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 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. The Borough has deemed this Preliminary Official Statement to be final for purposes of Rule 15c2-12(b)(1) of the Securities and Exchange Commission, except for certain information which has been omitted in accordance with such Rule and which will be provided in the final Official Statement. *Preliminary amount, subjecttochange. DATED: ______,2020 the Underwriter by Knox McLaughlin Gornall & Sennett. It is expected that the Bonds will be available for delivery in New York, New passed York,upon for the Borough on by or about Ashley _____, S. 2020. Wagner, Esq. and Gavin Robb, Esq. from Tucker Arensberg, P.C. of Pittsburgh, legal opinion of Pennsylvania, Dinsmore & Shohl Borough LLP,Solicitor, of and Pittsburgh, Pennsylvania Bond for Counsel, to be furnished upon delivery of the Bonds. Certain other legal matters will be LEGAL APPROVALS: The Bonds are offered when, as and if issued, subject to withdrawal or modification of the offer without notice, and subject to the approving DISCLOSURE UNDERTAKING” herein.) with the requirements of Rule 15c2-12, as promulgated under the Securities Exchange Act of 1934, as amended and interpreted (the “Rule”). (See “CONTINUING CONTINUING DISCLOSURE UNDERTAKING: the The of Borough has portion agreed to a provide, or refunding cause to currently be provided, (3) in a 2012; timely manner, of certain Ainformation Series in accordance Bonds, Obligation General outstanding Borough’s outstandingGeneralObligationBonds,SeriesBof2012;and(4)thecostsissuingBonds. Borough’s the of portion a refunding currently (2) 2011; of Series Bonds, Obligation General outstanding Borough’s the of portion a refunding currently (1) towards: used be will Bonds the of Proceeds USE OFFUNDS: Commonwealth ofPennsylvaniapursuanttothe Act. of to Commonwealth issuance, proceedings with respect to the issuance of the Bonds will have the been approved by the Department of Community and Economic Development of the of Act Debt Unit Government Local the with Pennsylvania, 53 accordance Pa. C.S. Chs. 80-82 in (the “Act”), and pursuant delivered to an ordinance (the and “Ordinance”) enacted by the issued Borough Council on _____, be 2020. will As a condition Bonds The AUTHORITY FORISSUANCE: concurrently withthedeliveryofBondsbyBUILDAMERICACOMPANY ASSURANCE . INSURANCE: The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under a municipal bond insurance policy to be issued presently includesthepowertolevyadvaloremtaxesonalltaxablerealpropertywithinBoroughunlimitedastorateoramountforsuchpurpose. power taxing power,which taxing and credit faith, full its pledged has irrevocably Borough the payment and appropriation budgeting, such for and Bonds, the in under the Ordinance or any other of its revenues or funds the principal of every Bond and the interest thereon on the dates, at the place and in the manner stated each such year, the amount of the debt service on the Bonds for such year and will duly and punctually pay or cause to be paid from the sinking fund established in revenues general its from appropriate year,will each and in budget its in provide will it that covenanted has Borough The revenues. general other and tax its SECURITY FOR THE BONDS: REDEMPTION: TheBondsaresubjecttoredemptionpriormaturityasdescribedherein. name(s) suchBondisregisteredasoftheRecordDatewithrespecttoparticularinterestpaymentdate(See“THEBONDS,”infra). Pennsylvania (or any successor paying agent at its designated office(s)) and interest on such Bond will be payable by check and mailed to the person(s) Pittsburgh, in in whose located office trust corporate designated its Paying at the Agent to Bond such of surrender upon due, when payable, be will Bonds the of each on principal the discontinued, ever is Bonds the for System Only Book-Entry the of use the If Bonds. the of Owners Beneficial the to disbursement subsequent for Participants DTC to payments such remit turn in will DTC and Paying Agent, the by DTC to directly made be will payment, for due when Bonds, the on interest any,if premium, redemption of, principal the of payments and Bonds, the of owner registered the is DTC, for nominee as Co., & Cede as long So Bonds. the for been duly made or provided for. has The Borough has appointed U.S. Bank National price Association redemption (the “Paying the Agent”), as paying agent and Sinking Fund Depository of payment if thereof, redemption for fixed date the maturity,until to prior redemption to subject is Bond maturity such the or,if until Bond year such each of date of 1 November and 1 May on semiannually thereafter and 2020, 1, November on initially payable is Bonds the of each on Interest the Bondswillbesubjecttoregistrationoftransfer, exchangeandpaymentasdescribedherein. and interest on the Bonds. See “BOOK-ENTRY ONLY SYSTEM” herein. If, under the circumstances described herein, Bonds are ever issued in certificated form, of principal of payment receive to Participant DTC a through, acts or is, who dealer a or broker a with account an maintain must purchaser that Bond, a of owner are, or act through, DTC Participants. The purchasers of the Bonds will not receiv Interest Due:May1andNovember Dated: DateofDelivery NEW ISSUEBOOK-ENTRY ONLY The Bonds are general obligations of the Borough of Baldwin, Allegheny County, Pennsylvania (the “Borough”), payable from payable “Borough”), (the County,Pennsylvania Allegheny Baldwin, of Borough the of obligations general are Bonds The PRELIMINARY OFFICIAL STATEMENT DATED JULY 7,2020 General ObligationBonds,Seriesof2020 The Borough of Baldwin will issue its General Obligation Bonds, Series of 2020 (the “Bonds”) in the aggregate the in “Bonds”) (the 2020 of Series Bonds, Obligation General its issue will Baldwin of Borough The Allegheny County, Pennsylvania Borough ofBaldwin $10,000,000* S&P GlobalRatings:“A+”(stableoutlook)UnderlyingRating Build America Mutual Assurance Company. (“BAM”)insured Bond Rating:S&P GlobalRatings:“AA”(stableoutlook) See “Ratingand“MunicipalBondInsurance”herein Principal Due:November1,asshownherein First InterestPayment:November1,2020

$10,000,000* Borough of Baldwin Allegheny County, Pennsylvania General Obligation Bonds, Series of 2020

Dated: Date of Delivery Principal Due: November 1 Interest Due: May 1 and November 1 First Interest Payment: November 1, 2020

MATURITY SCHEDULE

Year Principal Interest (November 1) Amount Rate Yield Price (1) CUSIPs (2) $ % % %

(1) Based on expected settlement date of , 2020. (2) The above CUSIP (Committee on Uniform Securities Identification Procedures) numbers have been assigned by an organization not affiliated with the Borough or the Underwriter, and such parties are not responsible for the selection or use of the CUSIP numbers. The CUSIP numbers are included solely for the convenience of bondholders and no representation is made as to the correctness of such CUSIP numbers. CUSIP numbers assigned to securities may be changed during the term of such securities based on a number of factors including, but not limited to, the refundings or defeasance of such issue or the use of secondary market financial products. Neither the Borough nor the Underwriter have agreed to, and there is no duty or obligation to, update this Official Statement to reflect any change or correction in the CUSIP numbers set forth above.

* Preliminary amount, subject to change.

ii

BOROUGH OF BALDWIN Allegheny County, Pennsylvania 3344 Churchview Avenue Pittsburgh, PA 15227

BOROUGH COUNCIL

Marianne Conley ...... President John Egger ...... Vice President James Behers ...... Member Patricia Boyer ...... Member Chad Hurka ...... Member Denise Malden ...... Member Francis Scott ...... Member

MAYOR David Depretis

BOROUGH MANAGER Robert T. Firek, P.E.

FINANCE OFFICER Caitlin Hornyak

BOROUGH SOLICITOR Ashley S. Wagner, Esq. and Gavin Robb, Esq. Tucker Arensberg, P.C. Pittsburgh, Pennsylvania

BOND COUNSEL Dinsmore & Shohl LLP Pittsburgh, Pennsylvania

UNDERWRITERS COUNSEL Knox McLaughlin Gornall & Sennett Erie, Pennsylvania

PAYING AGENT U.S. Bank National Association Pittsburgh, Pennsylvania

UNDERWRITER PNC Capital Markets LLC Pittsburgh, Pennsylvania

iii

This Official Statement does not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of the Bonds in any jurisdiction in which it is unlawful to make such offer, solicitation or sale. The information set forth herein has been obtained from the Borough and from other sources which are believed to be reliable, but the Borough does not guarantee the accuracy or completeness of information from sources other than the Borough. PNC Capital Markets LLC, Pittsburgh, Pennsylvania as the Underwriter (the "Underwriter"), has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with and as part of its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guaranty the accuracy or completeness of such information, which, has been obtained from either the Borough or from sources other than the Borough. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement, nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in any of the information set forth herein since the date hereof.

The quotations from and summaries and explanation of provisions of laws and documents contained herein, including the cover page, inside cover page and Appendices attached hereto, do not purport to be complete. Reference is made to such laws and documents for full and complete statements of their provisions. Any statements made in this Official Statement involving estimates or matters of opinion, whether or not expressly so stated, are intended merely as estimates or opinions and not as representations of fact.

If and when included in this Official Statement, the words “expects,” “forecasts,” “projects,” “intends,” “anticipates,” “estimates,” “assumes,” and analogous expressions are intended to identify forward-looking statements, and any such statements inherently are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those that have been projected.

THE ORDER AND PLACEMENT OF MATERIALS IN THIS OFFICIAL STATEMENT, INCLUDING THE APPENDICES ATTACHED HERETO AND INFORMATION INCORPORATED HEREIN BY REFERENCE, ARE NOT TO BE DEEMED TO BE A DETERMINATION OF RELEVANCE, MATERIALITY OR IMPORTANCE, AND THIS OFFICIAL STATEMENT, INCLUDING THE APPENDICES HERETO AND INFORMATION INCORPORATED HEREIN BY REFERENCE, MUST BE CONSIDERED IN ITS ENTIRETY. THE OFFERING OF THE BONDS IS MADE ONLY BY MEANS OF THIS ENTIRE OFFICIAL STATEMENT.

IN MAKING ANY INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THE BONDS HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS (INCLUDING DEALERS DEPOSITING THE BONDS INTO INVESTMENT TRUST(S)) AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE INSIDE FRONT COVER THEREOF.

IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF SUCH BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.

THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR HAS THE ORDINANCE BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS. THE REGISTRATION OR QUALIFICATION OF THE BONDS OR THE ORDINANCE IN ACCORDANCE WITH APPLICABLE PROVISIONS OF THE SECURITIES LAWS OF CERTAIN STATES, IF ANY, IN WHICH THE BONDS HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN CERTAIN OTHER STATES CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE BONDS OR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.

Build America Mutual Assurance Company (“BAM”) makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, BAM has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding BAM, supplied by BAM and presented under the heading “Bond Insurance” and “Appendix E - Specimen Municipal Bond Insurance Policy”.

The Borough deems this Preliminary Official Statement to be final for the purpose of SEC Rule 15c2-12(b)(1).

iv TABLE OF CONTENTS

Item Page Introductory Statement ...... 1 Description of the Bonds ...... 1 Redemption of Bonds ...... 5 Security for the Bonds ...... 6 Bond Insurance ...... 7 Investment Considerations ...... 9 Purpose of the Issue ...... 12 Sources and Uses of Funds ...... 12 Future Financing ...... 13 Borough of Baldwin ...... 13 Continuing Disclosure Undertaking ...... 13 Debt Limits and Borrowing Capacity of the Borough ...... 16 Legal Matters ...... 16 Litigation ...... 17 Tax Matters...... 17 Municipal Bankruptcy Law ...... 20 The Paying Agent ...... 20 Rating ...... 21 Legal Opinion ...... 21 Underwriting ...... 21 Related Parties ...... 21 Miscellaneous ...... 21

The Borough of Baldwin (Allegheny County, Pennsylvania) ...... Appendix A Summary of Financial Information – Relating to Borough of Baldwin ...... Appendix B Borough of Baldwin 2020 Budget ...... Appendix C 2019 Municipal Annual Audit and Financial Report ...... Appendix D Specimen Municipal Bond Insurance Policy ...... Appendix E Form of Bond Counsel Opinion ...... Appendix F

This Table of Contents does not list all of the subjects in this Official Statement. In all instances, reference should be made to the complete Official Statement to determine the subjects set forth herein.

v [ THIS PAGE INTENTIONALLY LEFT BLANK ]

OFFICIAL STATEMENT

$10,000,000* Borough of Baldwin Allegheny County, Pennsylvania General Obligation Bonds, Series of 2020

INTRODUCTORY STATEMENT

This Official Statement, including the Cover Page hereof and the Appendices hereto, is furnished in connection with the offering by the Borough of Baldwin (the “Borough”) of $10,000,000* aggregate principal amount, of its General Obligation Bonds, Series of 2020 (the “Bonds”). The Bonds are authorized to be issued pursuant to the provisions of the Pennsylvania Local Government Unit Debt Act, 53 Pa. C.S.A. §8001 et. seq., as amended (the “Act”), and are described in, and are being issued pursuant to the provisions of, an Ordinance of the Borough duly enacted on , 2020 (the “Ordinance”).

The approval of the Department of Community and Economic Development of the Commonwealth of Pennsylvania (the “Commonwealth”) for the Borough to issue and deliver the Bonds will have been duly given pursuant to the Act; all acts, conditions and things required by the laws of the Commonwealth to exist, to have happened or to have been performed precedent to or in the issuance of the Bonds or in the creation of the debt of which any Bond is evidence, exist, will have happened, and will have been performed in regular and due form and manner as required by law; the Bonds, together with all other indebtedness of the Borough, will be within every debt and other limit prescribed by the Constitution and the statutes of the Commonwealth; and the Borough will have established with U.S. Bank National Association, Pittsburgh, Pennsylvania, or its designee, as the paying agent, transfer agent, bond registrar, and sinking fund depository for the Bonds, a Sinking Fund for the Bonds, as defined herein, and shall deposit therein amounts sufficient to pay the principal of and interest on the Bonds as the same shall become due and payable. (See “DESCRIPTION OF THE BONDS - Paying Agent, Transfer Agent, Bond Registrar, and Sinking Fund Depository” and “THE PAYING AGENT” herein.)

DESCRIPTION OF THE BONDS

The Bonds will be issued as fully registered bonds without coupons in denominations of $5,000 or any integral multiple thereof. The Bonds will be initially dated as of the date of delivery and will bear interest on the unpaid principal at the rates and mature in the amounts and on the dates listed in the BOND MATURITY SCHEDULE shown on the inside cover page of this Official Statement. While the Bonds are in the Book-Entry Only System, references to the “Owner” or “Registered Bond Owner” as described herein are to CEDE & Co., as nominee of DTC. Each beneficial owner of a Bond may desire to make arrangements with a DTC Participant to receive notices or communications with respect to matters described herein. (See “Book-Entry Only System” herein.)

Interest on the Bonds shall be computed on the basis of a 30-day month and 360-day year and shall be payable semiannually on May 1 and November 1 of each year, commencing November 1, 2020 (the “Interest Payment Dates”). If an Interest Payment Date occurs on a day which is not a Business Day (a “Business Day” is any day other than a Saturday, Sunday, legal holiday or a day on which financial institutions in the Commonwealth of Pennsylvania are authorized by law to be closed) the interest on and principal of the Bonds coming due on such Interest Payment Date shall be payable on the next succeeding Business Day without any additional accrual of interest.

Each Bond will be dated as of its date of authentication and will bear interest from the immediately preceding Interest Payment Date to which interest has been paid, unless: (i) such bond is authenticated on an Interest Payment Date to which interest has been paid, in which case it shall bear interest from such Interest Payment Date; or (ii) such Bond is authenticated on or prior to the first Regular Record Date (hereinafter defined) after the issue date, in which event it shall bear interest from the dated date; or (iii) such Bond is authenticated after a Regular Record Date and before the next succeeding Interest Payment Date on which interest is in fact paid, in which case such Bond will bear interest from such next succeeding Interest Payment Date.

*Preliminary amount, subject to change.

1

So long as the Bonds or any portion thereof are registered in the name of DTC or its nominee, payments thereon shall be made to DTC or its nominee. (See “Book-Entry Only System” herein.) At all other times, the principal of and interest on the Bonds shall be payable at the designated office of U.S. Bank National Association as Paying Agent (the “Paying Agent”), in such coin or currency of the United States of America as at the time and place of payment is legal tender for public and private debts, provided that interest may be paid by check drawn upon the Paying Agent and mailed to the persons in whose names the Bonds are registered at the close of business on the fifteenth day of the calendar month immediately preceding the relevant Interest Payment Date (the “Regular Record Date”) at the address shown on the registration records for the Bonds (the “Bond Register”) kept by the Paying Agent. Persons designated in the Bond Register as owning Bonds are hereinafter referred to as “Registered Bond Owners.”

Notwithstanding the foregoing, if and to the extent there shall be a default in the payment of interest due on an Interest Payment Date, such defaulted interest shall be paid on a special payment date to the Registered Bond Owners in whose names the Bonds are registered at the close of business on a special record date (the “Special Record Date” and together with the Regular Record Date, the “Record Date”) established by notice mailed to the Registered Bond Owners not less than ten (10) days prior to such special payment date.

Registration, Transfer and Exchange of Bonds

The Paying Agent is responsible for maintaining the books of the Borough pertaining to the registration of ownership of each Bond. The ownership of Bonds may be transferred upon the registration books upon delivery to the Paying Agent or its designee, of a written instrument or instruments of transfer in form and with guaranty of signature satisfactory to the Paying Agent or its designee, duly executed by the registered holder of the Bonds to be transferred or his duly authorized attorney-in-fact or legal representative, subject to such reasonable regulations as the Borough or the Paying Agent or its designee may prescribe, and upon payment of any taxes or other governmental charges incident to such transfer. No transfer of any Bond will be effective until entered on the registration books.

Neither the Borough nor the Paying Agent or its designee shall be required (a) to register the transfer of or to exchange any Bonds then considered for redemption, during a period beginning at the close of business on the fifteenth 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 is mailed, (b) to register the transfer of or to exchange any portion of any Bond selected for redemption in whole or in part until after the redemption date, or (c) to register the transfer of or to exchange any Bond during the period beginning at the close of business on the fifteenth day preceding the date of maturity on the Bond and ending at the close of business on the date of maturity.

Book-Entry-Only System

THE INFORMATION PROVIDED UNDER THIS CAPTION CONCERNING DTC AND DTC’s BOOK-ENTRY SYSTEM HAS BEEN PROVIDED BY DTC. NO REPRESENTATION IS MADE BY THE BOROUGH OR THE UNDERWRITER AS TO THE ACCURACY OR ADEQUACY OF SUCH INFORMATION PROVIDED BY DTC OR AS TO THE ABSENCE OF MATERIAL ADVERSE CHANGES IN SUCH INFORMATION SUBSEQUENT TO THE DATE HEREOF.

The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds. The Bonds 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 Bond will be issued for each maturity of the Bonds, each in the aggregate principal amount of such issue, and will be deposited with DTC.

2

DTC, the world’s largest 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 3.6 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 only 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 a Standard & Poor’s rating of AA+. 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

Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of a Bond (“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 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 Bonds 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 the Bonds, except in the event that use of the book-entry only system for the Bonds is discontinued.

To facilitate subsequent transfers, all Bonds 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 Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds. DTC’s records reflect only the identity of the Direct Participants to whose accounts the Bonds 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 the Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds 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 will be sent to DTC. If less than all of the Bonds 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.

3

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Borough 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 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Payment of principal and interest on the Bonds 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 the Borough or the Paying 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, the Paying Agent, or the Borough, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Borough or the Paying 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 Bonds at any time by giving reasonable notice to the Borough or the Paying Agent. Under such circumstances, in the event that a successor depository is not obtained, bond certificates are required to be printed and delivered. The Borough may decide to discontinue use of the system of book-entry only transfers through DTC (or a successor securities depository). In that event, bond certificates will be printed and delivered to DTC.

So long as Cede & Co., or any successor thereto, is the registered owner of the Bonds, as DTC’s partnership nominee, references herein to the Bondholders or Owners or registered owners of the Bonds will mean DTC and will not mean the Beneficial Owners of the Bonds. During such period, the Paying Agent and the Borough will recognize DTC or its partnership nominee as the owner of all of the Bonds for all purposes, including the payment of the principal of, premium, if any, and interest on the Bonds, as well as the giving of notices and voting.

The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Borough believes to be reliable, but the Borough takes no responsibility for the accuracy thereof.

THE BOROUGH AND THE PAYING AGENT WILL HAVE NO RESPONSIBILITY OR OBLIGATION TO THE DIRECT PARTICIPANTS OR THE PERSONS FOR WHOM THEY ACT AS NOMINEES WITH RESPECT TO THE ACCURACY OF THE RECORDS OF DTC, ITS NOMINEE OR ANY DIRECT PARTICIPANT PERTAINING TO OWNERSHIP IN THE BONDS OR THE PAYMENTS TO, OR THE PROVIDING OF NOTICE FOR, TO THE DIRECT PARTICIPANTS, OR THE INDIRECT PARTICIPANTS OR THE BENEFICIAL OWNERS.

SO LONG AS CEDE & CO., AS NOMINEE OF DTC, IS THE REGISTERED OWNER OF THE BONDS, REFERENCES HEREIN TO THE HOLDERS OF THE BONDS, OR OWNERS OF THE BONDS, SHALL MEAN CEDE & CO., AND SHALL NOT MEAN THE BENEFICIAL OWNERS.

Discontinuance of Book-Entry-Only System

The book-entry system for registration of the ownership of the Bonds may be discontinued at any time if: (i) DTC determines to resign as securities depository for the Bonds; or (ii) the Borough determines that continuation of the system of book-entry transfers through DTC (or through a successor securities depository) is not in the best interests of the Beneficial Owners. In either such event (unless the Borough appoints a successor securities depository), Bonds will then be delivered in registered certificate form to such persons, and in such maturities and principal amounts, as may be designated by DTC, but without any liability on the part of the Borough, or the Paying Agent for the accuracy of such designation. Whenever DTC requests the Borough or the Paying Agent to do so, the Borough or the Paying Agent shall cooperate with DTC in taking appropriate action after reasonable notice to arrange for another securities depository to maintain custody of certificates evidencing the Bonds.

4

Paying Agent, Transfer Agent, Bond Registrar and Sinking Fund Depository

The obligations and duties of the Paying Agent are described in the Ordinance and the Act, and the Paying Agent has undertaken only those obligations and duties which are expressly set out in the Ordinance or required by the Act. The Paying Agent has not independently passed upon the validity of the Bonds, the security therefor, the adequacy of the provisions for payment thereof, or the tax-exempt status of the interest on the Bonds. The Paying Agent is not required to take notice or be deemed to have notice of any default under the Ordinance, except for failure by the Borough to make or cause to be made any of the payments required to be made for the principal of the Bonds when due at maturity or earlier redemption, or the interest thereon (See “THE PAYING AGENT” herein.) The Paying Agent may designate an agent for purposes of exercising the duties and functions described herein and in the Ordinance.

