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 NOVEMBER 4, 2010
BOOK-ENTRY ONLY
NEW ISSUE
Rating: Moody’s: “Aa1”
In the opinion of Bond Counsel, interest on the Bonds will be excluded from gross income for federal income tax purposes under existing
statutes, regulations, rulings and court decisions, subject to the conditions described in “TAX MATTERS” herein. In addition, interest on the Bonds
will not be treated as an item of tax preference under Section 57 of the Internal Revenue Code of 1986, as amended (the Code”), for purposes of the
individual and corporate alternative minimum taxes; however, under the Code, such interest may be subject to certain other taxes affecting
corporate holders of the Bonds.
Under the existing laws of the Commonwealth of Pennsylvania, interest on the Bonds will be free from Pennsylvania personal income
taxation and Pennsylvania corporate net income taxation but such exemption does not extend to gift, estate, succession or inheritance taxes or any
other taxes not levied or assessed directly on the Bonds or the interest thereon. For a more complete discussion, see “TAX MATTERS” herein.
The Township has designated the Bonds as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code. For
a more complete discussion, see “TAX MATTERS” herein.
$14,200,000*
Township of Radnor
(Delaware County, Pennsylvania)
General Obligation Bonds, Series of 2010
Dated: Date of Delivery
Interest Due: June 15 and December 15
Due: June 15: As shown on the inside front cover
First Interest Payment: June 15, 2011
The Township of Radnor, Delaware County, Pennsylvania (the "Township"), General Obligation Bonds, Series of 2010 (the "Bonds”)
will be issued as fully registered bonds and, when issued, will be registered in the name of Cede & Co., as nominee for The Depository Trust
Company ("DTC"), New York, New York. Purchases of the Bonds will be made in book entry form only, in the denominations of $5,000 and any
integral multiple of $5,000, and no physical delivery of the Bonds will be made to purchasers so long as Cede & Co. is the registered owner of the
Bonds. The interest due on the Bonds is payable June 15 and December 15 of each year until maturity or earlier redemption of the Bonds,
commencing June 15, 2011. The principal of and interest due on the Bonds will be paid directly to DTC for redistribution to DTC Participants and
in turn to Beneficial Owners as described herein. TD Bank National Association, Philadelphia, Pennsylvania, shall serve as Paying Agent for the
Bonds.
The proceeds from the sale of the Bonds will be used to provide funds to: (1) currently refund the Township's General Obligation Bonds,
Series A of 2002, currently outstanding in the aggregate principal amount of $14,025,000; and (2) provide for the payment of the costs and
expenses incurred in connection with the issuance of the Bonds.
The Bonds are subject to redemption prior to maturity as described herein.
THE BONDS ARE GENERAL OBLIGATIONS OF THE TOWNSHIP AND ARE PAYABLE SOLELY FROM TAXES AND
OTHER GENERAL REVENUES OF THE TOWNSHIP. THE TOWNSHIP HAS COVENANTED THAT IT WILL INCLUDE THE AMOUNT
OF DEBT SERVICE FOR THE BONDS IN ITS BUDGET FOR EACH FISCAL YEAR AND THAT IT WILL DULYAND PUNCTUALLY
PAY OR CAUSE TO BE PAID THE PRINCIPAL OF EVERY BOND AND THE INTEREST THEREIN AT THE DATES AND PLACE IN THE
MANNER STATED IN THE BONDS. FOR SUCH BUDGETING, APPROPRIATION AND PAYMENT, THE TOWNSHIP HAS
IRREVOCABLY PLEDGED ITS' FULL FAITH, CREDIT AND TAXING POWER.
This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire
Official Statement to obtain information essential to the making of an informed investment decision.
The Bonds are offered when, as, and if issued by the Township and received by the Underwriter and subject to the receipt of the
approving legal opinion of Cozen O’Connor, Philadelphia, Pennsylvania, Bond Counsel, to be furnished upon delivery of the Bonds. Certain legal
matters pertaining to the Township will be passed upon by its Solicitor, John B. Rice, Esq., Perkasie, Pennsylvania. Public Financial Management,
Inc., Malvern, Pennsylvania, is the Township’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 December 15, 2010.
Dated: ____________, 2010
* Estimated, subject to change.
$14,200,000*
Township of Radnor
(Delaware County, Pennsylvania)
General Obligation Bonds, Series of 2010
Dated: Date of Delivery
Interest Due: June 15 and December 15
Due: June 15: As shown on the inside front cover
First Interest Payment: June 15, 2011
MATURITIES, AMOUNTS, INTEREST RATES AND PRICES*
Principal Due
June 15
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Principal
Amount
Rate
Price
* Estimated, subject to change.
i
Yield
TOWNSHIP OF RADNOR
BOARD OF COMMISSIONERS
John C. Nagle, P.E.
Donald Curley
Harry G. Mahoney, Esq.
Kevin Higgins
William A. Spingler
Elaine P. Schaefer
John Fisher
President, Ward 5
Vice President, Ward 6
Commissioner Ward 1
Commissioner Ward 2
Commissioner Ward 3
Commissioner Ward 4
Commissioner Ward 7
TOWNSHIP MANAGER
Robert Zienkowski
CHIEF FINANCIAL OFFICER
William M. White
SECRETARY
Matthew S. Baumann
TREASURER
John E. Osborne
SOLICITOR
John B. Rice, Esq.
Perkasie, Pennsylvania
BOND COUNSEL
COZEN O’CONNOR
Philadelphia, Pennsylvania
FINANCIAL ADVISOR
PUBLIC FINANCIAL MANAGEMENT, INC.
Malvern, Pennsylvania
PAYING AGENT
TD BANK NATIONAL ASSOCIATION
Philadelphia, Pennsylvania
UNDERWRITER
INDEPENDENT AUDITOR
LARSON ALLEN LLP
TOWNSHIP ADDRESS
301 Iven Avenue
Wayne, PA 19087
(610) 688-5600
www.radnor.com
ii
THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS AND OTHERS
(INCLUDING SALES FOR DEPOSIT INTO INVESTMENT TRUSTS, CERTAIN OF WHICH MAY BE
SPONSORED OR MANAGED BY THE UNDERWRITER) AT PRICES LOWER THAN THE PUBLIC OFFERING
PRICES STATED ON THE COVER PAGE, WHICH PUBLIC OFFERING PRICES ALSO MAY BE CHANGED
FROM TIME TO TIME BY THE UNDERWRITER WITHOUT PRIOR NOTICE. IN CONNECTION WITH THIS
OFFERING, THE UNDERWRITER MAY OVER ALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR
MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE
PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT
ANY TIME WITHOUT NOTICE.
No dealer, broker, salesperson, or other person has been authorized by the Township of Radnor, Delaware County,
Pennsylvania (the "Township") or the Underwriter to give any information or to make any representations other than
those contained in this Official Statement, and, if given or made, such information or representations must not be relied
upon as having been authorized by the foregoing. This Official Statement does not constitute an offer to sell or the
solicitation of an offer to buy, 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 herein has been obtained
from the Township and other sources that are believed to be reliable. The Underwriter has reviewed the information in
this official statement pursuant to its responsibilities to investors under the federal securities laws, but the Underwriter
does not guarantee the accuracy or completeness of such information.
TABLE OF CONTENTS
INTRODUCTION ................................................................................................................................................. 1
AUTHORITY FOR ISSUANCE ........................................................................................................................... 1
PURPOSE OF THE ISSUE ................................................................................................................................... 1
ESTIMATED SOURCES AND USES OF FUNDS .............................................................................................. 1
THE BONDS ......................................................................................................................................................... 2
REDEMPTION OF BONDS ................................................................................................................................. 3
BOOK-ENTRY ONLY SYSTEM ......................................................................................................................... 4
THE TOWNSHIP .................................................................................................................................................. 6
TAXING POWER OF THE TOWNSHIP ........................................................................................................... 11
TOWNSHIP INVESTMENTS AND POLICIES ................................................................................................ 12
DEBT SUMMARY.............................................................................................................................................. 16
SECURITY .......................................................................................................................................................... 20
LITIGATION ....................................................................................................................................................... 20
TAX MATTERS .................................................................................................................................................. 20
LEGALITY .......................................................................................................................................................... 21
RIGHTS AND REMEDIES OF BONDHOLDERS ............................................................................................ 21
CREDITORS' RIGHTS LIMITATIONS ............................................................................................................. 22
SECONDARY MARKET DISCLOSURE .......................................................................................................... 22
FINANCIAL ADVISOR ..................................................................................................................................... 24
UNDERWRITING............................................................................................................................................... 24
RATING .............................................................................................................................................................. 24
MISCELLANEOUS ............................................................................................................................................ 25
APPENDIX A: DESCRIPTION OF THE TOWNSHIP .................................................................................... A-1
APPENDIX B: FORM OF LEGAL OPINION ................................................................................................. B-1
APPENDIX C: RADNOR TOWNSHIP AUDITED FINANCIAL STATEMENTS ........................................ C-1 iii
OFFICIAL STATEMENT
$14,200,000*
TOWNSHIP OF RADNOR
DELAWARE COUNTY, PENNSYLVANIA
GENERAL OBLIGATION BONDS, SERIES OF 2010
INTRODUCTION
This Official Statement, including the cover page and the Appendices, is furnished by the Township
of Radnor, Delaware County, Pennsylvania (the "Township") in connection with the offering and sale by the
Township of $14,200,000* aggregate principal amount of its General Obligation Bonds, Series of 2010 (the
"Bonds"), dated as of the Date of Delivery. The Bonds are being issued pursuant to, and are secured by, an
Ordinance (the “Ordinance”) of the Board of Commissioners of the Township enacted on _________, 2010.
TD Bank National Association, Philadelphia, Pennsylvania, has been appointed to serve as Paying Agent (the
“Paying Agent”) for the Bonds.
AUTHORITY FOR ISSUANCE
The Bonds are being issued pursuant to the Pennsylvania Local Government Unit Debt Act, 53 Pa.
C.S. Chs. 80-82 (the "Act") and the Ordinance. The Township is a municipality governed by a home rule
charter.
PURPOSE OF THE ISSUE
The proceeds from the sale of the Bonds will be used to provide funds to: (1) currently refund the
Township's General Obligation Bonds, Series A of 2002 (the "2002 A Bonds"), currently outstanding in the
aggregate principal amount of $14,025,000; and (2) provide for the payment of the costs and expenses
incurred in connection with the issuance of the Bonds.
The currently outstanding portion of the 2002 A Bonds was issued to advance refund the Township’s
General Obligation Bonds, Series of 1994, General Obligation Bonds, Series of 1997 and General Obligation
Bonds, Series of 2000, all of which are issued to finance capital projects of the Township.
The Township intends to call the 2002 A Bonds for redemption on the date it issues the Bonds,
which is expected to be December 15, 2010.
ESTIMATED SOURCES AND USES OF FUNDS
The estimated sources and uses of the Bond proceeds are as follows.
Sources of Funds
Par Amount
Original Issue Premium/Discount
Total Sources of Funds
$14,200,000
*
Uses of Funds
Amount Required to Redeem Series 2002 A Bonds
Costs of Issuance (1)
Total Uses of Funds
(1) Includes bond discount, legal, financial advisor, paying agent, printing, rating, CUSIP and
miscellaneous.
