015theBoroughreportedaliabilityof$11,827,898intheStatementof
NetPosition.ThenetpensionliabilitywasmeasuredasofDecember31,2015,andthetotal
pensionliabilitywasdeterminedbyrollingforwardliabilitiesfromanactuarialvaluationas
ofJanuary1,2015.Nosignificanteventsorchangesinassumptionsoccurredbetweenthe
valuationdateandthefiscalyearend.FortheyearendedDecember31,2015,theBorough
recognizedpensionexpenseof$1,017,181fortheBargainingandAdministrative
Employees,$565,270forthePoliceOfficers,and$323,157forthePaidFiremen.
Thefollowingdetailsthechangesintotalpensionliability,theplanfiduciarynetposition,
andthenetpensionliability,asofDecember31,2015:
BargainingandAdministrativeEmployees
Increase(Decrease)
BalancesasofDecember31,2014
Changesfortheyear:
Servicecost
Interest
Changesinbenefits
Changesofassumptions
Differencesinexpectedandactualexperience
Contributions‐employer
Contributions‐employee
Netinvestmentincome
Benefitpayments,includingrefundsof
membercontributions
Other
NetChanges
Plan
TotalPension
Fiduciary
Liability
NetPosition
(a)
(b)
$24,066,589 $18,994,759
571,290
1,918,151
‐
‐
58,932
NetPension
Liability
(a)‐(b)
$5,071,830
PlanFiduciary
NetPosition
asa%of
TotalPension
Liability
78.93%
571,290
1,918,151
‐
‐
58,932
699,463 (699,463)
358,759 (358,759)
(360,956) 360,956
(1,439,849) (1,439,849)
(11,500)
‐
‐
1,108,524 (754,083)
$ 25,175,113 $ 18,240,676
‐
11,500
‐
1,862,607
$6,934,437
72.46%
|55
December31,2015
NOTE7
Police
Increase(Decrease)
Changesfortheyear:
Servicecost
Interest
Changesinbenefits
Netinvestmentincome
membercontributions
Other
NetChanges
Plan
TotalPension
Fiduciary
Liability
NetPosition
(a)
(b)
$13,785,858 $11,482,385
346,120
1,077,560
‐
(161,076)
(153,499)
NetPension
Liability
(a)‐(b)
$2,303,473
PlanFiduciary
NetPosition
asa%of
TotalPension
Liability
83.29%
346,120
1,077,560
‐
(161,076)
(153,499)
498,970 (498,970)
141,981 (141,981)
(212,275) 212,275
(695,818) (695,818)
(8,900)
‐
‐
413,287 (276,042)
$ 14,199,145 $ 11,206,343
‐
8,900
‐
689,329
$2,992,802
78.92%
Firemen
Increase(Decrease)
Changesfortheyear:
Servicecost
Interest
Changesinbenefits
Netinvestmentincome
membercontributions
Other
NetChanges
Plan
Fiduciary
TotalPension
NetPosition
Liability
(a)
(b)
$6,672,687 $5,089,452
177,557
525,937
‐
(75,778)
(56,915)
NetPension
Liability
(a)‐(b)
$1,583,235
PlanFiduciary
NetPosition
asa%of
TotalPension
Liability
76.27%
177,557
525,937
‐
(75,778)
(56,915)
299,092 (299,092)
62,716 (62,716)
(101,931) 101,931
(286,689) (286,689)
(6,500)
‐
‐
284,112 (33,312)
$6,956,799 $5,056,140
‐
6,500
‐
317,424
$1,900,659
72.68%
|56
December31,2015
NOTE7
AtDecember31,2015theBoroughreporteddeferredoutflowsofresourcesanddeferred
inflowsofresourcesrelatedtopensionsfromthefollowingsources:
Differencesbetweenexpected
andactualexperience
Netdifferencebetween
projectedandactual
earningsonpension
planinvestments
Changesinassumptions
Bargainingand
AdministrativeEmployees
Deferred
Deferred
Outflowsof Inflowsof
Resources
Resources
Police
Deferred
Deferred
Resources
Resources
Firemen
Deferred
Deferred
Resources
Resources
Total
Deferred
Deferred
Resources
Resources
$53,039
$‐
$‐
$53,039
$186,244
2,803,967
‐
$2,857,006
‐
209,484
$ 395,728
$‐
1,491,849 ‐
‐
‐
$1,544,888 $‐
$136,443
902,652 ‐
‐
143,178
$ 902,652 $ 279,621
$49,801
409,466 ‐
‐
66,306
$ 409,466 $116,107
Theamountsreportedasdeferredoutflowsofresourcesandinflowsofresourceswillbe
recognizedinpensionexpenseasfollows:
YearendedDecember31:
2016
2017
2018
2019
2020
Thereafter
Bargainingand
Administrative
Employees
Police
Firemen
Total
$378,855
378,855
378,855
378,855
5,893
23,575
$ 1,544,888
$190,711
190,711
190,711
190,711
(34,952)
(104,861)
$623,031
$85,780
85,780
85,780
85,780
(16,586)
(33,175)
$293,359
$655,346
655,346
655,346
655,346
(45,645)
(114,461)
$ 2,461,278
ActuarialMethodsandAssumptions
ThetotalpensionliabilityintheJanuary1,2015actuarialvaluationwasdeterminedusingthe
followingeconomicassumptions,appliedtoallperiodsincludedinthemeasurement:
Inflation
Salaryincreases
Investmentrateofreturn
Postretirementcostoflivingincreases
3.00%
5.00%(average,includinginflation)
8.00%(includinginflation)
3.00%(exceptgeneral,whichisN/A)
MortalityrateswerebasedontheRP2000Tableformalesandfemales.Thistabledoesnot
includeprojectedmortalityimprovements.
ValuationDate
ActuariallydeterminedcontributionratesarecalculatedasofJanuary1,twotofouryears
priortotheendofthefiscalyearinwhichthecontributionsarereported.
TheactuarialassumptionsusedintheJanuary1,2015valuationwerebasedonanactual
experiencestudyfortheperiodJanuary1,2013throughDecember31,2014.
|57
December31,2015
NOTE7
AssumptionChanges
ForthePoliceandFiremenplan,theinflationratewasloweredfrom4%to3%tomoreclosely
estimatethefutureinflationrate.
Thelong‐termexpectedrateofreturnonpensionplaninvestmentswasdeterminedusinga
building‐blockmethodinwhichbest‐estimaterangesofexpectedfuturerealratesofreturn
(expectedreturns,netofpensionplaninvestmentexpenseandinflation)aredevelopedforeach
majorassetclass.Theserangesarecombinedtoproducethelong‐termexpectedrateofreturn
byweightingtheexpectedfuturerealratesofreturnbythetargetassetallocationpercentage
andbyaddingtheexpectedinflation.Thepensionplans’policyinregardstotheallocationof
investedassetsisestablishedandmaybeamendedbytheinvestmentcommittee.Best
estimatesofarithmeticrealratesofreturnforeachmajorassetclassincludedinthepension
plans’targetassetallocationasofDecember31,2015aresummarizedinthetablebelowandis
applicabletoallthreeplans:
AssetClass
Domesticequity
Internationalequity
Fixedincome
Realestate
Cash
Target
Allocation
45.50%
16.50%
30.00%
3.00%
5.00%
Long‐Term
ExpectedReal
RateofReturn
5.50%‐7.50%
4.50%‐6.50%
1.00%‐3.00%
4.50%‐6.50%
0.00%‐1.00%
DiscountRate
Thediscountrateusedtomeasurethetotalpensionliabilitywas8.00%forallthreeplans.The
pensionplan’sfiduciarynetpositionisprojectedtobeavailabletomakeallprojectedfuture
benefitpaymentsofcurrentactiveandinactiveemployees.Therefore,thelong‐termexpected
rateofreturnonpensionplaninvestmentswasappliedtoallperiodsofprojectedbenefit
paymentstodeterminethetotalpensionliability.Theemployerhasalwaysmetthefunding
requirementsofPennsylvanialawAct205of1984.Act205requiresfullfundingoftheentry
agenormalcostplusplanexpenses,aswellasanamortizationoftheunfundedliability.
|58
December31,2015
NOTE7
SensitivityoftheNetPensionLiabilitytoChangestotheDiscountRate
ThefollowingrepresentsthenetpensionliabilityoftheBorough,calculatedusingthediscount
rateof8.00%,aswellaswhattheBorough’snetpensionliabilitywouldbeifitwerecalculated
usingadiscountratethatis1percentagepointlower(7percent)and1percentagepointhigher
(9percent)thanthecurrentrate:
BargainingandAdministrative Employees
PolicePlan
FiremenPlan
1%Decrease
(7.00%)
$9,676,150
$4,681,629
$2,765,299
Current
Discount
Rate
(8.00%)
$6,934,437
$2,992,802
$1,900,659
1%Increase
(9.00%)
$4,562,540
$1,568,459
$1,167,893
FinancialStatements
ThefollowingarefinancialstatementsasofDecember31,2015fortheindividualpensionplans
maintainedbytheBorough:
Firemen
PensionFund
PolicePension
Fund
Bargainingand
Administrative
Employees
PensionFund
ASSETS
Cashandcashequivalents
Mutualfunds‐U.S.GovernmentandAgencySecurities
Totalassets
$20,506
1,019,228
679,342
3,181,650
153,985
1,429
$ 5,056,140
$54,926
2,253,725
1,507,992
7,048,308
341,391
‐
$ 11,206,342
$110,162
3,664,061
2,439,626
11,471,217
555,688
‐
$18,240,754
$185,594
6,937,014
4,626,960
21,701,175
1,051,064
1,429
$ 34,503,236
NETPOSITION
$ 5,056,140
$ 11,206,342
$18,240,754
$ 34,503,236
TotalPension
TrustFunds
|59
December31,2015
NOTE7
FinancialStatements(Continued)
ADDITIONS
Contributions
Employer
Planmember
Totalcontributions
Investmentincome:
investmentsandgains(loss)onsaleofinvestments
Interest,dividendsandother
Totaladditions
DEDUCTIONS
Benefits
Totaldeductions
Changeinnetposition
Firemen
PensionFund
PolicePension
Fund
Bargainingand
Administrative
Employees
PensionFund
$299,092
62,716
361,808
$498,970
141,980
640,950
$699,463
358,837
1,058,300
$1,497,525
563,533
2,061,058
(197,764)
93,249
(104,515)
257,293
(430,761)
217,776
(212,985)
427,965
(704,505)
348,173
(356,332)
701,968
(1,333,030)
659,198
(673,832)
1,387,226
286,688
3,917
290,605
695,819
8,189
704,008
1,439,848
16,125
1,455,973
2,422,355
28,231
2,450,586
TotalPension
TrustFunds
(33,312) (276,043) (754,005) (1,063,360)
5,089,452
$ 5,056,140
11,482,385
$ 11,206,342
18,994,759
$18,240,754
35,566,596
$ 34,503,236
NOTE8
POSTEMPLOYMENTHEALTHCAREPLAN
PlanDescription
TheBoroughhasahealthcareplanforretiredemployees,whichisasingleemployerdefined
benefithealthcareplanadministeredbytheBorough.Theplanprovidesmedical,prescription
drug,andvisioncoverageforboththeretireeandspouse.Retireesoptingtoparticipateare
askedtopayapremiumthatislessthantheBorough’sactualcosttoprovidehealthcare
coveragetoretirees.Thepremiumamountretireespayisablendedrateforcoveringboth
activeandretiredPlanmembersandamountsto102%oftheBorough’scurrentblended
premiumrate.Thefactthattheblendedratethattheretireespayislessthantheactualcostof
coveringretiredmembersandtheirbeneficiariesresultsinwhatisknownasan“implicitrate
subsidy”bytheBorough,whichgivesrisetotheotherpostemploymentbenefit(OPEB).
BecausethePlanconsistssolelyoftheBorough’sdecisiontoprovideOPEBthroughthe
paymentoftheimpliedsubsidybyextendingmedicalbenefitstoretireesattheabove
mentionedblendedrate,nostand‐alonefinancialreportisavailable.ThePlanisnotincludedin
thefinancialreportofanotherentity.Thecoverageshalldiscontinueiftheretireeobtains
employmentwheremedicalcoverageisprovided,theretiree’sspouseinsurancecoverage
coverstheretiree,ortheretireequalifiesforMedicarecoverage.
|60
December31,2015
NOTE8
POSTEMPLOYMENTHEALTHCAREPLAN(CONTINUED)
FundingPolicy
TheBoroughfundsPlanliabilitiesona“pay‐as‐you‐go”basis,andhasnotestablishedanOPEB
trustfundtoaccumulateassetstofundPlanobligations.TheBoroughhasnostatutoryor
contractualobligationtofundthePlanandonlydoessoattheBorough’sdiscretion.The
Boroughfundstheimplicitratesubsidythroughthepaymentofhealthinsurancepremiums.
Forfiscalyear2015,theBoroughcontributedanestimated$36,497intheformofadditional
premiumsforactiveemployeesbasedonimplicitratesforretiredemployeestotheplan.Plan
membersreceivingbenefitsalsocontributed$36,916,orapproximately102%ofthetotal
premiums.
AnnualOPEBCostandNetOPEBObligation
TheBorough’sannualotherpostemploymentbenefit(OPEB)cost(expense)iscalculatedbased
ontheannualrequiredcontributionoftheemployer(ARC),anamountactuariallydetermined
inaccordancewiththeparametersofGASBStatement45.TheARCrepresentsalevelof
fundingthat,ifpaidonanongoingbasis,isprojectedtocovernormalcosteachyearand
amortizeanyunfundedactuarialliabilities(orfundingexcess)overaperiodnottoexceed
thirtyyears.ThefollowingtableshowsthecomponentsoftheBorough’sannualOPEBcostfor
theyear,theamountactuallycontributedtotheplan,andchangesintheBorough’snetOPEB
obligationtotheplan:
Annualrequiredcontribution(ARC)
EstimatedinterestonNetOPEBobligation
EstimatedadjustmenttoARC
AnnualOPEBCost
Estimatedemployercontributionsmade
IncreaseinnetOPEBobligation
NetOPEBobligation–beginningoftheyear
NetOPEBobligation–endoftheyear
$484,486
77,740
(106,057)
456,169
(36,497)
419,672
1,727,555
$2,147,227
TheBorough’sannualOPEBcost,thepercentageofannualOPEBcostcontributedtotheplan,
andthenetOPEBobligationfor2015andtheprecedingtwoyearsareasfollows:
FiscalYear
Ended
12/31/15
12/31/14
12/31/13
Annual
OPEBCost
$456,169
396,104
401,721
PercentageofAnnual
OPEBCostContributed
8%
19%
15%
NetOPEB
Obligation
$2,147,227
1,727,555
1,404,763
|61
December31,2015
NOTE8
POSTEMPLOYMENTHEALTHCAREPLAN(CONTINUED)
FundedStatusandFundingProgress
AsofJanuary1,2015,themostrecentactuarialvaluationdate,theplanhadthefollowing
fundingstatusandprogress: Valuation
Date
Actuarial
Value
ofAssets
ActuarialAccrued
Liability(AAL)‐ UnfundedAAL
EntryAge
(UAAL)
01/01/15
$‐
$1,746,295
$1,746,295
Funded
Ratio
Covered
Payroll
0.00% $12,170,331
UAALasa
Percentageof
CoveredPayroll
14.35% Actuarialvaluationsofanongoingplaninvolveestimatesofthevalueofreportedamountsand
assumptionsabouttheprobabilityofoccurrenceofeventsfarintothefuture.Examplesinclude
assumptionsaboutfutureemployment,mortality,andthehealthcarecosttrend.Amounts
determinedregardingthefundedstatusoftheplanandtheannualrequiredcontributionsof
theemployeraresubjecttocontinualrevisionasactualresultsarecomparedwithpast
expectationsandnewestimatesaremadeaboutthefuture.Thescheduleoffundingprogress,
presentedasrequiredsupplementaryinformationfollowingthenotestothefinancial
statements,presentsmultiyeartrendinformation,aboutwhethertheactuarialvalueofplan
assetsisincreasingordecreasingovertimerelativetotheactuarialaccruedliabilitiesfor
benefits.