REDEMPTION OF BONDS

Optional Redemption

The Bonds stated to mature after _____, ____ are subject to redemption prior to maturity at the option of the Borough in any order of maturities either as a whole, or in part, at any time on or after November 1, ____, and if in part, by lot within a maturity, at a redemption price equal to 100% of the principal amount thereof, together with interest accrued thereon to the date fixed for redemption. Mandatory Redemption

The Bonds stated to mature on November 1, ____, November 1, ____, and on November 1, ____ are subject to mandatory redemption, in part, prior to maturity, by lot within a maturity, at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon, to the dates fixed for redemption, on November 1 of the years and in the amounts set forth below:

The Bonds Stated The Bonds Stated to Mature on November 1, ____ to Mature on November 1, ____ Year Principal Amount Year Principal Amount $ $ (1) (1)

The Bonds Stated to Mature on November 1, ____ Year Principal Amount $

(1)

(1) At maturity.

Notice of Redemption

Notice of any redemption shall be given by depositing a copy of the redemption notice in first class mail not less than thirty (30) days nor more than sixty (60) days prior to the date fixed for redemption addressed to each of the registered owners of Bonds to be redeemed, in whole or in part, at the addresses shown on the registration books; provided, however, that failure to give such notice by mailing, or any defect therein or in the mailing thereof, shall not affect the validity of any proceeding for redemption of other Bonds so called for redemption as to which proper notice has been given.

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On the date designated for redemption, notice having been provided as aforesaid, and money for payment of the principal and accrued interest being held by the Paying Agent, interest on the Bonds or portions thereof so called for redemption shall cease to accrue and such Bonds or portions thereof shall cease to be entitled to any benefit or security under the Ordinance, and registered owners of such Bonds or portions thereof so called for redemption shall have no rights with respect to such Bonds, except to receive payment of the principal of and accrued interest on such Bonds to the date fixed for redemption.

SECURITY FOR THE BONDS

General Obligations

The Bonds will be general obligations of the Borough, payable from the tax and other general revenues of the Borough. The Borough has covenanted in the Ordinance, that the Borough shall do the following: (1) include the amount of the debt service for the Bonds for each fiscal year in which such sums are payable in its budget for that year, (2) appropriate those amounts from its general revenues for the payment of such debt service, and (3) duly and punctually pay or cause to be paid from its Sinking Fund, as hereinafter defined, or any other of its revenues or funds, the principal of and interest on each of the Bonds at the dates and place and in the manner stated in the Bonds, according to the true intent and meaning thereof. For such budgeting, appropriation and payment in respect to the Bonds, the Borough under the Ordinance, has pledged its full faith, credit and taxing power. Under the provisions of the Pennsylvania Borough Code, as presently enacted and construed, the Borough has the power to levy an annual ad valorem tax on all taxable real property within the Borough, presently without limitation as to rate or amount, for the purpose of paying debt service on the Bonds.

Sewer Fund

The Borough owns and operates the sewer collection and conveyance system within the Borough. Sewer billings are collected by Legal Tax Service, a third party vendor, on behalf of the Borough and deposited into the Sewer Fund, which is held by the Borough. The Sewer Fund is an Enterprise Fund of the Borough and is available to, and expected to be applied to an allocable portion of the payment of debt service on the Bonds.

Sinking Fund

A sinking fund designated Sinking Fund-General Obligation Bonds, Series of 2020 (the "Sinking Fund"), created under the Ordinance, shall be held by U.S. Bank National Association Pittsburgh, Pennsylvania (the “Sinking Fund Depository”). The Borough shall deposit in the Sinking Fund not later than each date when interest or principal is to become due on the Bonds, a sum which together with any other available funds on deposit in the Sinking Fund shall be sufficient to pay, in full, interest and principal then due and payable on the Bonds.

The Sinking Fund shall be secured and may be invested by the Sinking Fund Depository in securities or deposits authorized by the Act, upon direction of the Borough. Such deposits and securities, if any, shall be in the name of the Borough but subject to withdrawal or collection only by the Sinking Fund Depository, and such deposits and securities, together with interest thereon shall be a part of the Sinking Fund.

The Sinking Fund Depository is authorized, without further order from the Borough, to pay from the Sinking Fund the principal of and interest on the Bonds when due and payable.

Bondholder Rights and Remedies

The remedies available to holders of the Bonds upon any failure to pay the principal of, and the interest on the Bonds, when due, include those prescribed by the Act. If such failure should continue for a period of time in excess of thirty days, any holder of the Bonds will, subject to certain priorities, have the right to bring suit for the amount due in the Court of Common Pleas of Allegheny County, Pennsylvania. The Act provides that, if the Borough defaults in the payment of the principal of, and the interest on the Bonds, and such default continues for a period of time in excess of thirty days, or if the Borough fails to

6 comply with any provision of either the Bonds or the Ordinance, then the holders of 25% in aggregate principal amount of the Bonds may appoint a trustee to represent the holders of the Bonds.

Such trustee may, and upon written request of the holders of 25% in aggregate principal amount of the Bonds and being furnished with satisfactory indemnity, must, take one or more of the following actions, which will preclude similar action by individual holders: (i) bring suit to enforce all rights of the holders, (ii) bring suit on the Bonds, (iii) petition the Court to levy the amount due plus estimated costs of collection as an assessment upon all taxable real estate and other property subject to ad valorem taxation in the Borough (any such assessment will have the same priority and preference as to other liens or security interests as a lien for unpaid taxes), and (iv) by suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the holders, all as set forth more fully in the Act.

Enforcement of a claim for payment of the principal of, premium, if any or the interest on the Bonds may be subject to the provisions of the federal bankruptcy laws and to the provisions of other statutory laws enacted by the Congress or the General Assembly of the Commonwealth, or common law developed by competent courts having jurisdiction extending the time for payment or imposing other constraints upon enforcement insofar as such laws may be constitutionally applied.

BOND INSURANCE

BOND INSURANCE POLICY

Concurrently with the issuance of the Bonds, Build America Mutual Assurance Company (“BAM”) will issue its Municipal Bond Insurance Policy for the Bonds (the “Policy”). The Policy guarantees the scheduled payment of principal of and interest on the Bonds when due as set forth in the form of the Policy included as an exhibit to this Official Statement.

The Policy is not covered by any insurance security or guaranty fund established under New York, California, Connecticut or Florida insurance law.

BUILD AMERICA MUTUAL ASSURANCE COMPANY

BAM is a New York domiciled mutual insurance corporation and is licensed to conduct financial guaranty insurance business in all fifty states of the United States and the District of Columbia. BAM provides credit enhancement products solely to issuers in the U.S. public finance markets. BAM will only insure obligations of states, political subdivisions, integral parts of states or political subdivisions or entities otherwise eligible for the exclusion of income under section 115 of the U.S. Internal Revenue Code of 1986, as amended. No member of BAM is liable for the obligations of BAM. The address of the principal executive offices of BAM is: 200 Liberty Street, 27th Floor, New York, New York 10281, its telephone number is: 212-235-2500, and its website is located at: www.buildamerica.com.

BAM is licensed and subject to regulation as a financial guaranty insurance corporation under the laws of the State of New York and in particular Articles 41 and 69 of the New York Insurance Law.

BAM’s financial strength is rated “AA/Stable” by S&P Global Ratings, a business unit of Standard & Poor's Financial Services LLC (“S&P”). An explanation of the significance of the rating and current reports may be obtained from S&P at www.standardandpoors.com. The rating of BAM should be evaluated independently. The rating reflects the S&P’s current assessment of the creditworthiness of BAM and its ability to pay claims on its policies of insurance. The above rating is not a recommendation to buy, sell or hold the Bonds, and such rating is subject to revision or withdrawal at any time by S&P, including withdrawal initiated at the request of BAM in its sole discretion. Any downward revision or withdrawal of the above rating may have an adverse effect on the market price of the Bonds. BAM only guarantees scheduled principal and scheduled interest payments payable by the issuer of the Bonds on the date(s) when such amounts were initially scheduled to become due and payable (subject to and in accordance with the terms of the Policy), and BAM does not guarantee the market price or liquidity of the Bonds, nor does it guarantee that the rating on the Bonds will not be revised or withdrawn.

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Capitalization of BAM

BAM’s total admitted assets, total liabilities, and total capital and surplus, as of March 31, 2020 and as prepared in accordance with statutory accounting practices prescribed or permitted by the New York State Department of Financial Services were $459.6 million, $126.1 million and $333.5 million, respectively.

BAM is party to a first loss reinsurance treaty that provides first loss protection up to a maximum of 15% of the par amount outstanding for each policy issued by BAM, subject to certain limitations and restrictions.

BAM’s most recent Statutory Annual Statement, which has been filed with the New York State Insurance Department and posted on BAM’s website at www.buildamerica.com, is incorporated herein by reference and may be obtained, without charge, upon request to BAM at its address provided above (Attention: Finance Department). Future financial statements will similarly be made available when published.

BAM makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, BAM has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding BAM, supplied by BAM and presented under the heading “BOND INSURANCE”.

Additional Information Available from BAM

Credit Insights Videos. For certain BAM-insured issues, BAM produces and posts a brief Credit Insights video that provides a discussion of the obligor and some of the key factors BAM’s analysts and credit committee considered when approving the credit for insurance. The Credit Insights videos are easily accessible on BAM's website at buildamerica.com/creditinsights/. (The preceding website address is provided for convenience of reference only. Information available at such address is not incorporated herein by reference.)

Credit Profiles. Prior to the pricing of bonds that BAM has been selected to insure, BAM may prepare a pre-sale Credit Profile for those bonds. These pre-sale Credit Profiles provide information about the sector designation (e.g. general obligation, sales tax); a preliminary summary of financial information and key ratios; and demographic and economic data relevant to the obligor, if available. Subsequent to closing, for any offering that includes bonds insured by BAM, any pre-sale Credit Profile will be updated and superseded by a final Credit Profile to include information about the gross par insured by CUSIP, maturity and coupon. BAM pre-sale and final Credit Profiles are easily accessible on BAM's website at buildamerica.com/obligor/. BAM will produce a Credit Profile for all bonds insured by BAM, whether or not a pre-sale Credit Profile has been prepared for such bonds. (The preceding website address is provided for convenience of reference only. Information available at such address is not incorporated herein by reference.)

Disclaimers. The Credit Profiles and the Credit Insights videos and the information contained therein are not recommendations to purchase, hold or sell securities or to make any investment decisions. Credit- related and other analyses and statements in the Credit Profiles and the Credit Insights videos are statements of opinion as of the date expressed, and BAM assumes no responsibility to update the content of such material. The Credit Profiles and Credit Insight videos are prepared by BAM; they have not been reviewed or approved by the issuer of or the underwriter for the Bonds, and the issuer and underwriter assume no responsibility for their content.

BAM receives compensation (an insurance premium) for the insurance that it is providing with respect to the Bonds. Neither BAM nor any affiliate of BAM has purchased, or committed to purchase, any of the Bonds, whether at the initial offering or otherwise.

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INVESTMENT CONSIDERATIONS

The Bonds, like all investment securities, carry a risk of loss of the investment, in whole or in part. This Official Statement does not purport to describe all of the risks of an investment in the Bonds; both the Borough and the Underwriter disclaim any responsibility to advise prospective investors of such risks either as they may exist at the date of dissemination of this Official Statement or as they may appear or change from time to time in the future. Prospective purchasers of the Bonds should consult their own legal and tax advisors as to the risks associated with an investment in the Bonds, their ability bear a loss from an investment in the Bonds and the suitability of investing in the Bonds, in light of their particular, individual, circumstances. Prospective purchasers should carefully consider the matters described below, as well as all the information contained within this entire Official Statement.

Economic Factors Affecting the Financial Condition of the Borough

Changes in current economic conditions, on local, regional and national levels, could adversely affect the Borough's operating revenues and expenses and, consequently, the Borough's ability to pay debt service on the Bonds. Among the factors that could have such adverse effects are: changes in local demographics; closure or relocation of key industries and employers; increases in local rates of unemployment; decreases in the assessed value of real estate within the Borough; decreases in real estate tax collections; future contract negations with organized labor and the consequent impact on wage scales and operating costs; increasing costs of supplies and materials necessary to provide public services; loss or reduction of State and federal subsidies and reimbursements for operating and capital costs; and delays in adoption of, failure to budget and appropriate within or other adverse changes to, the Commonwealth’s budget, as the same may effect Borough revenues or the timely payment thereof.

No Assurance of Secondary Market for the Bonds

There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that the Bonds can be sold for any particular price. Accordingly, purchasers of the Bonds should be prepared to have their funds committed until the Bonds mature. Prices of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different than the original purchase price.

Given current market irregularities and volatility, at present, there is a limited secondary market for the Bonds. No assurance is given, and none can be given, by the Borough or the Underwriter that a more robust secondary market for the Bonds will be re-established (in the near or longer term) or, if re- established, will not be disrupted by ongoing world events including, but not limited to, the current pandemic associated with the COVID-19 virus (See “Coronavirus COVID-19” herein). As a result, no assurances are given as to the ability of investors to reoffer any Bonds purchased in the secondary market. Moreover, while the Underwriter expects to reoffer the Bonds in secondary market, the Underwriter is not specifically required to do so.

Uncertainty of Tax Revenues

While present State law authorizes the Borough to levy ad valorem real estate taxes at an unlimited rate in order to support the payment of debt service on the Bonds, there can be no firm assurance or guaranty that the Borough will realize sufficient revenues through its taxing and other revenue generating powers to make full and timely payment of the debt service on the Bonds. Moreover, the Borough’s ability to increase certain rates or purposes of taxation is limited by State law. (See “APPENDIX A—GENERAL AND BOROUGH TAXING POWER” herein).

Additionally, the availability of tax and other locally-generated revenue is dependent on the tax base within the Borough and the ability of this tax base to support the tax burden imposed in any year not only by the Borough, but also by such overlapping taxing authorities as Allegheny County and the Baldwin- Whitehall School District.

However, the Borough has never defaulted on the payment of principal of or interest on any general obligation debt or any tax anticipation note issues.

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Cybersecurity

The Borough, like many other governmental entities, relies on a technology environment to conduct their operations. As such, it may face multiple cybersecurity threats including but not limited to, hacking, viruses, malware and other attacks on computer or other sensitive digital systems and networks. There can be no assurance that any security and operational control measures implemented by the Borough will be completely successful to guard against and prevent cyber threats and attacks. The result of any such attack could impact operations and/or digital networks and the costs of remedying any such damage could be significant. In addition to the various processes in place to safeguard against cybersecurity attacks, the Borough also maintain a cybersecurity insurance policy to cover all of their various systems and to further mitigate risk.

Coronavirus COVID-19

The outbreak of COVID-19, a respiratory disease caused by a new strain of coronavirus, has been characterized as a pandemic (the “Pandemic”) by the World Health Organization and is currently affecting many parts of the world, including the United States and the Commonwealth of Pennsylvania. On January 31, 2020, the Secretary of the United States Department of Health and Human Services declared a public health emergency for the United States and on March 13, 2020, the President of the United States declared the outbreak of COVID-19 in the United States a national emergency. Subsequently, the United States Center for Disease Control and Prevention called upon Americans to take actions to slow the spread of COVID-19 in the United States by, among other measures, social-distancing.

The spread of the strain of coronavirus commonly known as COVID-19 is altering the behavior of businesses and people in a manner that is having substantial disruptive effects on global, national, state and local economies. On March 19, 2020, Governor Tom Wolf ordered all “non-life-sustaining businesses” in Pennsylvania to close their physical locations.

Since that time, the Commonwealth has adopted as “red / yellow / green” coding system, with progressively relaxed restrictions on businesses and other activities. The Borough is located in Allegheny County. On June 5, 2020, Allegheny County was moved to “green” status, which is least restrictive on commerce, subject to proscribed social distancing and other measures to stop the spread of the virus. It is likewise important to note that the phase of a County may change in response to an increase of infection rates within the Commonwealth, the County and/or the Borough.

While it is not possible at this time to assess the full impact of COVID-19 on the Borough, some possible negative consequences include:

1. The Borough’s finances may be materially adversely affected by the continued spread of COVID-19 resulting from lower earned income tax collections due to increased unemployment claims and the full or partial closure of businesses, as well as delayed or reduced property tax collections, both of which could adversely impact the amount and timing of funds available to make debt service payments on its financial obligations. See “GENERAL AND BOROUGH TAXING POWER” for a discussion of funding sources of the Borough.

2. The ability of individuals and businesses to afford and pay property taxes, whether timely or otherwise, could be adversely affected. Consequently, there can be no assurance that collection of taxes will remain at past levels.

3. Management of the Borough and its facilities and finances could be interrupted because of mandatory closures or other “social distancing” initiatives. Because of these and other factors, as well as the continued spread of the virus and the changing manner in which governments at the national, state and local levels are addressing the issue, the Borough cannot predict all possible effects that the spread of COVID-19 will have on its finances or operations. Such effects could be significant and adverse to the Borough, however, the Borough does not currently anticipate a material negative impact on its ability to pay debt service on the Bonds.

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Enforcement of Remedies; Public Service Duties

Enforcement of a claim for payment of principal of and interest on the Bonds may be subject to the provisions of laws enacted by the United States or the Commonwealth or case law developed by competent courts applying general principles of equity, all of which could extend the time for payment or impose other constraints upon enforcement.

Borough officials are generally charged with the duty of providing for the health, safety and general welfare of their residents. Bond purchasers should consider carefully the risk that, if confronted with a choice between providing public services to residents or funding other obligations like debt service on the Bonds, such officials might choose to provide public services to residents from limited available funds before it pays its other obligations.

Actions In The Event Of Default

If the Borough fails or neglects to budget, appropriate and pay debt service on the Bonds when due, a holder or trustee may petition the Court of Common Pleas of the County of Allegheny, and upon a finding of such failure or neglect, the Court may direct, by order of mandamus, the Borough to pay into the sinking fund established for the Bonds the first tax moneys or other available revenues or moneys thereafter received. Such judgment could mandate that the Borough pay such debt service prior to all other Borough expenses, including Borough employee wages and benefits. Notwithstanding such provisions of law, courts generally exercise wide discretion in deciding whether to grant a writ of mandamus, and the judges who enter such orders are usually elected to the bench by local voters. Additionally, municipal officials presented with a writ could resign rather than carry out the mandamus order, in which case it is uncertain the extent to which bond purchasers would be able to cause other Borough officials to pay amounts then due and owing.

In the event the Borough defaults in the payment of the principal of or the interest on the Bonds after the same shall come due, whether at the stated maturity or upon call for prior redemption, and such default shall continue for thirty days, or if the Borough fails to comply with any provision of the Bonds or the Ordinance, the Act provides that the holders of 25% in aggregate principal amount of such Bonds then outstanding may, upon appropriate action, appoint a trustee to represent the Bond purchasers. The trustee may, and upon request of the holders of 25% in principal amount of such Bonds then outstanding and upon being provided with indemnity satisfactory to it, shall, take such action on behalf of the Bond purchasers as is more specifically set forth in the Act. Such representation by the trustee shall be exclusive.

Financial Distress/Bankruptcy

In the event of financial distress, Pennsylvania municipalities are subject to State oversight under the provisions of the Municipalities Financial Recovery Act (“Act 47”) which was enacted to secure the fiscal position of municipalities in the Commonwealth so that they may better:

- Provide for the health, safety and welfare of their citizenry; - Pay principal and interest on debt obligations when due; - Meet financial obligations to their workforce, vendors, and suppliers; and - Administer appropriate financial accounting, budgeting, and taxing procedures.

Act 47 outlines ten (10) categories of parties/individuals who have standing to request a determination of municipal fiscal distress from the Secretary of the Department of Community and Economic Development (“DCED”). Act 47 also enumerates eleven (11) criteria, at least one of which must be present for a municipality to be designated distressed under Act. Representative criteria, from among the eleven, are: the experience of a general fund deficit balance over a three-year period; the experience of expenditures exceeding revenues for a period of three years or more; a general fund deficit balance equal to 5 percent or more of revenues for each of two successive years; and a failure make the budgeted payment of its minimum municipal obligation as required by the Municipal Pension Plan Funding Standard and Recovery Act.

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Upon a finding of municipal fiscal distress, Act 47 requires DCED to appoint an Act 47 Coordinator, who shall work in cooperation with municipal officials to develop and implement a Recovery Plan in order to balance revenues and expenditures and to outline steps the municipality shall take to remain in financial balance going forward.

Owing to the existence of Act 47, the Commonwealth of Pennsylvania has not authorized Pennsylvania municipalities, such as the Borough, to utilize Chapter 9 of the Bankruptcy Code, and so the rights and remedies of bond purchasers with respect to the Borough's obligations are not subject to the provisions of the U.S. Bankruptcy Code under current Pennsylvania law. If Pennsylvania law were to change on this issue, and the Borough were to file for bankruptcy, bond purchasers could become subject to the provisions of Chapter 9, and the remedies provided under the Act might not be available to bond purchasers. Although the Bonds represent a general obligation indebtedness of the Borough, for which it has pledged its full faith, credit and available taxing power, some judicial decisions have held that general obligation indebtedness constitutes an unsecured obligation of the debtor, with a correspondingly lower priority for payment and satisfaction, in the event of bankruptcy. In such an event, Bond purchasers should not expect to receive any payment of debt service prior to confirmation of a plan of adjustment or dismissal of the case. Moreover, Bond purchasers, as unsecured creditors, generally would not be entitled to a claim for interest accruing during the pendency of the proceeding.

Risk of audit by the Internal Revenue Service

The Internal Revenue Service has an ongoing program of auditing tax-exempt obligations to determine whether, in the view of the Internal Revenue Service, interest on such tax-exempt obligations is includible in the gross income of the owners thereof for federal income tax purposes. No assurances can be given as to whether or not the Internal Revenue Service will commence an audit of the Bonds. If an audit is commenced, under current procedures the Internal Revenue Service is likely to treat the Borough as the taxpayer and Bond purchasers may have no right to participate in such procedure. None of the Borough, the Underwriter nor Bond Counsel is obligated to defend the tax-exempt status of the Bonds on behalf of the Bond purchasers, nor to pay or reimburse the cost of any Bond purchaser with respect to any audit or litigation relating to the Bonds. See “TAX MATTERS” herein.

PURPOSE OF THE ISSUE

Proceeds of the Bonds will be used towards: (1) currently refunding a portion of the Borough’s outstanding General Obligation Bonds, Series of 2011; (2) currently refunding a portion of the Borough’s outstanding General Obligation Bonds, Series A of 2012; (3) currently refunding a portion of the Borough’s outstanding General Obligation Bonds, Series B of 2012; and (4) the costs of issuing the Bonds.

SOURCES AND USES OF BOND PROCEEDS

The following is a summary of the sources and uses of the Bond proceeds

Source of Funds Bond Par Amount ...... $ Less/Plus Original Issue Discount/Premium ...... Bond Proceeds ...... $

Use of Funds Refunding Deposit 2011 ...... $ Refunding Deposit 2012A ...... Refunding Deposit 2012B ...... Costs of Issuance(1) ......