* Estimated, subject to change.
1
THE BONDS
Description
The aggregate principal amount of the Bonds to be issued is $14,200,000*. The Bonds will be dated
the Date of Delivery, and will be issued in the denominations of $5,000 or any integral multiple thereof. The
Bonds will bear interest at the rates and mature in the amounts and on the dates set forth on the inside cover
of this Official Statement.
When issued, the Bonds will be registered in the name of Cede & Co., as nominee for The
Depository Trust Company ("DTC"), New York, New York. Purchasers of the Bonds (the "Beneficial
Owners") will not receive any physical delivery of bond certificates, and beneficial ownership of the
Bonds will be evidenced only by book entries. See "BOOK-ENTRY ONLY SYSTEM" herein.
Payment of Principal and Interest
So long as Cede & Co., as nominee of DTC, is the registered owner of the Bonds, payments of
principal of, redemption premium, if any, and interest on the Bonds, when due, are to be made to DTC
and all such payments shall be valid and effective to satisfy fully and to discharge the obligations of the
Township with respect to, and to the extent of, principal, redemption premium, if any, and interest so
paid.
The principal of any certificated Bonds, when due upon maturity or upon any earlier redemption,
will be paid to the registered owners of the Bonds, or registered assigns, upon surrender of such Bonds to
Wells Fargo Bank, N.A., Philadelphia, Pennsylvania (the "Paying Agent"), acting as paying agent and sinking
fund depository for the Bonds, at its designated office (or to any successor paying agent's designated
office(s)).
Interest on the Bonds will be 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 preceding June 15, 2011, 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 to which interest was last paid on such Bond. Interest on any
certificated Bond will be payable by check drawn on the Paying Agent, which shall be mailed on the due date
to the registered owner whose name and address shall appear, at the close of business on the fifteenth (15th)
day (whether or not a day on which the Paying Agent is open for business) 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 Township 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 ten
(10) 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 Bonds shall be a Saturday, Sunday, legal
holiday or a day on which banking institutions in the Commonwealth are authorized or required by law or
executive order to close (a “Holiday”), then the date for payment of such principal or interest shall be the next
succeeding day which is not a Holiday, and payment on such date shall have the same force and effect as if
made on the nominal date established for such payment.
* Estimated, subject to change.
2
Transfer, Exchange and Registration of Bonds
Subject to the provisions described below under "Book-Entry Only System", any certificated Bonds
is transferable or exchangeable by the registered owners thereof upon surrender of such Bond to the Paying
Agent, 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 series,
maturity and interest rate for the aggregate principal amount which the registered owner is entitled to receive.
The Township and the Paying Agent may deem and treat the registered owner of any Bonds 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 Township and the Paying Agent shall not
be affected by any notice to the contrary.
The Township and the Paying Agent shall 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 fifth (5th)
day next preceding any date of selection of Bonds to be redeemed and ending at the close of business on the
day on which the applicable notice of redemption date is given, or (b) to transfer or exchange any Bond
selected for redemption in whole or in part. Bonds may be exchanged for a like aggregate principal amount
of Bonds of other authorized denominations of the same series, maturity and interest rate.
REDEMPTION OF BONDS
Optional Redemption
The Bonds maturing on and after June 15, ____, shall be subject to redemption prior to maturity at
the option of the Township, as a whole at any time or from time to time in part, in any order of maturity or
portion of a maturity as selected by the Township, on _____, ____, or any date thereafter, upon payment of
the principal amount thereof plus accrued interest to the date fixed for redemption.
Mandatory Redemption
The Bonds are subject to mandatory redemption prior to maturity, in the amount and on June 15 of
the years shown below, from money deposited by the Township in the Term Bond Sinking Fund created
pursuant to the Ordinance, upon payment of the principal amount there together with interest accrued to the
date fixed for redemption.
Term Bonds Due June 15,
Year
Amount
* Principal Maturity.
Notice of Redemption
Any redemption, as hereinbefore authorized, shall be made after notice of redemption is given by the
Paying Agent by mailing a copy of such notice of redemption by first class United States mail, postage
prepaid (or by another method of giving notice which is acceptable to the Paying Agent and customarily used
by fiduciaries for similar notices at the time such notice is given), at least thirty (30) days prior to the date
fixed for redemption to the registered owners of the Bonds to be redeemed in whole or in part at the addresses
shown on the registration books held by the Paying Agent; provided however, that failure to give such notice
by mailing to the registered owners, or any defect therein, shall not affect the validity of any proceeding for
redemption of Bonds so called for redemption.
If at the time of mailing of any notice of optional redemption the Township shall not have deposited
with the Paying Agent moneys sufficient to redeem all the Bonds called for redemption, such notice shall
3
state that it is conditional, that is, subject to the deposit or transfer of the redemption moneys with the Paying
Agent not later than the opening of business on the redemption date, and that such notice shall be of no effect
unless such moneys are so deposited.
Manner of Redemption
For the purpose of selecting any of the Bonds for redemption, each of the Bonds subject to
redemption shall be treated as representing that number of Bonds is obtained by dividing the denomination
thereof by $5,000, each $5,000 portion thereof being subject to redemption.
In the case of partial redemption of any of the Bonds, the registered owner shall surrender his Bond
in exchange for one or more new Bonds in aggregate amount equal to the unredeemed portion of the principal
amount thereof.
If the redemption date for any Bonds shall be a Holiday in the Commonwealth or in each of the
cities in which the corporate trust or payment office of the Paying Agent are located, then the date for
payment of the principal, premium, if any, and interest upon such redemption shall be the next succeeding
day which is not a Holiday , and payment on such date shall have the same force and effect as if made on the
nominal date of redemption.
On the date designated for redemption, notice having been given as aforesaid and moneys for
payment of the principal and accrued interest being held by the Paying Agent, interest on the Bonds or
portions thereof shall cease to accrue and such Bonds or portions thereof shall cease to be entitled to any
benefit or security under the Ordinance, except to receive payment of the principal of and accrued interest on
such Bonds or portions thereof to the date fixed for redemption.
BOOK-ENTRY ONLY SYSTEM
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the
securities (the “Securities”). The Securities will be issued as fully-registered securities 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 Security certificate will be issued for the Securities, 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 3.5 million issues of
U.S. and non-U.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 Standard & Poor’s highest rating: AAA. 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 and www.dtc.org.
Purchases of Securities under the DTC system must be made by or through Direct Participants,
which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual
purchaser of each Security (“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
4
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 Securities
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 representing their ownership interests in
Securities, except in the event that use of the book-entry system for the Securities is discontinued.
To facilitate subsequent transfers, all Securities 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 Securities with DTC and their registration in the
name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has
no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the
Direct Participants to whose accounts such Securities 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 Securities may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the Securities, such as redemptions,
tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of
Securities may wish to ascertain that the nominee holding the Securities 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 Securities 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
Securities 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 Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Securities 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 Securities at any time
by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor
depository is not obtained, Security 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, Security 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.
5
THE TOWNSHIP
Township Government
In 1968, the Commonwealth of Pennsylvania ratified a new constitution, giving voters the right to
formulate and approve self-rule (called “home rule”) governments at the county and local levels. In 1976,
Radnor voters approved the Radnor Township Home Rule Charter, which, together with the Township’s
Administrative Code, provides the structure for governing the Township.
As provided by the charter, the voters of Radnor give legislative and executive authority to a Board
of Commissioners (the “Board”). The Board is Radnor’s governing body. It consists of seven members, each
representing one of the seven wards comprising the Township. Ward boundaries are redrawn every ten years
(following the decennial U.S. census) to provide each voter in the Township equal representation. A
commissioner is elected for a four-year term by the voters of the ward and is compensated according to the
Home Rule Charter.
The Board’s chief responsibilities include supervising Township operations, establishing an annual
budget, levying taxes, and passing necessary ordinances. The Board also appoints principal officials to run
the day-to-day affairs of the Township, and it appoints members to established advisory boards, commissions,
and authorities. These appointed officials include:
Township Manager - the chief administration officer of the Township, responsible to the Board for
the execution of its policies. The manager directs all administrative departments, prepares the annual budget,
and recommends other policies and procedures to the Board.
Township Secretary – the secretary to the Board, custodian of Township records and meeting
minutes, keeper of the Township Seal, and attestor of official actions taken by the Board and other Township
officials.
Township Solicitor – the legal advisor to the Board, advisory boards and commissions, and staff.
The solicitor represents the Township in most legal proceedings.
Township boards, commissions, and authorities include the: Planning Commission, Zoning Hearing
Board, Board of Health, Civil Service Commission, Ethics Board, Code Appeals Board, Parks and Recreation
Board, Design Review Board, Citizens Cable Communications Council, Shade Tree Commission,
Environmental Advisory Committee, Rental Housing Appeals Board, Ad Hoc Open Space Committee, Board
of Historical Architecture, Comprehensive Plan Implementation Committee and Radnor-Haverford-Marple
Sewer Authority. The Township appoints certain members to the Board of Directors of the Radnor Memorial
Library and Radnor Studio 21, independent, nonprofit corporations.
Township administrative departments include: administration/finance, community development,
engineering, police, public works, information technology, and parks and recreation. The directors of each of
these departments are under the direct supervision of the Township Manager.
To ensure citizens an active role in local government, the Charter mandates that the Board of
Commissioners routinely conduct public meetings and provide voters with the right to initiate and repeal
ordinances through initiative and referendum petitions.
The Charter also calls for the direct, township-wide election of a Treasurer, whose duty and
responsibility it is to collect the Township real estate tax and to process other revenues and to approve the
disbursement of all Township funds, including payroll. The Treasurer’s annual compensation is set by
ordinance.
6
Mission and Goals of the Township
The mission of the Township is “to serve the best interest of all our residents by providing
maintaining a secure environment that enhances the quality of life for the individual and the community.
recognize the dignity and worth of public service and are dedicated to the highest standards of integrity.
pledge to be a dynamic, responsive organization that continually strives to provide the most efficient
effective level of service for Radnor Township.”
__________________________
Source: Township Mission Statement, adopted May 12, 1992, by the Township Board of Commissioners.
and
We
We
and
The long-term organizational goals and objectives to fulfill the Township’s mission, and on which
the Township’s current and proposed budgetary blueprints are based, are to:
•
Establish an empowered, proactive, and customer-focused workforce by knowing our customers
and their expectations; committing to high quality of servicing residents and stakeholders; doing
the right things right; reinforcing the value of public service; abiding by the highest standards of
integrity and ethics; and planning for continuous organizational and personal improvement; and
promoting ethnic and cultural diversity in the workplace.
•
Preserve and enhance Radnor’s leadership as a quality environment for all community members
by identifying and implementing programs and improvements designed to preserve Radnor’s
natural environment; enhancing services necessary for the public health and safety; and
planning for the evolving culture of Radnor community life.
