Township of Pennsbury, PA – G.O. Surveillance Report

Rating Summary

The long-term rating for the Township of Pennsbury’s (the Township’s) Guaranteed Revenue Notes (the Notes) reflects the inherent strength of the Township’s general obligation pledge; strong financial flexibility afforded by the Township’s sizable, though recently narrowing, reserves; manageable fixed cost burden; and, strong underlying resource base. Offsetting the aforementioned strengths are the Township’s less formal financial policies and procedures, lack of a formal reserve policy, and the recent escalation in fire protection expenditures that have driven significant drawdown in fund balance in the last three fiscal years.

The Notes were issued in connection with a borrowing from the Delaware Valley Regional Financing Authority (DelVal), a loan program which provides financing for Pennsylvania municipalities and school districts. The Notes are payable first from the Township’s open space property tax revenues and ultimately guaranteed by the full faith, credit, and…