Township financial team outlines plan to use recreation authority and proposed 0.25% EIT for open‑space purchase

Financial consultant Jamie and staff briefed the board on a proposed financing strategy for a planned open‑space acquisition. To maximize statutory borrowing capacity under the Local Government Unit Debt Act, the team recommended structuring the transaction through the township’s recreation authority as the issuing conduit while the township would guarantee the bonds and dedicate a proposed 0.25% earned‑income‑tax (EIT) increase to repay debt service.

Consultants described an illustrative $21.5 million financing for the property acquisition, amortized over 30 years with conservative market assumptions that yielded an estimated annual debt service of about $1.3 million. Consultants said projected additional EIT revenue would exceed that amount (consultant cited expected EIT receipts of roughly $2.4 million), leaving capacity to service the acquisition while preserving township general‑fund flexibility.

The team also proposed an optional $1 million separate Series B borrowing to fund golf‑course capital needs (irrigation, paving), to be repaid from the golf fund over 20 years and not from the EIT open‑space revenue. Consultants noted next steps: assemble financing documents, authority resolutions, a township guarantee ordinance and related advertisements and return to the board with formal ordinances and timeline details. Staff indicated due diligence is complete and the parties expect to be ready to market bonds and conclude financing by late September if the board proceeds on schedule.

No final bond issuance or EIT ordinance adoption occurred at the session; staff will return with draft authorizing documents for board consideration.