Total Uses of Bond Proceeds ...... $

Includes, rating fee, bond insurance premium, underwriter’s discount, legal fees, paying agent fees and other miscellaneous costs.

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FUTURE FINANCING

The Borough has no plans to issue additional debt over the next three years other than for refinancing purposes.

BOROUGH OF BALDWIN (Allegheny County, Pennsylvania)

Introduction

The Borough of Baldwin is situated in the South Hills of Metropolitan Pittsburgh in the County of Allegheny. The population as of the 2010 census was 19,767. The area is 5.44 square miles running from the Monongahela River at the city line to South Park Township bordering Pleasant Hills, Whitehall, Brentwood, West Mifflin and Bethel Park. For additional details about the Borough, see “APPENDIX A – Borough of Baldwin, Pennsylvania.”

CONTINUING DISCLOSURE UNDERTAKING

In order to provide certain continuing disclosure with respect to the Bonds in accordance with Rule 15c2-12 (“Rule 15c2-12”) promulgated under the Securities Exchange Act of 1934, as amended, by the Securities and Exchange Commission (the “Commission”), the Borough will, pursuant to a Continuing Disclosure Certificate (the “Continuing Disclosure Certificate”) to be executed by the Borough on the date of settlement of the Bonds, agree to provide, or cause to be provided:

(i) Annually, filed with the Municipal Securities Rulemaking Board’s (“MSRB”) Electronic Municipal Market Access (“EMMA”) system not later than 270 days after the end of each fiscal year, as long as the Bond’s remain outstanding (and not defeased), updates to the following headings and subheadings (collectively, the “Annual Financial Information”) with respect to the Borough:

(a) Current Tax Structure; (b) Real Estate Tax Collection Data, consisting of Market Valuation, Current Levy, Current and Delinquent Collections, Percent of Current Collections and Percent of Total Collections; (c) Ten Largest Real Property Taxpayer's; (d) a summary of the budget for the current fiscal year (the fiscal year following the fiscal year of the financial statements being provided); and

(ii) The Borough’s annual audited financial statements for the most current year, which shall be prepared in conformity with generally accepted accounting standards.

(iii) The following events with respect to the Bonds shall constitute reportable events and shall be provided to the MSRB no later than ten (10) business days after the occurrence:

1. Principal and interest payment delinquencies 2. Non-payment related defaults, if material 3. Unscheduled draws on debt service reserves reflecting financial difficulties 4. Unscheduled draws on credit enhancements reflecting financial difficulties 5. Substitution of credit or liquidity providers, or their failure to perform 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) 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 7. Modifications to rights of holders of the Bonds, if material 8. Bond calls, if material, and tender offers 9. Defeasances 10. Release, substitution or sale of property securing repayment of the Bonds, if material 11. Rating changes 13

12. Bankruptcy, insolvency, receivership or similar event of the Borough (or any other entity that is an obligated person within the meaning of the Rule with respect to the Bonds) 13. The consummation of a merger, consolidation, or acquisition involving the Borough (or any other entity that is an obligated person within the meaning of the Rule with respect to the Bonds) or the sale of all or substantially all of the assets of the Borough or any such 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 14. The appointment of a successor or additional trustee or the change of name of a trustee, if material; 15. Incurrence of a Financial Obligation of the Borough, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the Borough, any of which affect security holders, if material. 16. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the Borough, any of which reflect financial difficulties.

(iv) In a timely manner, to the MSRB, notice of its failure to make an annual financial information filing with respect to itself on or before the date specified in the Continuing Disclosure Certificate.

For purposes of the events described in (15) and (16) above, “Financial Obligation” shall mean a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term “Financial Obligation” shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.

With respect to the filing of annual financial statements and operating data, the Borough reserves the right to modify from time to time the specific types of information provided or the format of the presentation of such information to the extent necessary or appropriate as a result of a change in legal requirements or a change in the nature of the Borough or its operations or financial reporting, but the Borough will agree that any such modification will be done in a manner consistent with the Rule.

The events listed in (ii) above are those specified in the Rule, not all of which may be relevant to the Bonds. The Borough may from time to time choose to file notice of the occurrence of other events, in addition to the events listed in (ii) above, but the Borough does not commit to provide notice of the occurrence of any events except those specifically listed in (ii) above.

The Borough acknowledges that its undertaking pursuant to the Rule described herein is intended to be for the benefit of the holders and beneficial owners of the Bonds and shall be enforceable by the holders and beneficial owners of the Bonds, but the right of the holders and beneficial owners of the Bonds to enforce the provisions of the Borough’s continuing disclosure undertaking shall be limited to a right to obtain specific enforcement, and any failure by the Borough to comply with the provisions of the undertaking shall not be an event of default with respect to the Bonds.

The Borough’s obligations with respect to continuing disclosure described herein shall terminate upon the prior redemption or payment in full of all of the Bonds if and when the Borough is no longer an “obligated person” with respect to the Bonds, within the meaning of the Rule.

Bondholders are advised that the Disclosure Dissemination Agreement (as defined below), copies of which are available at the office of the Borough, should be read in their entirety for more complete information regarding their contents.

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The MSRB has been designated by the SEC to be the central and sole repository for continuing disclosure information filed by issuers of municipal securities since July 1, 2009. Information and notices filed by municipal issuers (and other “obligated persons” with respect to municipal securities issues) are made available through the MSRB’s Electronic Municipal Market Access (EMMA) System, which may be accessed on the internet at http://www.emma.msrb.org.

Summary of Continuing Disclosure Undertaking Compliance

The Borough has entered into continuing disclosure undertakings for previously issued bonds that have been outstanding within the past five years (collectively, the “Prior Undertakings”). Under the Prior Undertakings, the Borough agreed to provide audited financial statements and budgets relating to the Borough. As of the date of the Official Statement, to the best of the Borough’s knowledge, all such financial information, notices and reportable events, as applicable, have been filed on EMMA.

Prior to the issuance of the Bonds, the Borough has entered into a Disclosure Dissemination Agent Agreement (“Disclosure Dissemination Agreement”) with Digital Assurance Certification, L.L.C. (“DAC” or the “Disclosure Dissemination Agent”) as its Disclosure Dissemination Agent for the purpose of assisting it with any required remedial filings and ensuring ongoing compliance with its continuing disclosure filing requirements. DAC provides its clients with automated filing of rating events, templates consolidating all outstanding filing requirements that accompany reminder notices of annual or interim mandatory filings, review of all template filings by professional accountants, as well as a time and date stamp record of each filing along with the unique ID from EMMA accompanying the copy of the actual document filed. DAC also offers its clients a series of training webinars each year qualified for 15-20 NASBA certified CPE credits, as well as model secondary market compliance policies and procedures.

The Disclosure Dissemination Agreement will provide bondholders or beneficial owners with certain enforcement rights in the event of a failure by the Borough to comply with the terms thereof; however, a default under the Disclosure Dissemination Agreement does not constitute a default with respect to the Bonds. The Disclosure Dissemination Agreement may be revised from time to time as permitted or required by applicable law, without the consent of the Bondholders, and may be terminated upon the economic defeasance of all outstanding Bonds, or other arrangement, whereby the Borough is released from any further obligation with respect to the Bonds. Covenants in the Disclosure Dissemination Agreement may also be terminated, without the consent of the Bondholders, at such time as continuing disclosure is no longer required by applicable law. The Borough will promptly notify the MSRB via EMMA of any revision or termination of the disclosure covenants. The sole remedy for a breach by the Borough of its covenants to provide financial statements, tabular information and notices of material events is an action to compel performance of such covenants. Under no circumstances may monetary damage be assessed or recovered, nor will any such breach constitute a default under the Bonds or a failure to comply with any provision of the Bonds for purpose of the Act.

The Disclosure Dissemination Agent has only the duties specifically set forth in the Disclosure Dissemination Agreement. The Disclosure Dissemination Agent’s obligation to deliver the information at the times and with the contents described in the Disclosure Dissemination Agreement is limited to the extent the Borough has provided such information to the Disclosure Dissemination Agent as required by this Disclosure Dissemination Agreement. The Disclosure Dissemination Agent has no duty with respect to the content of any disclosures or notice made pursuant to the terms of the Disclosure Dissemination Agreement. The Disclosure Dissemination Agent has no duty or obligation to review or verify any information in the Annual Report, Audited Financial Statements, notice of Notice Event or Voluntary Report, or any other information, disclosures or notices provided to it by the Borough and shall not be deemed to be acting in any fiduciary capacity for the Borough, the Holders of the Bonds or any other party. The Disclosure Dissemination Agent has no responsibility for the Borough’s failure to report to the Disclosure Dissemination Agent a Notice Event or a duty to determine the materiality thereof. The Disclosure Dissemination Agent shall have no duty to determine or liability for failing to determine whether the Borough has complied with the Disclosure Dissemination Agreement. The Disclosure Dissemination Agent may conclusively rely upon certifications of the Borough at all times.

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DEBT LIMITS AND BORROWING CAPACITY OF THE BOROUGH

Under the Act, as presently enacted and construed, (i) new non-electoral debt may not be incurred if the net amount of such new non-electoral debt plus all outstanding net non-electoral debt would cause total net non-electoral debt to exceed 250% of the Borrowing Base, as defined in the Act, and (ii) new lease rental debt or new non-electoral debt may not be incurred if the net amount of such new debt plus all outstanding net non-electoral debt and net lease rental debt would cause the total net non-electoral debt plus net lease rental debt to exceed 350% of the Borrowing Base.

The current Borrowing Base of the Borough is shown herein.

Fiscal Year Ending December 31 2017 2018 2019(1) All Monies Received $16,492,410 $16,750,402 $18,227,228 Less: Required Deductions: a. Rental & Sinking Fund Reimbursement -0- -0- -0- b. Receipts Pledged to Self-Liquidating Debt or for Payments Under Leases or Guaranties 701,185 728,139 715,705 c. Interest Earned on Sinking Fund -0- -0- -0- d. Grant Payments for Equipment -0- -0- -0- e. Sale of Property & Non-Recurring Revenues 60,384 264,345 -0- Net Revenues $15,730,841 $15,757,918 $17,511,523

Total Net Revenues for Three Years $49,000,282

Borrowing Base – Total Net Revenues Divided by Three $16,333,427

Applicable Debt Limitations: a. Non-electoral Debt – 250% of Borrowing Base $40,833,568 b. Non-electoral plus Lease Rental Debt – 350% of Borrowing Base $57,166,996 *Budgeted.

Calculation of Debt Limits and Remaining Borrowing Capacity

Net Remaining Debt Limit Debt Outstanding(2) Borrowing Capacity Net Nonelectoral Debt Limit: (250% of Borrowing Base) $40,833,568 $19,793,548* $21,040,020

Net Nonelectoral and Lease Rental Debt Limit: (350% of Borrowing Base) $57,166,996 $19,793,548* $37,373,448

(1) Unaudited (2) See “APPENDIX A – BONDED INDEBTEDNESS”.

*Preliminary amount, subject to change.

LEGAL MATTERS

Legal Investment for Trust Funds in Pennsylvania

Under the Probate, Estate and Fiduciaries Code of the Commonwealth of Pennsylvania, the Bonds are legal investments for fiduciaries and personal representatives (as defined in such Code) in the Commonwealth of Pennsylvania.

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Negotiability of the Bonds

The Bonds are investment securities under Article 8 of the Pennsylvania Uniform Commercial Code and are negotiable instruments to the extent provided therein.

Legality

The issuance and delivery of the Bonds are subject to the approval of legality by Dinsmore & Shohl, LLP, Pittsburgh, Pennsylvania, Bond Counsel. Certain legal matters will be passed upon for the Borough by Ashley S. Wagner, Esquire and Gavin Robb, Esquire, of Tucker Arensberg, P.C., Pittsburgh, Pennsylvania, Solicitor to the Borough and for the Underwriter by Knox McLaughlin Gornall & Sennett.

LITIGATION

At the time of settlement, the Borough Council and the Solicitor will deliver a certificate stating that there is no litigation pending with respect to the Bonds, the Ordinance or the right of the Borough to issue the Bonds.

TAX MATTERS

State Tax Matters

In the opinion of Bond Counsel, the Bonds, and the interest income therefrom, are free from taxation for purposes of personal income, corporate net income and personal property taxes within the Commonwealth of Pennsylvania.

The residence of a holder of a Bond in a state other than Pennsylvania, or being subject to tax in a state other than Pennsylvania, may result in income or other tax liabilities being imposed by such other state or its political subdivisions based on the interest or other income from the Bonds.

Federal Income Tax Matters

In the opinion of Bond Counsel, based upon an analysis of existing laws, regulations, rulings and court decisions, interest on the Bonds (including, in the case of Bonds sold at an original issue discount, the difference between the initial offering price and par) is excluded from gross income for Federal income tax purposes. Bond Counsel is also of the opinion that interest on the Bonds is not a specific item of tax preference under Section 57 of the Internal Revenue Code of 1986, as amended (the “Code”) for purposes of Federal alternative minimum taxes.

Original Issue Discount

The Bonds that mature on November 1, ____ through and including November 1, ____ (collectively, the "Tax-Exempt Discount Bonds") are being offered and sold to the public at an original issue discount ("OID") from the amounts payable at their maturity. OID is the excess of the stated redemption price of a bond at maturity (par) over the price to the public at which a substantial amount of bonds of the same maturity are sold pursuant to the initial offering. Under the Code, OID on each Tax-Exempt Discount Bond will accrue over its term and the amount of accretion will be based on the yield to maturity, compounded semi-annually. The amount of OID that accrues during each semi-annual period will do so ratably within that period on a daily basis. With respect to an initial purchaser of a Tax-Exempt Discount Bond at its initial offering price, the portion of OID that accrues during the period that such purchaser owns such Bond is added to the purchaser's tax basis for purposes of determining gain or loss at the maturity, redemption, sale, or other disposition of that Tax-Exempt Discount Bond and thus, in practical effect, is treated as interest, which is excludable from gross income for federal income tax purposes.

Holders of Tax-Exempt Discount Bonds should consult their own tax advisors as to the effect of OID with respect to their federal tax liability.

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Original Issue Premium

The Bonds that mature on November 1, ____ through and including November 1, ____ (collectively, the “Tax-Exempt Premium Bonds”) are being sold at an original issue premium (“OIP”). An amount equal to the excess of the issue price of a Tax-Exempt Premium Bond over its stated redemption price at maturity constitutes OIP on such Tax-Exempt Premium Bond. An initial purchaser of a Tax-Exempt Premium Bond must amortize any OIP over such Tax-Exempt Premium Bond’s term using constant yield principles, based on the purchaser’s yield to maturity (or, in the case of Tax-Exempt Premium Bonds callable prior to their maturity, by amortizing the OIP to the call date, based on the purchaser’s yield to the call date and giving effect to any call premium). As OIP is amortized, the amount of the amortization offsets a corresponding amount of interest for the period and the purchaser’s basis in such Tax-Exempt Premium Bond is reduced by a corresponding amount resulting in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes upon a sale or disposition of such Tax-Exempt Premium Bond prior to its maturity. Even though the purchaser’s basis may be reduced, no federal income tax deduction is allowed. Purchasers of the Tax-Exempt Premium Bonds should consult with their tax advisors with respect to the determination and treatment of OIP for federal income tax purposes and with respect to the state and local tax consequences of owning a Tax-Exempt Premium Bond.

Interest Expense Deductions for Financial Institutions

Under Section 265 of the Code, financial institutions are denied any deduction for interest expenses that are allocable, by a formula, to tax-exempt obligations acquired after August 7, 1986. An exception, which permits a deduction for 80% of such interest expenses, is provided in respect of certain tax-exempt obligations issued by a qualified issuer that specifically designates such obligations as “qualified tax-exempt obligations” under Section 265 of the Code.

The Borough is a qualified issuer and the Borough has designated the Bonds as “qualified tax- exempt obligations” for the purposes and effect contemplated by Section 265 of the Code.

Financial institutions intending to purchase Bonds should consult their own tax advisors to determine the effect of the interest expense deduction on their federal tax liability.

Continuing Compliance

The Code imposes various terms, restrictions, conditions and requirements relating to the exclusion from gross income for Federal income tax purposes of interest on obligations such as the Bonds. The Borough has covenanted to comply with all such requirements, including non-arbitrage requirements under Section 148 of the Code, that are necessary to ensure that interest on the Bonds will not be includable in gross income for Federal income tax purposes. Failure to comply with these covenants could result in interest on the Bonds being includable in gross income for Federal income tax purposes and such inclusion could be required retroactively to the date of issuance of the Bonds. The opinion of Bond Counsel assumes compliance with the aforesaid covenants. Moreover, Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken) or events occurring (or not occurring) after the date of issuance of the Bonds may adversely affect the tax-exempt status of the interest on the Bonds.

Certain requirements and procedures contained or referred to in the Ordinance and other relevant documents may be changed and certain actions (including, without limitation, defeasance of the Bonds) may be taken or omitted under the circumstances and subject to the terms and conditions set forth in such documents. Such changes or actions could constitute an exchange or other tax event with respect to the Bonds, which could result in gain or loss to the holder of a Bond, and a consequent tax liability.

Pursuant to its continuing disclosure obligations made pursuant to SEC Rule 15c2-12 (see “Continuing Disclosure Undertaking” herein), the Borough may be required to provide notice of such changes or actions, as Material Events under said Rule. However, holders of the Bonds should consult their own tax advisors as to the effect of such changes or actions with respect to their federal tax liability.

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Collateral Tax Liabilities

Although Bond Counsel has rendered an opinion that interest on the Bonds is excludable from gross income for Federal and Pennsylvania income tax purposes, the ownership or disposition of, or the accrual or receipt of interest on, the Bonds may result in other collateral effects on a Bondholder’s Federal, state or local tax liabilities. The nature and extent of these other tax consequences may depend upon the particular tax status of the Bondholder or the Bondholder’s other items of income or deduction. Bond Counsel expresses no opinions regarding any tax consequences other than what is set forth in its opinion; each Bondholder or potential Bondholder is urged to consult with its own tax advisors with respect to the effects of purchasing, holding or disposing of the Bonds on its tax liabilities.

For example, corporations are required to include interest on the Bonds in determining “adjusted current earnings” under Section 56(c) of the Code, which may increase the amount of any alternative minimum tax owed. Other tax consequences for certain taxpayers include, without limitation, increasing the federal tax liability of certain foreign corporations subject to the branch profits tax imposed by Section 884 of the Code, increasing the federal tax liability of certain insurance companies under Section 832 of the Code, increasing the federal tax liability of certain S corporations subject to Sections 1362 and 1375 of the Code, increasing the federal tax liability of certain individual recipients of social security or railroad retirement benefits under Section 86 of the Code, limiting the use of the Earned Income Credit under Section 32 of the Code, limiting the use of the refundable credit for coverage under a qualified health plan under Section 36B of the Code, and denying an interest expense deduction to certain financial institutions under Section 265 of the Code (unless, and in the circumstance when, the Bonds have been designated by the issuer as “qualified tax-exempt obligations”).

Change in Law; Adverse Determinations

From time to time, certain legislative proposals may be introduced, or are pending, in the Congress of the United States or the various state legislatures, including some that carry retroactive effective dates, that, if, enacted, could alter or amend the federal and state tax matters described above or affect the market value of the Bonds. No prediction can be made whether or in what form any such proposal or proposals might be enacted into law or whether, if enacted, the same would apply to bonds issued prior to enactment. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation.

The Internal Revenue Service (the “Service”) regularly audits tax-exempt obligations to determine whether, in the view of the Service, interest on such tax-exempt obligations is includible in the gross income of the owners thereof for federal income tax purposes. No prediction can be made whether or not the Service will commence an audit of the Bonds. If an audit is commenced, under current procedures, the Service may treat the Borough as a taxpayer and the Bondholders may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until such time as the audit is concluded, regardless of the ultimate outcome.

Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, such as the Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any Bondholder who fails to provide an accurate Form W-9 Request for Taxpayer Identification Number and Certification, or to any Bondholder who is notified by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns.

THE FOREGOING IS NOT INTENDED AS AN EXHAUSTIVE LIST OF THE PROVISIONS OF FEDERAL, STATE AND LOCAL TAX LAWS WHICH MAY HAVE AN EFFECT ON INDIVIDUALS AND CORPORATIONS HOLDING THE BONDS OR RECEIVING INTEREST THEREON. PROSPECTIVE PURCHASERS SHOULD CONSULT WITH THEIR OWN TAX ADVISORS REGARDING THE EFFECT ON THEIR FEDERAL, STATE OR LOCAL TAX LIABILITY AND GENERAL FINANCIAL AFFAIRS OF HOLDING THE BONDS OR RECEIVING INTEREST THEREON.

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MUNICIPAL BANKRUPTCY LAW

The undertakings of the Borough should be considered with reference to Chapter IX of the Bankruptcy Act, United States Code Title 2, Section 301, et seq., as amended by Public Law 94-260, approved April 8, 1976, and as further amended on November 6, 1978 by the Bankruptcy Reform Act of 1978, effective October 1, 1979, and other bankruptcy laws affecting creditors’ rights and municipalities in general. The amendments of P.L. 94-260 replace former Chapter IX Legislation and permit a state, political subdivision, public agency or instrumentality that is insolvent or unable to meet its debts to file a petition in a court of bankruptcy for the purpose of effecting a plan to adjust its debts, such a petitioner to file with the court a list of the petitioner’s creditors; provided that a petition filed under said Chapter shall operate as a stay of the commencement or continuation of any judicial or other proceeding against the petitioner; grant priority to debts owed for service or materials actually provided within three months of the filing of the petition; direct the petitioner to file a plan for adjustment of its debts; and provide that the plan must be accepted in writing by or on behalf of the creditors holding at least two-thirds in amount and more than one- half in number of the listed claims.

Act No. 1987-47 (“Act 47”) of the Commonwealth known as the “Distressed Municipalities Act”, governs the ability of the Borough to declare bankruptcy under the Federal Bankruptcy Code. Act 47 provides that no municipality may file a municipal debt adjustment action pursuant to the Bankruptcy Code unless one of the following conditions exists: (1) filing is recommended by a plan coordinator appointment by the Pennsylvania Department of Community and Economic Development (the “Department”); (2) there is imminent jeopardy of an action by a creditor that is likely to substantially interrupt or restrict the continued ability of the municipality to provide health or safety services; (3) creditors have rejected a plan and unsuccessful negotiations have continued for 10 days; (4) a condition of financial distress is potentially soluble only by using a remedy exclusively available through the Federal Municipal Debt Readjustment Act; or (5) the governing body of a municipality determined by the Department to be financially distress has failed to adopt a plan or carry out the recommendations of such a plan coordinator. Act 47 also contains provisions and circumstances under which a municipality may be declared to be in “financial distress” making it eligible for interest free loans, grants and/or administrative assistance through the Department. The Department would have the authority to recommend a plan to increase taxes or other sources of revenues, reducing services, rescheduling obligations or merging municipalities.

The above reference to the Federal Bankruptcy Code or Act 47 is not to be construed as an indication that the Borough expects to resort to the provisions of such laws or that, if it did, any proposed plan or plans would include a dilution of the sources of payment of and security for the payment of the Bonds.