•
Maintain cost effective systems that meet or exceed our customers’ expectations by establishing
base line costs of services; developing and maintaining measurements designed to gauge the
performance of policies and programs; evaluating alternative revenue streams to support
programs of Radnor while building and maintaining appropriate reserves for unforeseen future
contingencies; evaluating alternative service delivery systems; and planning for continued fiscal
restraint.
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7
RADNOR TOWNSHIP GENERAL FUND
BALANCE SHEET
(Year Ended December 31)
Assets
Cash and Cash Equivalents
Investments
Receivables, net:
Real Estate Taxes
Local Enabling Taxes
Other
Due From Other Funds
Prepaid Items
Advance to Other Fund
Total Assets
Liabilities and Fund Balances
Liabilities
Accounts Payable
Due to Other Funds
Deferred Revenues
Total Liabilities
2005
2006
2007
2008
2009
$461,696
410,336
$2,016,483
609,737
$2,804,198
1,122,373
$754,706
4,097,433
$454,691
2,868,329
207,299
435,511
134,354
290,957
0
215,259
$2,155,412
234,479
525,498
83,302
430,549
0
0
$3,900,048
202,090
760,203
91,927
516,315
0
0
$5,497,106
209,902
2,359,250
162,556
125,537
65,568
0
$7,774,952
286,866
1,111,869
260,934
100,000
3,913
0
$5,086,602
$368,246
100,672
306,069
$774,987
$293,715
669,482
390,248
$1,353,445
$453,587
101,014
482,189
$1,036,790
$511,394
197,759
591,536
$1,300,689
$883,770
123,637
711,076
$1,718,483
$0
0
215,259
$13,803
0
0
$7,927
0
0
$2,051
65,568
0
$0
3,913
0
Fund Balances
Reserved for:
Other Receivable
Prepaid Items
Advance to other fund
Unreserved, designated for:
General Reserve
Unreserved, reported in:
General Fund
Total Fund Balances
186,368
189,428
197,903
0
0
978,798
$1,380,425
2,343,372
$2,546,603
4,254,486
$4,460,316
6,406,644
$6,474,263
3,364,206
$3,368,119
Total Liabilities and Fund
Balances
$2,155,412
$3,900,048
$5,497,106
$7,774,952
$5,086,602
Source: Township Financials.
8
RADNOR TOWNSHIP GENERAL FUND
SUMMARY STATEMENT OF REVENUE AND EXPENDITURES
(Years Ended December 31)
Revenues
Real Estate Taxes
Local Enabling Taxes
Licenses & Permits
Fines, Forfeits and Costs
Interest and Rents
Grants & Gifts
Departmental Earnings
Miscellaneous Revenues
Total Revenues
2005
$5,551,288
8,049,994
2,413,824
307,689
188,651
1,084,648
902,177
284,224
$18,782,495
2006
$6,301,416
10,714,153
2,818,155
371,611
353,357
961,108
1,175,617
156,158
$22,851,575
2007
$6,367,475
10,186,377
3,634,569
435,119
422,987
1,016,607
1,074,446
176,952
$23,314,532
2008
$6,462,968
10,900,452
2,640,789
520,589
224,540
1,011,288
1,253,367
213,642
$23,227,635
2009
$5,961,123
8,456,974
1,536,651
527,847
145,357
1,011,644
1,240,643
87,943
$18,968,182
Expenditures
General Government
Protection to Persons and Property
Health & Sanitation
Highways
Library
Parks and Recreation
Miscellaneous:
Employee Benefits
Insurance
Other
Swaption Issuance Costs
Interest Costs
Principal
Total Expenditures
$1,730,977
5,444,347
1,936,987
2,265,923
762,559
1,686,804
$1,952,748
5,606,097
1,881,166
2,173,368
765,771
1,670,267
$2,157,889
5,531,538
1,933,438
2,827,513
791,893
1,844,295
$1,891,662
5,743,559
1,963,100
2,184,658
815,650
1,845,342
$2,422,523
5,958,844
2,042,261
2,307,610
815,650
1,851,206
5,687,569
804,903
312,797
59,249
36,948
0
$20,729,063
7,072,692
911,145
335,978
0
76,701
0
$22,445,933
5,789,335
709,240
402,634
0
55,392
0
$22,043,167
6,107,964
710,136
342,379
0
0
0
$21,604,450
6,352,479
761,026
269,280
0
0
0
$22,780,879
Excess of Revenues over Expenditures
($1,946,568)
$405,642
$1,271,365
$1,623,185
($3,812,697)
Other Financing Sources (Uses)
Operating Transfers In
Operating Transfers Out
Swaption Proceeds
Issuance of refunded debt, OID, Bond
Escrow
Total Other Financing Sources (Uses)
$773,579
0
1,040,000
$760,536
0
0
$648,156
(5,808)
0
$956,540
(565,778)
0
$996,553
(290,000)
0
0
$1,813,579
0
$760,536
0
$642,348
0
$390,762
0
$706,553
Excess (Deficiency) of Revenue and
Other
Sources over (Under) Expenditures and
Other Uses
($132,989)
$1,166,178
$1,913,713
$2,013,947
($3,106,144)
Fund Balance, January 1
$1,513,414
$1,380,425
$2,546,603
$4,460,316
$6,474,263
Fund Balance, December 31
$1,380,425
$2,546,603
$4,460,316
$6,474,263
$3,368,119
___________________________
SOURCE: Township Financial Statements.
9
RADNOR TOWNSHIP GENERAL FUND
2010 BUDGET
REVENUES
Real Estate Taxes
Local Enabling Taxes
Licenses & Permits
Fines and Costs
Interest & Rents
Grants & Gifts
Departmental Earnings
Miscellaneous
Transfers from Other Funds
TOTAL REVENUES
$10,368,212
8,368,545
1,715,345
569,000
157,872
1,032,410
1,354,840
82,348
1,147,301
$24,795,873
EXPENDITURES:
General Government
Protection to Persons & Property
Sanitation
Highways
Library
Park & Recreation
Insurance & Benefits
Miscellaneous
Transfers
TOTAL EXPENDITURES
$2,201,677
5,832,984
1,618,889
2,329,265
815,650
2,006,660
5,760,883
327,454
5,297,630
$26,191,092
Budgeted Operating Surplus (Deficit)
(1,395,219)
Beginning Fund Balance
$3,288,465
Beginning Fund Balance (Educational Agency)
0
$1,893,246
Ending Fund Balance
Budget as adopted December 14, 2009.
Swaption
On August 29, 2005, the Township entered into a Swaption with Lehman Brothers Special
Financing, Inc. (the "Provider"). Under the terms of the Swaption, the Provider has the right to exercise its
right on August 1, 2014. If exercised, the Swaption would require the Township to pay a fixed rate of 4.81%
and receive a variable rate of 67% of one month LIBOR on an initial notional amount of $13,770,000 (related
to the Township's 2004 Bonds). In exchange for entering into the Swaption, the Township received a
payment of $1,040,000 on October 13, 2005. The valuation of the Swaption (termination cost) as of August
31, 2010 was ($2,984,000).
10
TAXING POWER OF THE TOWNSHIP
Real Property Taxes
The First Class Township Code generally grants municipalities the power to levy real property taxes
subject to the following limitations. Radnor Township, pursuant to its Home Rule Charter, may exceed these
limits.
Maximum Tax Allowed (mills) 1
30
General Township purposes
Upon petition to the Court of Common Pleas subject to
Code provisions - additional
5
Debt - Interest and Sinking Fund
No Limit (if properly incurred)
Library
3
Parks, Recreation
No Limit
Shade Tree Commission
1/10
Town House
No Limit
Fire Houses, Apparatus, Fire Companies
3
Fire Hydrants (Special Districts)
2
Streets, Sidewalks, Sewer, Water
5
Pensions, Retirement, Annuities for Township Employees
1/2
Ambulance, Rescue Squads
1/2
_______________________________
1
One mill is equivalent to $1.00 per $1,000 assessed value of real property.
Sources: Township Officials and First Class Township Code.
Other Taxes
Under Pennsylvania Act 511 (The Local Tax Enabling Act, enacted December 31, 1965), as
amended, certain additional taxes may be levied by the Township, subject to division with the Radnor
Township School District to the extent that it is authorized to levy, and has levied, similar taxes. Such
additional taxes are subject to an overall limitation equal to an amount calculated by multiplying the market
value of Township real estate by 12 mills.
Tax Rates Imposed on Township Residents
Real Property Taxes (mills)
2010
Township
3.3411
2010-11 School District
20.8681
2010
County
5.180
Act 511 Taxes (2009)
Mercantile License
3 mills per $1000 on
gross receipts
Real Estate Transfer 1
Local Services Tax 2
Amusement
1.5% of sale price
$52.00
10%
1
Business Privilege
3 mills per $1000 on
gross receipts
The Real Estate Transfer Tax is apportioned 0.50% to the School District and 1.00% to the Township for
properties transferring from one owner to another (0.25% of the Township’s share is by local resolution
earmarked for the Park Improvements and Open Space Fund to fund future land acquisitions and
improvements to Township parks).
2
The Local Services Tax (LST) is levied by both the Township and the School District ($52.00 total). The
Township, however, collects and retains the School District’s share of the LST under an agreement whereby
the Township maintains the School District’s grounds in exchange for such share. All other Local Tax
Enabling Act taxes are levied solely by the Township.
11
Real Estate Tax Billings and Collection Record
Township taxes are levied in accordance with the Township's budget, generally not later than
February 1 of each year. Tax levies are collected at a 2% discount for two months until March 31. After
May 31, a 10% penalty is imposed. By the last day in January of the following year, taxes still delinquent are
returned to the Delaware County Tax Claims Bureau and liened. The Township's Real Estate Tax collection
record is summarized by the following Table.
Year of
Total
Tax
Tax
Assessed
Rate
2
Amount of
(mills)
Levy
1, 3
Current
Year
Prior Year
Taxes
Taxes
Collected
Total
4
Collected
Collection
3
Levy
Valuation
Collected
Percent
2000
$2,887,398,171
2.5500
$7,330,219
$7,289,306
99.44%
$39,843
$7,329,149
99.99%
2001
2,942,519,962
2.5500
7,503,426
7,343,487
97.87%
120,919
7,464,406
99.48%
2002
2,977,311,202
2.3500
6,996,681
6,812,570
97.37%
252,134
7,064,704
100.97%
2003
3,006,338,933
2.3500
7,064,896
6,868,628
97.22%
195,306
7,063,934
99.99%
2004
3,018,189,036
2.5600
7,726,564
7,618,988
98.61%
105,454
7,724,442
99.97%
2005
3,039,085,835
2.7900
8,479,049
8,330,146
98.24%
147,673
8,477,819
99.99%
2006
3,063,987,254
3.0100
9,222,602
9,110,117
98.78%
90,448
9,200,565
99.76%
2007
3,084,742,872
3.0100
9,285,076
9,193,509
99.01%
93,334
9,286,843
100.02%
2008
3,099,811,360
3.0100
9,330,432
9,248,811
99.13%
$85,192
9,334,003
100.04%
2009
3,131,318,987
3.0100
9,425,270
9,310,851
98.79%
90,017
9,400,868
99.74%
SOURCE: Township Officials.