ActuarialMethodsandAssumptions
Projectionsofbenefitsforfinancialreportingpurposesarebasedonthesubstantiveplan(the
planasunderstoodbytheemployerandtheplanmembers)andincludethetypesofbenefits
providedatthetimeofeachvaluationandthehistoricalpatternofsharingofbenefitcosts
betweentheemployerandtheplanmemberstothatpoint.Theactuarialmethodsand
assumptionsusedincludetechniquesthataredesignedtoreducetheeffectsofshort‐term
volatilityinactuarialaccruedliabilitiesandtheactuarialvalueofassets,consistentwiththe
long‐termperspectiveofthecalculations.
IntheJanuary1,2015actuarialvaluation,theentryagenormalcostmethodwasused.The
actuarialassumptionincludeda4.5percentinvestmentrateofreturn(netofadministrative
expenses),a4.0percentinflationrate,annualsalaryincreasesof5%andanannualhealthcare
costtrendrateof6.0%percentin2015,5.5percentin2016through2020,withratesgradually
decreasingfrom5.4%in2021to3.8%in2075andlater.Theactuarialvalueofassetsisequal
tothemarketvalueoftheassets.TheUAALisbeingamortizedbasedonaleveldollar30year
openperiod.
|62
December31,2015
NOTE9
RISKMANAGEMENT
TheBoroughisexposedtovariousrisksoflossesrelatedtotorts;theftof,damageto,and
destructionofassets;errorsandomissions;injuriestoemployees;andnaturaldisasters.The
BoroughhasestablishedaSelf‐InsuranceFundandaWorkmen'sCompensationFund(internal
servicefunds),respectively,toaccountforandfinanceitsuninsuredrisksofloss.TheSelf‐
InsuranceFundservicesallgeneralliability,medical,directors'andofficers'liability,and
unemploymentcompensationclaimsforriskofloss.TheWorkmen'sCompensationFund
providescoverageuptoamaximumof$500,000foreachworker'scompensationclaim.The
Boroughhaspurchasedworkmen'scompensationinsuranceforclaimsinexcessofcoverage
providedbytheFund,andalsohaspurchasedvehicleinsuranceandemployeebonding
coverage.Settlementshavenotexceededinsurancecoverageforeachofthepastthreeyears.
Thegeneralfund,allenterprisefunds,andallinternalservicefunds(excepttheInsurance
Funds)participateintheprogramandmakepaymentstotheSelf‐InsuranceandWorkmen's
CompensationFunds(InsuranceFunds)basedonestimatesoftheamountsneededtopayprior
andcurrentyearclaimsandtoestablishareserveforcatastrophiclosses.
InsuranceFundliabilitiesarereportedwhenitisprobablethatalosshasoccurredandthe
amountofthatlosscanbereasonablyestimated.Liabilitiesarecomputedunderactuarial
formulasandincludeanamountforclaimsthathavebeenincurredbutnotreported.
Changesinthegeneralandworkers’compensationclaimsliabilityamountsforthepriortwo
yearswere:
Current
YearClaims
andChanges
inEstimates
Liability
Claim
Liability
Beginning
Payments
Ending
2015
Self‐insurancefund
$205,052
$ 7,259 $(27,585) $184,726
Workers’compensationfund
879,412
(173,221)
(102,244)
603,947
2014
$149,117
$126,523 $(70,588) $205,052
Self‐insurancefund
Workers’compensationfund
953,599
42,783
(116,970)
879,412
TheBoroughispartofthePennsylvaniaMunicipalHealthInsuranceCooperative(PMHIC).This
trustconsistsofagroupofmunicipalitiesthathavepooledtheirintereststogetherinorderto
establishaself‐fundedmedicalinsuranceplaninordertobettercontrolinsurancerates.The
BoroughpaysapremiumtoPMHICthatconsistsofaportionforactualclaimexpenses,
administrativecosts,reinsurancecostsandareserveaccount.Atyearend,theactualclaimsof
theBorougharereviewedandthereserveaccountisusedtofundanyexcessclaimsforthe
Boroughoverpremiumspaidduringtheyear.Ifanyfundsremaininthereserveaccount,15%
ofthetotalreservebalancecouldpossiblybeusedtofundclaimoveragesforthetrust.A
reinsurancepolicyisusedtopayanyadditionalexcessclaims.Therefore,theexpense
recognizedbytheBoroughislimitedtothepremiumspaidduringtheyear.Anypotential
refundofthereserveaccountiscalculatedandreceivedbytheBoroughseveralmonthsafter
yearend.TotalpaymentsbytheBoroughtoPMHICduringtheyearwere$3,552,324.During
2015,theBoroughreceived$855,838fromPMHICasarefundforpriorpremiumspaid.
|63
December31,2015
NOTE10 COMMITMENTS
TheBoroughhasthefollowingprojectsopenatDecember31,2015:
Totalestimatedcosts
ProjectDescription
Installationof261UndergroundGetawayonOrchardDrive
UpgradeEngineControlSystemon#11
UpgradeGasMainandServicesonRoute11
GasMain&ServiceUpgradeonKenwood/Riddle/Edgar
GasMain&ServiceUpgradeonKingStreet
GasMain&ServiceInstallationatProgressVillage
UpgradetheWaterTreatmentPlantsFilteringSystem
DesignofBoroughHallAddition
WastewaterTreatmentPlantUpgrade(*)
OperationofaNutrientCreditProgramduringthe2013,2014&2015WaterYears
UpgradeofWWTPApproachInterceptor(**)
UpgradeEastConococheagueInterceptor
UpgradeChambers5LiftStation
Demolition240&250SThirdSt&ConstructUnmeteredParkingLot
TrafficSignalatIntersectionWayneAvenue&OrchardDrive
Fee‐in‐lieuofRecreationforChambersburgFamilyTownhomes
EighthStreetPavingProject
SeventhStreetPavingProject
HollywellAvenue/IndustrialDriveIntersectionStreetPavingProject
CumberlandAvenueStreetPavingProject
HighlandAvenueStreetPavingProject
KingStreetReconstructionProject
CameraandSecurityProject
Various
Totals
Electric
Gas
Water
Sewer
Parking,
Traffic,and
StreetLight
$ 250,000
527,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
150,000
$ ‐
‐
900,000
150,000
195,000
115,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
387,500
$ ‐
‐
‐
‐
‐
‐
1,150,000
500,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
219,405
$ ‐
‐
‐
‐
‐
‐
‐
‐
43,000,000
900,000
1,100,000
1,200,000
1,000,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
$ ‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
300,000
188,000
‐
‐
‐
‐
‐
‐
‐
‐
50,000
$ ‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
4,535
$ ‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
123,000
179,607
348,581
250,000
375,000
253,709
790,000
423,000
382,167
$ 192,260
158,100
822,606
90,513
35,700
28,130
647,061
158,247
32,813,942
769,341
642,924
70,681
6,968
78,844
75,484
99,633
5,923
5,601
257
8,172
8,023
5,358
62,883
580,415
$57,740
368,900
77,394
59,487
159,300
86,870
502,939
341,753
10,186,058
130,659
457,076
1,129,319
993,032
221,156
112,516
23,367
173,684
342,980
249,743
366,828
245,686
784,642
360,117
613,192
$ 927,000
$1,747,500
$1,869,405
$47,200,000
$ 538,000
$ 4,535
$3,125,064
$ 37,367,066
$ 18,044,438
StormSewer
General
Costspaidas
of12/31/15
Coststo
complete
(*)TheBoroughhasasignedagreementwiththelocalTownshipsrelatedtothewastewatertreatmentplantupgrades.Themajorityofthe
projectisfortheadditionalcapacityoftheTownshipsandthereforewillbepaidforbytheTownships.Ofthistotalcost,approximately85%will
bereimbursedbytheTownships.
(**)TheBoroughalsohasasignedagreementwiththelocalTownshipsrelatedtothewastewatertreatmentplantinterceptor.Themajorityof
theprojectisfortheadditionalcapacityoftheTownshipsandthereforewillbepaidforbytheTownships.Ofthistotalcost,approximately86%
willbereimbursedbytheTownships.
|64
December31,2015
NOTE11 CONDUITDEBTOBLIGATIONS
Fromtimetotime,theMunicipalAuthorityoftheBoroughofChambersburghasissued
RevenueNotestoprovidefinancialassistancetolocalnot‐for‐profitorganizations.Banksagree
toloanthefunds(viapurchasingtheRevenueNotes)totheentities,andtheMunicipal
Authorityassignsallrights,title,andinterestin,andallsumspayablebytheentitiestothe
banks.Thenotesarefullysecuredbythepropertiesfinancedandarepayablesolelyfrom
resourcesoftheentitiesthatultimatelyreceivethefinancing.TheMunicipalAuthorityisnot
obligatedinanymannerforrepaymentofthedebt.Consequently,thisdebtandthe
correspondingmortgagesreceivablearenotreflectedinthesefinancialstatements.
AsofDecember31,2015outstandingnotebalancesunderconduitdebtarrangementswereas
follows:
WilsonCollege
LutheranHomes
Children'sAidSociety
$26,680,000
2,178,045
984,250
NOTE12 CONTINGENCIES
TheBoroughissubjecttorealestatetaxassessmentappealsonanongoingbasis.Iftaxappeals
aresuccessful,theresultisalossoftaxrevenuetotheBorough.Itisanticipatedthatany
materiallossoftaxrevenueonindividualtaxappealswillbeoffsetwithadditionalrevenues
fromotherpropertiesorothersourcesofrevenueandwouldnotcreateafinancialhardshipto
theBorough.
TheBoroughisinvolvedwithvariouslawsuitsinthenormalcourseofoperations.Inmost
cases,managementcannotpredicttheoutcomeofthelawsuitsorestimatetheamountofany
lossthatmayresult.Managementbelievesthatlossesresultingfromthesematters,ifany,
wouldbesubstantiallycoveredundertheBorough'sprofessionalliabilityinsurancepolicyand
wouldnothaveamaterialeffectonthefinancialpositionoftheBorough.
|65
December31,2015
NOTE13 RESTATEMENT
ArestatementwasrequiredtocorrectthebalanceofreceivablesfortheCapitalReserveFundat
December31,2014duetofederalgrantmoniesnotmeetingtheavailabilitycriteria.Also,
duringtheyearendedDecember31,2015,theBoroughadoptedGASBStatementNo.68,
AccountingandFinancialReportingforPensions,whichrequiredtheBoroughtorecordthenet
pensionliability,deferredoutflowsandinflowsofresources,andpensionexpenseassociated
withthepensionplan.Asaresult,thebeginningnetpositionandfundbalanceamountsreflect
thechangesatDecember31,2014resultingfromtheadditionofthepreviouslyunrecorded
information.
Netposition,asoriginallystated‐December31,2014
Recordnetpensionliability
Restatementofreceivables
Netposition,asrestated‐December31,2014
Governmental
Activities
Business‐type
Activities
ElectricFund
$32,797,038
(4,841,231)
‐
$ 27,955,807
$137,742,144
(4,117,306)
‐
$ 133,624,838
$39,395,492
(952,492)
‐
$38,443,000
Sanitation
Fund
Parking,Traffic
and
StreetLight
Fund
Stores
Fund
$1,183,598
(331,190)
‐
$ 852,408
$3,867,767
(75,570)
‐
$ 3,792,197
$1,563,211
(59,340)
‐
$ 1,503,871
Motor
Equipment
Fund
Engineering
Fund
Administrative
ServicesFund
$9,890,443
(127,810)
‐
$ 9,762,633
$244,022
(199,830)
‐
$44,192
$(437,202)
(1,353,671)
‐
$ (1,790,873)
CapitalReserve
Fund
Fundbalance,asoriginallystated‐December31,2014
Fundbalance,asrestated‐December31,2014
$3,944,873
‐
(432,064)
$ 3,512,809
|66
REQUIREDSUPPLEMENTARYINFORMATION
PensionTrustFunds
UnauditedScheduleofChangesintheBorough’sNetPensionLiabilityandRelated
Ratios
BargainingandAdministrative
2015
2014
Totalpensionliability
Servicecost
Interest
Changesinassumptions
membercontributions
Police
Firemen
2015
2014
2015
2014
$ 338,256
1,042,200
$177,557
525,937
$ 183,801
505,051
$571,290
1,918,151
$551,672
1,836,430
$ 346,120
1,077,560
58,932
‐
‐
‐
(153,499) ‐
(161,076) ‐
(56,915) ‐
(75,778) ‐
Netchangeintotalpensionliability
(1,439,849) (1,450,430) (695,818) (567,680) (286,689) (290,995)
1,108,524 937,672 413,287 812,776 284,112 397,857
Totalpensionliability‐beginning
Totalpensionliability‐ending
24,066,589
25,175,113
23,128,917
24,066,589
13,785,858
14,199,145
12,973,082
13,785,858
6,672,687
6,956,799
6,274,830
6,672,687
Planfiduciarynetposition
Netinvestmentincome
membercontributions
Other
Netchangeinplanfiduciarynetposition
699,463 640,380
358,759 246,550
(360,956) 994,073
498,970 399,615
141,981 66,471
(212,275) 609,935
299,092 269,702
62,716 62,106
(101,931) 270,869
(1,439,849)
(11,500)
‐
(754,083)
(1,450,430)
(6,000)
‐
424,573
(695,818)
(8,900)
‐
(276,042)
(567,680)
(6,600)
‐
501,741
(286,689)
(6,500)
‐
(33,312)
(290,995)
(4,800)
‐
306,882
Planfiduciarynetposition‐beginning
Planfiduciarynetposition‐ending
18,994,759
$18,240,676
18,570,186
$18,994,759
11,482,385
$ 11,206,343
10,980,644
$ 11,482,385
5,089,452
$5,056,140
4,782,570
$5,089,452
Borough'snetpensionliability
$ 6,934,437
$ 5,071,830
$ 2,992,802
$ 2,303,473
$1,900,659
$1,583,235
Planfiduciarynetpositionasapercentageof
thetotalpensionliability
Covered‐employeepayroll
Netpensionliabilityasapercentageof
covered‐employeepayroll
72.46%
9,251,503
74.95%
78.93%
78.92%
$ 8,505,696 2,266,039
59.63%
132.07%
83.29%
72.68%
$ 2,200,081 1,577,331
104.70%
76.27%
$1,464,554
120.50%
108.10%
Notestotheschedule:
Thisschedulewillbeexpandedtoshowmulti‐yeartrendsasadditionalinformationbecomesavailableinthefuture.
