You ready, Steve?
>> I am
» I am
ready.
>> Okay. I will call the August 18th, 2026
» Okay. I will call the August 18th, 2026
meeting of the Newtown Township Board of
Supervisors to order. I will note that
we did not meet in executive session, so
I'll ask Mr. Nace to please call the
roll.
>> Yes. Mr. Altieri.
» Yes. Mr. Altieri.
>> Here.
» Here.
>> Mr. Sanfilippo.
» Mr. Sanfilippo.
>> Here.
» Here.
>> Ms. Chandless.
» Ms. Chandless.
>> Here.
» Here.
>> Ms. Grasso.
» Ms. Grasso.
>> Here.
» Here.
>> Mr. Mr. Russo.
» Mr. Mr. Russo.
>> Here.
» Here.
>> Your solicitor and manager here.
» Your solicitor and manager here.
>> Thank you very much. We will now move on
» Thank you very much. We will now move on
to section five, which is the moment of
silence.
And we'll stand for the pledge.
I pledge allegiance to the flag of the
United States of America.
>> States of America, to the republic for
» States of America, to the republic for
which it stands, one nation under God,
indivisible, with liberty and justice
for
» We'll move down to section five, 5.1.
Can I get a motion to approve the agenda
as presented?
>> So moved.
» So moved.
>> Second.
» Second.
>> Motion's made by Supervisor Russo,
» Motion's made by Supervisor Russo,
seconded by Supervisor Sanfilippo. Is
there any board discussion?
Seeing none, all those in favor signify
by saying I.
>> I.
» I.
>> I.
» I.
>> All those opposed. Motion carries.
» All those opposed. Motion carries.
Section six, public comment for agenda
items only. If there's any members of
the public that are residents or
taxpayers, please come to the podium,
state your name and address for the
record, and please note that you have
three minutes per speaker.
» No one's coming forward.
>> All right, perfect. We'll now move down
» All right, perfect. We'll now move down
to section seven, new business, 7.1.
Uh, I guess we'll we'll put this on the
table first. Um, 7.1 is Can I get a
motion adopting the ordinance
authorizing the incurrence of lease
rental debt to secure repayment of the
guaranteed sewer revenue notes, 2026
series to be issued to the Newtown
Township Municipal Authority and award
and execute related agreements and
documents.
Let's get the motion made and then we
can turn it to discussion and they can
do their presentation, I guess.
>> So moved.
» So moved.
>> Okay. Is there a second?
» Second.
>> Motion is made by supervisor Grosso,
» Motion is made by supervisor Grosso,
seconded by supervisor Chandler.
I don't know who's there from the
Municipal Authority, but if they want to
do they want to explain what's going on
here?
>> Uh yeah, Steve uh
» Uh yeah, Steve uh
Mackel is Steve, I think you're going to
need
to come and speak over here even though
uh and be at the No, I think you're
going to have to be actually over here
uh because uh the they're not picking up
Well, they were hearing me on the
system, but I don't know all of a sudden
they're not. So, if you could do that,
please.
>> Okay. Uh thank you. Steve Mackel, vice
» Okay. Uh thank you. Steve Mackel, vice
chair of the Newtown Township Municipal
Authority. Um
we've uh
done a lot of work to um look at
proposals for refinancing the bonds uh
that are uh from 2018.
And um we have uh
selected Delaware Valley Refinance
Authority to uh move forward with the
bond uh
refinancing.
Um if there's any questions, I know you
have the materials.
Um
we can And Lucian Calhoun is here from
DVRFA as well and can answer any
specifics.
» Well, I mean, I don't really know how
much details we've kind of been left out
in the dark on a lot of this. Um so,
we've had to do our own independent
analysis uh even though we requested one
to be conducted. So, I don't know if
Lucian wants to give an overview. I
understand that we're already securing
this debt and it's your debt. Um but I I
think that there are at least I have
some questions, so I don't know who's
the proper person to kind of explain
this from uh, a high-level so that at
least I can have some comfort, uh,
especially given the situation that we
find ourselves in with the economy, uh,
whether this is the proper time to move
forward, even understanding that we have
that lock-in uh, that is being discussed
or being offered by Del Val. So,
whoever wants to start explaining to why
we should be backing this $30 million
debt, uh, I think it's probably a good
start.