THE PAYING AGENT

Pursuant to the provisions of the Ordinance, as paying agent and sinking fund depository, the Paying Agent has the limited duty of receiving payments from the Borough, depositing such payments in a sinking fund and making payments to the owners of the Bonds of the principal of, interest on, and premium, if any, on the Bonds when due, but only to the extent such moneys have been received. As registrar and transfer agent, the Paying Agent has the limited duty of handling the registration and transfer of the Bonds. Accordingly, the Paying Agent performs ministerial duties not involving the exercise of discretion and assumes no fiduciary relationship with respect to the owners of the Bonds.

The Paying Agent may now or in the future have banking relationships with the Borough which involve making loans to the Borough; these loans may have a security feature which is different from that of the security feature associated with the Bonds. The Paying Agent may also serve as trustee or paying agent and sinking fund depository on other obligations issued by or on behalf of the Borough.

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RATING

The Bonds are expected to be assigned a rating of “AA” (stable outlook) by S&P Global Ratings, with the understanding that upon delivery of the Bonds, a policy insuring the payment when due of the principal of and interest on the Bonds will be issued by Build America Mutual Assurance Company. The Bonds have also received an underlying rating of “A+” (stable outlook) from S&P.

An explanation of the significance of such rating may be obtained only from the rating agency furnishing the same. There is no assurance that any such rating will be in effect for any given period of time or that it will not be revised downward or withdrawn entirely by the rating agency if, in the judgment of such agency, circumstances so warrant. Any such downward revision or withdrawal of any such rating may have an adverse effect on the market price of the Bonds.

LEGAL OPINION

The Bonds are offered subject to the receipt of the approving legal opinion of Dinsmore & Shohl LLP, Bond Counsel, of Pittsburgh, Pennsylvania. Certain legal matters will be passed upon for the Borough by Stanley Lederman, Esq. and Michael Lederman, Esq., of Pittsburgh, Pennsylvania, Borough Solicitor.

UNDERWRITING

PNC Capital Markets LLC (the "Underwriter") has agreed, subject to certain conditions, to purchase the Bonds from the Borough at a purchase price of $______(consisting of the par amount of the Bonds of $______, less an Underwriter's Discount of $______and less/plus an net Original Issue Discount/Premium of $_____). The Underwriter's obligation is subject to certain conditions precedent, and the Underwriter will be obligated to purchase all of the Bonds if any such Bonds are purchased. The Bonds may be offered and sold to certain dealers (including dealers depositing such bonds into investment trusts) at prices lower than the public offering prices, and such public offering prices may be changed, from time to time, by the Underwriter.

RELATED PARTIES

PNC Capital Markets LLC and PNC Bank, National Association are both wholly-owned subsidiaries of the PNC Financial Service Group, Inc. PNC Capital Markets LLC is not a bank, and is a distinct legal entity from PNC Bank, National Association. PNC Bank, National Association does not have other banking and financial relationships with the Borough.

MISCELLANEOUS

This Official Statement has been prepared under the direction of the Borough by PNC Capital Markets LLC, Pittsburgh, Pennsylvania, in its capacity as Underwriter to the Borough. The information set forth in this Official Statement has been obtained from the Borough and from other sources believed to be reliable. Insofar as any statement herein includes matters of opinion or estimates about future conditions, it is not intended as representation of fact, and there is no guarantee that it is, or will be, realized. Summaries or descriptions of provisions of the Bonds, the Ordinance, and all references to other materials not purporting to be quoted in full are only brief outlines of some of the provisions thereof. Reference is hereby made to the complete documents, copies of which will be furnished by the Borough upon request. The information assembled in this Official Statement is not to be construed as a contract with holders of the Bonds.

The Borough has authorized the distribution of this Official Statement.

BOROUGH OF BALDWIN Allegheny County, Pennsylvania

By: /s/ President of Council

By: /s/ Mayor

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APPENDIX A

BOROUGH OF BALDWIN (Allegheny County, Pennsylvania)

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BOROUGH OF BALDWIN (Allegheny County, Pennsylvania)

The text, charts and tables within this Appendix (unless otherwise footnoted) set forth both: (a) financial information and results of operations which are specific to the Borough and have been produced from its own financial records; and (b) community economic data and descriptions which were supplied by or, if obtained from other sources, confirmed by, Borough officials. In the latter case, the Borough does not guarantee the accuracy of such data, but does confirm that the same has been obtained from sources deemed to be reliable and that the Borough has no information which would suggest such data is inaccurate or misleading.

General The Borough of Baldwin is situated in the South Hills of Metropolitan Pittsburgh in the County of Allegheny. The population as of the 2010 census was 19,767. The area is 5.44 square miles running from the Monongahela River at the city line to South Park Township bordering Pleasant Hills, Whitehall, Brentwood, West Mifflin and Bethel Park.

Borough Government The Mayor of the Borough is elected to a four year term.

The current mayor is David Depretis.

The Borough Council is comprised of seven members, elected to four year, staggered terms.

Marianne Conley President John Egger Vice President James Behers Member Patricia Boyer Member Chad Hurka Member Denise Maiden Member Francis Scott Member

Borough Manager The office of the Borough Manager is authorized by the Borough to handle the day to day affairs of the Borough and to manage the finances of Borough including preparation of budgets.

The current manager of the Borough of Baldwin is Robert T. Firek, P.E.

Public Safety Baldwin Borough has three volunteer fire companies, an Emergency Medical Service and a Police Force of 24 officers for law enforcement.

Borough Employees There are presently 43 fulltime employees of the Borough, including 24 police officers. The police officers are represented by the Collective Bargaining Unit of the police under a contract which expires December 31, 2020. Non-uniformed non-managerial sanitation employees are under contract which expires December 31, 2023.

Labor Relations Borough employees have never gone on strike.

Transportation The Borough is bisected north and south by two major traffic arteries, Pennsylvania Route 51 and Brownsville Road. The Port Authority of Allegheny County provides bus and light rail service within the Borough and to downtown Pittsburgh. The Pittsburgh International Airport, providing national and international commercial airline service, is located approximately fifteen miles northwest. The Allegheny County Municipal Airport, located approximately three miles east, serves private aircraft and executive aircraft.

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Medical Care Health Care is provided by Jefferson Regional Medical Center, located in Jefferson Borough to the south, by St. Clair Memorial Hospital, located in the Municipality of Mt. Lebanon to the west and by the University of Pittsburgh Medical Center (which includes Presbyterian-University Hospital, Mercy Hospital, Montefiore Hospital, Children’s Hospital of Pittsburgh, Western Psychiatric Institute & Clinic, Magee-Woman’s Hospital, Ear and Eye Hospital, Shadyside Hospital and South Side Hospital), St. Francis General Hospital, and West Penn Allegheny Health Systems (which includes West Penn Hospital, the Forbes Health System and Allegheny General Hospital), all located in the City of Pittsburgh.

Utilities Gas is provided by Equitable Gas Company and Columbia Gas Company. Electricity is provided by Duquesne Light Company. Sewer service is provided by the Allegheny County Sanitary Authority and the Pleasant Hills Authority. Water is provided by Pennsylvania American Water Company.

Financial Institutions Borough residents are served by a number of commercial banks including PNC Bank, Citizens Bank, and First Niagara Bank

Higher Education Due to the close proximity of the Borough to the City of Pittsburgh, residents enjoy easy access to numerous institutions of higher education, including: Carnegie Mellon University, the University of Pittsburgh, Duquesne University, Point Park University, Robert Morris University, Carlow University, Community College of Allegheny County, Chatham University, La Roche University and the Pittsburgh Theological Seminary. In addition there are numerous business and technical schools available in the Pittsburgh region.

Communications The Greater Pittsburgh Metropolitan Area is served by numerous television stations including KDKA (CBS), WTAE (ABC), WPXI (NBC), and WQED (Educational). Cable television, offering numerous regular and premium programming channels, is provided to the area by AT&T Broadband on a subscription basis. Numerous AM and FM radio stations are received throughout the area and both the Pittsburgh Post-Gazette and Pittsburgh Tribune Review are widely circulated on a daily basis, including Sunday.

Recreation Residents of the Borough enjoy a wide variety of recreational opportunities. Professional sports teams include the Pittsburgh Steelers NFL team, the Pittsburgh Pirates Major League Baseball team and the Pittsburgh Penguins NHL team. College sports events are likewise available to Borough residents. Proximity to the City of Pittsburgh offers cultural events including the Pittsburgh Public Theater, the Carnegie Museums, concert events and Heinz Hall for symphony events. Pittsburgh’s rivers and nearby state parks provide outdoor recreational activities. Locally, the Borough owns and maintains Elm Leaf Park and the Baldwin Swimming Pool. The Borough also has a staffed public library.

Pension Plans The Borough administers two single-employer defined benefit pension plans that cover substantially all full- time employees; Police Pension Plan (Police Plan) and Service Employees Pension Plan (Service Employees’ Plan). Both plans provide retirement benefits and special provisions for death benefits to plan members.

Plan provisions are established by municipal ordinance with the authority for municipal contributions required by Act 205 of the Commonwealth of Pennsylvania (Act). The plans do not issue separate reports.

The plans are governed by the Council, which is responsible for the management of Plan assets. Signature Financial Planning and the Hartford Life Insurance Company have been designated by the Borough to handle investment management in both plans. Resources accumulated to provide pension benefits are presented in the Borough’s financial statements as the Pension Trust Funds.

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At December 31, 2019, Plan membership consisted of the following:

Service Police Employees Inactive plan members or beneficiaries currently receiving benefits 26 20 Inactive plan members entitled to but not yet receiving benefits 1 5 Active plan members 24 9 Total plan members 51 34

The pension plans provide pension benefits, deferred allowances, and death and disability benefits. The Borough makes annual contributions to the pension plans equal to the amount required to adequately fund the benefits provided under the plans.

The Commonwealth of Pennsylvania allocates certain funds to assist in pension funding. Any financial requirement established by the MMO which exceeds the Commonwealth of Pennsylvania allocation must be funded by the Borough. Payments made to the plans were sufficient to meet the MMO’s in 2019. The following table reflects contribution information for 2019:

Police Service Employees Total MMO $1,254,872 $144,707 $1,399,579

Contributions: Borough $997,567 $58,939 $1,056,506 Allocation of state aid 257,305 85,768 343,073 TOTAL 1,254,872 $144,707 $1,399,579

Employee 226,532 25,234 251,766 Total contributions $1,481,404 $169,941 $1,651,345 Covered payroll $2,779,438 $572,978 $3,352,416

Employee contributions as a % of covered payroll 8.15% 22.71% 13.31%

Administrative costs, including investment, custodial trustee, and actuarial services are charged to the appropriate plan and funded from investment earnings.

Net Pension Liability

The components of the net pension liability of the Plans at December 31, 2019 were as follows:

Service Police Employees Total pension liability $24,145,186 $4,201,702 Plan fiduciary net position (19,333,532) (3,867,211) Net pension liability $4,811,654 $334,491

Plan fiduciary net position as a percentage of the total pension liability 80.1% 92.0%

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Other Post-Employment Benefits (OPEBs) Plan Description

In addition to the pension benefits described above, the Borough provides post-employment health care benefits to all retired police officers, and non-uniformed union employees, in accordance with collective bargaining agreements, as well as certain non-union employees. The plan is a single-employer defined benefit plan. The benefit limits and employee and employer contributions are established through the agreements. The plan is not accounted for as a trust fund, an irrevocable trust has not been established, and the plan does not issue a separate report. Expenditures for post-retirement health care benefits are recognized in the General Fund when paid by the Borough.

For the year ended December 31, 2019, the Borough recognized OPEB expense of $73,147.

At December 31, 2019, the Borough reported no deferred inflows and deferred outflows of resources related to OPEBs.

General and Borough Taxing Powers Borough Council adopts an annual budget (which includes various funds including the Sewer Fund), and also levies local taxes prior to the beginning of the fiscal year on January 1. Under provisions of 8 Pa.C.S.A. § 1302 of the Statutes of the Commonwealth of Pennsylvania, the Borough may levy the following taxes:

Annual tax on all taxable real estate may not exceed 30 mills for general borough purposes (plus an additional 5 mills with court approval). The Council of any borough may levy different rates of taxation on all real estate classified as buildings or non-farm land.

Taxes and levy limits by purpose include:

Purpose Maximum Levy Debt Service ...... Unlimited Parks and Recreation ...... Unlimited Library ...... Unlimited Utilities ...... 8.0 mills Street Lighting ...... 8.0 mills Special Fund for Permanent Street Improvements ...... 5.0 mills Fire Services ...... 3.0 mills Municipal Buildings, Firehouse or Lock-up ...... 2.0 mills Pension and Retirement...... 0.5 mills Ambulance and Rescue Service ...... 0.5 mills Shade Trees ...... 0.1 mills

Other Taxes Under the Act of December 31, 1965, P.L. 1257, effective January 1, 1966, the Pennsylvania Local Tax Enabling Act, additional taxes may be levied by Boroughs (subject to division with other political subdivisions authorized to levy similar taxes on the same person, subject, business, transaction or privilege), subject to the following limitations:

Purpose Maximum Levy Per Capita ...... $10.00 Wages, salaries, and other earned income ...... 1.00% Transfer of Real Property ...... 0.50% Flat Rate Occupation Tax ...... $10.00 Emergency and Municipal Services Tax ...... $52.00 Admissions (Except Motion Picture Theaters) ...... 10.00%

Occupation (if a millage or percentage of the ...... No Limit assessed valuation is used as a base)

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BOROUGH OF BALDWIN TAX RATES

Year 2015 2016 2017 2018 2019 Real Estate (Borough) (mills) 5.95 5.95 6.28 6.28 6.78 Local Services Tax $47.00 $47.00 $47.00 $47.00 $47.00 Earned Income Tax .500 .500 .500 .500 .500 Real Estate Transfer Tax .500 .500 .500 .500 .500

Source: www.newpa.com/local-government/municipal-statistics and Borough Financial Statements

BOROUGH OF BALDWIN COMPARATIVE REAL ESTATE PROPERTY TAX RATES (Mills on Assessed Value)

Year 2015 2016 2017 2018 2019 Baldwin Borough 5.95 5.95 6.28 6.28 6.78 Baldwin Whitehall School District 17.61 18.42 19.25 20.37 21.05 Allegheny County 4.73 4.73 4.73 4.73 4.73

Source: http://www.county.allegheny.pa.us/treasurer and Borough Financial Statements

BALDWIN BOROUGH REAL PROPERTY MARKET DATA

Year Market Value Assessed Value 2015 $800,132,249 $914,242,390 2016 $826,511,049 $916,349,090 2017 $838,333,427 $929,172,598 2018 $868,850,698 $934,915,197

Source: Pennsylvania State Tax Equalization Board. 2019 Values not available till July of 2020.

COMPARISON OF REAL ESTATE ASSESSED VALUATION MILLAGE AND TAX COLLECTIONS

Year-End Assessed Total December 31 Valuation ($) Millage Collections ($) 2015 $921,829,840 5.95 $4,943,974 2016 896,204,838 5.95 5,131,094 2017 926,204,838 6.28 5,508,316 2018 930,746,368 6.28 5,549,360 2019 936,563,897 6.78 N/A

Source: Borough Officials.

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BOROUGH OF BALDWIN TEN LARGEST PROPERTY TAXPAYERS 2019

Taxpayer Type of Property Current Assessed Value Baldwin Apartment Properties Apartments $8,370,200 OHI Asset III Trust Nursing Home 5,917,000 PKR Associates Independent Living Home 4,025,600 100 Knoedler Road LLC Independent Living Home 3,552,300 Leland Point Owner LP Apartments 3,380,400 Cole Mt. Baldwin PA LLC Shopping Center 3,277,900 Pennsylvania American Water Co Utilities 3,129,300 Ornstein Properties LLC Commercial 3,100,000 Clovernote Holdings LLC Apartments 3,069,800 Baldwin Towers Investors LLC Apartments 2,889,700 TOTAL $40,712,200

The total assessed valuation of these ten largest taxpayers is equal to 4.32% of the 2019 Assessed Valuation of $936,563,897. Assessed Valuation is adjusted valuation less refunds less gentrification plus additions.

Source: Borough Officials

TAX AND REVENUE ANTICIPATION BORROWING

The Borough has not utilized Tax and Revenue Anticipation Borrowing in recent years.

A-6

BONDED INDEBTEDNESS (as of ______, 2020 – Includes this issue)

Gross Debt Item Current Balance Outstanding

Direct Debt General Obligation Bonds, Series of 2020 (this issue) $10,000,000* General Obligation Note, Series of 2018 26,800 General Obligation Bonds, Series of 2017 4,230,000 General Obligation Refunding Bonds, Series of 2015 5,750,000 General Obligation Bonds, Series of 2015 3,075,000 General Obligation Bonds, Series A of 2012 (remaining portion) 1,500,000 General Obligation Bonds, Series B of 2012 (remaining portion) 1,700,000 Total Direct Debt $26,281,800

Less Exclusions for Self-Liquidating Debt (6,488,252) Total Net Direct Debt $19,793,548

Overlapping Debt(1): Baldwin-Whitehall School District Debt(2) $26,391,801 Allegheny County Debt(2) 8,982,606 Total Overlapping Debt $35,374,407

Total Net Direct and Overlapping Debt $55,167,955

(1) SOURCE: Pennsylvania Department of Community and Economic Development as of May 31, 2020. (2) The Borough’s share of this debt is determined by dividing the assessed value of the Borough by those of the County and School District and multiplying that ratio by the outstanding debt of the County and the School District respectively.

*Preliminary amount, subject to change.

Debt Ratio Calculations (including issuance of the Bonds) Gross Outstanding Net Direct Debt Per Capita $1,001 Net Direct Debt to Market Value 2.28% Net Direct and Overlapping Debt Per Capita $2,791 Net Direct and Overlapping Debt to Market Value 6.35%

Population (2010 census) 19,767 2018 Borough STEB Market Value $868,850,698

A-7

DEMOGRAPHICS AND EMPLOYMENT

The top ten employers in Allegheny County are the following governments, public institutions and corporations:

Number of Rank Name of Business Employees 1 UPMC Health System 46,500 2 Highmark Health 20,875 3 U.S. Government 17,465 4 Commonwealth of Pennsylvania 12,787 5 PNC Financial Services Group, Inc. 11,432 6 Giant Eagle, Inc. 10,674 7 Wal-Mart Stores, Inc. 9,000 8 BNY Mellon Corp. 7,000 9 Allegheny County 6,868 10 Eat ‘n Park Hospitality Group, Inc. 5,522

Source: Pittsburgh Regional Alliance, as of September 2018.

Trends in Labor Force, Employment and Unemployment

Annual Averages

2015 2016 2017 2018 2019* Allegheny County Civilian Labor Force 647,500 647,700 645,900 645,200 655,900 Employment 615,400 614,100 615,020 619,100 628,800 Unemployment 32,100 33,500 30,700 26,100 27,100 Unemployment Rate 5.0% 5.2% 4.8% 4.0% 4.1%

Pennsylvania Civilian Labor Force (000) 6,416 6,450 6,425 6,424 6,571 Employment (000) 6,076 6,103 6,111 6,149 6,287 Unemployment (000) 340 347 314 276 285 Unemployment Rate 5.3% 5.4% 4.9% 4.3% 4.3%

United States Civilian Labor Force (000) 157,130 159,187 160,320 162,075 164,576 Employment (000) 148,834 151,436 153,337 155,761 159,067 Unemployment (000) 8,296 7,751 6,982 6,314 5,510 Unemployment Rate 5.3% 4.9% 4.4% 3.9% 3.3%

*As of October, 2019. Source: PA Department of Labor & Industry

Population Composition – 2000 and 2010

2000-2010 Population 2000 2010 % Change Estimates Baldwin Borough 19,999 19,767 -1.2% 19,743 Allegheny County 1,281,666 1,223,348 -4.6% 1,229,605 Pennsylvania 12,281,054 12,702,379 3.4% 12,790,505

Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-year Estimates.

A-8

Per Capita Income – 2000 and 2010

2000-2010 2000 2010 % Change Estimates Baldwin Borough $19,918 $24,917 2.51% $29,084 Allegheny County $22,491 $29,469 3.10% $35,280 Pennsylvania $20,880 $26,374 2.63% $31,476

Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates.

Family and Household Income – Estimates

Household Income Median Baldwin Borough $57,439 Allegheny County $56,333 Pennsylvania $56,951

Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates.

Housing Units – Estimates

Owner Occupied Renter Occupied Number Median Value Median Rent Baldwin Borough 8,217 $125,400 $763 Allegheny County 536,439 $140,600 $835 Pennsylvania 5,007,442 $170,500 $885

Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates.

Population, Poverty and Education – Estimates

Population Poverty Level Education

Total Total Family Persons Families High School College Persons Households Below Below Graduate Graduate Baldwin Borough 19,743 5,360 6.6% 3.6% 92.9% 25.7% Allegheny County 1,229,605 304,668 12.5% 8.3% 94.1% 40.0% Pennsylvania 12,790,505 3,217,046 13.1% 8.9% 89.9% 30.1%

Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates.

A-9 [ THIS PAGE INTENTIONALLY LEFT BLANK ] APPENDIX B

Summary Financial Information Relating to Borough of Baldwin Years ending December 31, 2016, 2017, 2018 and 2019 (unaudited) [ THIS PAGE INTENTIONALLY LEFT BLANK ]

Baldwin Borough Allegheny County, Pennsylvania General Fund - Balance Sheet

Year 2016 2017 2018 2019* Assets: Cash and Cash Equivalents $843,206 $1,265,896 $1,293,764 $1,434,683 Net Taxes Receivable 1,117,741 1,055,222 985,111 914,780 Other Receivables 24,345 24,261 27,648 9,244 Prepaid Expenses 177,738 141,491 196,722 214,833 Due from Other Funds -0- -0- -0- 158,892 Total Assets $2,163,030 $2,486,870 $2,503,245 $2,732,432

Liabilities and Fund Balance: Accounts Payable $329,434 $420,138 $365,218 $603,986 Accrued Payroll -0- -0- -0- -0- Deferred Revenues -0- -0- -0- -0- Other Liabilities 84,310 41,124 40,111 59,187 Due to Other Funds 421,678 274,850 66,359 -0- Total Liabilities $835,422 $736,112 $471,688 $663,173

Deferred Inflows of Resources: Unavailable revenues 520,313 453,023 374,889 -0- Total Liabilities and Deferred Inflows of Resources 1,355,735 1,189,135 846,577 663,173

Fund Balance: Reserved $177,738 $141,491 $196,722 $-0- Unreserved 629,557 1,156,244 1,459,946 2,069,259 Total Fund Balance $807,295 $1,297,735 $1,656,668 $2,069,259

Total Liabilities and Fund $2,163,030 $2,486,870 $2,503,245 $2,732,432 Balance

Source: Borough of Baldwin Annual Audit Reports, audited by Maher Duesel, CPAs *Unaudited. Information taken from Municipal Annual Audit and Financial Report filed with DCED.