1
Assessed valuation figures as of January 1 each year.
2
Levy adjusted to add penalties and subtract discounts for prompt payment.
3
Levy and collections include interim assessments and/or taxes on new construction, additions, renovations, etc.
4
Includes lump sum of prior year taxes from American College as per court order, 1994.
Countywide Reassessment
Reassessment of 196,000 properties throughout 49 municipalities in Delaware County, including
approximately 9,000 properties in Radnor Township, became effective on January 1, 2000. As a result, the
market valuation of Radnor Township properties increased by over $545 million (23.2% over the 1999 level)
to $2.896 billion, reflecting property value appreciation over many years. As of 1/1/ 2008, the taxable
assessed value was $3.131 billion.
TOWNSHIP INVESTMENTS AND POLICIES
Township policies prohibit the investment of any Township operating funds, proceeds from shortterm borrowings, including tax and revenue anticipation notes, proceeds from long-term borrowings,
including general obligation bonds, and pension fund assets in “derivative” investment products designed for
the purpose of portfolio leveraging.
12
Percentage
The Township’s operating funds are invested in accordance with Pennsylvania Act 72 of 1971 (53
P.S. Sec. 56705.1) and with the Township’s own investment objective, which is at all times to protect the
principal of its investments while satisfying its requirements of liquidity and a reasonable rate of return. As
of August 31, 2010, the Township’s operating funds were invested as follows:
Certificates of Deposit
Township
Portion
$2,642,480
Agency
Portion
$0
TOTAL
$2,642,480
Checking/Savings Accounts, Commerce Bank, PA
11,099,689
1,065,248
12,164,937
Pennsylvania Local Government Investment Trust
3,359,814
0
3,359,814
601,000
0
601,000
$17,702,983
$1,065,248
$18,768,231
U.S. Treasury Bills and U.S. Agency Notes
Total Investments
Assets of the Township’s two defined benefit pension plans, administered on behalf of its
employees, are invested in accordance with Pennsylvania Act 205 of 1984, other applicable federal and state
laws and regulations, and with the Township’s own investment objectives, which are to maintain a fully
funded status with regard to accumulated benefits obligations; to maximize return within reasonable and
prudent levels of risk in order to minimize municipal and employee contributions; to maintain flexibility in
determining the future level of contributions; and to have the ability to pay all benefit and expense
obligations when due.
The investment policy for these pension plans expressly prohibits investment in any derivatives or
any other transactions “for the purpose of portfolio leveraging.” The assets of these two pension plans, as of
August 31, 2010, were allocated as follows:
PENSION PLAN INVESTMENTS AS OF August 31, 2010
Equity Mutual Funds
Bonds, Fixed Income Funds
Cash & Certificates
Real Estate
Total
Civilian
$10,173,315
6,439,978
588,102
0
$17,201,395
Police
$7,278,408
5,309,995
426,664
481
$13,015,548
Total
Both
Plans
$17,451,723
11,749,973
1,014,766
481
$30,216,943
The Township’s independent auditor, Larson Allen, LLP, discloses deposits and investments of the
Township outstanding on December 31 each year, and it categorizes the credit risk of those deposits, in
accordance with generally accepted accounting practices; a copy of the Township’s audited financial
statements for any fiscal year are available upon request.
13
Assessed and Market Valuations
The market and assessed valuations in the Township for 10 years, together with the ratio of assessed
valuation to market valuation, are shown below:
Year
Market Valuation
Assessed Valuation (1)
Assessment Ratio (2)
2000
$2,895,819,820
$2,895,819,820
100.00%
2001
2,927,637,566
2,927,637,566
100.00%
2002
2,976,869,052
2,976,869,052
100.00%
2003
3,006,338,933
3,006,338,933
100.00%
2004
3,011,618,700
3,017,647,387
100.20%
2005
3,041,992,500
3,038,804,436
99.90%
2006
3,629,200,100
3,063,987,254
84.43%
2007
3,665,279,000
3,084,742,872
84.16%
2008
4,271,898,100
3,099,811,360
72.56%
2009
4,928,192,077
3,575,896,171
72.56%
__________________________
(1)
Common level ratio used by Delaware County (Pennsylvania) Board of Appeals.
(2)
All properties in Delaware County were reassessed at 100% of theoretical market value as of
January 1, 2000.
Source: Pennsylvania State Tax Equalization Board.
Assessment By Land Use
2005
2006
Residential
$2,283,729,001
$2,306,908,769
Lots
42,925,738
45,231,948
Industrial
0
0
Commercial
712,149,697
711,846,537
Agriculture
0
0
Land
0
0
Total
$3,038,804,436
$3,063,987,254
______________________________
Source: Pennsylvania State Tax Equalization Board.
2007
$2,333,987,261
43,784,084
0
706,971,527
0
0
$3,084,742,872
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14
2008
$2,367,447,429
49,315,784
0
683,048,147
0
0
$3,099,811,360
Largest Taxpayers
The ten largest taxpayers within the Township are shown below, together with their 2009 assessed
valuations of real estate which is approximately 11.27% of assessed valuation.
Taxpayers
Radnor Properties
Radwyn Apartments
Home Properties
KMO 361 Realty Associates
Trustee of University of PA
Fidelity Mutual Trust
Enrico Partners
Sposato Trust
G&I II Radnor Crossing LP
Radnor Hotel Associates
TOTAL
Type of Business
Commercial Real Estate
Apartments
Apartments
Commercial Real Estate
Healthcare
Commercial Real Estate
Commercial Real Estate
Apartments
Apartments
Hotel
Assessed Value
$214,076,892
23,186,980
18,650,000
17,850,410
16,307,600
13,843,140
12,750,780
12,600,000
12,271,030
11,369,770
$352,906,602
Source: Township Officials.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
15
% of
Total Taxable
Assessment
Value
6.84%
0.74%
0.60%
0.57%
0.52%
0.44%
0.41%
0.40%
0.39%
0.36%
DEBT SUMMARY
Debt Statement
The table below shows the debt of the Township of Radnor as of December 15, 2010, excluding the
Bonds being refunded, but including the Bonds.
TOWNSHIP OF RADNOR
STATEMENT OF INDEBTEDNESS
(As of December 15, 2010)
ELECTORAL DEBT
General Obligation Bonds, Series of 2009 (last maturity 2020)
TOTAL ELECTORAL DEBT
OUTSTANDING
$7,470,000
$7,470,000
NONELECTORAL DEBT
General Obligation Bonds, Series of 2010 (last maturity 2024)
General Obligation Bonds, Series of 2007 (last maturity 2037)
General Obligation Bonds, Series of 2004 (last maturity 2034)
TOTAL NONELECTORAL DEBT
$14,200,000
15,900,000
15,330,000
$45,430,000
TOTAL DIRECT DEBT
$52,900,000
LEASE RENTAL DEBT
$0
TOTAL OUTSTANDING DIRECT DEBT
$52,900,000
OVERLAPPING DEBT
Radnor Township School District (2)
Delaware County
*
$106,527,411
(3)
$27,236,471
TOTAL OVERLAPPING DEBT
$133,763,882
TOTAL DIRECT AND OVERLAPPING DEBT
$186,663,882
Debt Ratios :
Per Capita (2009 population estimate) (31,084)
Percent 2009 Assessed Value ($3,575,896,171)
Percent 2009 Market Value ($4,928,192,077)
$5,990
5.22%
3.79%
* Includes the Bonds.
(1)
(2)
(3)
Township’s share (100%) of the $106,527,411 general obligation debt of the Radnor Township School
District.
Township's proportional share (7.73%) of the $352,347,622 general obligation debt of Delaware County.
Does not include debt of the Delaware County Housing Authority or the Delaware County Solid Waste
Authority, both of which are self-liquidating.
16
Types of Indebtedness under the Act
The 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 Township),
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 lease rental debt which may be incurred, including any net
nonelectoral debt incurred, is 350 percent of the borrowing base for the Township). Any debt which is
approved by the Pennsylvania Department of Community and Economic Development as subsidized or selfliquidating may be deducted or excluded from the determination of any such debt incurred in determining the
net debt of the local governmental unit to which such limitations are applicable. Certain other deductions are
allowed in determining net debt.
Total Revenues
Deductions for Excluded Items under Section 102(c)(16) of
the Act:
Interest, sinking funds
Grants & Gifts-in-aid measured by construction or acquisition
of specific projects
TOTAL EXCLUDABLE ITEMS
Total revenues as defined in the Act
2007
2008
2009
$33,804,343
$33,292,914
$28,913,949
1,321,614
685,129
311,439
1,587,571
1,638,280
1,606,732
$2,909,185
$2,323,409
$1,918,171
$30,895,158
$30,969,505
$26,995,778
Total revenues as defined in the Act for the three years
ended December 31, 2009
$88,860,441
Borrowing Base (arithmetic average of Total Revenues)
$29,620,147
17
Calculation of Debt Capacity
A. Electoral Debt
B. Non-electoral Debt
1. Computation of Non-electoral Debt
a. Outstanding Principal
b. Less: Deductions
c. Net Non-electoral Debt
2. Computation of Non-electoral Borrowing Capacity
a. Debt Limitations – 250% of Borrowing Base
b. Less: Outstanding Net Non-electoral Debt
c. Remaining Non-Electoral Borrowing Capacity
C. Lease Rental Debt
1. Computation of Lease Rental Debt
a. Outstanding Principal
b. Less: Deductions (Qualified as Self-liquidating)
c. Net Lease Rental Debt
2. Computation of Lease Rental and Non-electoral Borrowing Capacity
a. Debt Limitation – 350% of Borrowing Capacity
b. Less: Outstanding Lease Rental and Net Non-electoral Debt
c. Remaining Lease Rental and Non-electoral Borrowing Capacity
$7,470,000
$45,430,000
0
$45,430,000
74,050,368
45,430,000
$28,620,368
*
*
$0
0
$0
103,670,515
45,430,000
$58,240,515
* Includes the Bonds.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
18
*
*
BOND AMORTIZATION SCHEDULE
$14,200,000* GENERAL OBLIGATION BONDS, SERIES OF 2010
Dated: Date of Delivery
Date
6/15/2011
12/15/2011
6/15/2012
12/15/2012
6/15/2013
12/15/2013
6/15/2014
12/15/2014
6/15/2015
12/15/2015
6/15/2016
12/15/2016
Principal
Maturities
Due: June 15, as shown below
Sinking
Fund
Redemptions
Interest
Rates
6/15/2017
12/15/2017
6/15/2018
12/15/2018
6/15/2019
12/15/2019
6/15/2020
12/15/2020
6/15/2021
12/15/2021
6/15/2022
12/15/2022
6/15/2023
12/15/2023
6/15/2024
12/15/2024
TOTAL
* Estimated, subject to change.
19
Interest
Annual Debt
Service
SECURITY
The Bonds are general obligations of the Township as described under “General Obligations of the
Township” herein.