Assumptionchanges:
In2015,forthePoliceandFiremen'splan,theinflationratewasloweredfrom4%to3%tomorecloselyestimatethefutureinflationrate.
|67
PensionTrustFunds
UnauditedScheduleofBoroughContributions
General
Actuariallydeterminedcontribution
Contributionsinrelationtotheactuarially
determinedcontribution
Contributiondeficiency(excess)
Contributionsasapercentageofcovered‐
employeepayroll
2015
$699,463
2014
$640,380
2013
$789,962
2012
$650,683
2011
$648,163
2010
$472,936
2009
$454,029
2008
$418,654
2007
$438,129
2006
$351,368
699,463
$‐
640,380
$‐
789,962
$ ‐
650,683
$ ‐
759,192 472,936
$ (111,029) $ ‐
454,029
$‐
418,654
$‐
438,129
$ ‐
351,368
$ ‐
$9,251,503
$8,505,696
Unavailable
$7,504,401
Unavailable
Unavailable
$6,873,071
Unavailable
$6,172,381
7.56%
7.53%
N/A
8.67%
$7,587,865
N/A
6.23%
N/A
6.09%
N/A
5.69%
Police
employeepayroll
2015
$498,970
2014
$399,615
2013
$420,753
2012
$454,682
2011
$474,748
2010
$490,641
2009
$466,941
2008
$453,071
2007
$454,641
2006
$404,176
498,970
$‐
399,615
$‐
420,753
$ ‐
454,682
$ ‐
474,748
$ ‐
490,641
$ ‐
466,941
$‐
453,071
$‐
454,641
$ ‐
404,176
$ ‐
$2,266,039
$2,200,081
Unavailable
$1,936,497
Unavailable
$1,918,058
Unavailable
$1,824,708
Unavailable
$1,558,754
22.02%
18.16%
N/A
23.48%
N/A
25.58%
N/A
24.83%
N/A
25.93%
Firemen
employeepayroll
2015
$299,092
2014
$269,702
2013
$244,149
2012
$209,739
2011
$204,343
2010
$116,340
2009
$124,682
2008
$112,021
2007
$131,129
2006
$109,004
299,092
$‐
269,702
$‐
244,149
$ ‐
209,739
$ ‐
204,343
$ ‐
116,340
$ ‐
124,682
$‐
112,021
$‐
131,129
$ ‐
109,004
$ ‐
$1,577,331
$1,464,554
Unavailable
$1,414,222
Unavailable
$1,330,676
Unavailable
$1,231,786
Unavailable
$867,312
18.96%
18.42%
N/A
14.83%
N/A
8.74%
N/A
9.09%
N/A
12.57%
NotestoSchedule
Valuationdate:
ActuariallydeterminedcontributionsratesarecalculatedasofJanuary1,twotofouryearspriortotheendofthefiscalyearinwhichcontributionsarereported.
Methodsandassumptionsusedtodeterminecontributionrates:
Actuarialcostmethod
Entryagenormal
Amortizationmethod
Leveldollarclosed
Amortizationperiod
General‐16years
Police‐13years
Firemen‐14years
Assetvaluationmethod
Theactuarialvalueofassetsfromthepriorvaluationreport(reducedforbenefitspaidandincreasedforcontributions)isprojectedforwardatan
artificalinvestmentreturnof7.00%(interestrateassumptionminus1%)withacorridorof80%to120%ofmarketvalue.
Inflation
Salaryincreases
Investmentrateofreturn
Retirementage
Mortality
4.00%
5.00%
8.00%
General‐normalretirementage
Police‐AttainmentofAge53andcompletionof25yearsofservice
Firemen‐AttainmentofAge53andcompletionof25yearsofservice
RP2000Table.Thistabledoesnotincludeprojectedmortalityimprovements.
|68
PensionTrustFunds
UnauditedScheduleofInvestmentReturns
Annualmoney‐weightedrateofreturn,netofinvestmentexpense
Bargainingand
Administrative
2015
2014
(1.9%)
5.7%
Police
2015
(1.9%)
2014
5.8%
Firemen
2015
2014
(1.0%)
5.9%
Thisschedulewillbeexpandedtoshowmulti‐yeartrendsasadditionalinformationbecomesavailableinthefuture.
|69
OPEB(OtherPostemploymentBenefitPlan)
UnauditedRequiredScheduleofFundingProgress
Valuation
Date
01/01/15
01/01/12
01/01/10
Actuarial
Value
ofAssets
$‐
‐
$‐
ActuarialAccrued
Liability(AAL)‐
EntryAge
UnfundedAAL
(UAAL)
$1,746,295
1,538,475
674,215
$1,746,295
1,538,475
674,215
Funded
Ratio
Covered
Payroll
0.00% $12,170,331
0.00% 10,572,905
0.00% 10,934,753
UAALasa
Percentageof
CoveredPayroll
14.35%
14.55%
6.17%
|70
UnauditedRequiredSupplementaryInformation
BudgetaryComparisonSchedule‐GeneralFund
Original/Final
Budget
REVENUES
Taxes
Licensesandpermits
Finesandforfeits
Investmentearnings
Intergovernmental
Departmentalchargesforservices
Miscellaneous
Totalrevenues
Actual
(Budgetary/
GAAPBasis)
Variancewith
FinalBudget
Positive
(Negative)
$6,819,600 $7,652,811 $833,211
370,350 380,070 9,720
160,000 174,703 14,703
2,500 15,583 13,083
904,400 910,468 6,068
1,703,600 2,016,983 313,383
163,700 182,908 19,208
10,124,150 11,333,526 1,209,376
EXPENDITURES
Generalgovernment
Policedepartment
Emergencyservices
Planningandzoning
Highways
Totalexpenditures
1,475,790
4,882,705
3,628,700
451,700
1,115,930
1,493,000
13,047,825
expenditures
(2,923,675) (1,033,811) 1,889,864
Transfersin
Transfersout
3,260,000 2,090,000 (1,170,000)
(336,325) (1,595,603) (1,259,278)
2,923,675 494,397 (2,429,278)
Netchangeinfundbalance
Fundbalance‐beginning
Fundbalance‐ending
1,357,014
4,476,149
3,629,952
527,330
1,021,646
1,355,246
12,367,337
118,776
406,556
(1,252)
(75,630)
94,284
137,754
680,488
$ 0 (539,414) ($ 539,414)
2,532,654
$ 1,993,240
|71
UnauditedRequiredSupplementaryInformation
BudgetaryComparisonSchedule‐SpecialRevenueFund‐GrantPrograms
REVENUES
Investmentearnings
Intergovernmental
Miscellaneous
Totalrevenues
EXPENDITURES(bydepartment)
Generalgovernment
PublicSafety
Policedepartment
Firedepartment
Publicworks
Highways
Totalexpenditures
Original/Final
Budget
Actual
(Budgetary/
GAAPBasis)
Variancewith
FinalBudget
Positive
(Negative)
$50
1,115,400
30,850
1,146,300
$520
231,793
16,525
248,838
$470
(883,607)
(14,325)
(897,462)
‐
81,111
(81,111)
4,000
‐
2,400
12,300
1,600
(12,300)
‐
542,852
610,498
1,157,350
8,676
‐
225,876
330,363
(8,676)
542,852
384,622
826,987
expenditures
(11,050) (81,525) (70,475)
Transfersin
Transfersout
15,000
‐
15,000
8,507
‐
8,507
$ 3,950
(73,018) $ (76,968)
(6,493)
‐
(6,493)
416,992
$343,974
|72
OTHERSUPPLEMENTARYINFORMATION
OtherGovernmentalFunds
LiquidFuelsFund–Thisfund(specialrevenuefund)isusedtoaccountfortheBorough’sshareof
LiquidFuelsfundsdisbursedbytheCommonwealthofPennsylvania.Thefundsarelegallyrestrictedto
theconstructionandmaintenanceofBoroughstreetsandbridges.
RichardKasherFireTaxFund–Thisfund(specialrevenuefund)isusedtoaccountforthefiretax
collectedbytheBorough.Thefundsarelegallyrestrictedtopayforfirerelatedservices.
CapitalReserveFund–Thisfundisusedtoaccountforfinancialresourcestobeusedforthe
acquisitionorconstructionofmajorcapitalfacilities(otherthanthosefinancedbyenterprisefunds).
|73
CombiningBalanceSheet‐OtherGovernmentalFunds
December31,2015
SpecialRevenue SpecialRevenue
Total‐Other
LiquidFuels
RichardKasher CapitalReserve Governmental
Fund
FireTaxFund
Fund
Funds
ASSETS
Taxesreceivable,net
Otherreceivables
Totalassets
$419,631 $171 $4,945,505 $5,365,307
‐
44,779 ‐
44,779
‐
‐
585,673 585,673
$419,631 $ 44,950 $5,531,178 $ 5,995,759
Liabilities
Accountspayable
Unearnedrevenue
Accruedwages,benefitsandwithholdings
Totalliabilities
$‐
‐
‐
‐
$‐
‐
‐
‐
$93,566
248,528
171
342,265
$93,566
248,528
171
342,265
Unavailabletaxrevenue
‐
‐
24,835
24,835
‐
‐
24,835
24,835
Fundbalances
Restricted
Totalfundbalances
Totalliabilitiesandfundbalances
‐
‐
158,758 158,758
419,631 20,115 5,030,155 5,469,901
419,631 20,115 5,188,913 5,628,659
$419,631 $ 44,950 $5,531,178 $ 5,995,759
|74
CombiningStatementofRevenues,ExpendituresandChangesinFundBalances‐Other
GovernmentalFunds
Total‐Other
SpecialRevenue SpecialRevenue
RichardKasher CapitalReserve Governmental
LiquidFuels
Funds
FireTaxFund
Fund
Fund
REVENUES
Taxes
Investmentearnings
Intergovernmental
Miscellaneous
Totalrevenues
$‐
$ 488,067
4,601 2,767
483,207 ‐
‐
‐
‐
‐
487,808 490,834
$‐
$488,067
4,066 11,434
314,000 797,207
71,190 71,190
13,156 13,156
402,412 1,381,054
‐
‐
73,919
73,919
EXPENDITURES
Generalgovernment
PublicSafety
Policedepartment
Emergencyservices
Publicworks
Highways
Totalexpenditures
‐
‐
‐
‐
1,841
98,987
1,841
98,987
‐
‐
‐
‐
‐
‐
‐
‐
1,374,837
130,995
32,500
1,713,079
1,374,837
130,995
32,500
1,713,079
Excess(deficiency)ofrevenuesoverexpenditures
487,808
490,834
(1,310,667) (332,025)
Transfersin
Transfersout
‐
‐
2,994,278 2,994,278
(1,130,000) (478,947) (7,507) (1,616,454)
(1,130,000) (478,947) 2,986,771 1,377,824
(642,192) 11,887
Fundbalances‐beginning,asrestated
Fundbalances‐ending
1,676,104
1,045,799
1,061,823 8,228 3,512,809 4,582,860
$419,631 $20,115 $5,188,913 $ 5,628,659
|75
BudgetaryComparisonSchedule‐SpecialRevenueFund‐LiquidFuels
Original/Final
Budget
Actual
(Budgetary/
GAAPBasis)
Variancewith
FinalBudget
Positive
(Negative)
REVENUES
Investmentearnings
Intergovernmental
Totalrevenues
$500
467,695
468,195
$4,601
483,207
487,808
$ 4,101
15,512
19,613
EXPENDITURES
‐
‐
‐
468,195
487,808
19,613
Transfersin
Transfersout
‐
‐
‐
(1,170,000) (1,130,000) 40,000
(1,170,000) (1,130,000) 40,000
$ (701,805) (642,192) $59,613
1,061,823
$419,631
|76
BudgetaryComparisonSchedule–SpecialRevenueFund–RichardKasherFireTax
Fund
Original/Final
Budget
Actual
(Budgetary/
GAAPBasis)
Variancewith
FinalBudget
Positive
(Negative)
REVENUES
Taxes
Investmentearnings
Totalrevenues
$465,500
100
465,600
$488,067
2,767
490,834
$22,567
2,667
25,234
EXPENDITURES
‐
‐
‐
465,600
490,834
25,234
Transfersin
Transfersout
‐
‐
‐
(465,600) (478,947) (13,347)
(465,600) (478,947) (13,347)
$‐
11,887
$11,887
8,228
$20,115
|77
BudgetaryComparisonSchedule–CapitalReserveFund
Original/Final
Budget
Actual
(Budgetary/
GAAPBasis)
Variancewith
FinalBudget
Positive
(Negative)
REVENUES
Investmentearnings
Intergovernmental
Miscellaneous
Totalrevenues
$ 5,000
500,000
400,000
39,650
944,650
$4,066
314,000
71,190
13,156
402,412
$ (934)
(186,000)
(328,810)
(26,494)
(542,238)
EXPENDITURES
Generalgovernment
Policedepartment
Emergencyservices
Highways
Totalexpenditures
134,170
52,000
107,000
2,013,300
250,500
178,000
2,734,970
73,919
1,841
98,987
1,374,837
130,995
32,500
1,713,079
60,251
50,159
8,013
638,463
119,505
145,500
1,021,891
(1,790,320) (1,310,667) 479,653
Transfersin
Transfersout
430,000 2,994,278 2,564,278
(14,000) (7,507) 6,493
416,000 2,986,771 2,570,771
$(1,374,320) 1,676,104
Fundbalance‐beginning,asrestated
$ 3,050,424
3,512,809
$ 5,188,913
|78
OTHERENTERPRISEFUNDS
OtherEnterpriseFunds
SanitationFund–ThisfundisusedtoaccountfortheBorough’strashandgarbageremovalforits
residentsandcommercialestablishmentsthroughouttheBorough.
Parking,TrafficandStreetLightsFund–Thisfundisusedtoaccountforfinancialresourcestobe
usedfortheregulationandcontrolofvehicleparking,traffic,andstreetlightsthroughouttheBorough.
StormSewerFund–ThisfundisusedtoaccountfortheBorough’sstormwaterremovalforits
residentsandcommercialestablishmentsthroughouttheBorough.