» I'll go.
>> Can you all hear me?
» Yes.
>> Yes. Oh, okay.
All right. Well,
those
that aren't familiar with Del Val, you
know, we were finance authority created
by four counties in 1985,
and since then we've originated more
than 460
loans to more than 215
different local government units
in 16 counties of the Commonwealth.
Um, you know,
for the life of the authority, we've
uh,
been a very economic,
uh,
means of doing financings, and and
that's the case, uh, you know, for the
municipal authority.
Uh,
the
loans that we provide, you know, with a
22-year maturity, such as it would be
required for the municipal authority,
uh, typically average about 50 basis
points lower in all-in true interest
cost
than, uh, a comparable bond issue.
And I know that, uh, you know, this is a
big financing, and then we're certainly
uh, pleased that the supervisors and the
directors of the municipal authority of
elected to proceed with this and
once you'd be comfortable that it's a
good decision. Our competition just
closed a transaction
for a school district
in the Poconos a $35 million transaction
that's comparable
pardon me to the municipal authority
financing if the district had used
DelVal they would have saved
$2.65 million
in debt service cost over the life of
the financing.
The cost of issuance of that financing
were
about two and a half times you know the
cost of issuance that this DelVal loan
would require.
A bond issue would require
the funding of a debt service reserve
fund which DelVal loan does not require.
That reduces the amount that needs to be
financed by almost $3 million.
So the
confident and comfortable that you know
the decision that's been made will
result in the greatest possible savings
to the authority under the current
market conditions.
The guarantee
that the township would execute
constitutes lease rental debt
under the local government unit debt act
and
the enactment of this ordinance
authorizes the execution of that
guarantee agreement and the incurrence
of the lease rental debt.
It
the ordinance approves
the refunding of the 2018 bonds
approves
the municipal authority's selection of
DelVal
and approves the
cost of issuance that DelVal would
assess on this
transaction, the the cost of issuance
would be $146,500.
And which again is
um about 40% or less of the comparable
cost of issuance for a bond issue.
Uh it pledges
the full faith, credit, and taxing power
of the township in the event of the
deficiency
of uh
the sewer revenues generated by the
municipal authority to make the debt
service payments.
Um but you know, that guarantee again
only kicks in if there is a deficiency.
And there's no expectation that there
will be a deficiency.
The maximum possible payment um
um the lease rental
uh debt that's being incurred
is uh I don't exactly have the number
memorized, but it's $5,175,000
uh
range, but that that's the theoretical
maximum
payment at a 15% interest rate.
And obviously, that interest rate will
be fixed at substantially lower rate. We
expect it to be
fixed in the 4.3 to 4.35%
range.
Um you know, depending on what
the market volatility is tomorrow.
>> [clears throat]
» [clears throat]
>> But the
» But the
um you know, again, the guarantee is
only becomes an issue for the township
in the event that there is a deficiency.
Uh the loan to the municipal authority
is exactly like the three loans that the
township currently has with the Delaware
Valley Regional Finance Authority.
Uh the provisions are exactly the same
as as is the case with the three
existing loans.
Uh Uh, the township has
three loans with DelVal aggregating a
little around $9 million.
So,
and I believe the interest rates range
from 1. 2%
to Yeah, I think that I think the higher
higher rate is is some
confidence. I think one of the loans may
be around 3%, but the others are
you know, in the 1 and 2% range.
So, the the same benefits that the
township has enjoyed uh, will be enjoyed
by the municipal authority.
» Perfect. And those three loans, I mean,
those are substantially less than what
this is
uh,
potentially incurring, correct? Aren't
those three loans kind of like an apples
to oranges comparison, you'd say, with
regards to the total amount we're
talking about?