[This space intentionally left blank.]

B-1

Baldwin Borough Allegheny County, Pennsylvania General Fund Statement of Revenues and Expenditures

Year 2017 2018 2019* Revenues: Taxes $9,393,789 $9,397,160 $10,054,076 Licenses and Permits 540,034 406,737 454,337 Fines and Forfeitures 100,363 164,571 75,805 Interest and Rents 36,400 57,963 66,052 Intergovernmental 514,377 504,630 634,585 Operating Grants -0- -0- -0- Charges for Services 268,839 705,686 281,734 Capital Revenue Sources -0- -0- -0- Transfers -0- -0- 560,023 Miscellaneous 87,173 2,027 41,716 Total Revenues $10,940,975 $11,238,774 $12,168,328

Expenditures: General Government $1,679,886 $962,638 $883,117 Public Safety-Police 3,594,565 3,693,799 3,918,035 Public Safety-Fire 340,458 330,577 335,146 Public Safety-Other 261,258 234,314 307,478 Public Works-Planning & Zoning -0- -0- -0- Public Works-Sanitation 1,497,269 1,350,894 1,443,907 Public Works-Highway 2,665,196 2,494,892 1,994,660 Library 185,000 685,000 185,000 Culture and Recreation 904,411 680,114 324,554 Capital Outlay 32,543 35,000 -0- Debt Service: Principal 257,235 319,499 411,812 Interest 149,009 171,694 157,018 Insurance & Benefits 1,349,156 1,304,697 1,694,159 Total $12,960,986 $12,263,118 $11,654,886

Excess/(Deficiency) (2,020,011) (1,024,344) 513,442

Other Financing Sources (Uses) Refund of prior year expenditures $55,769 $-0- $-0- Refund of prior year revenue (13,270) (11,164) (8,183) Proceeds from AIM note 26,590 80,400 -0- Asset Disposition 1,251 -0- -0- Proceeds from capital lease 32,543 35,000 -0- Operating Transfer In 2,503,630 1,355,788 -0- Operating Transfer Out (96,062) (76,747) (92,668) Total Financing Sources (Uses) $2,510,451 $1,383,277 $(100,851)

Net change in fund balance $490,440 $358,933 $412,591

Fund Balance Beginning of Year $807,295 $1,297,735 $1,656,668 End of Year $1,297,735 $1,656,668 $2,069,259

Source: Borough of Baldwin Annual Audit Reports, audited by Maher Duesel, CPAs *Unaudited. Information taken from Municipal Annual Audit and Financial Report filed with DCED.

B-2

Baldwin Borough Allegheny County, Pennsylvania Sewer Fund Statement of Revenues and Expenditures

Year 2017 2018 2019* Revenues: User Charges $5,508,261 $5,206,040 $7,834,756 Tap in Fees 4,890 -0- -0- Service Charges -0- -0- -0- Miscellaneous -0- -0- -0- Total Revenues $5,513,151 $5,206,040 $7,834,756

Expenditures: Administration $932,423 $898,102 $218,099 Engineering & Construction 138,434 67,742 3,286,903 Maintenance 41,485 64,453 595,980 Public Works Roads & Streets -0- -0- 6,000 Depreciation 255,947 486,441 -0- Insurance & Benefits 116,975 95,086 68,070 Miscellaneous -0- -0- 1,376,003 Sanitation: ALCOSAN 2,012,146 2,150,912 2,095,166 Sanitation: Pleasant Hills 734,904 881,635 609,511 Total $4,232,314 $4,644,371 $8,255,732

Net Operating Income (Loss) $1,280,837 $561,669 $(420,976)

Non-operating Revenues (Expenses): Bond costs $(37,789) $-0- $-0- Shared contracted intergovernmental services 100,000 100,000 -0- Interest Income 76,504 129,583 -0- Interest Expense (701,185) (728,139) -0- Other Income 141,058 148,945 -0- Total non-operating revenues (expenses) $(421,412) $(349,611) $-0-

Income (Loss) before Transfers $859,425 $212,058 $(420,976)

Other Financing Sources (Uses) Operating Transfer In -0- -0- Operating Transfer Out -0- -0- Total Financing Sources (Uses) -0- -0-

Net change in fund balance $859,425 $212,058

Fund Balance Beginning of Year $2,696,050 $3,555,475 End of Year $3,555,475 $3,767,533

Source: Borough of Baldwin Annual Audit Reports, audited by Maher Duesel, CPAs *Budgeted, as of November 30, 2019.

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[ THIS PAGE INTENTIONALLY LEFT BLANK ] APPENDIX C

Borough of Baldwin 2020 Budget [ THIS PAGE INTENTIONALLY LEFT BLANK ]

2020 BUDGET

TABLE OF CONTENTS

Table of Contents

OFFICIALS ………………………………………………………………………………………………..…………… 1

FUND LISTING ……………………………………………………..………………………………………….…… 2

BUDGET MESSAGE ……………………………………………………………………………….……………… 3

GENERAL FUND REVENUE BUDGET …………………………………………….….…………….…….. 8

GENERAL FUND EXPENDITURE BUDGET …………………..………………………………………… 22

SEWER FUND BUDGET ………………………………………………………………………..……………… 49

POOL FUND BUDGET ………………………………………………………………………………….……… 55

HIGHWAY AID FUND BUDGET …………………………………………………………….……………… 57

ASSET FORFEITURE FUND BUDGET ……………………………………………………………………. 59

2020 BUDGET

OFFICIALS

Officials

Council Mayor David Depretis Marianne Conley

James Behers

Patricia Boyer

E. John Egger

Chad Hurka

Denise Maiden

Frank Scott

Staff

Borough Manager Finance Officer Robert T. Firek, P.E. Caitlin Hornyak, CPA

Police Chief Tax Collector Tony Cortazzo Gail Dobson Mikush

Community Compliance Officers Municipal Services Manager Kyle Ferkett Randy Lubin Todd Tulowitzki

Human Resources Officer AP and Inspection Clerk Kelly Parker Stephanie Matus

Administrative Assistant Tammi Hagan

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2020 BUDGET

FUND LISTING

Fund Listing

General Fund 001 – General Fund

The primary operating fund for the Borough which reflects the revenues and expenditures of all Borough operations that are not required by law or policy to be recorded elsewhere.

Special Revenue Funds Funds that are established to account for revenues that are legally restricted to be spent on specific expenses.

035 – Highway Aid Fund

Revenues for this fund come from the State of Pennsylvania Liquid Fuel Tax and are restricted to be used for the maintenance, repair, and construction of roads, streets, and bridges within Baldwin.

070‐ Asset Forfeiture Fund

Revenues for this fund come from the sale of assets confiscated by the Drug Enforcement Administration (DEA) and are restricted to be used for specific police department expenses.

Proprietary Funds Funds that account for the operations of the Borough providing a good or service, which is paid for by charges to customers who use the good or service.

008‐ Sewer Fund

The sewer fund is used to account for all revenues and expenditures associated with operating the Borough’s sanitary sewer system. The fund’s main revenue comes from sewer billing and it pays for sewage treatment and pipe maintenance and repair.

031‐ Pool Fund

The pool fund is used to account for all revenues and expenditures associated with operating the Borough’s swimming pool.

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2020 BUDGET

BUDGET MESSAGE

2020 Budget Message

Dear Members of Borough Council and Mayor Depretis;

On behalf of the Borough Administration, I am pleased to submit the 2020 Budget to members of Borough Council, Mayor Depretis, and the residents of Baldwin Borough. We were able to balance all General and Special Revenue Funds without a tax increase. This means the 2020 Real Estate Tax Millage rate will remain at 6.78 mills. To Baldwin residents, this means that for every $100,000 of assessed value of real estate owned, a payment of $678 is owed to the Borough. In order to balance the Sewer Fund, a sewage rate increase was required, partially due to the 7% increase in ALCOSAN rates and PHA capital projects. The new sewage rates will be a $14.75 monthly surcharge and $12.52 per 1,000 gallons used. The decision to increase sewage rates was analyzed and scrutinized by Borough Officials. The ultimate increase is believed to be appropriate and moderate, while supporting the core services of the Borough and meeting the needs of our residents. The 2020 Budget Document strives to serve as a policy statement, an operational guide, a financial plan, as well as a communication tool. The recommended budget complies with all local and state laws and is supported by the Borough’s Financial Policies and Procedures Manual. The 2020 balanced budget consists of a $12,766,025 General Fund, $6,822,453 Sewer Fund, $573,282 Highway Aid Fund, $163,050 Swimming Pool Fund, and an Asset Forfeiture Fund of $56,773.

TOTAL REVENUE/EXPENDITURES BY

FUND Asset Forfeiture Pool Fund Highway Aid Fund Fund 1% 2.81% 0.28%

Sewer Fund 33.47%

General Fund 62.64%

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2020 BUDGET

BUDGET MESSAGE

The General Fund supports the core services of the Borough, including Police, Public Works (Roads and Parks), Code Enforcement, Solid Waste Collection, Recycling, as well as Administrative Services. The General Fund also supports the operating costs of our Municipal Complex, the Leland Center, as well as Elm Leaf Park, Colewood Park and the Leland Baseball Fields. The General Fund does not support sanitary sewer services, although the Borough Administration and Public Works employees coordinate all such activity. Traditionally, the majority of revenues supporting the General Fund are Real Estate, Earned Income, and Local Services Tax Revenue. These taxes alone make up over 70% of General Fund revenues. The graph below shows a breakdown of the revenue sources that comprise the $12,766,025 General Fund budget.

GENERAL FUND REVENUE BY SOURCE Public Safety Other 2% 2% Gran…

Licenses & …

State Shared 3%

Sales Tax 5%

Capital Transfers Real Estate Taxes 5% 49%

Local Enabling Act Taxes 23%

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2020 BUDGET

BUDGET MESSAGE

The Borough continues to benefit by stable and consistent tax revenues, and provides services on an appropriate scale with strong management practices. While these positive factors are likely to continue, the containment of operating and personnel expenses are challenging to keep pace with. The Borough Administration has worked diligently to control operating expenses, however, many factors that drive costs up are outside of our control. “Big ticket” items, like health care, pensions, and even solid waste and recycling, continue to consume large portions of the General Fund Expenditures, reflected in the following chart, and in many ways represent fixed costs that continue to grow.

GENERAL FUND EXPENDITURES BY DEPARTMENT Facilities Library Professional Services Insurance 3% 1% 1% 2% Debt Service 3% Fire & BEMS 3% Police Adminstration & 31% Electeds 7%

Pension 10%

Public Works Capital Projects 7% 9%

Road Repaving Program

7% Solid Waste Collection 16%

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2020 BUDGET

BUDGET MESSAGE

The illustration below highlights the recent growth of our Fund Balance, the amount of ‘savings’ the Borough has. Several years ago, Borough Council identified the lack of a Fund Balance to be a problem area and challenged the Borough Administration to grow the Fund Balance to a target of 5‐10% of General Fund Expenditures. This benchmark is recognized as a best practice for municipalities by the Government Finance Officers Association (GFOA) and the International City/County Managers Association (ICMA). Having a Fund Balance within this target range allows the Borough to cover any emergency costs that occur during the year and were therefore not budgeted for. This target has been achieved, as the current Fund Balance is over $1M, and it is projected to stay over $1M at 2019‐year end.

FUND BALANCE IN GENERAL FUND

$1,459,946 1,487,946 $1,297,735

$807,295

$471,859 $284,036 $189,434 $25,130

2012 2013 2014 2015 2016 2017 2018 2019

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2020 BUDGET

BUDGET MESSAGE

Ultimately, the 2020 budget reflects a responsible and prudent spending plan that supports service levels to residents. The budget is a result of a comprehensive and transparent process which was open to the public and led by Borough Council. The process forced the Borough to prioritize the needs of the community and to produce a strategy to continue to provide services at a high level and to appropriately plan for the operation and maintenance of our assets and infrastructure.

Basic Financial Policies

 The Borough will continue to use its tax dollars wisely and prudently. Recognizing that expenditures continue to grow much faster than revenues, the administration must perpetually seek to reduce operating costs through efficiencies and innovation.

 Any increase in the rates of taxation will be considered only after all other efforts to reduce costs or increase revenues have been explored.

 It is the Borough’s policy to minimize borrowing. Borrowing for capital expenditures will only occur when sufficient current funds are unavailable for essential purchases. Any borrowing for capital projects will be fully repaid prior to the useful life of the capital item being realized.

 Fees are charged for specialized services and our fee schedules are reviewed annually to assure that they adequately cover the total costs for providing those services.

 State, federal, and private grants are actively sought to assist with current or proposed projects or programs that have a fund shortage. Baldwin has been very effective in securing many grants and other funds to offset necessary expenses.

Sincerely,

Caitlin M. Hornyak Finance Officer

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2020 GENERAL FUND BUDGET

REVENUES

Real Estate Property Taxes

Summary Real Estate Property Taxes % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐301.**** Inc/Dec Budget Total Real Estate Taxes $ 5,797,644 $ 6,270,809 $ 6,278,699 $ 6,322,530 1% 49.5%

Description About half of all General Fund revenue is generated by real estate taxes, also known as property taxes. The tax is assessed on all commercial, industrial, residential, and other non‐exempt properties within the Borough.

The tax is calculated using the millage rate, set each year by Borough Council, and a property’s assessed value, set by Allegheny County. In 2020, Baldwin’s millage rate is 6.78, which means that a property with an assessed value of $100,000 would have a Borough real estate tax bill of $678 (100,000 x .00678).

Real estate taxes are billed and collected by the Borough’s elected Tax Collector, Gail Dobson‐Mikush. Taxes are due by June 1st each year. If a property owner pays prior to March 31st, they receive a 2% discount. If a property owner pays after June 1st, they receive a 10% late penalty.

If property taxes have not been paid within one year of the due date, the delinquent account is sent to the Borough’s third party delinquent tax collector, Jordan Tax Services. Jordan will work with property owners to set up payment plans in order to avoid escalating to other collection methods, such as lawsuits and sheriff sales.

Each January, the Allegheny County Office of Property Assessments sends the Borough a list of the certified assessed values of each parcel and its tax‐exempt status. The Baldwin Tax Collector uses this data in combination with the Borough’s millage rate to create the year’s tax bills. The latest taxable assessed value for the Borough was certified in January 2019 at $936,563,897 with 8,117 taxable parcels.

Allegheny County and Baldwin Whitehall School District also collect property taxes based on millage rates they set each year. In 2019, the County’s millage rate was 4.73 and the School District’s was 21.76. The property taxes collected by these agencies are separate from those set and collected by the Borough.

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2020 GENERAL FUND BUDGET

REVENUES

Budget Detail Real Estate Property Taxes % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐301.**** Inc/Dec Budget

1000 Current Year Levy $ 5,549,360 $ 5,999,093 $ 6,005,000 $ 6,052,530 1% 47.4% 2000 Prior Year's Levy 27,918 51,716 51,716 50,000 ‐3% 0.4% 5000 Delinquent 220,366 220,000 221,983 220,000 0% 1.7% Total Real Estate Taxes $ 5,797,644 $ 6,270,809 $ 6,278,699 $ 6,322,530 1% 49.5%

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2020 GENERAL FUND BUDGET

REVENUES

Local Taxes

Summary Local Enabling Act Taxes (Act 511) % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐310.**** Inc/Dec Budget Total Local Enabling Act Taxes $ 2,950,670 $ 2,850,400 $ 3,038,100 $ 2,960,000 4% 23.2%

Description Pennsylvania state law enables local governments to levy a few other types of taxes to supplement revenue from property taxes. Baldwin collects three of these local taxes – the real estate transfer tax, the earned income tax, and the local services tax.

Real estate transfer tax is .5% of the sale price of any home sold within the Borough, and is paid at closing to the County Recorder of Deeds. The amount of revenue collected from the tax varies year to year, as the price and number of homes sold fluctuates. The School District also collects a .5% real estate transfer tax.

Earned Income Tax (EIT) is a .5% tax on earned income and compensation (W‐2 income from salaries or wages) and other forms of earned income as defined by the Local Tax Enabling Act. State Act 32 designated Tax Collection Districts (TCDs) as an area outlined and designated by statute for the purpose of collecting income taxes for the political subdivisions within its borders. A Tax Collection Committee is the committee established to govern each Tax Collection District for the purpose of collecting EIT. Baldwin Borough is one of 63 municipalities and school districts in the Allegheny Southwest Tax Collection Committee.

Although the rate has not increased in recent years, EIT revenue is growing a little bit each year. This means either the number of Baldwin residents who are employed is growing annually and/or residents are getting paid higher wages for their work. Upward trends in EIT revenue not only contribute to the Borough’s financial stability, but provides a strong economic indicator that the quality of life for residents is improving as aggregate income rises. The School District also collects a .5% earned income tax.

Originally called the Emergency and Municipal Services Tax, the Local Services Tax is a $47 tax per employee working within the municipality who receives an annual income greater than $12,000. The School District also collects a $5 local service tax per person. Estimated revenue in 2020 assumes approximately 3,192 people work within the Borough of Baldwin and make over $12,000 a year.

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2020 GENERAL FUND BUDGET

REVENUES

Budget Detail Local Enabling Act Taxes (Act 511) % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐310.**** Inc/Dec Budget

1000 Real Estate Transfer Tax $ 253,112 $ 220,000 $ 265,972 $ 250,000 14% 2.0% 2000 Earned Income Tax 2,557,204 2,490,000 2,590,000 2,560,000 3% 20.1% 5000 Local Services Tax 140,353 140,400 182,128 150,000 7% 1.2% Total Local Enabling Act Taxes $ 2,950,670 $ 2,850,400 $ 3,038,100 $ 2,960,000 4% 23.2%

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2020 GENERAL FUND BUDGET

REVENUES

Licenses

Summary Licenses % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐3**.**** Inc/Dec Budget Total Licenses $ 456,579 $ 487,695 $ 457,713 $ 457,695 ‐6% 3.6%

Description Baldwin requires the issuance of licenses and permits in order to conduct certain activities within the Borough. Generally, these are a means to ensure that all municipal regulations and ordinances are upheld and to protect public welfare. Fees charged for permits and licenses are intended to cover the cost of inspection, enforcement, and administration.

The following operations require fees for the appropriate license or permit:

 Junk yards  Mechanical gambling devices  Cable Television Franchises  Dog or cat ownership

The main revenue source within this category is Cable Television Franchise Fees. The Borough grants non‐inclusive Cable Franchise agreements to cable service vendors (currently Comcast Cable Communications and Verizon) and permits the cable providers to operate within the public right‐of‐ ways. The Cable Television Franchise agreements are made in coordination with neighboring communities through the South Hills Area Council of Government (SHACOG).

Budget Detail Business License and Permits % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐321.**** Inc/Dec Budget

3200 Junk Yard $ 240 $ 240 $ 240 $ 240 0% 0.0% 7200 Mechanical Devices 48,825 56,455 56,455 56,455 0% 0.4% 8000 Cable TV Franchise 406,497 430,000 400,000 400,000 ‐7% 3.1% Total Business License and Permits $ 455,562 $ 486,695 $ 456,695 $ 456,695 ‐6% 3.6%

Health % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐365.**** Inc/Dec Budget

5000 Pet License Fees 1,017 1,000 1,018 1,000 0% 0.0% Total Health $ 1,017 $ 1,000 $ 1,018 $ 1,000 0% 0.0%

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2020 GENERAL FUND BUDGET

REVENUES

Public Safety

Summary Public Safety % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐3**.**** Inc/Dec Budget Total Public Safety $ 274,921 $ 325,696 $ 334,982 $ 305,000 ‐6% 2.4%

Description Public Safety revenue is generated from fines collected from violators of ordinances and statutes, reimbursements for special police details, and fees for building permits.

Depending on the charge, the location of the offense, and employer of the citation/arresting officer, those who are found guilty of breaking the law are fined through the local magistrate, the County court of common pleas, or the state. Regardless of which level of government catches and prosecutes the offense, if the crime occurred in Baldwin, a portion of the fine is provided to the municipality. The amount of fines collected for violations varies from year to year, as the crime rate and enforcement fluctuates.

Baldwin Police Officers are available to work special details, such as traffic control and crowd control, as overtime to their normal patrols. The organization or company requesting the special police service is responsible for reimbursing the Borough for the officer’s costs to work the detail.

Borough property owners who install personal security alarms and would like the police notified during an alarm event are responsible for paying a small fee. If officers respond to more than three false alarms at the same property, the alarm owner will also be charged a false alarm fee.

Besides police activity, the Borough works to enforce the public safety of the built environment. When occupants of a property change, the residence is required to receive an occupancy permit by passing an inspection completed by the Borough code enforcement officer. Annually, commercial properties are required to have fire safety inspections in order to reduce potential fire hazards and ensure safety standards are followed (detection and evacuation). Building permits are required for any changes or additions to the non‐natural elements of a property (i.e. pool, porch, new construction, etc.).

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Budget Detail Fines % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐331.**** Inc/Dec Budget

1101 Vehicle Code Violations $ 11,013 $ 11,000 $ 15,000 $ 13,000 18% 0.1% 1103 County DUI Fines 25,045 25,000 25,000 25,000 0% 0.2% 1200 Violations of Ordinances 26,113 28,000 28,000 28,000 0% 0.2% 1300 State Police Fines 14,242 10,000 10,000 11,000 10% 0.1% Total Fines $ 76,413 $ 74,000 $ 78,000 $ 77,000 4% 0.6%

Public Safety % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐362.**** Inc/Dec Budget

1000 Special Police Services Reimbursements $ 23,678 $ 80,000 $ 90,666 $ 50,000 ‐38% 0.4% 1100 Police Reports, Fingerprinting Fees 12,459 12,000 9,000 10,000 ‐17% 0.1% 1300 Security Alarm Monitoring 15,789 16,000 15,620 15,500 ‐3% 0.1% 4000 Police Application Fees ‐ 1,250 1,250 ‐ N/A 0.0% 4100 Building Permits 46,952 70,000 78,000 75,000 7% 0.6% 4110 Occupancy & Fire Permits 59,550 50,000 40,000 55,000 10% 0.4% 0412 Vacant Property Registration 9,200 7,446 7,446 7,500 1% 0.1% Total Public Safety $ 167,627 $ 236,696 $ 241,982 $ 213,000 ‐10% 1.7%

Highways and Streets % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐363.**** Inc/Dec Budget

1000 Curb/Street Opening Permits 30,881 15,000 15,000 15,000 0% 0.1% Total Highways and Streets $ 30,881 $ 15,000 $ 15,000 $ 15,000 0% 0.1%

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Interest & Rent

Summary Interest, Rents, and Royalties % % of Total 2018 Actual2019 Budget 2019 Estimate 2020 Budget 001‐34*.**** Inc/Dec Budget Total Interest, Rents, and Royalties $ 57,955 $ 65,343 $ 68,398 $ 65,155 0% 0.5%

Description The Borough makes short term investments of cash on hand through the year and receives rebates for use of a procurement card. These investment earnings are small, but are continuing to grow after a new investment strategy was implemented in 2015.