|79
CombiningStatementofNetPosition‐OtherEnterpriseFunds
December31,2015
Parking,Traffic
andStreet
SanitationFund
LightsFund
ASSETS
Currentassets
Otherreceivables
Prepaidexpenses
Totalcurrentassets
Noncurrentassets
Land
Capitalassetsbeingdepreciated:
Buildingsandsystem
Improvementsotherthanbuildings
Totalcapitalassets
ofresources
LIABILITIES
Currentliabilities
Accountspayable
Accruedwagespayable
Bonds,notesandloanspayable‐current
Compensatedabsences
NetOPEBobligation
Bonds,notesandloanspayable
Totalnon‐currentliabilities
Totalliabilities
NETPOSITION
Unrestricted
Totalnetposition
StormSewer
Fund
TotalOther
Enterprise
Funds
$1,269,004 $1,413,155 $229,476 $2,911,635
156,041 50,573 18,379 224,993
225,000 ‐
366 225,366
2,669 2,963 807 6,439
‐
983
983 ‐
1,653,697 1,466,691 249,028 3,369,416
413,127
‐
310,058
177,337
‐
‐
723,185
177,337
‐
75,529 ‐
1,344,460 1,419,989
573,798 694,889 2,814,368 4,083,055
850,912 3,134,654 ‐
3,985,566
(580,882) (1,755,763) (1,088,877) (3,425,522)
1,332,484 2,561,175 3,069,951 6,963,610
1,332,484 2,561,175 3,069,951 6,963,610
100,881
23,019
‐
123,900
$3,087,062 $4,050,885 $3,318,979 $10,456,926
$34,599 $21,958
23,396 3,559
23,516 10,401
50,232 ‐
131,743 35,918
$‐
$56,557
2,240 29,195
1,704 35,621
‐
50,232
3,944 171,605
19,756
452,819
79,170
1,436,981
1,988,726
12,407
103,323
18,064
‐
133,794
71
‐
‐
‐
71
32,234
556,142
97,234
1,436,981
2,122,591
2,120,469
169,712
4,015
2,294,196
54,816
911,777
966,593
2,561,175
1,319,998
3,881,173
3,069,951
245,013
3,314,964
5,685,942
2,476,788
8,162,730
$ 3,087,062 $ 4,050,885 $3,318,979 $ 10,456,926
|80
CombiningStatementofRevenues,ExpensesandChangesinFundNetPosition‐Other
EnterpriseFunds
SanitationFund
REVENUES
Chargesforservices
Miscellaneous
OPERATINGEXPENSES
Collectionanddisposal
Customeraccountingandadministrative
Depreciation
Intergovernmentalrevenues
Interestexpense
Totalnonoperatingrevenue(expenses)
Income(loss)beforecontributionsandtransfers
Capitalcontributionsandgrants
Transfersin
Transfersout
Transferofcapitalassetsfromgovernmentalactivites
Changeinnetposition
Parking,Traffic
andStreetLights
TotalOther
Fund
StormSewerFund EnterpriseFunds
$ 2,379,074 $ 89,687 $293,302 $ 2,762,063
65,182 38,016 2,060 105,258
2,444,256 127,703 295,362 2,867,321
‐
2,137,996
305,088
81,690
2,524,774
680,609
‐
123,258
115,193
919,060
‐
79,282
112,894
81,026
273,202
680,609
2,217,278
541,240
277,909
3,717,036
(80,518) (791,357) 22,160
(849,715)
1,436
(13,709)
16,813
(27,587)
(23,047)
39
‐
‐
‐
39
5,503
(13,914)
19,231
(27,587)
(16,767)
(103,565) (785,116) 22,199
(866,482)
225,000
‐
(7,250)
‐
21,850
875,242
(23,000)
‐
‐
221,000
(5,000)
3,076,765
246,850
1,096,242
(35,250)
3,076,765
114,185
88,976
3,314,964
3,518,125
4,028
(205)
2,418
‐
6,241
852,408 3,792,197 ‐
4,644,605
$966,593 $ 3,881,173 $3,314,964 $ 8,162,730
|81
CombiningStatementofCashFlows‐OtherEnterpriseFunds
Parking,Traffic
andStreet
SanitationFund
LightsFund
Receiptsfromcustomers
Paymentstosuppliers
Proceedsfromcapitaldebt
Principalpaidoncapitaldebt
Interestandfiscalchargespaidoncapitaldebt
Netcashprovided(used)bycapitalandrelated
financingactivities
StormSewer
Fund
TotalOther
Enterprise
Funds
$2,465,855
(1,414,519)
(968,258)
83,078
$103,471
(655,259)
(152,743)
(704,531)
$276,617
(168,664)
(21,250)
86,703
$2,845,943
(2,238,442)
(1,142,251)
(534,750)
885,798
(687,911)
(12,787)
(27,587)
‐
(631,660)
‐
‐
‐
(74,212)
‐
‐
885,798
(1,393,783)
(12,787)
(27,587)
157,513
(631,660) (74,212) (548,359)
Transfersfromotherfunds
Grantsreceived
Netcashprovided(used)bynon‐capital
financingactivities
‐
875,242 221,000 1,096,242
(7,250) (23,000) (5,000) (35,250)
19,231
16,813 2,418 ‐
9,563
854,660
216,000
1,080,223
7,333
7,333
2,342
2,342
985
985
10,660
10,660
257,487
(479,189) 229,476
7,774
1,011,517
1,892,344
2,903,861
Reconciliationofincome(loss)fromoperationstonet
cashprovided(used)byoperatingactivities
Adjustmentstoreconcileoperatingincometonetcash
Accountsreceivable
Prepaidexpenses
‐
$ 1,269,004 $ 1,413,155 $229,476 $ 2,911,635
$(80,518) $(791,357) $22,160 ($849,715)
81,690 115,193
(7,885) ‐
81,026 277,909
(1,425) (9,310)
21,599 (24,232) (19,073) (21,706)
(1) ‐
‐
(1)
47,445
20,748
$ 83,078
(8,869) 4,015
4,734 ‐
$ (704,531) $86,703
42,591
25,482
$ (534,750)
Non‐cashinvesting,capitalandnon‐capitalfinancingactivities
Donatedassetsfromdevelopers
$ ‐
$ 21,850
$ 21,850
$‐
|82
StoresFund–TheStoresDepartmentisresponsibleforthepurchase,storage,anddisbursalof
inventorywhichisusedtosupporttheconstructionandmaintenancefunctionsoftheBoroughutilities.
MotorEquipmentFund–ThisfundsupportstheactivitiesoftheMotorEquipmentDepartmentwhich
managesarollingstockofmorethan120vehicles.
Self‐InsuranceFund–ThisfundisusedforthepurposeoffundingriskwhichtheBoroughdoesnot
transfertocommercialinsurancecarriersorinsurancepools.
EngineeringFund–ThisfundsupportstheactivitiesoftheEngineeringDepartmentwhichis
responsibleforfurnishingengineering,surveying,drafting,andutilitylocationinformationtoother
departments.Thedepartmentalsodesignsandinspectspublicworksprojects.
Worker’sCompensation–ThisfundunderwritestheriskstotheBoroughresultingfromjob‐related
injuryorillnesstoitsemployees.
AdministrativeServicesFund–AdministrativeServicesissynonymouswiththeFinanceDepartment
whichisresponsibleforthecompletefinancial,andutilitymeterreading,aswellastheoperationand
maintenanceofBoroughHall.
|83
CombiningStatementofNetPosition‐InternalServiceFunds
December31,2015
StoresFund
Motor
SelfInsurance
EquipmentFund
Fund
ASSETS
Currentassets
Otherreceivables
Inventories
Prepaidexpenses
Totalcurrentassets
$352,758
‐
1,059
741
1,204,018
179
1,558,755
$7,169,065
765
‐
15,031
90,962
1,104
7,276,927
$6,346,259
‐
‐
13,299
‐
‐
6,359,558
Noncurrentassets
CapitalAssets
Land
Buildingsandsystem
Totalcapitalassets
‐
5,823
3,993
(7,706)
2,110
13,984
149,981
8,700,087
(5,606,487)
3,257,565
‐
‐
‐
‐
‐
18,075
38,931
‐
ofresources
$1,578,940
$10,573,423
$6,359,558
LIABILITIES
Currentliabilities
Accountspayable
Accruedwagespayable
Liabilityforselfinsuredlosses‐current
$3,798
3,344
6,662
‐
13,804
$5,385
6,533
14,348
‐
26,266
$8,124
1,473
‐
61,440
71,037
Compensatedabsences
Liabilityforselfinsuredlosses
NetOPEBobligation
5,985
‐
81,133
14,184
101,302
12,447
‐
174,748
30,552
217,747
‐
123,286
‐
‐
123,286
Totalliabilities
115,106
244,013
194,323
2,110
1,461,724
1,463,834
3,257,565
7,071,845
10,329,410
‐
6,165,235
6,165,235
$ 1,578,940
$10,573,423
$ 6,359,558
NETPOSITION
Unrestricted
Totalnetposition
Engineering
Fund
Worker's
Compensation
Fund
$408,155
‐
‐
860
‐
‐
409,015
$231,045
‐
‐
490
‐
‐
231,535
$‐
‐
‐
‐
‐
‐
‐
‐
‐
46,979
(36,111)
10,868
‐
‐
‐
‐
‐
‐
13,984
‐
155,804
15,487 8,766,546
(1,549) (5,651,853)
13,938 3,284,481
60,869
‐
412,331
530,206
$480,752
$231,535
$426,269
$19,650,477
$12,664
6,628
22,980
‐
42,272
$642
‐
‐
200,873
201,515
$25,689
70,615
176,870
‐
273,174
$56,302
88,593
220,860
262,313
628,068
19,766
‐
273,217
47,768
340,751
‐
403,074
‐
‐
403,074
160,760
‐
1,850,801
323,588
2,335,149
198,958
526,360
2,379,899
416,092
3,521,309
383,023
604,589
2,608,323
4,149,377
10,868
86,861
97,729
‐
13,938 3,284,481
(373,054) (2,195,992) 12,216,619
(373,054) (2,182,054) 15,501,100
$480,752
$ 231,535
Administrative
ServicesFund
$ 426,269
TotalInternal
ServiceFunds
$14,507,282
765
1,059
30,421
1,294,980
1,283
15,835,790
$19,650,477
|84
CombiningStatementofRevenues,ExpensesandChangesinFundNetPosition‐Internal
ServiceFunds
StoresFund
Motor
SelfInsurance
EquipmentFund
Fund
OPERATINGREVENUES
Chargesforservices
Miscellaneous
$147,781
1
147,782
$2,418,610
‐
2,418,610
$160,433
‐
160,433
OPERATINGEXPENSES
Generalandadministrative
Claimpaymentsandspecialservices
Increase(decrease)inexpectedunpaidlosses
Depreciationandamortization
125,847
65,665
‐
‐
146
191,658
906,744
363,783
‐
‐
523,643
1,794,170
‐
2,711
407,397
(20,326)
‐
389,782
(43,876) 624,440
(229,349)
1,384
‐
51
‐
2,404
3,839
12,718
24,470
5,522
‐
5,180
47,890
11,728
‐
‐
741,012
‐
752,740
(40,037) 672,330
523,391
Othernonoperatingrevenues
Reimbursementofprioryearexpense
Intergovernmentalrevenue
Totalnon‐operatingrevenue(expenses)
Income(loss)beforetransfers
Transfersin
Transfersout
Changeinnetposition
‐
‐
526,947 10,000
(632,500) ‐
(40,037) 566,777
533,391
1,503,871
$ 1,463,834
5,631,844
$ 6,165,235
9,762,633
$10,329,410
Engineering
Fund
Worker's
Compensation
Fund
Administrative
ServicesFund
TotalInternal
ServiceFunds
$389,682
6,587
396,269
$‐
213
213
$4,330,087
1,833
4,331,920
$7,446,593
8,634
7,455,227
37,064
261,031
‐
‐
1,912
300,007
‐
97,663
102,244
(275,465)
‐
(75,558)
4,725,910
‐
‐
‐
1,549
4,727,459
5,795,565
790,853
509,641
(295,791)
527,250
7,327,518
96,262
75,771
(395,539) 127,709
550
‐
‐
‐
6,725
7,275
804
‐
‐
‐
‐
804
‐
‐
‐
‐
54,358
54,358
103,537
76,575
(341,181) 994,615
27,184
24,470
5,573
741,012
68,667
866,906
‐
41,150
(50,000) ‐
‐
578,097
(50,000) (732,500)
53,537
117,725
(391,181) 840,212
44,192
$97,729
(490,779) (1,790,873) 14,660,888
$ (373,054) $ (2,182,054) $15,501,100
|85
CombiningStatementofCashFlows‐InternalServiceFunds
StoresFund
Motor
SelfInsurance
EquipmentFund
Fund
Interfundservicesprovided
Paymentstosuppliers
$119,474
(53,765)
(118,447)
(52,738)
$2,424,328
(942,896)
(297,637)
1,183,795
Proceedsfromsaleofcapitalassets
Netcashprovided(used)bycapitalandrelatedfinancingactivities
‐
‐
‐
(629,107) ‐
25,480 ‐
(603,627) ‐
‐
‐
‐
1,345
1,345
526,947
(632,500)
‐
5,180
(100,373)
10,000
‐
741,012
‐
751,012
916
916
2,188
2,188
2,388
2,388
(50,477) 481,983
463,842
403,235
6,687,082
5,882,417
$ 352,758
$7,169,065
$ 6,346,259
$160,433
(451,464)
1,473
(289,558)
Transferfromotherfunds
Refundreceivedforhealthinsurance
Grantsreceived
Netcashprovided(used)bynon‐capitalfinancingactivities
Reconciliationofincomefromoperationstonetcashprovided
(used)byoperatingactivities
Adjustmentstoreconcileoperatingincometonetcash
Accountsreceivable
Inventories
Prepaidexpenses
$(43,876) $624,440
$(229,349)
145
51
‐
‐
523,643
5,522
‐
196 ‐
(28,359) 4,108 ‐
(6) (11) ‐
15,589 17,890
3,718 8,007
$(52,738) $1,183,795
(60,209)
‐
$ (289,558)
Engineering
Fund
Worker's
Compensation
Fund
Administrative
ServicesFund
Total
$396,269
(52,552)
(183,160)
160,557
$213
(200,053)
(5,850)
(205,690)
$4,333,459
(1,505,362)
(2,817,008)
11,089
$7,434,176
(3,206,092)
(3,420,629)
807,455
(4,712) ‐
‐
‐
(4,712) ‐
(15,487) (649,306)
‐
25,480
(15,487) (623,826)
‐
(50,000)
‐
6,725
(43,275)
41,150
‐
‐
‐
41,150
‐
(50,000)
‐
54,358
4,358
578,097
(732,500)
741,012
67,608
654,217
2,425
2,425
580
580
‐
‐
8,497
8,497
114,995
(163,960) (40) 846,343
293,160
395,005
40
13,660,939
$408,155
$231,045
$‐
$14,507,282
$96,262
$75,771
$(395,539) $127,709
1,912 ‐
(2,536) ‐
1,549
‐
527,249
3,037
‐
‐
‐
‐
‐
‐
1,539
‐
‐
1,735
(24,251)
(17)
52,401
12,518
$160,557
(281,461) 318,741
‐
84,799
$ (205,690) $11,089
62,951
109,042
$807,455
|86
TrustandAgencyFunds
TrustFundsareusedtoaccountforassetsheldbytheBoroughinatrusteecapacity.AgencyFundsare
usedtoaccountforassetsheldbytheBoroughasanagentforindividuals,privateorganizations,other
governmentsand/orotherfunds.
PolicePensionFund–Thisfundisusedtoaccountfortheaccumulationofresourcesforpension
benefitpaymentstoqualifiedpublicsafety(police)employees.
BargainingandAdministrativeEmployeesPensionFund–Thisfundisusedtoaccountforthe
accumulationofresourcesforpensionbenefitpaymentstoqualifiedemployeesoftheBoroughother
thanpoliceorfiredepartmentemployees.
Firemen’sPensionFund–Thisfundisusedtoaccountfortheaccumulationofresourcesforpension
benefitpaymentstoqualifiedFireDepartmentemployees.
Citizen’sRewardFund–Trustfundusedtoholdcontributionsfromprivatecitizensforthepurposeof
rewardingpoliceinformantsfortheirassistanceinsolvingcrime.
SisterCityFund–Trustfundusedtoholdmoneythataccumulatesforthespecificpurposeof“sister
city”activities.OursistercityisGotemba,Japan.
ProjectHEATFund–Trustfundtoholdcontributionsfromcitizensforthepurposeofassistingothers
paytheirutilitybills.
PayrollClearingFund–Anaccounttotemporarilyholdeverydollarexpendedthroughthepayroll
system.Thisincludesnetpayroll,alltaxeswithheld,miscellaneousdeductionsandemployers’shareof
SocialSecurity/Medicareexpense.Theoretically,everydollarcontainedwithintheaccountwill
eventuallybepaidoutinnetpay,taxesorotherdeductions.