>> Um, well, the provisions are the same
» Um, well, the provisions are the same
and with DelVal, that you know, the loan
rate's the same for small loans, big
loans.
Um, you know, we've done large
transactions for the Bucks County Water
and Sewer Authority, $50 million.
And we've done
$50 million and up transactions for
Chester County,
uh,
Delaware County, Bucks County.
Um,
but
you know, the the size of the loan is
yeah, doesn't affect the loan rate or
the provisions of the loan.
>> and my concern necessarily is whether
» and my concern necessarily is whether
you guys are a qualified shop. I don't
think that was ever called into the
question, at least by me. Um, I just
have questions on one, I thought the
process was handled in in a very um,
interesting way where we were kind of
boxed out the entire time. There was no
discussion until
we were kind of forced to make moves and
then
we're being told that by us slowing
down, we were incurring additional
costs, which I think is just a
ridiculous sort of proposition to put us
in, which doesn't necessarily, I guess,
involve you.
Um, let me ask this question. With
regards to and this is
you know, to just just the I guess the
last question I have is,
you know, understanding that we're going
to be locking this in and the interest
rate will be lower than that of a bond.
I understand that. Uh and let's say the
the interest rates go lower after we
lock in, we're getting an option to I
guess lock that in
one more time over the the span of of
this bond lifetime, or at least for the
next 10 years, excuse me.
I guess the question that I would ask
is, what's the rush of doing it now?
Right? It's not like
interest rates are obviously high. We
know what it is. Like is this truly, you
know, and I guess this isn't really a
question for us to answer,
but I'm I'm curious.
Why would we be rushing into this now,
or the municipal authority be rushing
into this now as opposed to waiting to
see where the economy is
in a year or 2 years? Is it just because
we started this process and we don't
want to
backtrack a little bit?
And that might be a question for Steve.
I don't want to be unfair to either of
you, but I'm I'm just curious if, you
know, why we're we're going to be moving
forward if we have so much uncertainty
with the economy right now.
>> So I'll I'll I'll answer it.
» So I'll I'll I'll answer it.
>> Can you slide up just a
» Can you slide up just a
>> Okay. In December of '25, we began the
» Okay. In December of '25, we began the
process of this. Uh a engagement letter
was supposed to be executed and
was approved to be executed and sent to
Stifel, I believe. And
on July 1st, we were told that they have
not received that. It was never sent by
the township, which we didn't know until
that point. On June 9th, uh we had a
meeting with uh
DVRFA to discuss this and come up with a
proposal. Uh
Stifel was not able to move forward
until they had that letter of engagement
in hands. Uh unbeknownst to us, they
didn't have it. And uh we were on the
track to do that while the audits were
getting done, which were needed as part
of this. And
um
so June 9th, we began a conversation
with DVRFA. Um and June uh I can get my
notes, but uh there amongst in June up
July 1st was when we were told that uh
Stifel did receive the letter and could
come up with a proposal. In evaluating
those two proposals, the uh
restructuring of the debt was um
first available to be uh refinanced in
dece- in September of this year, and we
were tracking towards that since our
December meeting. And
uh when in getting proposals from DVRFA
and a competing proposal from Stifel, it
was um
decided upon the Municipal Authority
Board that we were comfortable with that
savings, uh with the origination savings
as well as the overall savings
in uh the the debt refinancing.
» Oh. No, see if I understand the
timeline, I appreciate that. And I think
it's helpful. I I guess and maybe I
phrase it uh incorrectly, is given that
we've moved forward and the Municipal
Authority's moved forward um with this
and then seeing the uncertainty in the
bond market and the volatility of the
economy right now as it relates to
interest rates, I guess my question is
is the Municipal Authority clearly is
still comfortable moving forward as
opposed to maybe waiting a year or two
years to see where we are. Is that I
mean, clearly that's the answer, I
guess. And I guess I just want to make
sure that we're comfortable with that as
well because if there's a potential that
we're saving more money next year
because the interest rates go down, and
I get it, it's a potential. We don't
know whether they're going to go down,
we don't know whether they go up, but I
don't want to see us lock in and then
only have one more bite of the apple
over the next x amount of time over that
term.