The Bonds are being issued pursuant to the Ordinance. In the Ordinance, the Township covenants
that it will include the amount of the debt service to be paid on the Bonds for each fiscal year in which such
sums are payable in its budget for that fiscal year, will appropriate such amounts to the payment on such debt
service, and will duly and punctually pay or cause to be paid the principal of every Bond and the interest
thereon at the dates and places and in the manner stated in the Bonds, according to the true intent and
meaning thereof, and for such budgeting, appropriation and payment, the Township has pledged its full faith,
credit, and taxing power. As provided in the Act, the foregoing covenant shall be specifically enforceable.
Sinking Fund
As required by the Act, a sinking fund, designated "Sinking Fund Radnor Township General
Obligation Bonds, Series of 2010” created under the Ordinance shall be held by the Paying Agent. The
Township shall deposit into the Sinking Fund amounts which are sufficient to pay in full the interest and
principal then due on the Bonds, not later than the opening of business on the date when interest and principal
are to become due on the Bonds.
The Paying Agent is authorized without further order from the Township to pay from the Sinking
Fund principal of and interest on the Bonds when due and payable.
Negotiability of the Bonds
Under the Act, the Bonds shall have all the qualities and incidents of securities under Article 8 of the
Uniform Commercial Code and are fully negotiable instruments.
LITIGATION
There is no litigation of any nature now pending, restraining, or enjoining the issuance or sale of the
Bonds or contesting or affecting the validity of such Bonds, any proceedings of the Township with respect to
the issuance or sale thereof, the pledge of any security provided for the payment of such Bonds, or the
existence or powers of the Township.
TAX MATTERS
The Internal Revenue Code of 1986, as amended (the “Code”) contains provisions relating to the
tax-exempt status of interest on obligations issued by governmental 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
Township subsequent to the issuance and delivery of the Bonds in order for interest thereon to be and remain
excludable from gross income for purposes of federal income taxation. The Township has covenanted to
comply with such requirements.
In the opinion of Bond Counsel, interest on the Bonds will be excluded from gross income for
purposes of federal income taxation under existing statutes, regulations, rulings and court decisions. The
opinion of Bond Counsel is subject to the condition that the Township complies with all applicable federal
income tax law requirements that must be satisfied subsequent to the issuance of the Bonds in order that
interest thereon continues to be excluded from gross income. Failure to comply with certain of such
requirements could cause the interest on the Bonds to be includable in gross income retroactive to the date of
issuance of the Bonds. The Township has covenanted to comply with all such requirements. Interest on the
Bonds is not treated as an item of tax preference under Section 57 of the Code for purposes of the individual
and corporate alternative minimum taxes; however, under the Code, to the extent that interest on the Bonds is
a component of a corporate holder’s “adjusted current earnings”, a portion of that interest may be subject to
the corporate alternative minimum tax.
20
The Code, subject to limited exceptions, generally denies the interest deduction for indebtedness
incurred or continued to purchase or carry tax-exempt obligations, such as the Bonds. With respect to banks,
thrift institutions and other financial institutions, the denial to such institutions is 100% for interest paid on
funds allocable to any tax-exempt obligations after August 7, 1986.
An exception to the complete denial to financial institutions for interest paid on funds allocable to
purchase or carry tax-exempt obligations applies if such obligations are “qualified tax-exempt obligations.”
Under Section 265(b)(3) of the Code, an obligation issued in 2010 is a “qualified tax-exempt obligation” if:
(i) the obligation is not a “private activity bond” (other than a qualified 501(c)(3) bond); (ii) the issuer and all
entities that must be aggregated with it pursuant to the Code (“Other Issuers”) do not reasonably anticipate
issuing 2010 tax-exempt obligations (other than private activity bonds) in excess of $30 million (other than
certain obligations not required to be taken into account under the Code); and (iii) the issuer designates the
tax-exempt obligations as “qualified tax-exempt obligations.” If the tax-exempt obligation is a “qualified taxexempt obligation,” then 80% of the interest deduction for indebtedness incurred by banks, thrift institutions
and other financial institutions to purchase or carry such obligations will be allowed under Sections 265(b)
and 291(e)(1)(B) of the Code.
The Township has represented that the Bonds are not private activity bonds, has designated the
Bonds as “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Code, and has represented
that neither it nor any Other Issuers has issued or expects to issue more than $30,000,000 of “tax-exempt
obligations” (other than certain obligations not required to be taken into account for purposes of Section
265(b)(3) of the Code) in calendar year 2010. Based on such representations, in the opinion of Bond Counsel,
banks, thrift institutions and other financial institutions which purchase the Bonds may deduct 80% of their
interest expense on indebtedness incurred to purchase or carry the Bonds pursuant to Sections 265(b) and
291(e)(1)(B) of the Code.
In addition to the matters addressed above, prospective purchasers of the Bonds should be aware that
ownership of the Bonds may result in collateral tax consequences to certain taxpayers, including, but not
limited to, foreign corporations, certain S corporations, recipients of social security and railroad retirement
benefits and property or casualty insurance companies. Bond Counsel expresses no opinion regarding any
other federal tax consequences relating to the Bonds or the receipt of interest thereon.
State Tax Exemption of the Bonds
In the opinion of Bond Counsel, under the existing laws of the Commonwealth, the interest on the
Bonds is free from Pennsylvania personal income taxation and Pennsylvania corporate net income taxation,
but such exemption does not extend to gift, estate, succession or inheritance taxes or any other taxes not
levied or assessed directly on the Bonds or the interest thereon. Profits, gains or income derived from the sale,
exchange or other disposition of the Bonds are subject to state and local taxation within the Commonwealth.
This summary is based on laws, regulations, rulings and decisions now in effect, all of which may
change. Any change could apply retroactively and could affect the continued validity of this summary.
Prospective purchasers should consult their tax advisors about the consequences of purchasing or
holding the Bonds.
LEGALITY
The legality of the Bonds will be passed upon by Cozen O’Connor, Philadelphia, Pennsylvania,
Bond Counsel. Certain other legal matters will be passed upon for the Township by John B. Rice, Esquire,
Perkasie, Pennsylvania, Solicitor to the Township.
RIGHTS AND REMEDIES OF BONDHOLDERS
Pursuant to the Act, amounts deposited into the Sinking Fund (as defined in the Act) and all
investments and proceeds of investments thereof shall be subject to a security interest for the registered
owners of the Bonds until such moneys or investments shall have been properly disbursed and sold.
The Act confers on the registered owners of any Bonds the rights, through appropriate court action,
to compel the Township to make required sinking fund payments and to obtain a judgment for amounts due
and owed on the Bonds.
21
The Act further provides that if the Township should default in the payment of debt service on the
Bonds when due and such default shall continue for thirty days, or if the Township should fail to comply with
any provisions of the Bonds, the registered owners of 25 percent in aggregate principal amount of the Bonds
may appoint a trustee for the Bonds, who may be the Paying Agent and Sinking Fund Depository, to
represent the registered owners of the Bonds.
Such trustee may, and upon written request of the holders of 25 percent in aggregate principal
amount of the Bonds shall, take such action on behalf of the bondholders as permitted by the Act, including,
among others, petitioning the Court of Common Pleas of Delaware County to levy the amount due on the
Bonds upon all taxable real estate and other property subject to ad valorem taxation in the Township in the
manner more particularly described in the Act. Under the Act if such action were taken by such trustee, it
would preclude the taking of similar action by individual holders of the Bonds.
The Act provides certain other remedies in the event of default and further qualifies the remedies
hereinbefore described.
CREDITORS' RIGHTS LIMITATIONS
Enforcement of the rights of holders of the Bonds may be limited by and subject to the provisions of
federal bankruptcy laws, as now or hereafter enacted, or to other laws or equitable principles that may affect
enforcement of creditors' rights.
SECONDARY MARKET DISCLOSURE
General
In accordance with the requirements of Rule 15c2-12 (the "Rule"), promulgated by the Securities
and Exchange Commission (the "Commission"), the Township (being an "Obligated Person" with respect to
$10,000,000 or more of outstanding securities, including the Bonds, within the meaning of the Rule), will
agree:
(i)
To file annually with the Municipal Securities Rulemaking Board (the "MSRB") through
the MSRB’s Electronic Municipal Market Access ("EMMA") in such electronic format as
is prescribed by the MSRB and accompanied by such identifying information as prescribed
by the MSRB, not later than 180 days following the end of each fiscal year of the
Township, beginning with the fiscal year ending December 31, 2010, the following
financial information and operating data with respect to the Township which the Township
customarily prepares and makes public:
(a)
(b)
(c)
(d)
(e)
(f)
(ii)
a copy of the annual audited financial statements of the Township prepared in
accordance with generally accepted municipal accounting principles in
Pennsylvania, and audited in accordance with generally accepted auditing
standards;
a copy of the Township’s general fund budget for the current fiscal year;
a list of the ten (10) largest real estate taxpayers and, for each, the total assessed
value of real estate for the new calendar year;
the assessed value and market value of all taxable real estate for the new fiscal
year;
the current taxes and millage rates imposed for the new fiscal year; and
the real property tax collection results for the most recent fiscal year, including
(1) the real estate levy imposed (expressed as both millage rate and an aggregate
dollar amount); (2) the dollar amount of real estate taxes collected that
represented current collections; (3) the amount of real estate taxes collected that
represented taxes levied in prior years; (4) the total amount of aggregate real
estate taxes collected (expressed both as a percentage of the current year’s levy
and as an aggregate dollar amount);
to file in a timely manner not in excess of ten (10) business days after the occurrence of
such event, with the MSRB, in such electronic format as is prescribed by the MSRB and
22
accompanied by such identifying information as prescribed by the MSRB, notice of the
occurrence of any of the following events with respect to the Bonds:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
iii.
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 the 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 5701TEB) 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 Holders, if material;
bond calls, if material, and tender offers;
defeasances;
release, substitution or sale of property securing repayment of the Bonds, if
material;
rating changes;
bankruptcy, insolvency, receivership or similar event of the Issuer;
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.
to file in a timely manner with the MSRB and accompanied by such identifying information
as prescribed by the MSRB, notice of a failure to provide the required annual financial
information specified above, on or before the date specified above.
The Township may from time to time choose to provide notice of the occurrence of certain other
events, in addition to those listed above, if, in the judgment of the Township, such other event is material with
respect to the Bonds, but the Township does not commit to provide notice of the occurrence of any event
except those events listed above.
The Township reserves the right to terminate its respective obligation to provide annual financial
information and notices of events, as summarized above, if and when such Township is no longer an
"obligated person" with respect to the Bonds within the meaning of the Rule. The Township acknowledges
that its undertaking pursuant to the Rule described under this heading is intended to be for the benefit of the
holders of the Bonds and shall be enforceable by the holders of such Bonds; provided that the Bondholders’
right to enforce the provisions of this undertaking shall be limited to a right to obtain specific enforcement of
the Township’s obligations hereunder and any failure by the Township to comply with the provisions of this
undertaking shall not be an event of default with respect to the Bonds.
Effective July 1, 2009, the MSRB was designated by the SEC to be the central repository for
ongoing disclosures by municipal issuers. Disclosure filings and notices are made available to investors
through EMMA which is accessible on the internet at http:// emma.msrb.org.