Rental revenue is a small percentage of General Fund revenue. The Borough rents out some pavilions in Baldwin parks for special activities and events. The recent and ongoing renovations to Elm Leaf and Colewood Park have created additional pavilion/grove areas available for rent.

An advertising company has contracted with Allegheny Port Authority to place ads in bus shelters through the County. As part of the contract, Lamar Advertising contributes a portion of ad revenue to the municipality where the bus shelters are located.

Budget Detail Interest, Rents, and Royalties % % of Total 2018 Actual2019 Budget 2019 Estimate 2020 Budget 001‐34*.**** Inc/Dec Budget

340.0000 Interest on Real Estate Taxes $ 950 $ 2,218 $ 2,218 $ 1,000 ‐55% 0.0% 341.0000 Earnings from Temp Investments 60 50 55 55 10% 0.0% 341.0002 Huntington P‐Card Rebate 9,084 11,000 9,000 9,000 ‐18% 0.1% 341.1000 Interest from Money Market 42,686 45,000 52,000 50,000 11% 0.4% 342.2000 Rent of Buildings 75 375 225 225 ‐40% 0.0% 342.5000 Park Grove Rentals 2,550 5,425 3,625 3,600 ‐34% 0.0% 342.5500 Rent from Ads on Public Property 2,550 1,275 1,275 1,275 0% 0.0% Total Interest, Rents, and Royalties $ 57,955 $ 65,343 $ 68,398 $ 65,155 0% 0.5%

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Intergovernmental

Summary Intergovernmental Revenue % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐35*.**** Inc/Dec Budget Total Intergovernmental Revenue $ 1,103,634 $ 1,105,058 $ 1,205,995 $ 1,412,881 28% 10.3%

Description As a municipality, Baldwin has three levels of government above us – Allegheny County, the State of Pennsylvania, and the United States Federal Government. All three collect and provide revenue to local governments in exchange for and in support of municipal services.

The largest amount of intergovernmental revenue Baldwin receives is from County Sales Tax. When you purchase a product or service within Allegheny County, you pay 7% of the taxable purchase price in sales tax. Six of those seven percentage points goes to the State of Pennsylvania, while the other 1% goes to the Regional Asset District, who then distributes part of this revenue to local municipalities within the County.

The Federal government reimburses the Borough for the overtime a Baldwin Police Officer spends working on a Drug Enforcement Administration (DEA) Task Force.

The State of Pennsylvania provides a few different sources of revenue. Some state revenue is for municipal services, while others are ‘pass through’ accounts, meaning they are provided to the Borough, but must be passed on to the local Volunteer Fire Relief Association (foreign fire) and public pension accounts (foreign casualty). Under the Pension Reform Act, Act 205, the Borough receives an allocation from the State of Pennsylvania for each active full‐time employee in the pension plan, sometimes referred to as State Aid. The State generates this revenue through the foreign causality insurance premium tax. The State Aid for public pensions makes up about 20‐25% of the Borough’s mandatory municipal obligation contribution (MMO) to the pensions. The Borough has also received a grant to purchase recycling bins for all residents in 2020.

PennDOT provides Baldwin funds for our employees to maintain state roads during winter storm events, such as plowing and salting. Under Act 101, the State provides funding to Baldwin based on the amount of recycling we collected during the previous year. Baldwin also receives state funding for specific police activity, such as the PA Impaired Driving Grant, the Buckle‐Up Grant, and the Aggressive Driving Grant.

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REVENUES

Budget Detail Intergovernmental Revenue % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐350.**** Inc/Dec Budget

0100 County Sales Tax (Act 77) 600,022 565,000 625,000 620,000 10% 4.9% Total Intergovernmental Revenue $ 600,022 $ 565,000 $ 625,000 $ 620,000 10% 4.9%

Federal Revenue % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐351.**** Inc/Dec Budget

0100 Reimbursements for DEA Task Force OT 21,485 17,500 17,500 17,500 0% 0.1% Total Federal Revenue $ 21,485 $ 17,500 $ 17,500 $ 17,500 0% 0.1%

State Capital and Operating Revenue % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐354.**** Inc/Dec Budget

0000 Grants from State Government ‐ 8,024 8,024 264,681 3199% N/A 0300 Winter Maintenance of State Roads 12,047 9,000 11,273 11,500 28% 0.1% 1103 PA Impaired Driving Grant 58,027 55,000 55,000 55,000 0% 0.4% 1500 Act 101 Recycling 5,985 19,176 28,519 10,000 ‐48% 0.1% Total State Capital and Operating Revenue $ 76,059 $ 91,200 $ 102,816 $ 341,181 274% 2.7%

State Shared Revenue and Entitlements % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐355.**** Inc/Dec Budget

0100 Public Utility Realty Tax (PURTA) $ 9,962 $ 9,400 $ 9,036 $ 9,400 0% 0.1% 0400 Alcoholic Beverage Licenses ‐ 4,700 3,800 3,800 ‐19% 0.0% 0700 Foreign Fire Insurance Prem. Tax 86,291 100,000 93,607 100,000 0% 0.8% 0800 State Aid for Pensions 299,801 306,096 343,073 310,000 1% 2.4% 0900 Act 13 Impact Fees 10,015 11,162 11,162 11,000 ‐1% 0.1% Total State Shared Revenue and Entitlements $ 406,069 $ 431,358 $ 460,679 $ 434,200 1% 3.4%

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REVENUES

Charges for Services

Summary Charges for Services % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐36*.**** Inc/Dec Budget Total Charges for Services $ 7,177 $ 214,598 $ 12,482 $ 640,584 199% 4.7%

Description When municipal services are provided which only benefit a particular resident or property owner, the cost of that service is charged directly to that individual or company rather than being funded by the general tax payer dollars. This includes services such as, zoning hearing appeals, grading permits, sub‐ division approvals, land development rights, and recreation program attendance.

Budget Detail Charges for Services % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐361.**** Inc/Dec Budget

3000 Sub‐division & Land Development $ 200 $ 300 $ 1,050 $ 300 0% 0.0% 3400 Zoning Hearing Fees 5,197 5,566 2,700 3,000 ‐46% 0.0% 3500 Grading Permit Fees ‐ 7,632 7,632 7,000 ‐8% 0.1% Total Charges for Services $ 5,397 $ 13,498 $ 11,382 $ 10,300 ‐24% 0.1%

Culture & Recreation % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐367.**** Inc/Dec Budget

2000 Recreation Program Fees $ 1,780 $ 1,100 $ 1,100 $ 1,500 36% 0.0% 3000 Recreation Grants ‐ 200,000 ‐ 628,784 214% 4.9% Total Culture & Recreation $ 1,780 $ 201,100 $ 1,100 $ 630,284 213% 4.9%

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REVENUES

Miscellaneous

Summary Misc Revenue % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐3**.**** Inc/Dec Budget Total Misc Revenue $ 2,026 $ 3,070 $ 3,792 $ 3,050 ‐1% 0.0%

Description Each year the Borough receives revenue that we did not know about during the budget making process. This could be a new one‐time grant, payment of an insurance claim for an unexpected issue, or a refund of expenditures made in the previous year.

One of the other sources of revenue that fluctuates from year to year is money we are paid for selling equipment and machinery we are no longer using, which is also referred to as the sale of fixed assets.

Budget Detail Misc Revenue % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐380.**** Inc/Dec Budget

0000 Misc. Revenue Receipts 491 500 500 500 0% 0.0% 0300 Misc Reimbursements 1,535 1,570 2,292 1,550 ‐1% 0.0% Total Misc Revenue $ 2,026 $ 2,070 $ 2,792 $ 2,050 ‐1% 0.0%

Proceeds of Fixed Asset Disposition % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐391.**** Inc/Dec Budget

1000 Sale of Fixed Assets ‐ 1,000 1,000 1,000 0% 0.0% Total Fixed Asset Disposition $ ‐ $ 1,000 $ 1,000 $ 1,000 0% 0.0%

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Capital Revenue

Summary Capital Revenue Sources % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐3**.**** Inc/Dec Budget Total Inferfund Transfers $ 673,635 $ 1,074,956 $ 160,684 $ 1,229,414 14% 8.7%

Description The Borough adopted a five‐year capital improvement plan to prioritize capital purchases and projects and plan for completing and financing those projects.

The capital plan identified four sources of revenue for capital improvements; grants, bonds (borrowing), asset forfeiture, and general fund operating revenue. Capital projects using asset forfeiture funds are reflected in the asset forfeiture fund budget.

Grants

In 2017, the Borough was awarded a $200,000 grant from the State of Pennsylvania’s Department of Conservation and Natural Resources (DCNR) Community Conservation Partnership Program to help pay for Phase II of the redevelopment of Elm Leaf Park.

Also, in 2017, the Borough was awarded a grant of $118,784 from the State’s Commonwealth Financing Authority (CFA) Multimodal Transportation Fund to pay for a portion of the trails and shared streets that will be included in Phase II of the redevelopment of Elm Leaf Park.

In 2019, the Borough was awarded another DCNR grant for Phase III of Elm Leaf Park for $210,000.

Also, in 2019, the Borough was awarded a $50,000 grant from the Pennsylvania Department of Community and Economic Development (DCED) for Phase III of Elm Leaf Park.

Bonds

The transfer from the Capital Improvement Fund is revenue generated by a 2015 bond issuance and a 2020 bond refinancing to pay for specific and much needed capital improvement projects through the Borough. The amount of revenue transferred in 2020 is in alignment with the cost estimates of the capital projects that will be completed in 2020.

In the budget, this capital funding is reflected as a transfer from the Capital Improvement Fund because the revenue was originally recognized in that fund but is now being transferred to the General Fund to pay for the capital or operating expenditures it was intended for.

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REVENUES

Budget Detail Culture & Recreation % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐367.**** Inc/Dec Budget

2000 Recreation Program Fees $ 1,780 $ 1,100 $ 1,100 $ 1,500 36% 0.0% 3000 Recreation Grants ‐ 200,000 ‐ 628,784 214% 4.9% Total Culture & Recreation $ 1,780 $ 201,100 $ 1,100 $ 630,284 213% 4.9%

Interfund Transfers % % of Total 2018 Actual 2019 Budget 2019 Estimate 2020 Budget 001‐392.**** Inc/Dec Budget

1800 Transfer from Capital Improvement Fund 671,855 873,856 159,584 515,403 ‐41% 4.0% 9900 Transfer from Fund Balance ‐ ‐ ‐ 83,727 N/A 0.7% Total Inferfund Transfers $ 671,855 $ 873,856 $ 159,584 $ 599,130 ‐31% 4.7%

Total General Fund Revenue

% 2018 Actual 2019 Budget 2019 Estimate 2020 Budget Inc/Dec TOTAL REVENUE $12,137,412 $ 12,196,525 $ 11,559,744 $ 12,766,025 5%

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EXPENDITURES

General Government

Summary General Government 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐400.**** Estimate Inc/Dec Budget Total General Government $ 50,106 $ 49,534 $ 49,584 $ 49,584 0% 0%

Description General Government expenditures cover the costs related to Baldwin’s elected officials. The Borough is governed by seven (7) elected Council members and a Mayor. The Mayor is elected for a 4‐year term; council members are elected for 4‐year overlapping terms. There are no term limits in Baldwin and all positions are at large. Borough Council takes action by adopting local laws (ordinances), resolutions, and motions at public meetings held twice a month. Baldwin Council is responsible for the adoption of the annual budget and the appointment of the Borough Manager.

The expenditures for elected officials include: Council Member’s stipends (amounts set by local charter), continuing education classes, organization memberships, and subscriptions to relevant local government materials. Newly elected officials are highly encouraged to complete courses offered through Local Government Academy that focus on the essential duties of municipal officials.

This category also includes the cost of the annual recognition dinner, an event held in appreciation of appointed officials who volunteer their time on the Borough’s boards, commissions, and committees and the volunteer firefighters who run and staff Baldwin’s three fire companies.

Budget Detail General Government 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐400.**** Estimate Inc/Dec Budget

1050 Salaries & Wages‐ Elected Officials $ 28,875 $ 28,875 $ 28,875 $ 28,875 0% 0% 1920 FICA/Medicare Employer Paid 2,208 2,209 2,209 2,209 0% 0% 4200 Dues, Subscriptions, Memberships 7,490 7,450 7,500 7,500 1% 0% 4540 Recognition Dinner 4,367 5,000 5,000 5,000 0% 0% 4600 Continuing Education 7,165 6,000 6,000 6,000 0% 0% Total General Government $ 50,106 $ 49,534 $ 49,584 $ 49,584 0% 0%

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EXPENDITURES

Executive

Summary Executive 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐401.**** Estimate Inc/Dec Budget Total Executive $ 297,388 $ 192,097 $ 201,675 $ 265,857 38% 2%

Description The executive category includes the personnel costs of executive level administrative officials and employees, such as the Mayor, the Treasurer, the Borough Manager, the Finance Officer, the Human Resources Officer and the Director of Municipal Services. The wages of the Mayor and Treasurer are dictated by Baldwin’s charter, the same as the elected Council members. Half of the Borough Manager’s personnel expenses are reflected in this category and fund, while the other half are found in the Sewer Fund budget. All non‐uniform employees are on a UPMC medical insurance plan, which has a 3.9% premium increase for this plan year.

Budget Detail Executive 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐401.**** Estimate Inc/Dec Budget

1050 Salary of Mayor $ 5,700 $ 5,700 $ 5,700 $ 5,700 0% 0% 1100 Salary of Treasurer 1,800 1,800 1,800 1,800 0% 0% 1101 Salary of Borough Manager 59,868 55,110 55,110 50,000 ‐9% 0% 1120 Salary of Accounts Payable/Payroll Clerk 17,543 10,006 11,116 ‐ ‐100% 0% 1130 Salary of Finance Officer 58,769 57,750 57,750 58,905 2% 0% 1140 Salary of Director of Municipal Services 84,460 18,804 18,804 44,917 139% 0% 1150 Salaries & Wages ‐Other 1,325 ‐ ‐ ‐ N/A 0% 1160 Salary of Human Resources Officer ‐ ‐ 7,800 50,490 N/A 0% 1920 FICA/Medicare Employer Paid 17,471 11,188 11,856 15,886 42% 0% 1960 Health Insurance 41,072 21,539 21,539 25,209 17% 0% 2310 Vehicle Fuel ‐ Gas 2,162 1,950 1,950 2,000 3% 0% 3310 Travel 415 750 750 750 0% 0% 4510 Vehicle Maintenance & Repair 2,284 2,500 2,500 2,200 ‐12% 0% 4600 Continuing Education 4,519 5,000 5,000 8,000 60% 0% Total Executive $ 297,388 $ 192,097 $ 201,675 $ 265,857 38% 2%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Auditing & Financial Administration

Summary Auditing Services/Financial Admin 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐402.**** Estimate Inc/Dec Budget Total Auditing Services/Financial Admin $ 18,634 $ 18,100 $ 18,100 $ 22,100 22% 0%

Description Each year, the Borough hires independent auditors to review the Borough’s financial documents and procedures to provide transparency, ensure Baldwin is free of fraud, improve our credit rating, and confirm compliance with all rules of the Government Accounting Standards Board (GASB) and Generally Accepted Accounting Principles (GAAP).

The Borough outsources payroll processing to a third‐party company. This provides employees with easy access to pay history and paid time off accruals, as well as a simplified internal payroll process.

Budget Detail Auditing Services/Financial Admin 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐402.**** Estimate Inc/Dec Budget

3110 Accounting & Auditing Services $ 12,317 $ 12,100 $ 12,100 $ 16,100 33% 0% 3111 Payroll Services 6,317 6,000 6,000 6,000 0% 0% Total Auditing Services/Financial Admin $ 18,634 $ 18,100 $ 18,100 $ 22,100 22% 0%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Tax Collection

Summary Tax Collection 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐403.**** Estimate Inc/Dec Budget Total Tax Collection $ 81,375 $ 93,207 $ 96,007 $ 92,018 ‐1% 1%

Description Tax collection expenditures cover the costs to employ the Borough’s tax collector, maintain an operational tax collection office space, and pay Jordan Tax Services to collect delinquent taxes on behalf of the Borough. Since the tax collector is an elected official, their stipend is dictated by the Borough’s charter. Earned income taxes are collected by a third‐party agency appointed by the Allegheny County Southwest Tax Collection Committee, and the Borough pays a percentage commission based on the amount of taxes collected. Delinquent property taxes are collected by Jordan Tax Services, another third‐party agency, who charge 10% commission on all collections. The Borough’s tax office is located in the municipal building at 3344 Churchview Ave, Pittsburgh, PA 15227.

Budget Detail Tax Collection 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐403.**** Estimate Inc/Dec Budget

1050 Salary of Tax Collector $ 12,400 $ 12,500 $ 12,500 $ 12,500 0% 0% 1920 FICA/Medicare Employer Paid 949 956 956 956 0% 0% 2100 Office Supplies 4,007 5,000 5,000 4,200 ‐16% 0% 2120 Computer/Copier Supplies 281 1,000 500 500 ‐50% 0% 3101 Earned Income Tax Commission 33 400 400 400 0% 0% 3102 General Exp/Service Fees 967 955 955 955 0% 0% 3103 Delinquent RET Commission 56,725 60,000 63,000 60,000 0% 0% 3104 Local Services Tax Commission 3,866 3,500 3,800 3,600 3% 0% 3170 Tax Duplicate Diskette ‐ 621 621 620 0% 0% 3210 Telephone 713 720 720 732 2% 0% 3500 Tax Collector's Bond Premium 1,435 7,555 7,555 7,555 0% 0% Total Tax Collection $ 81,375 $ 93,207 $ 96,007 $ 92,018 ‐1% 1%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Solicitor & Legal Services

Summary Solicitor/Legal Services 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐404.**** Estimate Inc/Dec Budget Total Solicitor/Legal Services $ 90,384 $ 79,000 $ 80,000 $ 79,000 0% 1%

Description Borough code requires that Borough Council appoints a Borough Solicitor. The Solicitor attends Council meetings and serves to advise Council and the Borough Manager on legal issues. When issues arise that are outside of the Solicitor’s expertise, the services of specialized lawyers are retained, such as a labor attorney or bond counsel. A portion of the Solicitor’s retainer is reflected in the Sewer Fund.

When the Borough is sued, the expenditures to cover court and settlement costs are reflected in this category.

Budget Detail Solicitor/Legal Services 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐404.**** Estimate Inc/Dec Budget

3101 Solicitor $ 88,095 $ 75,000 $ 75,000 $ 75,000 0% 1% 3102 Solicitor's Expenses 1,116 2,000 2,000 2,000 0% 0% 4100 Other Legal Expenditures 1,174 2,000 3,000 2,000 0% 0% Total Solicitor/Legal Services $ 90,384 $ 79,000 $ 80,000 $ 79,000 0% 1%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Other General Government Administration

Summary General Government Administration 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐406.**** Estimate Inc/Dec Budget Total General Government Administration $ 149,281 $ 147,369 $ 147,945 $ 145,541 ‐1% 1.1%

Description The executive administrative employees are supported by one full‐time administrative assistant. This category also includes the costs to maintain an operational administrative office presence in the Baldwin municipal complex and Baldwin’s Act 77 distribution to the South Hills Area Council of Government (SHACOG). Participation in the SHACOG provides Baldwin access to multi‐municipal cooperation in data collection, joint purchasing, and a credit union. If the Borough receives an increase in County supplied Sales Tax revenue, SHACOG will receive a portion of the increase.

Budget Detail General Government Administration 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐406.**** Estimate Inc/Dec Budget

1170 Wages of Intern $ 2,195 $ 4,037 $ 3,984 $ 2,200 ‐46% 0.0% 1500 Salaries of Office Clerks 39,034 39,987 39,987 40,953 2% 0.3% 1920 FICA/Medicare Employer Paid 3,305 3,368 3,298 3,236 ‐4% 0.0% 1960 Health Insurance 26,270 30,583 30,583 30,140 ‐1% 0.2% 2100 Office Materials & Supplies 8,406 8,000 8,600 8,200 3% 0.1% 2130 Computer/Copier Supplies 785 1,000 1,000 1,000 0% 0.0% 2150 Postage 1,943 1,800 1,870 1,900 6% 0.0% 2700 Computer Hardware & Software 26,726 22,000 22,000 20,717 ‐6% 0.2% 2900 Service Copier 2,735 2,000 2,000 2,500 25% 0.0% 3100 General Exp/Service Fees 568 900 900 900 0% 0.0% 3210 Telephone 7,321 5,936 5,936 4,944 ‐17% 0.0% 3240 Wireless Phone 720 1,433 1,433 2,496 74% 0.0% 3250 Internet 1,948 1,825 1,854 1,854 2% 0.0% 3410 Advertising 8,651 6,000 6,000 6,000 0% 0.0% 3420 Printing 7,437 6,000 6,000 6,000 0% 0.0% 5000 SHACOG Act 77 Distribution 8,271 10,000 10,000 10,000 0% 0.1% 7400 Machinery & Equipment 2,967 2,500 2,500 2,500 0% 0.0% Total General Government Administration $ 149,281 $ 147,369 $ 147,945 $ 145,541 ‐1% 1.1%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Engineering Services

Summary Engineering Services 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐408.**** Estimate Inc/Dec Budget Total Engineering Services $ 72,579 $ 64,000 $ 64,000 $ 64,000 0% 0.5%

Description The Borough contracts with a local engineering firm to provide services as Baldwin’s engineers. A representative from the engineering firm attends Council meetings, where they update officials and the public on the status of engineering related projects. The engineers complete assessments of facilities, prepare bids, and oversee construction of infrastructure.

Budget Detail Engineering Services 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐408.**** Estimate Inc/Dec Budget

3101 Engineer's Retainer $ 3,000 $ 3,000 $ 3,000 $ 3,000 0% 0.0% 3102 Engineering Expenses 63,219 55,000 55,000 55,000 0% 0.4% 3130 GIS 6,360 6,000 6,000 6,000 0% 0.0% Total Engineering Services $ 72,579 $ 64,000 $ 64,000 $ 64,000 0% 0.5%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Borough Building Facilities

Summary Borough Building Facilities 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐409.****‐00* Estimate Inc/Dec Budget Total Borough Building $ 161,986 $ 142,927 $ 148,884 $ 157,733 10% 1.2%

Description The Borough Building is located at 3344 Churchview Ave, Pittsburgh, PA 15227. Expenditures in this category includes the cost to employ custodians and facility expenses, such as utilities and building maintenance. Expenditures also cover the cost of electricity and maintenance at the salt storage building.