>> Uh that's correct. We decided to move
» Uh that's correct. We decided to move
forward with September as our date to
refinance, knowing that we could save
$1.2 million plus the origination cost
savings.
» But that basis could also that savings
could go up if the interest rates go
down even more.
>> It could, but we don't have a, you know,
» It could, but we don't have a, you know,
a crystal ball to say what those rates
will be a year from now, 3 months from
now, but it does cost substantial money
monthly that we're losing right now if
we decide in July, August, September to
do that.
>> No, that's fair. Crystal ball, that's
» No, that's fair. Crystal ball, that's
definitely a fair analogy, but we also
aren't necessarily up against time
clock, I guess is the question I was
getting the answer to, and I think I I
got it. So, that was helpful, though.
Um, Lucian, I appreciate it. That was
helpful. Steve, I appreciate it. As I
said before, I appreciate the time that
the municipal authority spent on this
personally. Um, I know that we had our
own independent analysis done as well
once the two providers were kind of
narrowed down. Um, so I don't know if
there's any other questions from the
board.
» I do. Um,
we still don't have that question
answered on what is the
scenario if we wait?
» I
My answer is the same. It would be we
saw the opportunity to refinance in
September. Um, waiting because of the
unknowns,
uh, it was a chance for the
rate payers to get a savings.
So, we decided to move forward with the
timeline that was proposed back in
December.
» Okay.
» Any other questions from the board?
» I would just like to say that I did have
a chance to talk to
>> Can Can you all hear Cheryl?
» Can Can you all hear Cheryl?
>> I can. I Yeah.
» I can. I Yeah.
>> Great.
» Great.
>> Okay. To To DelVal, and I did
» Okay. To To DelVal, and I did
communicate with Steve
via email
with the side-by-side comparison. I know
Steve, you did yours, but
this right now is when you can refinance
based on the bond from Steve. And I
think based on the analysis that you did
with Del Val and a little bit of what I
looked at from our folks, it does seem
to make sense. And even though we don't
have a crystal ball to predict what will
happen, the benefit of Del Val is you
don't incur any additional expenses
to refinance if I'm understanding
correctly. And you can also reset. So,
if the interest rate We're not If the
interest rates go up, we're locked in.
If they come down, we can watch them
come down, and then we can reset at the
lowest possible rate, and then we're
guaranteed that rate
at the end of this period. I think it's
part of the deal.
>> Yeah. Okay.
» Yeah. Okay.
>> Thank you for saying. I should have
» Thank you for saying. I should have
mentioned that, too. That was an
attractive feature of the DVRFA
refinancing as opposed to doing a bond
bond issuance.
» Any other comments from the board?
>> So, so yeah, I just I wanted to make
» So, so yeah, I just I wanted to make
sure I understood that right. So, if the
we lock in now, but rates, you know,
actually do fall in the future next year
or at another point, do we have the
ability to lock in a subsequent lower
rate?
» Well, what's contemplated is a 10-year
option.
It's similar to what you would have with
the bond issue.
The The difference between a Del Val
loan and a bond issue is with a bond
issue, when you exercise an option,
as is the case with the 2018 bonds, you
have to refund them. You have to incur
all the cost and go through all the
drill of issuing a new series of bonds
to pay off the old bonds.
With a Del Val loan, when you exercise
an option, there's no reissuance.
There's no additional cost. It's just a
rate reset.
And with a DelVal with a bond issue, you
can't do exercise an option more than 90
days prior to the option day. So, if you
have a 10-year option, you have to wait
until 90 days prior to that option day
to take advantage of what interest lower
interest rates were hopefully in the
market at that time. With a DelVal loan,
we can make a forward commitment
years in advance
to be effective on the option day
if you hit a a low interest rate
environment. And that's exactly what we
did to one of the township notes. Uh the
we
executed uh we we made a commitment to
uh refund the bond issue of the
townships about 15 months in advance of
the option day.