ConsumerDepositsFund–Agencyfundusedtoholddepositsonbehalfofutilitycustomers.Interest
isearnedand“tracked”forindividualcustomersattheBorough’scompositeinterestrate.Thesefunds
canbeusedtosettleanoutstandingaccountorreturnedtothecustomerwhenevera“goodcredit
history”recordisattained.Thesefundsarealsoreturnedtothecustomerwhenevertheymoveoutside
theBorough.Occasionally,somedepositsandordownpaymentsfromotherindividualsand
organizationsforotherpurposesaredepositedinthisaccountandhelduntilfinalresolutionhas
occurred.
|87
CombiningStatementofFiduciaryNetPosition‐PensionTrustFunds
December31,2015
Firemen
PensionFund
PolicePension
Fund
Bargainingand
Administrative
Employees
PensionFund
ASSETS
Mutualfunds‐U.S.GovernmentandAgencySecurities
Totalassets
$20,506
1,019,228
679,342
3,181,650
153,985
1,429
$ 5,056,140
$54,926
2,253,725
1,507,992
7,048,308
341,391
‐
$ 11,206,342
$110,162
3,664,061
2,439,626
11,471,217
555,688
‐
$18,240,754
$185,594
6,937,014
4,626,960
21,701,175
1,051,064
1,429
$ 34,503,236
NETPOSITION
$ 5,056,140
$ 11,206,342
$18,240,754
$ 34,503,236
TotalPension
TrustFunds
|88
CombiningStatementofChangesinFiduciaryNetPosition‐PensionTrustFunds
Firemen
PensionFund
PolicePension
Fund
Bargainingand
Administrative
Employees
PensionFund
TotalPension
TrustFunds
ADDITIONS
Contributions
Employer
Planmember
Totalcontributions
Investmentincome:
investmentsandgains(loss)onsaleofinvestments
Interest,dividendsandother
Totaladditions
$299,092
62,716
361,808
$498,970
141,980
640,950
$699,463
358,837
1,058,300
$1,497,525
563,533
2,061,058
(197,764)
93,249
(104,515)
257,293
(430,761)
217,776
(212,985)
427,965
(704,505)
348,173
(356,332)
701,968
(1,333,030)
659,198
(673,832)
1,387,226
DEDUCTIONS
Benefits
Totaldeductions
286,688
3,917
290,605
695,819
8,189
704,008
1,439,848
16,125
1,455,973
2,422,355
28,231
2,450,586
Changeinnetposition
(33,312) (276,043) (754,005) (1,063,360)
5,089,452
$ 5,056,140
11,482,385
$ 11,206,342
18,994,759
$18,240,754
35,566,596
$ 34,503,236
|89
CombiningStatementofFiduciaryNetPosition‐PrivatePurposeTrustFunds
December31,2015
Citizen's
RewardFund
ASSETS
Otherreceivables
Totalassets
SisterCityFund
$10,479 $26,151
22 ‐
$10,501 $26,151
ProjectHeat
Fund
$‐
‐
$‐
TotalPrivate
PurposeTrust
Funds
$36,630
22
$36,652
Liabilities
Otherpayables
Totalliabilities
$‐
‐
$‐
‐
$20,330
20,330
NETPOSITION
Heldintrustforotherpurposes
10,501
26,151
(20,330) 16,322
$10,501
$26,151
$‐
$20,330
20,330
$36,652
|90
CombiningStatementofChangesinFiduciaryNetPosition‐
PrivatePurposeTrustFunds
Citizen's
RewardFund
ADDITIONS
Interestearnings
Publiccontributionsandotherrevenue
Totaladditions
SisterCityFund
ProjectHeat
Fund
TotalPrivate
PurposeTrust
Funds
$26 $86 $49 $161
200 1,081 15,153 16,434
226
1,167
15,202
16,595
‐
‐
‐
14,234
46,518
6,201
46,518
20,435
‐
14,234
52,719
66,953
Changeinnetposition
226
(13,067) (37,517) (50,358)
Netposition,beginning
10,275
39,218
17,187
Netposition,ending
$10,501
$26,151
($20,330) $16,322
DEDUCTIONS
Administrativeexpense
Miscellaneousexpense
Totaldeductions
66,680
|91
CombiningStatementofChangesinAssetsandLiabilities‐AllAgencyFunds
PAYROLLCLEARINGFUND
Assets
Totalassets
Liabilities
Withholdings
Totalliabilities
CONSUMERDEPOSITFUND
Assets
Otherreceivables
Totalassets
Liabilities
Consumerdeposits
Totalliabilities
TOTAL‐ALLAGENCYFUNDS
Assets
Otherreceivables
Totalassets
Liabilities
Withholdings
Consumerdeposits
Totalliabilities
Balance
1/1/15
Balance
12/31/15
Additions
Deductions
$‐
$‐
$ 13,618,296
$ 13,618,296
$13,618,296
$13,618,296
$‐
$‐
$‐
$‐
$ 4,720,600
$ 4,720,600
$4,720,600
$4,720,600
$‐
$‐
$900,685
606
$ 901,291
$496,425
7,700
$ 504,125
$418,541
6,269
$424,810
$978,569
2,037
$ 980,606
$ 901,291
$ 901,291
$ 509,504
$ 509,504
$430,189
$430,189
$ 980,606
$ 980,606
$900,685
606
$ 901,291
$14,114,721
7,700
$ 14,122,421
$14,036,837
6,269
$14,043,106
$978,569
2,037
$ 980,606
$‐
901,291
$ 901,291
$4,720,600
509,504
$ 5,230,104
$4,720,600
430,189
$5,150,789
$‐
980,606
$ 980,606
|92
ScheduleofTaxesReceivable
General
Purpose
Fire
Purpose
$197,793,910
$197,793,910
Add:Additions
1,016,468
1,016,468
Less:Reductionsandexonerations
1,563,040
1,563,040
197,247,338
197,247,338
21.0 mills
2.5 mills
4,142,194
493,118
33,615
(71,178)
(3,850,395)
4,002
(8,476)
(458,377)
254,236
30,267
123,318
14,512
$ 377,554
$44,779
Assessedvaluationofrealproperty
Adjustedassessment
Taxrate
Totaltaxlevied
Add:Penalties
Less:Discounts
Collections
2015taxesreceivable‐December31,2015
Prioryears'taxes
Totaltaxesreceivable‐December31,2015
|93
Statistical
Section
STATISTICALSECTION
UNAUDITED
ThissectionoftheBoroughofChambersburg'scomprehensiveannualfinancialreportpresents
detailedinformationasacontextfortheunderstandingwhattheinformationinthefinancial
statements,notdisclosures,andrequiredsupplementaryinformationsaysaboutthemunicipality's
overallfinancialhealth.
Contents
Page(s)
FinancialTrends
94‐100
Theseschedulescontaintrendinformationtohelpthereader
understandhowthemunicipality'sfinancialperformanceandwell‐beinghave
changedovertime.
RevenueCapacity
101‐106
Theseschedulescontaininformationtohelpthereaderassessthe
municipality'smostsignificantlocalrevenuesources,thepropertytax,andthe
earnedincometax.
DebtCapacity
107‐111
Theseschedulespresentinformationtohelpthereaderassessthe
affordabilityofthemunicipality'scurrentlevelsofoutstandingdebtandthe
municipality'sabilitytoissueadditionaldebtinthefuture.
DemographicandEconomicInformation
112‐113
Theseschedulesoffereconomicanddemographicindicatorstohelpthe
readerunderstandtheenvironmentwithinwhichthemunicipality'sfinancial
activitiestakeplace.
OperatingInformation
114‐116
Theseschedulescontainserviceinformationandinfrastructuredatato
helpthereaderunderstandhowtheinformationinthemunicipality'sfinancial
reportrelatestotheservicesthemunicipalityprovidesandtheactivitiesit
performs.
Sources:Unlessotherwisenoted,theinformationintheseschedulesisderivedfromthe
comprehensiveannualfinancialreportsfortherelevantyear.
FINANCIALTRENDS
TheseschedulescontaintrendinformationtohelpthereaderunderstandhowtheBorough'sfinancial
performanceandwell‐beinghavechangedovertime.Theseschedulesinclude:
NetPositionbyComponent
Schedule1
Schedule2
FundBalances‐GovernmentalFunds
Schedule3
ChangesinFundBalances‐GovernmentalFunds
Schedule4
ProgramRevenuesbyFunction
Schedule5
TaxRevenuesbySource‐GovernmentalFunds
Schedule6
Schedule1
BoroughofChambersburg,PA
NetPositionByComponent
LastTenYears
(accrualbasisofaccounting)
2015
2014
2013
2012(a)
2011
2010
2009
2008
2007
2006
Restricted
Unrestricted
Totalgovernmentalactivitiesnetposition
$20,494,089
5,972,633
132,897
26,599,619
$ 22,850,486
5,431,916
4,514,636
32,797,038
$ 22,561,919
3,975,045
5,173,101
31,710,065
$ 22,217,709
3,852,332
3,952,283
30,022,324
$ 25,275,852
3,769,761
4,633,198
33,678,811
$25,907,241
1,193,916
7,463,807
34,564,964
$ 24,030,856
1,452,889
9,876,322
35,360,067
$ 22,103,501
1,168,346
10,751,978
34,023,825
$ 20,030,556
786,100
10,030,131
30,846,787
$ 16,422,498
392,808
9,157,620
25,972,926
Restricted
Unrestricted
Totalbusiness‐typeactivitiesnetposition
111,221,937
‐
38,851,232
150,073,169
94,346,244
‐
43,395,900
137,742,144
85,933,597
‐
35,802,218
121,735,815
81,864,727
‐
30,945,382
112,810,109
76,493,701
‐
30,885,875
107,379,576
75,126,828
‐
33,192,820
108,319,648
74,790,451
‐
27,013,942
101,804,393
71,707,129
‐
30,437,794
102,144,923
69,516,503
‐
31,862,509
101,379,012
67,563,288
‐
23,049,503
90,612,791
Primarygovernment
Restricted
Unrestricted
Totalprimarygovernmentnetposition
131,716,026
5,972,633
38,984,129
$176,672,788
117,196,730
5,431,916
47,910,536
$ 170,539,182
108,495,516
3,975,045
40,975,319
$ 153,445,880
104,082,436
3,852,332
34,897,665
$ 142,832,433
101,769,553
3,769,761
35,519,073
$ 141,058,387
101,034,069
1,193,916
40,656,627
$142,884,612
98,821,307
1,452,889
36,890,264
$ 137,164,460
93,810,630
1,168,346
41,189,772
$ 136,168,748
89,547,059
786,100
41,892,640
$ 132,225,799
83,985,786
392,808
32,207,123
$ 116,585,717
(a)During2012,theBoroughimplementeditemspreviouslyreportedasassets
andliabilitiesprovisionsofGASB65whichchangedhowbondissuecostswererecorded.
Prioryearamountshavenotbeenrestatedandareshownbasedonthereporting
requirementspriortotheimplementationofGASB65.
|94
Schedule2
LastTenYears
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Expenses
Generalgovernment
Publicsafety
Publicworks
Totalgovernmentalactivitiesexpenses
$1,320,836
8,722,730
1,483,408
1,561,445
297,047
13,385,466
$ 1,871,895
8,044,957
1,728,115
1,383,781
498,846
13,527,594
$ 1,632,713
7,882,241
1,814,913
1,378,850
655,614
13,364,331
$ 1,696,708
7,697,570
1,655,579
1,353,831
539,858
12,943,546
$ 1,460,984
8,274,656
2,315,450
1,442,428
776,979
14,270,497
$ 1,143,438
8,186,805
2,113,662
1,931,419
313,210
13,688,534
$ 1,380,277
7,372,746
1,963,186
1,453,670
475,765
12,645,644
$ 1,041,494
7,335,996
1,117,850
1,469,475
661,485
11,626,300
$ 1,466,517
7,032,498
542,993
1,237,341
579,662
10,859,011
$ 1,043,354
6,349,063
1,852,946
1,019,986
467,084
10,732,433
Electric
Gas
Water
Sewer
Sanitation
StormSewer
Totalbusiness‐typeactivitiesexpenses
26,082,326
5,513,289
3,394,584
5,891,206
2,493,738
968,851
264,641
44,608,635
27,588,665
7,263,637
3,296,954
5,555,216
2,465,248
857,249
‐
47,026,969
25,296,812
7,033,202
3,123,219
5,185,515
2,322,274
761,190
‐
43,722,212
32,925,694
6,531,657
2,950,841
5,260,073
2,205,691
760,007
‐
50,633,963
33,550,331
7,136,724
2,898,515
5,283,679
2,274,672
173,881
‐
51,317,802
30,413,576
7,311,796
2,617,711
5,630,067
2,070,085
166,447
‐
48,209,682
33,623,997
8,694,454
2,831,476
5,152,404
2,092,023
164,223
‐
52,558,577
26,899,617
10,858,357
2,674,069
5,372,469
2,045,442
145,482
‐
47,995,436
17,036,148
9,804,046
2,775,409
4,435,959
1,900,908
146,970
‐
36,099,440
18,523,367
10,084,205
2,495,541
4,165,673
1,875,660
164,675
‐
37,309,121
Totalprimarygovernmentexpenses
$57,994,101
$60,554,563
$57,086,543
$63,577,509
$65,588,299
$61,898,216
$65,204,221
$59,621,736
$46,958,451
$48,041,554
Programrevenues
Chargesforservices
Generalgovernment
Publicsafety
Publicworks
Totalgovernmentalactivitiesprogramrevenues
$471,697
1,883,333
2,695
365,388
‐
1,688,126
253,796
4,665,035
$360,506
1,997,494
1,784
355,229
‐
2,431,255
964,645
6,110,913
$455,531
1,717,115
1,845
402,534
‐
2,746,623
1,325,376
6,649,024
$334,574
1,692,575
806
438,791
‐
2,089,208
171,505
4,727,459
$404,010
1,394,915
2,391
412,401
‐
2,189,108
511,286
4,914,111
$544,572
1,414,129
2,880
413,090
‐
1,874,440
1,118,987
5,368,098
$455,042
1,274,477
3,366
418,973
‐
1,414,482
2,901,458
6,467,798
$474,050
1,234,849
4,314
398,106
‐
1,775,741
2,026,960
5,914,020
$445,288
1,270,041
10,406
388,699
‐
1,488,749
2,994,098
6,597,281
$491,696
1,119,281
32,156
366,255
‐
1,200,413
2,921,896
6,131,697
Chargesforservices
Electric
Gas
Water
Sewer
Sanitation
StormSewer
Totalbusiness‐typeactivitiesprogramrevenues
30,286,293
6,261,957
3,142,529
5,567,270
2,440,813
197,041
295,362
239,650
11,740,114
60,171,029
31,695,974
9,105,354
3,150,530
5,376,373
2,475,937
206,656
‐
284,758
11,506,390
63,801,972
31,914,866
8,273,829
3,101,815
5,507,845
2,452,154
179,281
‐
264,847
2,484,348
54,178,985
31,823,441
7,368,579
3,460,555
5,317,072
1,997,409
168,168
‐
139,192
3,643,331
53,917,747
32,243,631
7,812,764
3,075,317
5,084,952
2,032,789
182,707
‐
518,395
1,195,252
52,145,807
34,765,216
8,323,329
3,196,140
4,570,569
2,039,950
134,397
‐
706,484
1,320,441
55,056,526
30,785,021
9,410,294
3,375,869
4,096,262
2,045,885
134,927
‐
168,207
3,400,102
53,416,567
25,655,849
10,971,012
3,469,626
4,068,865
2,067,715
137,939
‐
173,335
2,619,182
49,163,523
23,374,049
10,111,337
3,879,178
4,027,596
2,026,588
145,400
‐
482,632
2,537,794
46,584,574
19,731,687
10,295,262
3,472,734
3,796,020
1,938,838
154,740
‐
178,031
1,481,518
41,048,830
$64,836,064
$69,912,885
$60,828,009
$58,645,206
$57,059,918
$60,424,624
$59,884,365
$55,077,543
$53,181,855
$47,180,527
Totalprimarygovernmentprogramrevenues
|95
Schedule2
ChangesinNetPosition(Continued)
LastTenYears
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Net(expense)/revenue
Totalprimarygovernmentnetexpenses
$(8,720,431)
15,562,394
$6,841,963
$ (7,416,681)
16,775,003
$ 9,358,322
$ (6,715,307)
10,456,773
$ 3,741,466
$ (8,216,087)
3,283,784
$ (4,932,303)
$ (9,356,386)
828,005
$ (8,528,381)
$ (8,320,436)
6,846,844
$ (1,473,592)
$ (6,177,846)
857,990
$ (5,319,856)
$ (5,712,280)
1,168,087
$ (4,544,193)
$ (4,261,730)
10,485,134
$ 6,223,404
$ (4,600,736)
3,739,709
$ (861,027)
Generalrevenuesandotherchangesinnetposition
Taxes
Propertytaxes
Earnedincometax
Localservicestax
KasherFiretax
Othertaxes
Gainonsaleofassets
Unrestrictedcontributionsandgrants
Miscellaneousincome
Transfers
Totalgovernmentalactivities
$4,142,267
779,004
1,853,327
702,097
491,328
74,975
‐
‐
35,331
39,477
(3,076,765)
2,323,202
$7,364,243
$ 4,079,972
317,334
1,840,955
797,699
486,642
60,819
‐
‐
20,707
16,612
‐
882,914
$ 8,503,654
$ 3,871,122
261,049
1,804,341
729,747
‐
62,682
(13,184)
‐
11,165
29,829
‐
1,646,297
$ 8,403,048
$ 3,860,019
296,618
1,753,574
747,799
‐
14,803
‐
‐
19,745
10,557
‐
(2,143,515)
$ 4,559,600
$ 3,797,204
265,172
1,561,233
744,131
‐
14,213
‐
‐
40,144
51,117
‐
1,997,019
$ 8,470,233
$ 3,732,778
240,954
1,524,001
757,564
‐
13,408
‐
‐
60,048
24,360
‐
1,172,220
$ 7,525,333
$ 3,710,125
272,005
1,390,053
860,057
‐
12,616
‐
‐
181,223
57,152
‐
1,705,586
$ 8,188,817
$ 3,627,868
540,465
1,907,032
775,600
‐
11,682
‐
22,816
404,894
36,279
‐
1,562,682
$ 8,889,318
$ 3,486,845
816,051
1,568,769
1,165,990
‐
10,565
‐
3,926
518,979
125,626
‐
1,117,180
$ 8,813,931
$ 2,810,388
674,435
1,629,180
1,111,662
‐
10,452
‐
26,935
437,046
32,651
‐
1,047,915
$ 7,780,664
$101,695
30,679
3,076,765
(2,323,202)
‐
$885,937
$ 90,602
23,638
‐
(882,914)
‐
$(768,674)
$ 41,143
74,087
‐
(1,646,297)
‐
$ (1,531,067)
$ 60,705
42,013
‐
2,143,515
‐
$ 2,246,233
$125,701
103,241
‐
(1,997,019)
‐
$ (1,768,077)
$187,285
124,596
‐
(1,172,220)
‐
$ (860,339)
$358,101
148,965
‐
(1,705,586)
‐
$ (1,198,520)
$969,639
190,867
‐
(1,562,682)
‐
$ (402,176)
$ 1,180,310
217,957
‐
(1,117,180)
‐
$281,087
$951,240
104,600
‐
(1,047,912)
(316,751)
$(308,823)
$8,250,180
$ 7,734,980
$ 6,871,981
$ 6,805,833
$ 6,702,156
$ 6,664,994
$ 6,990,297
$ 8,487,142
$ 9,095,018
$ 7,471,841
Changeinnetposition
Totalprimarygovernmentchangeinnetposition
(1,356,188)
16,448,331
$15,092,143
1,086,973
16,006,329
$17,093,302
1,687,741
8,925,706
$10,613,447
(3,656,487)
5,530,017
$ 1,873,530
(886,153)
(940,072)
$ (1,826,225)
(795,103)
5,986,505
$ 5,191,402
2,010,971
(340,530)
$ 1,670,441
3,177,038
765,911
$ 3,942,949
4,552,201
10,766,221
$15,318,422
3,179,928
3,430,886
$ 6,610,814
Miscellaneousincome
Transfers
Extraordinaryitems
|96
Schedule3
FundBalances‐GovernmentalFunds
LastTenYears
(modifiedaccrualbasisofaccounting)
2014
2013
2012
Generalfund
Unassigned
$1,993,240
$ 2,532,654
$ 2,746,679
$ 1,450,260
Unreserved
‐
‐
‐
‐
Totalgeneralfund
1,993,240
2,532,654
2,746,679
1,450,260
Allothergovernmentalfunds
Reserved
‐
‐
‐
‐
Unreserved,reportedin
Specialrevenuefund
‐
‐
‐
‐
Capitalreservefunds
‐
‐
‐
‐
203,916
229,855
241,387
237,186
Restricted
5,768,717
5,202,061
3,733,658
3,615,146
Totalallothergovernmentalfunds
5,972,633
5,431,916
3,975,045
3,852,332
Totalgovernmentalfunds
$7,965,873
$ 7,964,570
$ 6,721,724
$ 5,302,592
FundbalancereportingaspresentedbyGASB54wasimplementedduring2011.Prioryear
amountshavenotbeenrestatedandareshownbasedonthefundbalanceclassifications
aspresentedbyGASBStandardspriortotheimplementationofGASB54.