Budget Detail Borough Building 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐409.****‐000 Estimate Inc/Dec Budget

1150 Wages of Custodians $ 44,570 $ 56,417 $ 56,417 $ 60,075 6% 0.5% 1860 Uniform Allowance ‐ 530 530 530 0% 0.0% 1920 FICA/Medicare Employer Paid 3,436 4,357 4,231 4,506 3% 0.0% 1960 Health Insurance 11,159 12,038 12,038 18,372 53% 0.1% 2000 Materials & Supplies 9,979 7,000 7,083 7,000 0% 0.1% 3210 Telephone 1,657 1,810 1,810 1,700 ‐6% 0.0% 3600 Utilities 28,654 31,250 31,250 31,250 0% 0.2% 3700 Repairs & Maintenance 59,818 20,000 25,000 25,000 25% 0.2% 4530 Industrial Appraisal ‐ 3,000 3,000 800 ‐73% 0.0% 7400 Machinery & Equipment ‐ 3,000 4,000 3,000 0% 0.0% 7500 Minor Machinery & Equipment ‐ 250 250 ‐ ‐100% 0.0% Total Borough Building $ 159,273 $ 139,652 $ 145,609 $ 152,233 9% 1.2%

Borough Building Salt Storage 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐409.****‐001 Estimate Inc/Dec Budget

3600 Utilities 2,341 1,500 1,500 1,500 0% 0.0% 3700 Repairs & Maintenance 372 1,775 1,775 4,000 125% 0.0% Total Borough Building Salt Storage $ 2,713 $ 3,275 $ 3,275 $ 5,500 68% 0.0%

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EXPENDITURES

Leland Center Facilities

Summary Leland Center Facilities 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐409.****‐00* Estimate Inc/Dec Budget Total Leland Center $ 17,013 $ 17,300 $ 18,284 $ 13,237 ‐23% 0.1%

Description The Leland Center is located at 5230 Wolfe Dr., Pittsburgh, PA 15236. Expenditures in this category includes the cost to employ custodians and facility expenses, such as utilities and building maintenance. Expenditures also cover the cost of electricity and maintenance at the salt storage building.

In 2018, the Baldwin Borough Public Library moved into the top floor of the Leland Center. The Borough will continue to operate the public works facility out of the lower garage area, therefore maintenance and utilities costs are expected to remain similar.

Budget Detail Leland Center 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐409.****‐002 Estimate Inc/Dec Budget

1150 Wages of Custodians $ 1,104 $ ‐ $ ‐ $ ‐ N/A 0.0% 1920 FICA/Medicare Employer Paid 85 ‐ ‐ ‐ N/A 0.0% 2000 Materials & Supplies 167 50 50 50 0% 0.0% 3210 Telephone 296 300 321 237 ‐21% 0.0% 3600 Utilities 11,455 10,550 10,550 10,550 0% 0.1% 3700 Repairs & Maintenance 3,458 6,000 6,963 2,000 ‐67% 0.0% Total Leland Center $ 16,565 $ 16,900 $ 17,884 $ 12,837 ‐24% 0.1%

Leland Salt Storage 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐409.****‐003 Estimate Inc/Dec Budget

3600 Utilities 448 400 400 400 0% 0.0% Total Leland Building Salt Storage $ 448 $ 400 $ 400 $ 400 0% 0.0%

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Police Department

Summary Police 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐410.**** Estimate Inc/Dec Budget Total Police $ 3,792,838 $ 3,944,843 $ 3,937,177 $ 3,990,004 1% 31.3%

Description Police expenditures pay for the public safety services of the Borough. They account for the salaries and benefits of the Chief of Police, Deputy Chief of Police, four Sergeants, the Narcotics Officer, 17 Full‐Time Patrol Officers and 1 Office Manager. Police expenditures also account for the costs to operate and maintain an office space in the Borough Building, the K‐9 unit, supplies, vehicles, fuel, equipment, and continuing education. These expenditures do not account for the police pension or professional liability insurance.

The majority of police department expenditures are dictated by the 2016‐2020 collective bargaining agreement negotiated and signed in 2016.

Equipment

Vehicle lease payments are due for one 2017 and one 2019 Ford Interceptor. One new Ford Interceptor will be purchased in 2019 and the cost will be split between the General Fund and the Asset Forfeiture Fund.

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Budget Detail Police 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐410.**** Estimate Inc/Dec Budget

1100 Salary of Chief $ 112,581 $ 146,715 $ 146,715 $ 112,500 ‐23% 0.9% 1150 Salary of Deputy Chief ‐ ‐ ‐ 110,000 N/A 0.9% 1200 Salaries of Lieutenants 224,339 170,213 170,213 ‐ ‐100% 0.0% 1210 Salary of Juvenile Officer 101,548 7,708 7,708 ‐ ‐100% 0.0% 1230 Salaries of Sergeants 209,679 223,458 223,458 438,263 96% 3.4% 1240 Salaries of Patrol Officers 1,711,030 1,800,366 1,800,366 1,717,906 ‐5% 13.5% 1250 Salary of Office Manager 50,717 52,370 52,370 53,460 2% 0.4% 1260 Wages of Office Clerk 15,410 1,445 1,445 ‐ ‐100% 0.0% 1720 Holiday Pay 95,570 96,014 96,014 96,430 0% 0.8% 1801 Officer Overtime 81,816 115,000 127,000 85,000 ‐26% 0.7% 1802 Special Service Overtime 16,840 60,000 62,000 35,000 ‐42% 0.3% 1803 Training Overtime 20,970 20,000 22,000 20,000 0% 0.2% 1810 Court & Pre‐Trial Hearings 38,045 35,000 35,000 38,000 9% 0.3% 1811 Magistrate Hearings 70,897 73,000 73,000 73,000 0% 0.6% 1820 DEA Task Force Overtime 28,334 17,500 17,500 17,500 0% 0.1% 1860 Uniform Allowance 28,364 40,300 46,500 27,300 ‐32% 0.2% 1920 FICA/Medicare Employer Paid 43,403 55,713 44,441 43,849 ‐21% 0.3% 1960 Health Insurance 621,891 674,190 627,314 608,608 ‐10% 4.8% 1980 Long Term Disability Insurance 18,240 18,240 15,975 18,240 0% 0.1% 2100 Office Materials & Supplies 9,402 9,750 9,750 9,750 0% 0.1% 2101 K‐9 8,057 9,450 9,450 4,000 ‐58% 0.0% 2102 Range 18,172 8,275 8,275 16,745 102% 0.1% 2130 Computer/Copier Supplies 469 2,000 2,000 2,000 0% 0.0% 2150 Postage 841 500 560 800 60% 0.0% 2310 Vehicle Fuel ‐ Gas 55,407 52,500 55,000 52,500 0% 0.4% 2700 Computer Hardware/Software 15,123 16,750 16,750 24,876 49% 0.2% 2900 Computer Service/Maintenance 10,190 18,000 18,000 20,500 14% 0.2% 3000 Civil Service Commission 2,062 3,000 3,350 1,500 ‐50% 0.0% 3110 Professional/Legal Services 3,083 5,000 5,000 3,500 ‐30% 0.0% 3210 Telephone 24,102 16,492 16,492 12,636 ‐23% 0.1% 3240 Wireless Phone 6,076 5,660 5,660 9,276 64% 0.1% 3250 Internet 6,045 6,000 6,600 6,000 0% 0.0% 3270 Radio Maintenance 4,323 3,000 3,000 3,000 0% 0.0% 3310 Travel & Lodging ‐ ‐ ‐ 5,000 N/A 0.0% 3410 Advertising 4,432 1,250 1,250 ‐ ‐100% 0.0% 3420 Printing 1,013 1,500 1,500 1,750 17% 0.0% 3701 Tires 6,148 4,000 4,000 4,000 0% 0.0% 3800 Vehicle Lease & Purchase 25,512 49,030 69,967 48,769 ‐1% 0.4% 4000 Lunch Allowance 3,033 3,000 3,000 3,000 0% 0.0% 4200 Subscriptions/Dues 8,267 8,800 8,000 9,000 2% 0.1% 4500 Animal Control 2,450 1,800 2,200 153,000 8400% 1.2% 4510 Vehicle Maintenance & Repair 17,036 30,000 36,500 25,000 ‐17% 0.2% 4600 Continuing Education 8,180 11,000 11,000 13,000 18% 0.1% 4700 Drug Testing 454 ‐ ‐ 450 N/A 0.0% 4900 CALEA Certification 4,595 4,595 4,595 4,595 0% 0.0% 5000 DUI Grant 54,562 55,000 55,000 55,000 0% 0.4% 7400 Major Machinery & Equipment 1,716 2,800 2,800 2,800 0% 0.0% 7500 Minor Machinery & Equipment 2,417 3,500 3,500 2,500 ‐29% 0.0% 7600 RING Program ‐ 4,959 4,959 ‐ ‐100% N/A Total Police $ 3,792,838 $ 3,944,843 $ 3,937,177 $ 3,990,004 1% 31.3% 32

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EXPENDITURES

Fire & Emergency Medical Services

Summary Fire & BEMS 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐41*.**** Estimate Inc/Dec Budget Total Fire $ 436,931 $ 348,225 $ 336,871 $ 392,121 13% 3.1%

Description Each year the Borough contributes $173,000 to our three volunteer fire departments. The division of the contribution is based on the number of structures each fire department is responsible for providing firefighting services to. The Borough also pays for the upkeep of the fire hydrants within the municipality. The Borough serves as a ‘pass through’ for state funds earmarked for fire fighters. Annually the Borough receives around $100,000 from the state and then passes it on to the local fire relief association. The Borough also contributes $50,000 annually to BEMS.

Budget Detail Fire 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐411.**** Estimate Inc/Dec Budget

3600 Fire Hydrants 77,404 73,500 68,539 68,896 ‐6% 0.5% 5000 Contributions to Vol. Fire Companies 173,000 173,000 173,000 173,000 0% 1.4% 5001 Fireman's Relief Association 86,291 100,000 93,607 100,000 0% 0.8% 5002 EMA Training ‐ 1,500 1,500 ‐ ‐100% 0.0% Total Fire $ 336,695 $ 348,000 $ 336,646 $ 341,896 ‐2% 2.7%

BEMS 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐412.**** Estimate Inc/Dec Budget

3210 Telephone 236 225 225 225 0% 0.0% 5000 Contributions 100,000 ‐ ‐ 50,000 N/A 0.4% Total BEMS $ 100,236 $ 225 $ 225 $ 50,225 22222% 0.4%

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Code Enforcement

Summary Code Enforcement 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐413.**** Estimate Inc/Dec Budget Total Code Enforcement $ 201,331 $ 259,520 $ 257,623 $ 275,260 6% 2.2%

Description The Code Enforcement department enforces Baldwin’s ordinances and codes related to the built environment and property maintenance. Expenditures for the department cover 75% of the License, Permit, & Closing Clerk, payments for professional inspection services, and for the operations of the department (vehicle fuel, postage, office supplies, etc.). Code enforcement employees are on a UPMC medical insurance plan, along with all non‐uniform employees.

Budget Detail Code Enforcement 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐413.**** Estimate Inc/Dec Budget

1100 Salary of Code Enforcement Officer $ 45,115 $ 80,242 $ 80,242 $ 101,877 27% 0.8% 1120 Salary of Clerk 32,089 33,051 33,051 33,808 2% 0.3% 1860 Uniform Allowance ‐ 300 306 600 100% 0.0% 1920 FICA/Medicare Employer Paid 5,895 8,667 8,497 10,176 17% 0.1% 1960 Health Insurance 13,630 38,692 38,692 51,210 32% 0.4% 2100 Office Supplies 2,010 2,000 2,350 2,200 10% 0.0% 2150 Postage 1,058 1,500 1,570 1,550 3% 0.0% 2310 Gas 787 1,200 1,200 1,200 0% 0.0% 2700 Computer Hardware & Software 16,127 7,500 7,500 8,147 9% 0.1% 3100 Professional Services ‐ Court Reporter 5,515 6,000 6,000 6,000 0% 0.0% 3170 Professional Services ‐ Inspections 61,107 55,000 58,000 40,000 ‐27% 0.3% 3210 Telephone 1,684 1,507 1,507 1,260 ‐16% 0.0% 3240 Wireless Phone 714 1,051 1,051 912 ‐13% 0.0% 3310 Travel & Lodging 39 300 ‐ 600 100% 0.0% 3410 Advertising 817 500 535 550 10% 0.0% 3420 Printing 269 450 450 450 0% 0.0% 3434 Codify/Zoning 2,570 2,800 2,800 2,500 ‐11% 0.0% 4200 Subscriptions & Memberships 140 460 460 920 100% 0.0% 4500 Removal Hazardous Structures 10,508 15,000 10,000 8,000 ‐47% 0.1% 4510 Vehicle Maintenance & Repairs 370 1,000 1,112 1,000 0% 0.0% 4600 Continuing Education 887 1,500 1,500 1,500 0% 0.0% 4900 Bldg Permit Fees ‐ Dept of Labor ‐ 300 300 300 0% 0.0% 4910 Blight & Abandonment ‐ 500 500 500 0% 0.0% Total Code Enforcement $ 201,331 $ 259,520 $ 257,623 $ 275,260 6% 2.2%

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Planning & Zoning

Summary Planning & Zoning 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐414.**** Estimate Inc/Dec Budget Total Planning & Zoning $ ‐ $ 2,500 $ 2,500 $ 2,500 0% 0.0%

Description The Borough makes a small annual contribution to the local economic development organization, Economic Development South, to contribute to improving the local South Hills economy.

Budget Detail Planning & Zoning 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐414.**** Estimate Inc/Dec Budget

3100 Economic Development South ‐ 2,500 2,500 2,500 0% 0.0% Total Planning & Zoning $ ‐ $ 2,500 $ 2,500 $ 2,500 0% 0.0%

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EXPENDITURES

Solid Waste Collection

Summary Solid Waste Collection & Disposal 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐427.**** Estimate Inc/Dec Budget Total Solid Waste Collection & Disposal $ 1,400,456 $ 1,611,446 $ 1,611,446 $ 1,975,988 23% 15.5%

Description The Borough has a multi‐year contract with Waste Management to collect solid waste at Baldwin residences on a weekly basis and recycling every other week. Each fall, Waste Management has six weeks of leaf collection. The Borough also pays for a Hazardous Waste Collection Program, which collects hazardous waste, such as TVs and chemicals, from residences on request.

Some municipalities have solid waste companies bill property owners directly for the service. Baldwin has and will continue to incorporate the cost of solid waste collection into the budget as an expenditure that is paid for with general tax revenues.

Budget Detail Solid Waste Collection & Disposal 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐427.**** Estimate Inc/Dec Budget

4501 Garbage Collection $ 1,140,245 $ 1,207,536 $ 1,207,536 $ 1,231,584 2% 9.6% 4503 Recycling Collection 222,453 303,387 303,387 308,012 2% 2.4% 4504 Leaf Collection 31,449 33,027 33,027 33,688 2% 0.3% 4505 Yard Waste Disposal 6,310 67,496 67,496 68,447 1% 0.5% 4506 Toter Reycling Bins ‐ ‐ ‐ 334,258 N/A 2.6% Total Solid Waste Collection & Disposal $ 1,400,456 $ 1,611,446 $ 1,611,446 $ 1,975,988 23% 15.5%

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EXPENDITURES

Department of Public Works (DPW)

Summary General Public Works 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐43*.**** Estimate Inc/Dec Budget Total General Public Works $ 973,102 $ 946,555 $ 949,745 $ 914,329 ‐3% 7.1%

Description The Borough’s Public Works department includes two Foremen and two full‐time maintenance crews of five. Additional seasonal help is hired during the summer months. Half of the Foremen’s wages and benefit expenditures are paid for through the General Fund, with the other half coming from the Sewer Fund. The department is responsible for the upkeep of the Borough’s roads, parks, snow removal, and storm & sanitary sewer system. The labor and operating costs associated with the sanitary sewer system are accounted for in the Sewer Fund.

In 2019, the Public Works Department signed a collective bargaining agreement that will cover the years 2019‐2023. DPW employees are on a UPMC medical insurance plan, along with all non‐uniform employees.

One of the largest expenditures of DPW operations, is the purchase of rock salt. Rock salt is purchased and reflected in the Highway Aid budget with the Liquid Fuels revenue Baldwin receives from the state.

The Borough pays for the upkeep of traffic lights and street lights on Baldwin roads. Each year the Borough is converting a portion of Baldwin’s street lights to LEDs.

While the sanitary sewer system is funded by the Sewer Fund, any expenditures related to the Borough’s storm sewer system are reflected in the General Fund. Some storm sewer system maintenance and repairs are completed by DPW employees, while some tasks are contracted out.

Capital Purchases

Vehicle leases payments are due for two 2015 Ford F550s, the 2017 International 10‐ton dump truck, the 2018 Tractor, the 2019 F‐450 truck, and half of the Vac‐Con Flusher. The cost for the vehicles is shared with the Sewer Fund.

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Budget Detail General Public Works 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐430.**** Estimate Inc/Dec Budget

1100 Salary of Superintendent $ 28,500 $ ‐ $ ‐ $ ‐ N/A 0.0% 1120 Wages of Foreman 55,054 63,972 63,972 65,624 3% 0.5% 1121 Wages of Maintenance Crew 303,095 306,086 306,086 307,575 0% 2.4% 1150 Wages of Part Time Employees 11,581 13,000 14,326 8,500 ‐35% 0.1% 1800 Overtime 28,074 18,000 18,000 13,000 ‐28% 0.1% 1801 Snow Removal Overtime 37,757 30,000 30,000 35,000 17% 0.3% 1860 Uniform Allowance 3,390 3,700 3,700 3,750 1% 0.0% 1870 Meal Allowance 443 400 400 500 25% 0.0% 1920 FICA/Medicare Employer Paid 33,389 32,976 32,429 32,227 ‐2% 0.3% 1960 Health Insurance 117,704 145,133 145,133 149,810 3% 1.2% 2200 Operating Supplies 12,496 10,000 11,000 10,000 0% 0.1% 2310 Vehicle Fuel ‐ Gas 4,221 7,000 8,500 11,000 57% 0.1% 2320 Vehicle Fuel ‐ Diesel 20,111 13,000 13,000 11,000 ‐15% 0.1% 2500 Vehicle Repair & Maintenance 27,130 17,500 21,500 17,500 0% 0.1% 2600 Small Tools & Equipment 5,972 4,000 4,300 4,000 0% 0.0% 3000 Other Service & Charges 13 250 ‐ ‐ ‐100% 0.0% 3210 Telephone 3,723 2,149 2,166 264 ‐88% 0.0% 3240 Wireless Phone 2,374 1,024 1,000 2,904 184% 0.0% 3270 Radio Maintenance Contract 1,006 1,000 1,000 1,000 0% 0.0% 3800 Vehicle Purchase & Leases 75,305 112,990 112,990 113,274 0% 0.9% 3840 Rent of Machinery & Equipment 2,674 3,000 3,800 2,500 ‐17% 0.0% 4400 Safety Equipment 6,326 7,500 7,500 3,500 ‐53% 0.0% 4510 Contracted Vehicle Maint. & Repair 72,743 45,000 35,000 30,000 ‐33% 0.2% 4600 Continuing Education 361 2,625 2,693 1,900 ‐28% 0.0% 4700 CDL, Drug, Alcohol Testing 148 250 250 500 100% 0.0% 7400 Major Machinery & Equipment 49,868 25,000 25,000 15,000 ‐40% 0.0% Total General Public Works $ 903,460 $ 865,555 $ 863,745 $ 840,329 ‐3% 6.6%

Traffic Control Devices 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐433.**** Estimate Inc/Dec Budget

2000 Street Signs/Markings $ 20,281 $ 15,000 $ 20,000 $ 20,000 33% 0.2% 2200 Street Light LED Conversion ‐ 1,000 1,000 1,000 0% 0.0% 2500 Maint. & Repair Traffic Signals 2,531 5,000 5,000 3,000 ‐40% 0.0% Total Traffic Control Devices $ 22,811 $ 21,000 $ 26,000 $ 24,000 14% 0.2%

Storm Sewer and Drains 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐436.**** Estimate Inc/Dec Budget

2490 Storm Sewers & Drains $ 29,555 $ 30,000 $ 30,000 $ 25,000 ‐17% 0.2% 3130 Engineering Services: MS4 17,276 15,000 15,000 15,000 0% 0.1% 6100 System CCTV and Cleaning ‐ 15,000 15,000 10,000 ‐33% 0.1% Total Storm Sewer and Drains $ 46,831 $ 60,000 $ 60,000 $ 50,000 ‐17% 0.4%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Roads & Bridges

Summary Maintenance & Repair of Roads & Bridges 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐438.**** Estimate Inc/Dec Budget Total Maintenance & Repair of Roads & Bridges $ 1,229,320 $ 841,000 $ 853,485 $ 844,000 0% 6.6%

Description Annually, the Borough hires a third‐party street resurfacing contractor to repave a portion of Baldwin roads, based on their condition. Beginning in 2018, the Director of Municipal Services, supported by the Borough’s engineering firm will create the request for proposals (RFP), oversee the bidding process, and completion of the work. In addition, the public works department patches and repairs roads that are not being repaved in the current year.

The following table shows the budget amount for road repaving contracts, the amount spent per year, and the number of miles paved.

Budgeted Year Amount Amount Spent Miles 2011 $ 500,000.00 $ 414,578.63 0.77 2012 $ 750,000.00 $ 735,414.83 1.97 2013 $ 800,000.00 $ 748,602.19 1.89 2014 $ 800,000.00 $ 600,587.35 1.75 2015 $ 800,000.00 $ 746,241.32 1.21 2016 $ 800,000.00 $ 692,536.52 1.49 2017 $2,166,920.00 $1,678,849.10 3.85 2018 $1,079,000.00 $1,184,042.47 1.69 2019 $800,000.00 $772,744.29 2.97

In the table above, you can see the 2017 road program was much larger than in previous years. This was due to the replacement of the McAnulty culvert and the need to repave around Colewood Park after the equalization basin and sanitary sewer projects were completed. A $2 million municipal bond was issued in 2017 to fund the expansion and culvert replacement. Two of the roads were delayed until 2018, moving $454,000 of contracted work from the 2017 budget to the 2018 budget. For the 2020 road repaving contracts, the budget has gone back to the typical $800,000. The Borough also paves a portion of the roads through the Liquid Fuels Fund.

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EXPENDITURES

Budget Detail Maintenance & Repair of Roads & Bridges 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐438.**** Estimate Inc/Dec Budget

2450 Material ‐ Patching & Repair Roads $ 13,718 $ 13,000 $ 13,000 $ 13,000 0% 0.1% 2503 Restoration 14,486 12,000 13,500 15,000 25% 0.1% 2504 Repairs by Contract 5,529 ‐ 10,985 ‐ 0% 0.0% 3130 Engineering ‐ Resurfacing Streets 11,545 15,000 15,000 15,000 0% 0.1% 3750 Maint & Repairs ‐ Guide Rails ‐ 1,000 1,000 1,000 0% 0.0% 6100 Const Contracts ‐ Resurfacing Streets 1,184,042 800,000 800,000 800,000 0% 6.2% Total Maintenance & Repair of Roads & Bridges $ 1,229,320 $ 841,000 $ 853,485 $ 844,000 0% 6.6%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Parks & Recreation

Summary Parks & Recreation 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐454.**** Estimate Inc/Dec Budget Total Parks & Recreation $ 93,699 $ 62,500 $ 65,594 $ 60,200 ‐4% 0.5%

Description The parks and recreation category represents expenditures for the supplies, utilities, and equipment rentals used to repair and maintain Borough parks. The largest expense in this category is for contracted repair services to mow both Borough owned properties and vacant private properties.

