$6M Savings For Falls Township Municipal Building Upgrades

FALLS TOWNSHIP, PA —Falls Township will save $5.9 million over 10 years in a financial option for its municipal building renovations.

Following a presentation from Christopher Gibbons, Concord Public Financial Advisors, Inc. founder, and principal, at its recent meeting, the Falls Township Board of Supervisors unanimously approved authorizing the advertisement of an ordinance, that, once adopted, would award a 10-year bond to cover the building upgrades.

The board will consider awarding the bond at its May 22 meeting.

Gibbons provided an overview of his analysis, which included a cost estimate for a bank loan versus a bond issue. The bond market debt service, Gibbons determined, would cost $3.2 million less than bank loan financing.

Falls Township will realize an additional $2.7 million in savings by using $15 million of the $23 million in its general fund to cover about 50 percent of the costs. The savings will result from lower interest costs during the 10-year term as compared to borrowing the full amount of the projected cost, according to Gibbons.

Since the debt service would be about half of what it would otherwise be, it would put “less of
a strain on the budget.”

Falls Township Finance Director Betsy Reukauf, as well as Supervisor Chairman Jeff Dence and township attorney Mike Clarke said supplementing the amount to be borrowed with funds on hand was the preferred option. Supervisor Erin Mullen was absent.

Construction is expected to get underway later this year and continue through the end of 2024.

In related business, supervisors adopted an amendment to its responsible contractor ordinance as a precursor to the impending municipal building construction.

Clarke said the change is meant to close a “loophole” following a legal challenge in another municipality.

The change requires that the construction manager or lead contractor responsible for the project “shall ensure that at least 70 percent of the craft labor workforce shall be comprised of either journeyperson, workers who have successfully completed an apprenticeship training program registered with and approved by the U.S. Department of Labor or a state apprenticeship agency or registered apprentices currently enrolled in such programs.”

As previously written, the ordinance did not indicate how many trained employees were required to be on the jobsite. Because of that, the ordinance had been “exploited by certain contractors,” Clarke said.