2011
2010
2009
2008
2007
2006
$ 1,259,687
‐
1,259,687
$ ‐
1,375,034
1,375,034
$ ‐
2,139,230
2,139,230
$ ‐
3,022,011
3,022,011
$ ‐
3,132,235
3,132,235
$‐
3,002,526
3,002,526
‐
583,627
506,093
439,688
482,736
334,814
‐
‐
249,133
3,520,628
3,769,761
860,642
2,688,148
‐
‐
4,132,417
1,096,594
4,359,108
‐
‐
5,961,795
858,329
4,871,296
‐
‐
6,169,313
455,558
4,309,406
‐
‐
5,247,700
89,893
3,647,518
‐
‐
4,072,225
$ 5,029,448
$5,507,451
$ 8,101,025
$ 9,191,324
$ 8,379,935
$7,074,751
FundBalances
LastTenYears
10
8
Millions
2015
6
4
2
0
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
|97
Schedule4
ChangesinFundBalances‐GovernmentalFunds
LastTenYears
REVENUES
Realestatetaxes
Localenablingtaxes
Licensesandpermits
Finesandforfeits
Investmentearnings
Intergovernmental
Chargesforservices
Miscellaneous
Totalrevenues
EXPENDITURES
Current:
Generalgovernment
Publicsafety
Policedeparment
Emergencyservices
Planningandzoning
Generalhealthandambulanceservice
Publicworks
Highways
Parking,trafficcontrol,andtransitsystem
Debtservice
Principalretirement
Interestandfiscalcharges
Totalexpenditures
Proceedsfromsaleofassets
Transfersin(out)
Debtserviceasapercentageofnon‐capital
expenditures
Debtserviceasapercentageoftotal
expenditures
2015
2014
2013
2012
$ 4,640,063
3,500,815
380,070
174,703
27,537
1,939,468
2,016,983
212,589
71,190
12,963,418
$ 4,698,871
2,970,211
332,478
182,691
13,914
3,357,515
2,062,651
187,075
4,636
13,810,042
$3,991,164
2,780,009
381,972
169,126
7,363
3,674,830
1,844,936
257,232
349,025
13,455,657
$ 3,783,960
2,588,481
349,126
147,438
12,817
2,055,872
1,840,196
220,524
124,660
11,123,074
1,512,044
1,321,670
1,287,815
1,098,876
4,480,390
3,741,239
527,330
‐
4,175,714
3,581,379
432,463
‐
3,980,135
3,396,910
474,599
‐
4,065,329
3,210,618
329,461
‐
2,405,159
‐
1,486,241
258,376
2,591,445
‐
1,508,108
237,696
2,396,425
‐
1,220,489
681,306
1,442,803
‐
1,164,260
521,509
‐
‐
14,410,779
‐
‐
13,848,475
‐
‐
13,437,679
‐
‐
11,832,856
(1,447,361)
(38,433)
17,978
(709,782)
‐
1,880,728
1,880,728
‐
1,281,279
1,281,279
‐
1,401,154
1,401,154
‐
982,926
982,926
$ 433,367
$ 1,242,846
$1,419,132
$ 273,144
00.0%
00.0%
00.0%
00.0%
0.000%
0.000%
0.000%
0.000%
2011
2010
2009
2008
2007
2006
$3,754,875
2,602,256
320,776
122,283
22,777
2,418,840
1,638,809
297,500
134,832
11,312,948
$3,732,778
2,620,238
357,550
130,940
37,461
2,045,106
1,792,542
212,953
79,094
11,008,662
$ 3,710,125
2,438,571
329,480
127,416
130,960
1,854,862
1,551,711
217,277
392,826
10,753,228
$ 3,579,097
3,115,435
314,841
147,943
304,813
2,203,624
1,533,643
225,042
767,176
12,191,614
$ 3,496,353
3,795,794
283,832
134,912
433,095
4,128,114
1,609,239
286,146
‐
14,167,485
$2,812,617
3,378,559
327,849
124,607
340,051
2,963,293
1,429,528
406,735
‐
11,783,239
1,106,857
1,265,367
1,039,126
995,568
1,524,590
1,221,598
4,230,668
2,412,176
537,731
1,053,206
4,597,965
2,056,357
455,054
1,184,088
4,105,028
1,790,115
371,105
1,086,075
4,007,937
1,768,874
424,173
995,078
3,998,185
1,804,011
454,234
770,771
3,745,351
1,703,609
359,499
798,504
1,447,497
476,187
1,555,752
568,877
2,107,854
990,662
1,803,470
487,577
2,168,345
684,238
1,394,860
559,625
1,330,447
448,458
1,493,780
1,198,910
962,915
476,549
1,189,479
2,765,619
2,553,405
718,504
1,058,650
661,039
‐
‐
13,388,951
‐
‐
14,948,394
‐
‐
13,198,517
‐
‐
12,663,225
‐
‐
13,946,353
‐
‐
12,820,159
(2,076,003)
(3,939,732)
(2,445,289)
(471,611)
221,132
(1,036,920)
‐
1,598,000
1,598,000
‐
1,346,158
1,346,158
‐
1,330,307
1,330,307
‐
1,283,000
1,283,000
‐
1,084,052
1,084,052
‐
1,671,226
1,671,226
$(478,003)
$(2,593,574)
$(1,114,982)
$ 811,389
$ 1,305,184
$634,306
00.0%
00.0%
00.0%
00.0%
00.0%
0.000%
00.0%
0.000%
0.000%
0.000%
0.000%
0.000%
|98
Schedule5
ProgramRevenuesbyFunction
LastTenYears
Function/Program
Generalgovernment
Publicsafety
Publicworks
Subtotalgovernmentalactivities
Electric
Gas
Water
Sewer
Sanitation
StormSewer
Subtotalbusinesstypeactivities
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
$509,291
2,641,513
777,088
510,254
226,889
4,665,035
$ 394,215
3,274,261
1,442,069
444,977
555,391
6,110,913
$ 488,079
3,204,865
1,763,380
501,333
691,367
6,649,024
$ 366,191
2,639,445
564,311
550,572
606,940
4,727,459
$1,297,380
2,095,069
4,860
675,646
841,156
4,914,111
$2,029,383
2,190,353
261,626
413,090
473,646
5,368,098
$ 635,089
1,937,743
2,870,251
425,909
598,806
6,467,798
$ 2,513,514
2,016,269
532,278
539,959
312,000
5,914,020
$ 3,764,057
1,364,935
1,015,251
422,506
30,532
6,597,281
$1,399,348
1,655,801
2,180,286
393,682
502,580
6,131,697
30,362,435
6,301,368
3,285,875
17,022,054
2,682,626
221,309
295,362
60,171,029
31,747,722
9,182,534
3,176,857
16,925,664
2,545,943
223,252
‐
63,801,972
31,982,784
8,388,751
3,222,033
7,925,879
2,476,723
182,815
‐
54,178,985
32,759,537
7,530,410
3,481,859
7,933,656
2,034,451
177,834
‐
53,917,747
32,517,943
7,913,084
3,174,372
6,235,990
2,112,945
191,473
‐
52,145,807
35,088,796
8,405,864
4,022,392
5,243,703
2,153,694
142,077
‐
55,056,526
32,316,324
9,488,238
4,420,697
4,958,834
2,095,168
137,306
‐
53,416,567
26,568,799
11,149,104
4,273,076
4,919,105
2,112,950
140,489
‐
49,163,523
23,787,570
10,129,533
4,407,194
6,050,383
2,062,631
147,263
‐
46,584,574
20,634,722
10,496,579
3,759,890
4,025,793
1,974,758
157,088
‐
41,048,830
$64,836,064
$69,912,885
$ 60,828,009
$ 58,645,206
$ 57,059,918
$60,424,624
$ 59,884,365
$ 55,077,543
$ 53,181,855
$ 47,180,527
|99
Schedule6
TaxRevenuesbySource‐GovernmentalFunds
LastTenYears
RealEstate
Kasher
FireTax
RealEstate
Transfer
Earned
Income
Local
Services
Tax
$4,079,891
$485,197
$779,004
$1,933,081
$788,730
$306,487
$74,975
$8,447,365
4,170,114
467,938
317,334
1,879,124
773,753
246,599
60,819
7,915,681
2013
3,928,482
‐
261,049
1,771,072
747,888
324,337
62,682
7,095,510
2012
3,769,157
‐
296,618
1,571,261
720,602
315,504
14,803
6,687,945
2011
3,740,662
‐
265,172
1,499,019
702,064
313,867
14,213
6,534,997
2010
3,702,670
‐
240,954
1,638,419
757,564
315,038
13,408
6,668,053
2009
3,690,751
‐
272,005
1,313,267
860,057
319,990
12,616
6,468,686
2008
3,579,097
‐
540,465
1,787,688
775,600
302,892
11,682
6,997,424
2007
3,496,353
‐
816,051
1,728,188
1,165,990
269,553
10,565
7,486,700
2006
2,812,617
‐
674,435
1,582,009
1,111,662
308,267
10,452
6,499,442
Fiscal
Year
2015
2014
(1)
Total
TaxRevenues
LastTenYears
9
8
7
Millions
CableTV Payments
Franchise inLieu
Fees
ofTaxes
6
5
4
3
2
1
0
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
(1) Beginning in 2014, the Borough assessed the Richard Kasher Fire Tax.
Source: Borough of Chambersburg Finance Department.
|100
REVENUECAPACITY
TheseschedulescontaintrendinformationtohelpthereaderassesstheBorough'smostsignificant
localrevenuesource,thepropertytax.Theseschedulesinclude:
PropertyTaxRates‐DirectandOverlappingGovernments
Schedule7
AssessedValueandActualValueofTaxableProperty
Schedule8
PrincipalTaxpayers
Schedule9
PropertyTaxLeviesandCollections
Schedule10
MunicipalEarnedIncomeTaxRevenueBaseandCollections
Schedule11
EarnedIncomeTaxStatistics
Schedule12
Schedule7
PropertyTaxRates‐DirectandOverlappingGovernments
LastTenYears
‐‐‐‐‐‐‐‐‐‐‐DirectRate‐‐‐‐‐‐‐‐‐‐‐
<‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐OverlappingDebt‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐>
TaxYear
GeneralReal
EstateTax
Kasher
FireTax
Total
Direct
Chambersburg
AreaSchDist
Franklin
County
FranklinCounty
Library
2015
21.00
2.50
23.50
98.43
25.65
1.05
21.00
2.50
23.50
96.12
25.65
1.05
2013
20.00
0.00
20.00
93.69
25.65
1.05
2012
20.00
0.00
20.00
92.76
25.15
0.8
2011
20.00
0.00
20.00
92.76
25.15
0.8
2010
20.00
0.00
20.00
89.62
25.15
0.8
2009
20.00
0.00
20.00
84.98
24.65
0.8
2008
2007
20.00
0.00
20.00
80.98
21.95
0.8
20.00
0.00
20.00
76.91
21.75
0.6
2006
17.00
0.00
17.00
70.68
21.75
0.6
2014
(1)
(1)Beginningin2014,theBoroughassessedtheRichardKasherFireTax.