Uh and we locked the rate at that time
to be effective on the option day.
And and that's something And again,
there's no cost. DelVal charges no fees.
There's no filing to DCED requirement.
There are no cost of issuance incurred.
If the authority had used DelVal in
2018, we wouldn't be doing this refund.
And the authority would have saved about
7 and 1/2 million dollars in debt
service cost.
» Uh
Wouldn't we have to wait another 2
years?
Uh
Wouldn't we have had to wait another 2
years cuz it would have been a
a 10-year term?
>> Uh we could have locked the rate in 2020
» Uh we could have locked the rate in 2020
to be effective in 2025.
>> But well, this this loan would be 10
» But well, this this loan would be 10
years though, right?
>> Yeah.
» Yeah.
>> Okay, so you're saying we're going to
» Okay, so you're saying we're going to
have an 8-year term
on the last thing 2018?
>> No, I'm saying if if they had done the
» No, I'm saying if if they had done the
deal with DelVal in
First of all, our interest rates were
lower then than they are now.
This refunding only works because there
were 5% coupons
on the 2018 bond issue.
That's the only reason that refunding is
economic.
>> Well, I'm just saying if it in 20 I was
» Well, I'm just saying if it in 20 I was
just talking about the turn. I thought
you said we'd be refunding.
>> No.
» No.
>> We'd be resetting now, I thought you
» We'd be resetting now, I thought you
said.
>> Well,
» Well,
>> We'd be refinancing now. I thought
» We'd be refinancing now. I thought
we would have to wait
>> If you'd done the deal with Delval in
» If you'd done the deal with Delval in
2018, in 2020 we would have locked 1%
interest
rates. That's what we did.
It would be effective on the option
date.
>> 2020 would have locked in, but the
» 2020 would have locked in, but the
option date would have been 2 years from
>> Yeah.
» Yeah.
>> Yeah.
» Yeah.
>> Okay.
» Okay.
>> Right.
» Any other questions from the board?
All right.
All those in favor signify by saying I.
>> I.
» I.
>> I.
» Mike, are you a yes?
>> I.
» I.
Yes.
>> All those in favor
» All those in favor
>> hear me?
» hear me?
>> Yeah, we can hear you. Let's actually,
» Yeah, we can hear you. Let's actually,
Stephen, you should probably just do a
roll call vote because it sounds like
everything's blocked up.
>> Okay.
Mr. San Francesco.
>> I'm a no.
» I'm a no.
>> Ms. Chaneles.
» Yes.
>> Ms. Grosso.
» Ms. Grosso.
>> Yes.
» Yes.
>> Mr. Russo.
» Mr. Russo.
>> Yes.
» Yes.
>> Mr. Altieri.
» Mr. Altieri.
>> No.
» All right, motion carries three to two.
Move down to section 8, public comment.
If there's any public comment, please
come to the podium, state your name and
address for the record, and please note
that public comment again is 3 minutes
per resident and taxpayer.
» We have no public comment.
>> All right, any Any comment?
Uh I just want to reiterate again, I do
appreciate the work that the municipal
authority did on this. Um I think it was
a good conversation and and a good
exercise.
Um so it doesn't, you know, that vote
does not discount the work that they put
into that.
>> I also like to comment that
» I also like to comment that
as much as we got our independent
contractor to do an evaluation and
things like that, I I do hope in the
future that the process
is more open and the lines of
communication between the least the
supervisors and the municipal authority
and going forward is more presentation
based and conversation based because
you know, as much as we got to where we
are right now, I do think uh
we could have done a better job
collaborating
and getting this out in a timely fashion
with direction.
» Any other board comment?
>> I just made a motion. Thank you,
» I just made a motion. Thank you,
everyone.
» Good evening, everyone.
>> You too.
» Is this your phone?
>> Yes.
» Yes.
>> Okay. Thank you.