The Township inadvertently failed to file its annual financial information for the years 2008 and
2009. The Township has now complied by making the annual financial information filings with the MRSB
through EMMA for the years 2008 and 2009. The Township is putting in place procedures to provide for the
filings required under the Rule in future years.
23
FINANCIAL ADVISOR
In connection with the authorization and issuance of the Bonds, the Township has retained Public
Financial Management, Inc., Malvern, Pennsylvania, as its financial advisor (“Financial Advisor”). The
Financial Advisor is not obligated to undertake, and has not undertaken, either to make an independent
verification of or to assume responsibility for the accuracy, completeness, or fairness of the information
contained in this Official Statement and any Appendix hereto.
UNDERWRITING
The Bonds are being purchased for reoffering by the Underwriter at an aggregate price of
$____________ (being the $_________ par amount of the Bonds plus a net original issue premium of
$_________ and less an Underwriter’s Discount of $_________) plus accrued interest. The Underwriter will
purchase all of the Bonds, if any are purchased, subject to certain conditions precedent stated in the Notice of
Sale of the Bonds.
RATING
Moody's Investors Service Inc. has assigned the Bonds a rating of "Aa1". Any explanation of the
significance of such rating may be obtained only from the rating agency furnishing the same. The Township
has furnished to the rating agency certain information and materials respecting the Bonds and itself.
Generally, rating agencies base their ratings on such information and materials and on investigations, studies,
and assumptions made by the rating agencies. There is no assurance that any rating will be maintained for
any given period of time or that it may not be lowered or withdrawn entirely by the rating agency if in its
judgment circumstances so warrant. Any such downward change or withdrawal of such rating may have an
adverse effect on the market price of the Bonds.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
24
MISCELLANEOUS
All of the summaries of the provisions of the Act, the Bonds, and the Ordinance hereinabove set
forth are subject to the detailed provisions thereof to which reference is hereby made for further information.
The summaries do not purport to be complete statements of any or all such provisions of such documents.
Copies of these documents are available, as well as more detailed financial information relating to the
Township, upon request and payment of reasonable copying charges to:
William M. White
Chief Financial Officer
Township of Radnor
301 Iven Avenue
Wayne, PA 19087
(610) 688-5600
All estimates and assumptions herein have been made upon the best information available and are
believed to be reliable, but no representations whatsoever are made that such estimates or assumptions are
correct or will be realized. So far as any statements herein involve matters of opinion, whether or not
expressly so stated, they are intended merely as such and are not representations of fact.
Appendices attached hereto are expressly incorporated herein as a part hereof.
This Official Statement has been authorized and approved by the Township.
TOWNSHIP OF RADNOR
Delaware County, Pennsylvania
By:
John C. Nagle, P.E., President
Board of Commissioners
25
APPENDIX A
DESCRIPTION OF THE TOWNSHIP
INTRODUCTION
The Township of Radnor, Delaware County, Pennsylvania (the “Township”) is a proud, exemplary
community, rich in history. Once home to the Lenni Lenape Indians, the land was first settled in 1663-1665 by
Quakers from Radnorshire, Wales. Those settlers sought religious freedom and were enticed by William Penn’s
promotions of the property granted him by the Crown in 1681 to establish farms here.
Penn laid out the Township in an elongated rectangle located parallel to the Schuylkill River. The
parcels of land contained within were oblongs parallel to the township boundaries. The land then sold at a rate
of one British pound per 50-acre parcel.
In 1717 the Welsh Friends erected a meetinghouse on a trail made by the Conestoga (Susquehanna)
Indians, connecting the Schuylkill and Susquehanna Rivers. Later this trail became the Old Lancaster Road,
then the Conestoga Road. St. David’s Church, just over the Township line in what is now Easttown Township,
was built by Anglicans joined by disaffected Quakers. These handsome stone buildings still stand as memorials
to the Welsh forbears of Radnor.
Besides their farms, the Welsh established grist mills, sawmills, and tanneries using the power of Ithan
and Darby creeks. What is now open space at the Willows Park was once the town’s busiest commercial area.
The influence of the Welsh -- some of whom were forced by heavy taxation to sell their land -- waned
in the latter half of the 18th century. A hint of Radnor’s beginnings remains, however, in the names of streets
and places evident throughout the community.
In 1741, the westward extension of the Conestoga Road, which ultimately connected Philadelphia and
Lancaster, began for Radnor the enduring legacy of a place through which travelers passed. Traffic supported
four inns in the town, one of which, the “Sorrel House”, is said to have sheltered George Washington and
General Lafayette during the encampment at Valley Forge; the inn still stands as the Agnes Irwin Lower
School.
During the encampment at Valley Forge, Washington’s picket post on the heights behind the Friends
Meeting House could survey movements from all directions, thanks to thoroughly cleared land. A no-man’s
land between Valley Forge and Philadelphia during the Revolution, Radnor was raided twice by British armies.
More traffic and development came with the opening of the macadam toll road, the Lancaster
Turnpike, in 1794. The Columbia (later Pennsylvania) Railroad, which came through the Township in 1832,
made Radnor more accessible to the city and dominated development here for more than a century. Its
monopoly was strengthened later in the 1800s when its president, A.J. Cassatt, brother of impressionist artist
Mary Cassatt, bought the turnpike from Philadelphia to Paoli to prevent it from being tracked for streetcars.
New hotels and settlements arose beside railroad stations at Morgan’s Corner (adjacent to today’s
Radnor train station) and White Hall (the Radnor section of Bryn Mawr). The first of many great country
estates in Radnor to be converted to institutional use came when the Brothers of the Order of Hermits of St.
Augustine established the Catholic College of St. Thomas of Villanova in 1842.
In 1865, 300 acres surrounding Cleaver’s Landing, a milk stop to the railroads, were bought by banker
J. Henry Askin, who named the area “Louella” for two of his three daughters and built a mansion there for his
family and dedicated land for a small, Presbyterian church, supporting village, Lyceum hall, and an avenue
(Bloomingdale) of mansard-roofed villas.
In the 1880s, Askin sold out to Drexel and Childs, two entrepreneurs who converted the mansion into a
hotel and, with an additional 300 acres, created “Wayne”, one of the country’s first planned suburban
developments (served by electricity, sewers, a central heating system, and a public water supply). Wayne was
promoted for its “salubrious air”. Its development doubled the Township’s population (to 3,800) between 1880
and 1890, and Wayne remains the population center of the Township today.
A-1
The new households brought service trades, caused quarries for building stone to be opened and men
imported to work in them, and brickyards to flourish in Garretville (now Garrett Hill). In outlying areas,
wealthy industrialists from Philadelphia turned farms into the country estates for which the Main Line was
known.
Since World War II, tremendous increases in population (from about 13,000 in 1950 to 30,878 in
2000), taxation, and other factors have forced all but a few of the grand estates (Ardrossan Farm being the
largest) to be subdivided for housing developments. Exceptions remain in those areas that have been turned
into commercial centers, schools, colleges, country clubs, or religious institutions.
Radnor remains a community that is proud of its heritage and that still reflects many of the values of its
settlers of over 300 years earlier. It is a place of ethnic, cultural, and economic diversity, with neighborhoods
full of residents that love to call Radnor their “home”, with a public school system that has been rated as one of
the finest in the nation; with a vast network of lush parks, playgrounds and athletic fields; with a long-standing
tradition of demanding and receiving high-quality local government services.
______________________
SOURCES: “Living in Radnor Township, A Know Your Township Handbook” by the League of Women
Voters of Radnor Township (1990), paraphrased with permission; and the Radnor Township Comprehensive
Land Use Plan (1988).
GEOGRAPHIC LOCATION
The Township is located in the northwestern corner of Delaware County, Pennsylvania, approximately
15 miles west of the City of Philadelphia. Bordered by Easttown Township (Chester County), Tredyffrin
Township (Chester County), Upper Merion Township (Montgomery County), Lower Merion Township
(Montgomery County), Haverford Township (Delaware County), Marple Township (Delaware County) and
Newtown Township (Delaware County), the Township is located on Philadelphia’s prestigious “Main Line” and
includes the unincorporated areas of Rosemont, Garrett Hill, Ithan, Villanova, Radnor, St. Davids, and Wayne,
and parts of Bryn Mawr, Broomall, and Newtown Square, all of which are situated in or partially in Delaware
County.
POPULATION ANALYSIS
As shown below, the Township experienced rapid growth during the 1960-1970 era, growing by
almost one-third, from 21,697 to 28,782. From 1970 to 1980, the population decreased slightly, from 28,782 to
27,676, reflecting a more moderating trend as the community reached a greater degree of maturity. This is true
even though residential building permits have remained relatively steady, an anomaly that can be explained by a
decline in the average family size. The Township’s population increased modestly from 1980-1990 (27,676 to
28,703, or 3.7%), grew by 7.6% over the last ten years to 30,878 in 2000 and was an estimated 31,084 in 2009.
1960
21,697
Population Increase:
1970
28,782
1980
27,676
1990
28,703
2000
30,878
2010
31,210
2025
31,480
1960-1970 (32.65%); 1970-1980 (-3.84%); 1980-1990 (3.7%); 1990-2000
(7.6%); 2000-2010 (1.1%); 2000-2025 (1.9%)
_____________________
SOURCES: U.S. Bureau of the Census; Township officials; 2010 and 2025 forecasts by Delaware Valley
Regional planning Commission.
A-2
HOUSING TRENDS
The number of housing units in the Township increased by 1.4% from 2000 to 2007 (growing from
10,731 to 10,878 units). About 68% on housing units in the Township are owner occupied. In 2010, the
estimated median market value for single-family homes in the Township was $473,000 as compared to
$183,000 for the United States.
_____________________
SOURCES: U.S. Bureau of the Census; Main Line Board of Realtors; Delaware Valley Regional Planning
Commission.
PER CAPITA INCOME
The Township's average per capita income in 2000 was $74,272, compared with $50,092 for all of
Delaware County, which ranked 4th in Pennsylvania after Chester County ($62,500), Montgomery County
($60,829) and Bucks County ($59,727). The Commonwealth of Pennsylvania had average per capita income of
$49,184 in that year. As illustrated, Radnor's average per capita income is more than one and one half times the
statewide average, almost 50% greater than the Delaware County average, and just less than 30 percent higher
than the (unweighted) quad-county average, all indicators of the community's strong income base and ability to
pay.
______________________
SOURCES: U.S. Bureau of the Census; Delaware Valley Regional Planning Commission.
TRANSPORTATION NETWORKS
The Township is traversed by an extensive network of roads, most notably U.S. Route 30 (Lancaster
Avenue); I-476 (the "Blue Route") - opened in 1991 with a major interchange, Exit 13, located at Lancaster
Avenue and King of Prussia Road; PA Route 320 (North Springmill Road/Sproul Road); and is within a 15minute drive of the Schuylkill Expressway, Pennsylvania Turnpike (I-76), and 1-95. Rail passenger service
(commuter and long distance) is available on the Paoli Line of AMTRAK, with local station stops in the
Township and express stops in nearby Paoli and Philadelphia. SEPTA (Southeastern Pennsylvania
Transportation Authority) operates a trolley line through the Township and direct bus service to nearby points.