Sources:
BoroughofChambersburgComprehensiveAnnualReport
ChambersburgAreaSchoolDistrictAnnualFinancialReport
FranklinCountyTaxAssessmentOffice
|101
Schedule8
AssessedValueandActualValueofTaxableProperty
LastTenYears
Fiscal
Year
Ended
December31,
TaxExempt
Property
Total
Estimated
Assessed
Value
Total
Taxable
Assessed
Value
Agricultural
Property
Residential
Property
Commercial
Property
Industrial
Property
Vacant
Property
Chambersburg
Municipal
MillageRate
2015
$261,890
$100,769,600
$ 84,626,080
$ 9,781,880
$ 2,354,460
$51,816,300
$ 249,610,210
$ 197,793,910
23.50
2014
261,890
99,169,650
84,175,730
9,647,700
2,609,820
51,635,840
247,500,630
195,864,790
23.50
2013
261,890
98,871,380
83,431,360
9,021,630
2,654,140
51,986,140
246,226,540
194,240,400
20.00
2012
267,630
98,678,800
82,147,740
9,006,850
2,784,410
51,973,840
244,859,270
192,885,430
20.00
2011
267,630
98,098,920
80,602,420
9,296,000
2,802,080
51,726,140
242,793,190
191,067,050
20.00
2010
267,630
96,846,110
78,000,260
9,383,290
2,888,840
51,559,840
238,945,970
187,386,130
20.00
2009
267,630
95,560,690
78,327,490
9,709,350
2,782,180
51,027,070
237,674,410
186,647,340
20.00
2008
267,630
92,976,990
74,950,820
10,007,730
2,911,350
50,946,250
232,060,770
181,114,520
20.00
2007
321,620
90,319,950
68,040,640
9,698,490
2,977,070
50,832,230
222,190,000
171,357,770
20.00
2006
331,460
87,762,230
64,269,630
9,698,490
2,111,770
50,389,070
214,562,650
164,173,580
17.00
Sources:
FranklinCounty,PATaxAssessor'sOffice
BoroughofChambersburgComprehensiveAnnualFinancialReport
|102
Schedule9
PrincipalTaxpayers
12/31/2015and12/31/2006
Taxpayer
December31,2015
Estimated
ActualValuesof
RealProperty(1)
ChbgHealthSrv/ChbgHospital
Menno‐Haven,Inc
ChambersburgCrossingLP
Wilsey/Holsum‐VenturaFoodLLC
AmericanRealEstate
ProLogis
WayneAvenueLLC
ChambersburgColdStorage
TanyaK.Nitterhouse
ChbgAreaDevelopmentCorp
Total
$12,838,824
5,485,560
4,946,620
2,849,540
2,340,650
1,780,100
1,628,060
1,491,010
1,338,340
1,199,670
$35,898,374
TotalTaxableAssessedValuation
$197,793,910
Taxpayer
Menno‐Haven,Inc
ChbgHealthSrv/ChbgHospital
AmericanRealEstate
Wilsey/Holsum‐VenturaFoodLLC
DermodyOwenLLC
TanyaK.Nitterhouse
WayneAvenueLLC
ChambersburgColdStorage
ChbgAreaDevelopmentCorp
ChambersburgBusinessParkLP
Rank
1
2
3
4
5
6
7
8
9
10
December31,2006
Estimated
ActualValuesof
RealProperty(1)
Rank
$5,479,480
4,109,040
2,340,650
2,219,730
1,770,950
1,698,520
1,520,770
1,491,010
1,161,630
1,150,980
$22,942,760
1
2
3
4
5
6
7
8
9
10
Percentageof
Assessed
Valuation
6.49%
2.77%
2.50%
1.44%
1.18%
0.90%
0.82%
0.75%
0.68%
0.61%
18.14%
Percentageof
Assessed
Valuation
3.34%
2.50%
1.43%
1.35%
1.08%
1.03%
0.93%
0.91%
0.71%
0.70%
13.98%
TotalTaxableAssessedValuation
$164,173,580
Sources:BoroughofChambersburgComprehensiveAnnualFinancialReport
FranklinCountyAssessor'sOffice
|103
Schedule10
PropertyTaxLeviesandCollections
LastTenFiscalYears
Collectionswithinthe
FiscalYearoftheLevy
Fiscal
Year
Ended
Dec31,
TaxesLevied
forthe
FiscalYear
Amount
Percentage
ofLevy
2015
$4,663,215
$4,377,257
93.87%
2014(1)(2)
4,617,616
4,387,275
95.01%
2013
3,897,692
3,650,686
2012
3,872,274
2011
TotalCollectionstoDate
Collections
InSubsequent
Years
Amount
Percentage
ofLevy
$4,377,257
93.87%
123,329
4,510,604
97.68%
93.66%
242,615
3,893,301
99.89%
3,593,392
92.80%
278,882
3,872,274
100.00%
3,821,341
3,523,898
92.22%
291,474
3,815,372
99.84%
2010
3,747,723
3,527,832
94.13%
219,498
3,747,330
99.99%
2009
3,732,947
3,521,879
94.35%
209,608
3,731,487
99.96%
2008
3,691,170
3,449,448
93.45%
241,491
3,690,939
99.99%
2007(3)
3,524,433
3,327,598
94.42%
196,604
3,524,202
99.99%
2006
2,842,065
2,689,089
94.62%
152,976
2,842,065
100.00%
$‐
PropertyTaxCollections
LastTenYears
5
Millions
4
3
2
1
0
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
(1)TheBorough'spropertytaxmillrateincreasedfrom20.0to21.0,anincreaseof5.00%.
(2)Beginningin2014,theBoroughassessedtheRichardKasherFireTax.
(3)TheBorough'spropertytaxmillrateincreasedfrom17.0to20.0,anincreaseof17.64%
Source:BoroughofChambersburgFinanceDepartment
|104
Schedule11
MunicipalEarnedIncomeTaxRevenueBaseandCollections
LastTenFiscalYears
Fiscal
Year
TaxRate
TotalEarned
IncomeTax
Collected
Refunds
NetEarned
IncomeTax
Collected
2015
1.00%
$1,900,774
$57,461
$1,843,314
2014
1.00%
1,900,071
60,254
1,839,818
2013
1.00%
1,763,576
50,104
1,713,472
2012
1.00%
1,726,825
41,883
1,684,942
2011
1.00%
1,545,659
36,156
1,509,503
2010
1.00%
1,506,994
40,290
1,466,704
2009
1.00%
1,532,436
38,505
1,493,931
2008
1.00%
1,768,256
34,413
1,733,843
2007
1.00%
1,604,820
41,275
1,563,545
2006
1.00%
1,517,056
38,543
1,478,513
Source:FranklinCountyAreaTaxBureau
|105
Schedule12
EarnedIncomeTaxStatistics
LastTenYears
Numberoftaxfilers
IncomeRange
2015(1)
>$1,000,000
$500,000‐$999,999
$200,000‐$499,000
$100,000‐$199,000
$50,000‐$99,000
<$49,999
Total
2014
0
14
67
232
1,583
8,238
10,134
2013
1
6
58
187
1,347
7,046
8,645
2012
1
15
45
183
1,365
7,135
8,744
2011
0
12
64
192
1,453
6,923
8,644
2010
0
12
65
198
1,442
6,445
8,162
2009
0
17
45
163
1,216
6,941
8,382
2008
0
16
44
148
1,148
7,455
8,811
2007
1
16
43
140
1,099
7,079
8,378
2006
0
15
34
132
1,008
7,344
8,533
%oftotalearnedincometaxespaid
IncomeRange
>$1,000,000
$500,000‐$999,999
$200,000‐$499,000
$100,000‐$199,000
$50,000‐$99,000
<$49,999
Total
TotalPersonalIncome
2015(1)
2014
2013
2012
2011
2010
2009
2008
2007
2006
0.00%
3.11%
6.73%
9.31%
32.69%
48.16%
100.00%
0.37%
1.53%
6.75%
8.73%
32.73%
49.89%
100.00%
0.61%
3.21%
5.07%
8.63%
32.89%
49.59%
100.00%
0.00%
2.76%
6.85%
8.64%
32.50%
49.25%
100.00%
0.00%
2.95%
6.96%
9.15%
33.05%
47.89%
100.00%
0.00%
3.76%
4.98%
7.80%
29.12%
54.34%
100.00%
0.00%
3.54%
4.88%
7.10%
27.73%
56.75%
100.00%
0.41%
3.51%
5.05%
6.87%
27.18%
56.98%
100.00%
0.00%
3.42%
3.86%
6.64%
25.64%
60.44%
100.00%
$319,408,262
$306,751,179
$310,489,463
$296,903,258
$286,781,775
$273,204,270
$270,954,117
$263,147,886
$255,114,215
(1)Informationforyearended12/31/2015notyetavailable
Source:FranklinCountyAreaTaxBureau
|106
DEBTCAPACITY
TheseschedulescontaintrendinformationtohelpthereaderassesstheaffordabilityoftheBorough's
currentlevelsofoutstandingdebtandtheBorough'sabilitytoissueadditionaldebtinthefuture.
Theseschedulesinclude:
RatiosofOutstandingDebtbyType
Schedule13
RatiosofGeneralBondedDebtOutstanding
Schedule14
LegalDebtMarginInformation
Schedule15
ComputationofDirectandOverlappingDebt
Schedule16
DebtCapacityInformation‐Pledged‐RevenueCoverage
Schedule17
Schedule13
RatiosofOutstandingDebtbyType
LastTenYears
GovernmentalActivities(1)
Fiscal
Year
General
Obligation
Bonds
BusinessTypeActivities(1)
Electric
Electric
Gas
Sewer
Sewer
Sanitation
Department Department Department TreatmentPlant TreatmentPlant
Water
Department
General
General
General
General
General
Plant
General
Total
Percentageof
Obligation
Obligation Obligation
Obligation
Obligation
RevenueNotes Obligation
Primary
Personal
Income
Bonds
Notes
Notes
Bonds
Notes
Payable(2)
Notes
Government
Per
Capita
2015
$‐
$10,361,612
$1,402,771
$ ‐
$358,388
$6,037,228
$‐
$1,487,213
$19,647,212
4.529%
950
2014
‐
11,188,200
1,463,106
‐
766,800
6,296,894
‐
614,202
20,329,202
4.834%
1,003
2013
‐
12,220,000
1,508,357
38,417
1,315,000
58,667
2,463,360
‐
17,603,801
4.186%
869
2012
‐
13,217,900
27,467
38,417
1,847,100
58,667
2,649,126
‐
17,838,677
4.242%
880
2011
‐
14,095,208
‐
‐
2,364,792
‐
2,640,542
‐
19,100,542
4.542%
942
2010
‐
15,033,600
‐
‐
2,866,400
‐
2,845,376
‐
20,745,376
5.309%
1,024
2009
‐
15,941,300
‐
‐
3,353,700
‐
2,370,233
‐
21,665,233
6.257%
1,206
2008
‐
16,355,000
‐
‐
3,955,000
‐
2,338,177
‐
22,648,177
6.541%
1,261
2007
‐
17,240,000
‐
‐
4,340,000
‐
2,556,619
‐
24,136,619
6.971%
1,344
2006
‐
17,550,000
‐
‐
4,715,000
‐
2,732,990
‐
24,997,990
7.220%
1,392
(1)DetailsregardingtheBorough'soutstandingdebtcanbefoundintheNote5inthecurrentfinancialstatements.
(2)VariouswaterprojectsfinancedviatheCommonwealthofPennsylvania'sPennvestloanprogram.
|107
Schedule14
RatiosofGeneralBondedDebtOutstanding
LastTenYears
GeneralBondedDebtOutstanding
NetNon‐
Leaserental
electoraldebt
debt
Total
Primary
Government
%ofAssessed
Valuation
Debtper
Capita
2015
$19,647,212
$‐
$19,647,212
9.93% $ 950
2014
20,329,202
‐
20,329,202
10.38%
1,003
2013
17,603,801
‐
17,603,801
9.06%
869
2012
17,838,677
‐
17,838,677
9.25%
880
2011
19,100,542
‐
19,100,542
10.00%
942
2010
20,745,376
‐
20,745,376
11.07%
1,024
2009
21,665,233
‐
21,665,233
11.61%
1,206
2008
22,648,177
‐
22,648,177
12.50%
1,261
2007
24,136,619
‐
24,136,619
14.09%
1,344
2006
24,997,990
‐
24,997,990
15.23%
1,392
TotalBondedDebt
LastTenYears
$35
$30
Millions
$25
$20
$15
$10
$5
$‐
2015
Source:
2014
2013
2012
2011
2010
2009
2008
2007
2006
Borough of Chambersburg Finance Department.
|108
Schedule15
LegalDebtMarginInformation
LastTenYears
GeneralBondedDebtOutstanding
Threeyear
Fiscal
averagerevenue
Year
borrowingbase Legaldebtlimit
Total
DebtApplicable
tolimit
LegalDebt
margin(1)
LegalDebt
margin%
2015
$59,852,837
$ 149,632,093
$ 19,647,212
$ 129,984,881
86.87%
2014
59,486,469
148,716,173
20,329,202
128,386,971
86.33%
2013
58,000,270
145,000,675
17,603,801
127,396,874
87.86%
2012
58,064,147
145,160,368
17,838,677
127,321,691
87.71%
2011
57,836,427
144,591,068
19,100,542
125,490,526
86.79%
2010
56,923,585
142,308,963
20,745,376
121,563,587
85.42%
2009
54,295,910
135,739,774
21,665,233
114,074,541
84.04%
2008
53,780,759
134,451,898
22,648,177
111,803,721
83.16%
2007
52,021,411
130,053,528
24,136,619
105,916,909
81.44%
2006
49,400,885
123,502,213
24,997,990
98,504,223
79.76%
(1)LegalDebtMargin:(12/31/2015)
a
b
c
Averagerevenuespast3yrs
Legaldebtlimit(2.5timeaveragerev)
Debtoutstanding@12/31/2015
59,852,837 ($179,558,512/3)
149,632,093
(19,647,212)
LegalDebtMargin(b‐c)
$ 129,984,881
Note:Certainamountsintheschedulewererestatedduetoreclassifications.
|109
Schedule16
ComputationofDirectandOverlappingDebt
December31,2015
Total
Debt
Outstanding
Jurisdiction
Direct
(GovernmentalActivities)
Overlapping
ChambersburgSchoolDist
CountyofFranklin
TotalOverlappingDebt
Total
Estimated
Percentage
Applicable(a)
$‐
Amount
Applicable
To
BoroughofChbg
$‐
145,650,000
28.1624%
41,018,542
33,745,000
13.6917%
4,620,265
179,395,000
45,638,807
$ 179,395,000
$45,638,807
(a)
Thepercentageofoverlappingdebtapplicableisestimatedusingtaxablepropertyvalues.
Applicablepercentageswereestimatedbydeterminingtheportionofanother
governmentalunit'staxablevaluethatiswithintheborough'sboundariesanddividingit
byeachunit'stotaltaxablevalue.
Souces:
BoroughofChambersburgComprehensiveAnnualFinancialReport
FranklinCountyFiscalDepartment
ChambersburgAreaSchoolDistrict
Notes:
Overlappinggovernmentsarethosethatcoincide,atleastinpart,withthegeographic
boundariesoftheborough.Thisscheduleestimatestheportionoftheoutstandingdebtof
thoseoverlappinggovernmentsthatisbornebytheresidentsandbusinessesofthe
borough.Thisprocessrecognizesthat,whenconsideringtheborough'sabilitytoissue
andrepaylong‐termdebt,theentireburdenbornebytheresidentsandbusinessesshould
betakenintoaccount.However,thisdoesnotimplythateverytaxpayerisaresident,and
thereforeresponsibleforrepayingthedebtofeachoverlappinggovernment.
|110
Schedule17
DebtCapacityInformation‐Pledged‐RevenueCoverage
LastTenYears
WaterRevenueLoanPayable(1)
Fiscal
Year
Utility
Service
Charges
Less:
Operating
Expenses
Net
Available
Revenue
2015
$3,120,727
$3,488,707
$ (367,980) $‐
$‐
0.00
2014
3,131,530
3,364,685
(233,155) 2,463,360
(3,618)
‐0.09
2013
3,080,915
3,109,390
(28,475) 185,766
84,924
‐0.11
2012
3,440,721
2,833,995
606,726
211,416
85,112
2.05
2011
3,054,195
2,800,078
254,117
204,834
91,121
0.86
2010
3,169,299
2,580,434
588,865
213,664
84,117
1.98
2009
3,375,869
2,831,476
544,393
223,025
60,540
1.92
2008
3,469,626
2,674,069
795,557
218,753
61,061
2.84
2007
3,879,178
2,673,401
1,205,777
213,118
66,696
4.31
2006
3,472,734
2,495,541
977,193
218,998
60,816
3.49
DebtService
Principal
Interest
Coverage
(1)
WaterimprovementprojectloanfromthePennsylvaniaInfrastructureInvestment
Authority(Pennvest).