Commercial air service is available approximately 20 minutes away at the Philadelphia International Airport.
EDUCATION
Philadelphia's Main Line and Radnor Township have become synonymous with excellence in
education. The area reaps untold, tangible and intangible, benefits from the nearby presence of literally dozens
of public and private educational institutions.
The School District of Radnor Township is among the cream of the public education crop nationally
and is one of the most frequently reasons cited by new residents for moving to Radnor. The school district is
responsible for the operation of the public school system in the Township, serving approximately 3,456 students
in grades K through 12. Both the high school and middle school have been awarded the President's prestigious
Medal for Education Excellence. In addition, the school system has been recognized by several other local,
state, and national groups and publications for its outstanding educational quality. In previous years, the school
district was listed by Consumer Reports in the top percentile of school districts throughout the country for value
received in terms of the percentage of graduating high school seniors going onto four-year colleges, the number
of national merit finalists, and average SAT scores. The Wall Street Journal previously ranked Radnor schools
in the top ten in the nation. Radnor high school students have won Scott Paper's annual "High-Q” regional
academic competition several times. In 2005, nearly 85% of the graduating seniors went on to attend a four-year
college the following Fall.
Almost 20,000 students attend 18 different private educational institutions located in the Township.
The largest of these is Villanova University with 10,481 students. Others include: Eastern College (3,000),
Cabrini College (2,200), Archbishop Carroll High School (1,091), Valley Forge Military Academy and Junior
College (577), Agnes Irwin School (651), Academy of Notre Dame de Namur (490), St. Aloysius Academy
A-3
(284), St. Katherine of Sienna School (383), Country Day School of the Sacred Heart (240), Hill Top
Preparatory School (75), Sister of St. Francis School, and the American College of Life Underwriters.
UTILITIES
Most properties, except in the extensive estate areas, have public water and sewer facilities. Water
service is provided by Aqua Pennsylvania with annual residential rates generally ranging between $175 and
$200. Sanitary sewer service is provided by the Radnor-Haverford-Marple Sewer Authority (RHM) which is
part of the regional system of DELCORA (Delaware County Regional Water Quality Control Authority). The
RHM Authority disposes of the sewage collected from its constituent townships in the Eastern Service Area of
DELCORA for treatment at the Philadelphia Southwest Treatment Plant. Annual residential sewer rates in 2009
averaged $550 (assessed by the Township at a rate of $5.41 per 1,000 gallons of water used in calendar year
2008).
HEALTH CARE
Excellent hospitals and health care facilities are located either within or close to Radnor Township.
They include the Graduate Hospital Sports Medical Center in Wayne, regional offices of the Hospital of the
University of Pennsylvania in Radnor, Bryn Mawr Hospital in Bryn Mawr, Lankenau Hospital in Overbrook,
and Paoli Memorial Hospital in Paoli. In addition, radial keratotomy and other pioneering eye surgeries are
being performed by the Eyes of the Future Medical Center in St. Davids. The Township boasts more than 50
medical, health, and chiropractic centers and doctor offices. And, of course, world-renowned practitioners are
visited by thousands of patients daily at hospitals in nearby Philadelphia, such as Children’s, St. Christopher’s,
University of Pennsylvania, Hahnemann, Thomas Jefferson, Graduate, Albert Einstein, Fox Chase Cancer
Center, Philadelphia College of Osteopathic Medicine, Medical College of Philadelphia, Wills Eye, as well as
the Alfred I. DuPont Institute in Wilmington, DE, and many others in the surrounding suburbs.
The Township’s Board of Health, with technical assistance from the Township Health Officer (a fulltime position in the Community Development Department), meets monthly to discuss issues and recommend
appropriate policies related to public health, such as blood borne pathogens, A.I.D.S. and communicable
diseases, rabies, Lyme disease, health education and prevention programs, and so forth.
PUBLIC SAFETY
A safe, secure environment is a fundamental component of Radnor Township’s Mission and one of its
most endearing traits. The majority of incidences requiring police response in the Township involve motor
vehicle violations (20,285 in 2005); unlocked businesses and other nuisance and noncriminal complaints and
requests for service (10,125), alarm signals (1,952), motor vehicle accidents (1,352), and animal complaints
(584). The incidence of serious crimes (primarily larcenies, burglaries, assaults, and auto thefts) in the
Township decreased by 18% in 2005 - from 504 to 415 incidents. Total secondary offenses (such as vandalism,
disorderly conduct, driving under the influence of alcohol, underage drinking, and narcotics possession)
increased from 973 to 1,367 incidents. The Township’s low crime rate has won it recognition as one of the
safest places to live in the Philadelphia Region.
Law enforcement and crime prevention are provided by the Radnor Township Police Department. A
Superintendent, and three Lieutenants oversee the operations of this full and part-time person operation (42 of
which are uniformed police officers; the remaining positions consists of animal control officers, a meter
inspector, and secretaries, and part-time school crossing guards).
Officers are assigned to either the investigation, traffic safety, or patrol divisions. In a typical year, our
police vehicles log about 326,000 miles in routine patrols of Township streets and neighborhoods - about 900
miles of patrolling every day of the year. The Radnor Police Department expanded its Bicycle Patrol Unit,
introduced in 1995, as part of its community-policing program. Four officers are assigned to this unit, providing
more crime deterrence with increased visibility and personalized service in the business district and in selected
residential neighborhoods.
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As part of the department's "community policing" philosophy, the crime prevention unit regularly
presents "Officer Friendly" programs to school students. Additionally the "Townwatch", a volunteer
organization formed in 1977, patrols Radnor streets and alerts the police to possible trouble spots. Members of
the Police Department, Township officials and members of the Radnor community, sit on the Community
Awareness Committee of Radnor Township. This committee was created in 1997 by area residents and
Township officials to foster improved relations between the Township government and the growing multicultural population in the area.
The Police Department was selected as the "Best Police Force on the Main Line and in Philadelphia's
Western Suburbs” in a reader's poll of Main Line Today magazine. It has also received the Governor's Highway
Safety Award for innovations in promoting safe driving.
Radnor Township is served by three fire and rescue companies Radnor Fire Company, Bryn Mawr Fire
Company, and Broomall Fire Company. The Bryn Mawr Fire Company also serves portions of neighboring
Lower Merion Township, while Broomall serves parts of Marple Township.
The Township contributed a total of $166,296 for these services in 2006, plus the Township paid
$138,623 to the Philadelphia Suburban Water Company for the rental of 416 hydrants located within our
borders. Most funds for their operation come from individual and corporate contributions during annual fund
drives. Each fire company has an active fire prevention program in the schools and surrounding communities,
and tours of their stations are regularly held.
The Radnor Fire Company, with its 122 volunteers serving most of the Township, spent about 4,587
hours last year responding to 860 calls for fire-related service, 2,125 calls for ambulance service and 50 other
inquiries. The Bryn Mawr and Broomall Fire Companies also provide fire protection to select areas of the
Township.
The Radnor Fire Company maintains four major firefighting apparatuses, including a ladder truck and
a pump, and two modern ambulances. Construction of the new Radnor Fire Station was completed in 1997.
Advanced medical assistance is provided by paramedics from near from nearby Bryn Mawr Hospital. As the
local base of volunteers continues to dwindle, there will be continued pressure to provide additional paid fire
and rescue staff to ensure response to emergencies.
PARKS AND RECREATION AND OPEN SPACE
Radnor Township owns 25 parks, playgrounds, and playing fields (not including fields and areas
owned by the Radnor Township School district), spanning more than 480 acres, for the recreational pleasure of
the community. These open space assets are maintained by public works crews and are supervised by the
Township Parks and Recreation Department, which also provides year-round programs and activities for
residents of all ages. These parks and facilities have varied amenities, such as playing fields, nature area, picnic
area, fishing creeks and ponds, jogging tracks, hiking and fitness trails, restrooms, tot lots, bridle trails, and the
swimming pool at Radnor High School.
Acquisition of land for these uses was begun several decades ago, and the Township is evaluating the
results of a comprehensive open space study concluded recently. In addition, the first phase of a 17.6 mile
Township-wide pedestrian and bike trail has been implemented for residents’ leisure and fitness, and to promote
alternative, environmentally sound intermodal forms of transportation. Federal and state funding for this project
has been sought and is expected to be received in the near future.
In 1993, ten acres of land was donated to the Township by Morgan’s Run Corporation (Sun Co., Inc.)
for open space and recreational use. About one-half of this land recently has been exchanged with the Radnor
Township School District for the construction of a new elementary school, which opened in September, 2001.
The remaining portion of this tract will house a new playing field, overflow parking lot for the new school, and
a wooded recreation area with walking paths. The Township built an environmental park on six adjacent acres
acquired from the Radnor Schools in the recent land swap.
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An additional 47 acres of private land have been permanently preserved as open space as a result of the
DeMoss and Brooke Farm subdivisions approved by the Township in 1995-1996. Also, as a result of a
Township-wide referendum approved by electors on November 8, 1994, the Township in July, 1995, purchased
13.2 acres of land, known as the Forbes Tract. A portion of the proceeds from bonds issued by the Township in
1996 were used to pay for the $1.85 million purchase price of the Forbes Tract. Two multi-purpose rectangular
playing fields and a hiking/jogging path were built on this site and opened to the public in 1997.
The Township’s condemnation of 6.9 acres of land along Conestoga Road and South Devon Avenue,
known as the Levin Tract, was approved by the Delaware County Court of Common Pleas in 1997. Plans to
install a storm water management system and a passive park on this site are being discussed.
In 1999, the Township purchased 1.8 acres of land along Lancaster Avenue in Wayne, known as the
Huggler Tract. The Township converted this area – the former site of a veterinarian’s home and office – to a
community park complete with a fountain, meadow amphitheater, benches, game tables, and walking path. A
large portion of the cost of building this park was funded by private contributions. St David’s Park, as this tract
is known, has become a popular site for one of the shows of the summer concert series of the Parks &
Recreation department.
Since 2000, The Township has continued to acquire land for parks and open space. The following
tracts of land have been added to the Township’s land bank in the new millennium:
–
–
–
–
–
–
–
–
–
–
–
The Township has purchased about 5,000 square feet of property located on Petrie Avenue in the
Rosemont section of town. This lot has been converted into a pocket park for nearby residents.
2.2 acres of land have been acquired at 620 East Lancaster Avenue to prevent the development of
several homes adjacent to the Route 30 interchange of the Blue Route. The land is expected to be
used as a connecting route to the future P&W multi-use trail.
10 acres of pristine land, located just northeast of the Route 30 interchange of the Blue Route-known as the Chew Tract--have been acquired from Villanova University.
6 acres of land adjacent to the Chew Tract have been condemned and purchased by the Township.
1 acre of land at the intersection of Conestoga and Sproul Roads (Route 320) has been acquired to
prevent future development at this clogged intersection.
A 24,650 square-foot lot, including a single-family dwelling, located on Garrett Avenue in
Rosemont has been purchased to prevent the development of several townhouses. That dwelling
has been demolished and the land will be converted to complement the adjacent Emlen Tunnell
Field.
The 3.5 acre D’Antonio tract adjacent to the new Radnor Multipurpose Trail and the former Levin
tract was purchased in 2002.