Source:
Note:
BoroughofChambersburgFinanceDepartment
DetailsregardingtheBorough'soutstandingdebtcanbefoundintheNote5inthecurrent
|111
DEMOGRAPHICANDECONOMICINFORMATION
Theseschedulesofferdemographicandeconomicindicatorstohelpthereaderunderstandthe
environmentwithinwiththeBorough'sfinancialactivitiestakeplace.Theseschedulesinclude:
DemographicandEconomicStatistics
Schedule18
PrincipalEmployers
Schedule19
Schedule18
DemographicandEconomicStatistics
LastTenYears
Fiscal
Year
PerCapita
Personal
Population(1) Income(1)
PerCapita
Household
Income(1)
Median
Household
Income(1)
Median
Age(1)
Educational
Attainment
Median
Bachelor's
Value
Degree
School
Unemployment ofResidential
orHigher(1) Enrollment(1)
Rate(1)
Property(1)
Total
Assessed
Property
Value(2)
Total
Personal
Income(3)
2015
20,691
$20,967
$50,937
$ 40,936
36.3
21.50%
4,548
7.70%
$ 158,200
$197,793,910
(4)
2014
20,602
20,851
49,388
39,960
36.2
21.30%
4,532
9.40%
159,200
195,864,790
$319,408,262
2013
20,508
20,342
48,383
39,491
36.1
19.90%
4,738
8.50%
156,500
194,240,400
306,751,179
2012
20,425
20,750
48,325
36,586
36.5
19.80%
4,469
7.50%
157,700
192,885,430
310,489,463
2011
20,268
20,750
48,348
38,246
37.1
21.00%
4,713
8.60%
161,000
191,067,050
296,903,258
2010
20,268
20,750
48,348
38,246
37.1
21.00%
4,713
8.60%
161,000
187,386,130
286,781,775
2009
17,862
19,278
41,641
32,336
40
17.90%
3,635
3.90%
86,500
186,647,340
273,204,270
2008
17,862
19,278
41,641
32,336
40
17.90%
3,635
3.90%
86,500
181,114,520
270,954,117
2007
17,862
19,278
41,641
32,336
40
17.90%
3,635
3.90%
86,500
171,357,770
263,147,886
2006
17,862
19,278
41,641
32,336
40
17.90%
3,635
3.90%
86,500
164,173,580
255,114,215
(1)AmericanFactFinder(5‐yearestimate)basedonlatestinformationavailable
(2)FranklinCountyAssessor'sOffice
(3)FranklinCountyAreaTaxBureau
(4)Informationforyearended12/31/2015notyetavailable
|112
Schedule19
PrincipalEmployers
CurrentYearandNineYearsAgo
2015
Employer
Employees
SummitHealthServices
ChambersburgSchoolDistrict
CountyofFranklin
MennoHaven,Inc
VenturaFoods
StaplesDirect
T.B.Woods,Inc
KnouseFoods
Farmers&MerchantsTrustCo.
K‐MartRegionalSpecialtyCenter
PatriotFederalCreditUnion
3,000
1,100
690
608
400
315
300
265
252
209
‐‐‐‐
‐‐‐‐
Total
7,139
TotalEmployees
Rank
2006
Percentageof
TotalBorough
Employment
1
2
3
4
5
6
7
8
9
10
26,499 (1)
Employees
11.32%
4.15%
2.60%
2.29%
1.51%
1.19%
1.13%
1.00%
0.95%
0.79%
‐‐‐‐
‐‐‐‐
2,700
1,062
900
543
380
300
353
‐‐‐‐
‐‐‐‐
191
370
141
26.94%
6,940
Rank
1
2
3
4
5
8
7
9
6
10
Percentageof
TotalBorough
Employment
11.81%
4.65%
3.94%
2.38%
1.66%
1.31%
1.54%
‐‐‐‐
‐‐‐‐
0.84%
1.62%
0.62%
30.36%
22,861
(1)EstimatedbyFranklinCountyAreaTaxBureauW‐2FormsFiled
Source:FranklinCountyAreaDevelopmentCorp.
FranklinCountyAreaTaxBureau
|113
OPERATINGINFORMATION
Theseschedulescontainserviceinformationandinfrastructuredatatohelpthereaderunderstand
howtheinformationinthemunicipality'sfinancialreportrelatestotheservicesthemunicipality
providesandtheactivitiesitperforms.Theseschedulesinclude:
Full‐timeEquivalentMunicipalEmployeesbyFunction/Program
Schedule20
OperatingIndicatorsbyFunction/Program
Schedule21
CapitalAssetStatisticsbyFunction/Program
Schedule22
Schedule20
Full‐TimeEquivalentMunicipalEmployeesbyFunction/Program
LastTenYears
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Generalgovernment:
Administration
Clerical
CodeEnforcement
CommunityDevelopment
Engineering
Finance
InformationTechnology
Personnel
Planning/Zoning
PublicInformation
2
14
1
1
4
22
5
3
1
0
2
12
1
1
4
19
5
2
1
0
2
11
2
1
4
19
5
2
1
0
2
10
2
1
4
20
5
2
1
0
2
11
2
1
4
20
5
2
1
0
2
11
4
1
4
22
5
2
1
0
3
11
4
1
4
20
5
2
1
0
2
11
4
1
4
20
5
2
1
0
2
11
4
1
3
18
5
2
1
0
2
11
4
0
3
18
5
2
1
0
Publicworks:
Administration
CentralGarage
Labor/Maintenance
Sanitation
4
3
6
12
3
3
6
12
3
3
5
11
2
3
6
11
2
4
6
11
2
4
6
11
2
4
6
11
2
4
6
11
2
4
6
11
2
4
7
9
Recreation:
Administration
Labor/Maintenance
Pool
Seasonal
Tennis
2
3
0
0
0
2
3
0
0
0
2
3
0
0
0
2
3
0
0
0
2
3
0
0
0
2
4
0
0
0
2
4
0
0
0
2
4
0
0
0
2
4
0
0
0
2
4
0
0
0
Publicsafety:
FireAdministration
FirePersonnel
PoliceAdministration
PolicePersonnel
911
2
21
1
34
0
2
21
1
32
0
2
21
1
33
0
2
21
1
31
0
2
21
1
31
0
2
21
1
33
0
2
21
1
33
0
2
22
1
33
0
2
21
1
33
0
2
21
1
30
0
Utilities:
Administration
ElectricDistribution
ElectricGeneration
ElectricSystemMaintenance
GasDistribution
Stores/Warehouse/CallCenter
WaterDistribution
WaterTreatmentPlant
SewerCollection/Conveyance
SewerTreatmentPlant
TrafficSignal/StreetLights
StormSewer
6
9
11
1
8
6
2
7
5
11
1
1
6
9
11
1
8
6
2
7
5
11
1
0
6
9
11
1
8
6
3
6
5
10
1
0
6
9
11
1
8
6
3
6
4
10
0
0
6
9
9
1
8
6
3
7
4
10
0
0
6
9
9
0
8
6
4
7
4
10
0
0
6
9
9
0
8
6
3
8
4
10
0
0
6
9
8
0
8
6
3
8
4
13
0
0
6
9
8
0
8
6
3
8
4
13
0
0
6
9
8
0
8
6
3
6
4
13
0
0
209
199
197
193
194
201
200
202
198
191
Function/Program
Totals
Source:BoroughofChambersburgHumanResourcesDepartment
|114
Schedule21
OperatingIndicatorsbyFunction/Program
LastTenYears
2015
2014
2013
2012
Function/Program
Generalgovernment:
Lienletter&taxcertificationrequests
Communitydevelopment:
Buildingpermitsissued
Estimatedvalueofconstruction
Occupancypermitsissued
Numberofplanningcommission
Agendaitems
185
65
70
90
516
$17,519,123
98
24
444
$8,397,058
53
15
444
$6,108,000
59
8
384
$40,002,841
73
11
3,611
9,490
919
2,671
1,932
1,322
5,053
149
775
1,402
5,237
482
24,900
1,750
95,200
309
17,300
1,702
87,600
232
21,500
1,791
104,100
231
32,035
1,773
97,131
240
21,392
1,264
1,047
41.0%
2,045
33.0%
155
14,650
1,478
1,089
44.0%
1,866
37.0%
141
14,639
1,520
1,171
39.0%
1,904
40.0%
145
13,743
1,520
1,176
38.0%
1,829
40.0%
153
978
7
49
79,484
130
4,113
869
6
39
83,503
101
3,992
626
6
46
83,731
99
3,772
861
0
20
81,597
132
3,503
319,635,858
$ 29,135,014
319,544,389
$ 29,951,885
310,888,474
$ 30,869,982
295,123,824
$31,174,432
Gasdepartment
Unitsbilled(100cu.ft.)
Billedrevenue
11,130,033
$ 6,600,376
11,519,811
$ 9,315,187
10,144,132
$ 7,996,195
8,995,037
$7,260,743
Waterdepartment
Billedrevenue
14,230,754
$ 2,870,909
13,660,004
$ 2,827,392
13,680,994
$ 2,850,251
13,796,641
$2,862,527
Sewertreatmentplant
Billedrevenue
25,861,090
$ 5,457,716
24,803,706
$ 5,276,763
25,504,521
$ 5,392,759
25,712,303
$4,968,169
StormSewer
Feesbilled
Billedrevenue
8,170
$ 293,302
$ ‐
$ ‐
$ ‐
Sanitationdepartment
Unitsbilled(cu.yds.)
Billedrevenue
140,519
$ 1,139,021
141,880
$ 2,377,421
142,169
$ 2,378,282
141,130
$1,946,578
Publicworks:
Roadsresurfaced(linearfeet)
Roadsreconstructed(linearfeet)
Tonsofsnowmeltingsaltused
Recreation:
Poolattendance
Numberofutilizationevents(2)
Numberofconsumersserved
Numberofseasonalprograms
Police:
Callsforservice
Totalarrests
PartIoffensesreported(majoroffenses)
PartIoffensescleared(percentage)
PartIIoffensesreported(majoroffenses)
PartIIoffensescleared(percentage)
DUIarrests
Fire:
Totalnumberofresponses
Responsesinvolvingloss
Structurefires
Volunteerhours
Falsealarms/falsecalls
Totalcallsforassistance
Utilities:
Electricdepartment
Unitsbilled(kwh)
Billedrevenue
0
0
0
2011
2010
2009
2008
2007
2006
91
87
73
55
42
41
351
$14,890,487
54
14
342
$75,907,998
70
15
337
$19,856,490
91
34
398
$3,798,670
133
33
463
$60,752,500
68
52
338
$55,624,200
44
59
9,605
0
595
2,725
6,700
675
4,500
2,550
336
11,904
0
420
14,500
0
546
28,200
2,200
150
34,111
1,977
75,265
151
28,783
2,199
76,426
153
30,700
1,714
69,813
91
32,714
1,859
74,431
82
33,224
1,130
73,002
77
34,491
2,068
79,783
92
13,847
1,567
1,102
35.0%
2,079
35.0%
141
13,235
1,614
1,158
39.0%
1,898
36.0%
136
13,439
1,587
1,260
40.0%
1,826
36.0%
112
14,584
780
1,356
35.0%
2,053
23.0%
145
14,698
1,000
1,337
32.2%
2,042
38.5%
153
14,564
978
1,187
27.5%
2,129
36.1%
151
925
5
32
85,009
118
3,529
892
3
29
86,180
147
3,680
947
7
30
87,190
148
3,626
1,068
5
20
88,195
171
4,461
1,216
3
31
86,342
144
4,769
1,219
0
(1)
112,414
205
4,543
299,890,758
$31,751,606
297,488,630
$34,534,887
283,303,708
$ 29,658,637
301,419,493
$ 25,122,123
298,904,180
$ 22,832,498
280,162,497
$19,350,942
9,933,703
$8,034,808
9,490,142
$8,355,397
9,331,406
$ 9,546,728
9,548,283
$ 10,804,867
9,263,225
$ 9,931,409
8,764,951
$11,161,166
13,706,080
$2,842,906
14,755,234
$2,903,732
14,573,232
$ 2,855,138
14,601,233
$ 2,856,052
14,666,433
$ 2,824,616
14,922,136
$2,805,748
24,620,125
$4,917,654
23,970,170
$4,386,674
23,577,112
$ 3,805,662
24,492,922
$ 3,699,207
22,945,608
$ 3,579,563
21,063,582
$3,289,890
0
0
0
0
0
0
$‐
$‐
$ ‐
$ ‐
$ ‐
$‐
146,364
$1,975,707
149,709
$1,989,396
150,805
$ 1,994,205
157,123
$ 2,015,815
154,436
$ 1,974,698
143,248
$1,891,367
|115
Schedule22
CapitalAssetStatisticsbyFunction/Program
LastTenYears
2015
2014
2013
2012
Function/Program
Generalgovernment:
Squarefootageoccupied
Inspectionvehicles
Otherdepartmentalvehicles
Publicworks:
Numberoftrafficsignals
Streetlights
Vehicles
45,912
1
8
45,912
1
7
45,912
1
6
45,912
1
6
47
1,917
12
47
1,862
12
45
2,166
12
45
2,166
12
Recreation:
Numberofparks
Acerageofparklands
Recreationcenters
Recreationcentersquarefootage
Tenniscourts
Ballfields
Skateparks
Vehicles
16
88
1
19,975
5
3
2
3
16
88
1
19,975
5
3
2
3
16
88
1
19,975
5
4
2
3
16
88
1
19,975
5
4
2
3
Publicsafety:
Squarefootageofemergencyservicesdept
Squarefootageofpolicedepartment
Firevehicles/ambulances
Policevehicles
18,947
15,048
13
14
18,947
15,048
13
14
18,947
15,048
12
14
18,947
15,048
11
14
Utilities:
ElectricDepartment
Valueofplantinservice
Vehicles
$76,197,067
11
$74,814,439
12
$73,507,952
11
$69,699,796
11
GasDepartment
Vehicles
$15,273,846
9
$14,762,161
9
$13,627,925
9
$12,489,239
9
WaterDepartmemt
Vehicles
$32,739,259
7
$32,414,692
8
$32,266,422
7
$28,401,148
7
SewerTreatmentPlant
Vehicles
$44,269,756
6
$44,061,410
6
$43,816,263
6
$42,412,493
6
StormSewer
Vehicles
4,158,828
1
‐
‐
‐
‐
‐
‐
SanitationDepartment
Vehicles
$1,913,367
11
$634,126
11
$572,435
11
$528,551
11
2011
2010
2009
2008
2007
2006
45,912
1
5
45,912
2
5
16,571
2
5
16,571
2
5
16,571
2
5
16,571
2
5
45
2,163
12
45
2,162
11
45
2,161
11
40
1,500
11
40
1,500
11
35
1,500
11
16
88
1
19,975
5
4
2
3
16
88
1
19,975
5
4
2
3
16
88
1
20,154
5
4
2
3
16
81
1
20,154
9
4
2
3
16
81
1
20,154
10
4
16
81
1
20,154
10
4
3
3
18,947
15,048
12
15
18,947
15,048
11
15
9,526
10,726
9
13
9,526
10,726
9
12
9,526
10,726
9
13
9,526
10,726
9
13
$69,529,818
9
$68,795,448
9
$60,896,827
9
$63,374,252
8
$60,902,232
9
$57,912,422
8
$12,395,373
9
$12,039,244
10
$10,825,895
10
$11,053,344
9
$10,752,079
9
$10,336,655
9
$28,410,834
7
$28,341,731
7
$25,690,405
7
$26,612,637
7
$26,063,089
7
$25,506,678
7
$42,407,403
6
$42,040,874
6
$38,313,773
6
$39,038,610
6
$38,578,161
6
$36,284,115
6
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
$528,449
10
$520,425
8
$555,737
8
$502,148
8
$498,893
7
$465,795
7
Source:BoroughofChambersburgDesignatedDepartments
GeneralGovernmentandPublicSafetysquarefootageupdatedthroughre‐evaluation
|116

Pottstown OS - PFM Municipal Bond Auction Website

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