The preservation of 12 acres of land along Conestoga road, known as the Goff estate, was
finalized in early 2004. Six acres of the land have been purchased by the Township and preserved
as passive open space; the remaining six acres will be conserved as a residence through a
permanent deed restriction to the benefit of the Township.
A 7,500 square foot lot, including a single-family dwelling adjacent to the multi-purpose trail was
acquired in 2005
A 10,000 square foot lot, including commercial buildings was acquired in 2006 with the intention
to demolish the buildings, remediate the site and create a pocket park in our 5th Ward.
In 2002, the Township purchased a property on Woodland Avenue to increase open space in North
Wayne.
2006 OPEN SPACE BOND REFERENDUM
In November 2006, the residents of Radnor Township approved the issuance of electoral debt in the
amount of $20,000,000 and a dedicated millage to fund debt service on such bonds when issued.
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PUBLIC WORKS
Radnor Township is also known for its clean and well-maintained streets and byways. The Public
Works Department is responsible for upkeep of over 100 miles of roadways, sanitary and storm sewer
maintenance, parks maintenance, snow removal, leaf collection, maintenance of the Township’s fleet of 100
vehicles and 105 pieces of major machinery, and for the collection and disposal of trash and recyclable
materials. All solid waste (about 14,037 tons of materials collected in 2005), including a wide array of
recyclables is collected twice a week by Township personnel from the rear door of residences. The Township
has received numerous awards and state performance grants for its model recycling efforts, which in 2004
resulted in reducing the trash-to-landfill stream by 47% percent (including leaves).
BUSINESS AND COMMERCE IN THE TOWNSHIP
Radnor comprises an eclectic assortment of business operations. Part of the Township's charm lies in
the numerous "mom and pop" retail shops that line Lancaster Avenue and other major thoroughfares and that
have been operating here for several generations. In addition, the Main Line's lure has attracted large and small
service and multi-purpose retail businesses alike to its soil. The community is an appealing location for the
offices, laboratories, and headquarters of national and international corporations, such as Brandwyine Realty,
Wellington Management, T.V. Guide, Genuardi’s, MicroCenter, Lincoln Financial, VRM, PNC Wealth
Management and GAP along with over 100 restaurants. Many other businesses offering local and regional
services or retail interests also call Radnor their home. This newer corporate presence has reversed the age-old
pattern of daily suburb-to-city commuting along the Main Line and has brought with it considerable traffic
congestion. The number of people working in Radnor now exceeds the Township’s adult population.
As a rule, all businesses operating in Radnor retail/wholesale and service-oriented are required to:
–
apply for an annual operating license
–
file an annual Business Privilege Tax or Mercantile Privilege Tax return
–
file quarterly Emergency and Municipal Services Tax returns (per employee)
–
file an Amusement Tax return (for businesses that may occasionally sell tickets for sporting
events, music, carnival rides, and so on)
–
file an Amusement Tax Device tax return (for businesses operating electronic or other types of
amusement devices on their premises
Compliance with these regulations has been high over 94% of registered businesses in the Township
filed tax returns in 2008 (1,277 business privilege returns and 305 mercantile returns). Failure to follow the
Radnor tax code can lead to audits, citations and fines, and the suspension of the license to conduct business
here.
Business taxes accounted for over $8.8 million in Township operating revenues in 2008 (37% of total
general fund revenues). Over $1.6 million in new revenues have been generated in 2008 as a result of audits of
business tax returns, citations for failure to file, and adding new and itinerant taxpayers to the Township's rolls
thus helping to ensure equity among all taxpayers and future compliance.
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TEN LARGEST EMPLOYERS, DECEMBER 31, 2009
Company
Villanova University
Centocor, Inc
Radnor Township School District
Eastern University
Lincoln National Life Insurance
Cabrini College
Jefferson Health System
University of Pennsylvania
Mail Line Affiliates
Sovereign Bank
TOTAL
Type of Business
Higher Education
Pharmaceutical Research
Education
Higher Education
Insurance/Financial Investments
Higher Education
Medical Services
Medical Services
Medical Services
Banking Services
# of
Employees
3,758
635
629
627
502
396
287
221
202
191
7,448
Source: Township Officials.
GROWTH AND PLANNING
Since the early 1960s, Radnor has been characterized by sustained growth in the number of residences,
offices and commercial establishments and in the size of its institutions. This has resulted both in an enhanced
local tax base but also in a shrinking inventory of open space, leaving a Township that is almost fully
developed.
Because growth in office, planned business, and institutional uses exceeded the objectives provided in
the 1969 land use plan, the Township’s 1988 comprehensive land use plan seeks to control such growth in the
future. The plan emphasizes preserving the high residential quality of the community while providing a variety
of residential densities, including density modification, which allows for clustering houses on smaller lots in
exchange for permanently set-aside areas of open space. Public concern over dwindling open space, despite
controls to restrict construction on wetland, flood plains, and steep slopes, has led to expansion of policies
relating to the quality of open space and has created new standards for preserving trees and landscape along
significant streets.
In 2003, The Township updated the 1988 plan and adopted the 2003 Radnor Township Comprehensive
Plan. This master plan outlines goals, objectives and action plans that include the following areas: Natural
Resources, Housing, Demographics, Economics and Business, Transportation Open Space and Recreation,
Institutions, Community Services and Facilities and Existing Land Use and Land Use Plan. The Board of
Commissioners created an Implementation Committee to work with Township staff to implement the goals and
objectives of the Comprehensive Plan. The Township Capital Improvement Plan will reflect those costs
associated with this plan.
All requests for land development and subdivision in Radnor are reviewed for compliance with the
Township’s zoning code and subdivision ordinance by the community development, public works, and
engineering departments. Their findings are considered by the Planning Commission, which also evaluates
projects’ adherence to the comprehensive land use plan. The Board of Commissioners then reviews the
recommendations of staff and the Planning Commission before deciding to approve or reject a proposal.
Certain zoning appeals may be heard by the Township’s Zoning Hearing Board. An independent,
quasi-judicial body, this Board hears appeals to modify regulations of the zoning code, and it grants variances to
the code when requirements peculiar to a property have been shown. Special exceptions may also be granted if
they are shown to be consistent with the goals of the comprehensive land use plan. All decisions of the Board
must be in compliance with the Pennsylvania Municipalities Planning Code.
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NEW CONSTRUCTION AND DEVELOPMENT
The following table summarizes development in the Township since 2003:
2003
2004
2005
2006
2007
2008
2009
2010*
Total
Average
Building
Permits
1,080
1,006
812
912
826
705
675
305
6,321
903
New
Construction
27
30
33
43
29
12
17
4
195
24
Accessories &
Additions
52
76
45
156
94
111
71
34
639
80
Sub-Divisions
13
8
34
11
9
15
5
Lots (1)
10
4
5
2
1
1
1
95
14
24
3
(1) Lots include residential, land, and commercial development
Source: Township Officials.
* Through June 22, 2010.
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APPENDIX B
FORM OF LEGAL OPINION
[FORM OF PROPOSED BOND COUNSEL OPINION]
TOWNSHIP OF RADNOR
(Delaware County, Pennsylvania)
$_________ GENERAL OBLIGATION BONDS,
SERIES OF 2010
December __, 2010
TO THE PURCHASERS OF THE
ABOVE-CAPTIONED BONDS:
We have acted as bond counsel to the Township of Radnor (the “Township”) in connection
with the issuance of its $___________ General Obligation Bonds, Series of 2010, dated
December __, 2010 (the “Bonds”). In such capacity, we have examined such law and such certified
proceedings, certifications, and other documents as we have deemed necessary to render this
opinion.
Regarding questions of fact material to our opinion, we have relied on the certified
proceedings and other certifications of public officials and others furnished to us without
undertaking to verify the same by independent investigation.
Based upon the foregoing and subject to the qualifications set forth below, we are of the
opinion that, under existing law:
1.
The Bonds have been duly authorized and executed by the Township and
are valid, binding and enforceable general obligations of the Township.
2.
The Bonds are payable from general revenues of the Township, currently
including ad valorem taxes which may be levied on all property taxable for township purposes
within the Township without limitation as to rate or amount.
3.
Interest on the Bonds is excluded from gross income for purposes of
federal income taxation under existing statutes, regulations, rulings, and court decisions. The
opinion set forth in the preceding sentence is subject to the condition that the Township comply
with all applicable federal income tax law requirements that must be satisfied subsequent to the
B-1
PHILADELPHIA\5780520\1 277064.000
issuance of the Bonds in order that interest thereon continues to be excluded from gross income
for purposes of federal income taxation. The Township has covenanted to comply with all such
requirements. Failure to comply with certain of such requirements could cause the interest on the
Bonds to be includable in gross income retroactive to the date of issuance of the Bonds. Interest
on the Bonds is not treated as an item of tax preference under Section 57 of the Internal Revenue
Code of 1986, as amended (the “Code”) for purposes of the individual and corporate alternative
minimum taxes; however, we call to your attention that under the Code, to the extent that interest
on the Bonds is a component of a corporate holder’s “adjusted current earnings”, a portion of that
interest may be subject to the corporate alternative minimum tax.
4.
The Township has designated the Bonds as qualified tax-exempt
obligations and has represented to us that neither it nor any entities that must be aggregated with
it pursuant to the Code has issued or expects to issue more than $30,000,000 of tax-exempt
obligations (including the Bonds, but not including any obligations not required to be taken into
account for purposes of Section 265(b)(3) of the Code) in the calendar year 2010. Based on such
representation, it is our opinion that banks, thrift institutions and other financial institutions
which purchase the Bonds may deduct eighty percent (80%) of their interest expense on
indebtedness incurred to purchase or carry the Bonds pursuant to Sections 265(b) and
291(e)(1)(b) of the Code.
5.
Under existing laws of the Commonwealth of Pennsylvania
(“Pennsylvania”), the interest on the Bonds is free from Pennsylvania personal income taxation and
Pennsylvania corporate net income taxation, but such exemption does not extend to gift, estate,
succession or inheritance taxes or any other taxes not levied or assessed directly on the Bonds or
the interest thereon.
Our opinions are subject to the following qualifications:
Other than as set forth in paragraphs 3 and 4 above, we express no opinion regarding
federal tax consequences relating to the Bonds or the receipt of interest thereon.
The rights of the owners of the Bonds and the enforceability of the Bonds are limited by
bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors'
rights generally, and by equitable principles, whether considered at law or in equity.
We express no opinion herein on the adequacy, completeness or accuracy of the Official
Statement dated __________ __, 2010 relating to the Bonds.
This opinion is rendered and may be relied upon solely in connection with the transaction
contemplated hereby and may not be relied upon for any other purpose.
This opinion is given as of the date hereof, and we assume no obligation to revise or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our
attention, or any changes in law that may hereafter occur.
Very truly yours,
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PHILADELPHIA\5780520\1 277064.000
APPENDIX C
RADNOR TOWNSHIP AUDITED FINANCIAL STATEMENTS
TOWNSHIP OF RADNOR, PENNSYLVANIA
COMPREHENSIVE FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31,2009