Budget Detail Parks & Recreation 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐454.**** Estimate Inc/Dec Budget

2500 Maint & Repair Supplies 15,875 4,000 5,200 4,500 13% 0.0% 3600 Utilities 17,909 17,000 19,500 17,000 0% 0.1% 3700 Maintenance & Repair 11,650 10,000 10,205 13,000 30% 0.1% 3800 Equipment Rental 794 1,000 1,503 700 ‐30% 0.0% 4500 Contracted Services 47,471 25,000 29,186 25,000 0% 0.2% 7400 Machinery & Equipment ‐ 5,000 ‐ ‐ ‐100% 0.0% 7501 Programming/Advertising ‐ 500 ‐ ‐ ‐100% 0.0% Total Parks & Recreation $ 93,699 $ 62,500 $ 65,594 $ 60,200 ‐4% 0.5%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Debt Service

Summary Debt Service 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐47*.**** Estimate Inc/Dec Budget Total Debt Service $ 390,376 $ 424,898 $ 424,898 $ 420,812 ‐1% 3.2%

Description In 2015, the Borough issued a new bond to fund capital purchases and projects, aiming to maintain annual debt service payments at levels similar to what the Borough had been paying for previous debt – around $250,000 a year.

In order to fund the replacement of the McAnulty culvert and the road program expansion, Council authorized a new borrowing in 2017. In 2018, the principal repayments began along with the bi‐annual interest payments. This is a twenty‐year bond.

In 2017, the Borough requested AIM funding through the Capital & Equipment Loan Program. The Borough received a loan of $80,400 that was used to remove debris and sand bars within the Streets Run Stream in order to reduce flooding and improve public safety. Repayment for this loan began in 2019 with a three‐year repayment term.

Budget Detail AIM Loan Repayment 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐471.**** Estimate Inc/Dec Budget

6000 AIM Loan ‐ 27,877 27,877 27,159 ‐24% 0.2% Total Debt Service ‐ Principal $ ‐ $ 27,877 $ 27,877 $ 27,159 0.2%

Debt Service ‐ Principal 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐471.**** Estimate Inc/Dec Budget

2000 General Obligation Bond 225,701 232,928 232,928 235,154 1% 1.8% Total Debt Service ‐ Principal $ 225,701 $ 232,928 $ 232,928 $ 235,154 1% 1.8%

Debt Service ‐ Interest 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐472.**** Estimate Inc/Dec Budget

2000 General Obligation Bond 164,675 164,093 164,093 158,499 ‐3% 1.2% Total Debt Service ‐ Interest $ 164,675 $ 164,093 $ 164,093 $ 158,499 ‐3% 1.2%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Pensions

Summary Employer Paid Benefits & Withholding 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐48*.**** Estimate Inc/Dec Budget Total Employer Paid Benefits & Withholding $ 1,016,974 $ 1,382,579 $ 1,407,872 $ 1,255,296 ‐9% 9.8%

Description The Borough has three pension accounts. A defined benefit plan for police employed under the police collective bargaining agreement, a defined benefit plan for non‐uniform employees hired prior to 2011, and a defined contribution plan for non‐uniform employees hired after 2011.

A defined benefit plan sets a specific level of benefits that participants will receive once retired, and the municipality is responsible for funding the plan to ensure these benefits will be paid out. A defined contribution plan is more like a 401k account with an employer contribution. The Borough’s contribution level is set, and once participants vest in the plan, they will receive the Borough’s contribution and interest earnings after retirement. Beginning in 2019, the Borough contributes 7% of each participant’s salary to the defined contribution plan and will require participants to contribute 3% of their salary. Previously, the Borough contributed 6% and participants contributed 2%.

All three pension plans are invested and managed by a professional financial management firm, currently Signature Financial. Annually, each of the defined benefit plans is studied by an actuary to report on the plans fund levels and the Borough’s minimum municipal obligation (MMO). The Borough then contributes to the defined benefit plans based on the MMO.

Budget Detail Employer Paid Benefits & Withholding 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐48*.**** Estimate Inc/Dec Budget

481.1940 Unemployment Compenstation ‐ PSAB $ 13,073 $ 13,000 $ 13,000 $ 13,000 0% 0.1% 483.1000 Police Pension Contribution 930,813 1,254,872 1,254,872 1,128,406 ‐10% 8.8% 483.3000 Non‐Uniform Pension Contribution 73,088 114,707 140,000 113,890 ‐1% 0.9% Total Employer Paid Benefits & Withholding $ 1,016,974 $ 1,382,579 $ 1,407,872 $ 1,255,296 ‐9% 9.8%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Insurance

Summary Insurance 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐486.**** Estimate Inc/Dec Budget Total Insurance $ 282,771 $ 285,975 $ 282,975 $ 286,910 0% 2.2%

Description To reduce the Borough’s liability, we purchase multiple forms of insurance. For employees, Baldwin pays for group life insurance, worker’s compensation, and an employee assistance program. Expenditures also cover public official and police professional liability insurance. To protect Baldwin’s assets, we purchase fire and general liability auto, bond, and umbrella insurance policies. Beginning in 2017, a new cyber liability policy was added to cover potential losses from online activity or hacking.

Budget Detail Insurance 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐486.**** Estimate Inc/Dec Budget

1501 Group Life Insurance Premiums $ 7,615 $ 7,800 $ 7,800 $ 7,800 0% 0.1% 1503 Employee Assistance Program ‐ 1,250 1,250 1,250 0% 0.0% 3500 Public Officials Liability Insurance 11,077 11,478 11,478 10,514 ‐8% 0.1% 3502 Police Professsional Liability Insurance 26,054 27,838 27,838 28,427 2% 0.2% 3504 Worker's Compensation 189,377 191,630 188,630 178,283 ‐7% 1.4% 3510 Fire & Auto General Liability Insurance 27,620 36,305 36,305 50,960 40% 0.4% 3530 Bond 139 150 150 150 0% 0.0% 3550 Umbrella 17,374 6,008 6,008 6,010 0% 0.0% 3570 Cyber Liability Insurance 3,516 3,516 3,516 3,516 0% 0.0% Total Insurance $ 282,771 $ 285,975 $ 282,975 $ 286,910 0% 2.2%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Other Operating Expenditures

Summary Other Operating Expenses 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐4**.**** Estimate Inc/Dec Budget Total Other Operating Expenses $ 277,776 $ 298,000 $ 267,595 $ 286,349 ‐4% 2.2%

Description Library

Baldwin contributes $185,000 annually to the Baldwin Borough library.

Refunds

When property owners appeal the assessed value of their property to Allegheny County and receive a reduction, the Baldwin is responsible for refunding prior real estate taxes paid at the higher value.

Interfund Transfers

The Borough’s swimming pool does not generate enough revenue from pool transactions to cover the expense of its operations, so General Fund money is transferred to supplement the Swimming Pool Fund and keep the pool open.

Budget Detail Library 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐456.**** Estimate Inc/Dec Budget

5000 Contribution $ 185,000 $ 185,000 $ 185,000 $ 185,000 0% 1.4% Total Library $ 185,000 $ 185,000 $ 185,000 $ 185,000 0% 1.4%

Civil & Military Celebrations 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐457.**** Estimate Inc/Dec Budget

5400 Community Events 4,951 3,000 5,595 3,000 0% 0.0% 5403 Community Day $ ‐ $ 3,000 $ ‐ $ 5,000 67% 0.0% Total Civil & Military Celebrations $ 4,951 $ 6,000 $ 5,595 $ 8,000 33% 0.1%

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2020 GENERAL FUND BUDGET

EXPENDITURES

Other Financial Uses 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐49*.**** Estimate Inc/Dec Budget

491.0000 Refunds‐ Prior Year Receipts $ 2,530 $ 5,000 $ 3,000 $ 3,000 ‐40% 0.0% 491.0100 Refunds‐ Current Year Receipts 8,634 10,000 8,000 8,000 ‐20% 0.1% 492.3100 Transfer to Pool Fund 76,661 92,000 66,000 82,349 ‐10% 0.6% Total Other Financial Uses $ 87,825 $ 107,000 $ 77,000 $ 93,349 ‐13% 0.7%

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2020 GENERAL FUND BUDGET

EXPENDITURES

General Fund Capital Expenditures

Summary Capital Projects 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐4**.**** Estimate Inc/Dec Budget Total Capital Projects $ 1,067,842 $ 975,534 $ 284,629 $ 1,173,187 20% 8.9%

Description During 2018, capital projects related to the Borough’s parks were the prioritized. This included improvements to Elm Leaf Park, Colewood Park, and Springdale Park. For 2020, the Borough has planned the following capital projects:

Facilities

The fuel tank located behind the Leland Center was closed in place during 2017. In 2020, the Borough is budgeting to remove the above ground infrastructure related to the gas tank; the pump.

Parks & Recreation

Phase two of the Elm Leaf Park redevelopment will be completed in 2020 with the focus on the basketball courts, parking lots, ADA accessibility, and trail connections.

Phase three of the Elm Lead Park redevelopment is currently in planning and will focus on the baseball field and surrounding area on John Romanus Drive. The project is planned to include redevelopment of the area surrounding softball field; parking lot reconfiguration; ADA parking and accessible routes to proposed facilities; developing storage building for softball equipment; adding a small playground in place of the recently removed wooden playground structure; expanding upon existing concessions building by developing a patio area with shade canopies; relocation of batting cage; new ADA accessible dugouts.

Phase 4 will focus on signage and trails. This phase will develop a trail system from the park into the surrounding residential area, implement shared street trail routes, install gateway signage, and install way‐finding signage.

In 2020, the Borough will finish construction a restroom facility at Colewood Park with a Grant received through CITF, and Sanda Park will also undergo improvements.

At the Borough Building, the Code office will be upgraded along with restoration of the historical log cabin.

47

2020 GENERAL FUND BUDGET

EXPENDITURES

Further details regarding all 2019 capital projects can be found in the 2019‐2023 Capital Improvement Plan.

Budget Detail Capital Projects 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 001‐4**.**** Estimate Inc/Dec Budget

1.409.6000 Auditorium Remodel 2,190 $ ‐ ‐ $ ‐ N/A 0.0% 1.409.6001 Auditorium HVAC 21,700 ‐ ‐ ‐ N/A 0.0% 1.409.6300 Fuel Tank Replacement ‐ 13,000 11,100 14,000 8% 0.1% 1.409.6400 DPW Downstairs Office ‐ 15,000 15,159 ‐ ‐100% 0.0% 1.454.6000 Elm Leaf Park Improvements 500,296 592,292 84,087 854,937 44% 6.5% 1.454.6100 Colewood Park Improvements 128,207 327,000 164,446 234,250 ‐28% 1.8% 1.454.6200 Springdale Improvements 25,071 1,800 1,800 ‐ ‐100% 0.0% 1.454.6300 Sanda Park Improvements ‐ $ 25,000 1,800 40,000 60% 0.3% 1.454.6500 Cathell Emergeny Slide Repair 390,378 $ 1,442 6,237 ‐ ‐100% 0.0% 1.454.6600 Code Office Updgrades ‐ $ ‐ ‐ 15,000 N/A 0.1% 1.454.6700 Log Cabin Restoration ‐ ‐ ‐ 15,000 N/A 0.1% Total Capital Projects $ 1,067,842 $ 975,534 $ 284,629 $ 1,173,187 20% 8.9%

Total General Fund Expenditures

2019 % 2018 Actual 2019 Budget 2020 Budget Estimate Inc/Dec TOTAL REVENUE $ 12,137,412 $ 12,196,525 $ 11,559,744 $12,766,025 5% TOTAL EXPENDITURES $ 12,361,755 $ 12,651,079 $ 11,975,454 $13,218,683 4% DIFFERENCE $ (224,344) $ (454,554) $ (415,710) $ (452,658)

48

2020 SEWER FUND BUDGET

REVENUES

Sewer Fund Revenue

Summary Revenue 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐3**.**** Estimate Inc/Dec Budget Total Sewer Fund Revenue $ 6,040,797 $ 8,885,213 $ 8,668,183 $ 6,822,453 ‐23% 100%

Description The majority of revenue in the Sewer Fund comes from sewer rents and bond proceeds. Sewage rates will increase for 2019 to $12.52 per 1,000 gallons used and a $14.75 monthly surcharge.

In 2011 and 2012, the Borough issued bonds to finance large scale sanitary sewer infrastructure projects. During 2016‐2017, the Borough constructed one of the major projects, the equalization basin and sanitary sewer improvements in and around Colewood Park. Besides reducing overflow events in Baldwin, the basin will also benefit Whitehall Borough, so they are contributing $100,000 a year over the next few years towards the work. This contribution is reflected in the budget as municipal coordination.

In 2017, the Borough issued $2.5 million in new long‐term debt to finance the required repairs to the Gardenville area sanitary sewer system. This repair is required in order to comply with the Borough’s consent order agreement with the PA Department of the Environment (DEP). Construction began in 2018 and will be completed in 2020.

Budget Detail Revenue 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐3**.**** Estimate Inc/Dec Budget

341.0000 Earnings From Temp Dep/Investments $ 48 $ 55 $ 60 $ 55 0% 0% 341.0004 Interest ‐ Money Market Account 47,324 58,000 58,000 55,000 ‐5% 1% 341.1000 Interest ‐ PLGIT Investments 82,211 30,000 30,000 2,000 ‐93% 0% 364.1001 Sewer Rents‐Current Year Billing 5,073,419 5,320,000 5,169,465 6,288,136 18% 92% 364.1002 Sewer Rent‐Delinquent 109,353 110,000 50,000 100,000 ‐9% 1% 364.1100 Tap‐In Fees 148,945 15,000 5,000 5,000 ‐67% 0% 364.6000 Credit From ALCOSAN 15,793 16,316 16,316 16,000 ‐2% 0% 364.8000 Charges‐Letters & Certificates 7,475 11,500 15,000 12,000 4% 0% 364.9000 Miscellaneous 40,799 1,655 1,655 1,000 0% 0% 364.9500 Municipal Coordination 100,000 100,000 100,000 100,000 0% 1% 393.1000 Sewer Sys Repair Bond Proceeds 415,430 3,222,687 3,222,687 71,000 ‐98% 1% 279.0000 Unreserved Fund Balance ‐ ‐ ‐ 172,262 N/A 3% Total Sewer Fund Revenue $ 6,040,797 $ 8,885,213 $ 8,668,183 $ 6,822,453 ‐23% 100%

49

2020 SEWER FUND BUDGET

EXPENSES

Sewer Fund Expenses

Summary 2019 % 2018 Actual 2019 Budget 2020 Budget Estimate Inc/Dec TOTAL EXPENSES $ 5,996,261 $ 8,856,544 $ 8,591,716 $ 6,822,453 ‐23%

Description Sewer expenses can be categorized into three main sub‐sections: personnel, infrastructure, and wastewater treatment.

The administration and maintenance of the Borough’s sanitary sewer system requires labor and materials from administrative and public works employees. Therefore, a portion of the Borough’s personnel expenses are paid out of the Sewer Fund, based on the job duties of the employees.

Due to Environmental Protection Agency (EPA) and the Pennsylvania Department of the Environment (DEP) Clean Water Act regulations and standards, Pittsburgh area municipalities are in a period of large infrastructure investment in order to come into compliance and reduce over flow events. While bond proceed revenue will cover most of these expenses, the Borough is responsible for repaying the bond borrowing through annual debt service payments. In 2020, the Borough will be paying principal and bi‐ annual interest payments for this 20‐year debt.

About two‐thirds of the Borough’s sewage is collected and treated by ALCOSAN, with the other third going to Pleasant Hills Authority. The treatment plants bill the Borough based on the number of gallons of sewage they collect and treat and based on rates they set at their organizations. ALCOSAN raised rates 7% for 2020 and expects to raise them again in 2021. The Pleasant Hills Authority will be charging the Borough 66% more in 2020.

Budget Detail Sewer Administration 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐400.**** Estimate Inc/Dec Budget

3210.0000 Telephone 494 500 500 510 2% 0% Total Sewer Administration $ 494 $ 500 $ 500 $ 510 2% 0%

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2020 SEWER FUND BUDGET

EXPENSES

Auditing Services & Financial Administration 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐402.**** Estimate Inc/Dec Budget

3110 Accounting & Auditing Services $ 5,000 $ 6,700 $ 6,700 $ 6,700 0% 0% 3900 Bank Service Charges 1,542 1,650 1,650 1,650 0% 0% Total Auditing Services & Financial Administration $ 6,542 $ 8,350 $ 8,350 $ 8,350 0% 0%

Solicitor/Legal Services 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐404.**** Estimate Inc/Dec Budget

3102 Legal Expenses $ 23,755 $ 26,000 $ 26,000 $ 26,000 0% 0% 4100 Judgements & Damages ‐ 1,000 1,000 1,000 0% 0% Total Solicitor/Legal Services $ 23,755 $ 27,000 $ 27,000 $ 27,000 0% 0%

Other General Government Administration 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐406.**** Estimate Inc/Dec Budget

1120 Salaries of Full‐Time Staff $ 76,459 $ 67,940 $ 67,940 $ 105,965 56% 2% 1920 FICA/Medicare Employer Paid 5,418 5,198 5,198 7,947 53% 0% 1960 Health Insurance 12,995 12,817 14,000 30,908 141% 0% 2100 Office Supplies 286 250 253 250 0% 0% 2150 Postage ‐ 100 166 100 0% 0% 2700 Computer Hardware & Software 2,176 2,000 2,000 2,000 0% 0% Total Other General Government Administration $ 97,334 $ 88,305 $ 89,557 $ 147,170 67% 2%

Billing & Collections 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐407.**** Estimate Inc/Dec Budget

3000 Billing & Collections 138,041 140,000 140,000 140,000 0% 2% 3001 Other Services & Charges $ 63 $ ‐ $ ‐ $ ‐ N/A 0% Total Billing & Collections $ 138,104 $ 140,000 $ 140,000 $ 140,000 0% 2%

51

2020 SEWER FUND BUDGET

EXPENSES

Engineering & Construction 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐408.****‐*** Estimate Inc/Dec Budget

3130‐000 Engineering & Architectural Services $ 4,719 $ 6,500 $ 6,500 $ 60,000 823% 1% 3130‐001 Engr Exp‐ACO Manhole Insp 3,595 2,500 2,500 2,500 0% 0% 3130‐002 Engr Exp‐ACO GIS ‐ 5,500 5,500 5,500 0% 0% 3130‐003 Engr Exp‐ACO Feasability Study ‐ 1,000 1,000 10,000 900% 0% 3130‐004 Engr Exp‐ACO O & M Plan 1,650 2,000 2,000 10,000 400% 0% 3130‐005 Engr Exp‐ACO Administration 1,083 1,000 1,000 10,000 900% 0% 3130‐008 Engr Exp‐COA CCTV ‐ 3,500 3,500 ‐ ‐100% 0% 3130‐010 Engr Exp‐COA Manhole Insp 1,567 1,000 9,880 1,000 0% 0% 3130‐011 Engr Exp‐COA I/I Field Investigation ‐ 1,000 1,000 ‐ ‐100% 0% 3130‐012 Engr Exp‐COA Flow Monitoring 20,521 30,000 40,000 15,000 ‐50% 0% 3130‐015 Eng Exp‐COA I/I Reduction Program 33,375 35,000 35,000 17,500 ‐50% 0% 3130‐020 Engr Exp‐Glass Run Sewer 1,232 7,262 7,262 ‐ ‐100% 0% 3130‐021 Annual O & M Repairs ‐ 250,000 25,000 25,000 ‐90% 0% 3130‐025 Const Exp‐Glass Run Road ‐ 150,000 45,000 100,000 ‐33% 1% 3135‐000 Eng Exp ‐ COA Wet Weather Flow 34,572 5,000 5,000 5,000 0% 0% 3135‐001 Const Exp‐ COA Wet Weather Flow ‐ 63,619 63,619 5,000 ‐92% 0% 3137‐000 Eng. Exp‐ Gardenville/LR30 244,644 200,000 229,200 5,000 ‐98% 0% 3137‐001 Const Exp‐ Gardenville/LR30 66,168 2,830,000 2,830,000 50,000 ‐98% 1% 3138‐000 Alcosan Regionalization ‐ 5,000 26,000 274,800 5396% 4% 3139‐000 MS‐4/PRP Engineering $ ‐ $ ‐ $ ‐ $ 66,000 N/A 1% Total Engineering & Construction $ 413,126 $ 3,599,881 $ 3,338,961 $ 662,300 ‐82% 10%

52

2020 SEWER FUND BUDGET

EXPENSES

Public Works 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐426.**** Estimate Inc/Dec Budget

1100 Salaries of Dept Head $ 79,012 $ 64,076 $ 64,076 $ 65,358 2% 1% 1120 Salaries of Full Time Crew 299,817 311,613 311,613 317,845 2% 5% 1150 Wages ‐ Part Time Crew 387 4,000 4,000 8,500 113% 0% 1800 Overtime 4,765 6,000 6,000 13,000 117% 0% 1860 Uniform Allowance 3,631 4,000 4,000 3,700 ‐8% 0% 1870 Meal Reimbursement 686 450 450 500 11% 0% 1920 FICA/Medicare Employer Paid 31,153 29,505 29,505 30,353 3% 0% 1960 Health Insurance 116,648 104,320 104,320 99,243 ‐5% 1% 2000 Supplies 2,300 1,500 1,500 1,500 0% 0% 2310 Vehicle Fuel ‐Gas 21,283 13,000 16,000 11,000 ‐15% 0% 2320 Vehicle Fuel‐Diesel 10,166 9,000 9,000 11,000 22% 0% 2510 Vehicle Parts 6,227 5,000 5,000 ‐ ‐100% 0% 3210 Telephone 739 775 775 762 ‐2% 0% 3240 Wireless Phones 1,050 1,050 1,050 900 ‐14% 0% 3270 Radio Maintenance Contract ‐ 500 500 500 0% 0% 3290 PA One Calls 1,350 1,200 1,200 1,200 0% 0% 3700 Repairs & Maintenance Services 15,110 5,000 5,500 5,000 0% 0% 3800 Vehicle Leasing 83,809 26,560 26,560 65,751 148% 1% 3840 Rent of Machinery & Equipment ‐ 500 500 500 0% 0% 4500 Contracted Services 20,440 18,000 18,495 18,000 0% 0% 4510 Vehicle Repairs & Maintenance 12,035 5,000 5,000 10,000 100% 0% 4520 Sewage Damage Restoration 27,678 30,000 32,065 35,000 17% 1% 4540 Misc. Expenses 3,397 3,600 3,600 3,600 0% 0% 4600 Continuing Education ‐ 985 995 1,900 93% 0% 4700 CDL, Drug & Alcohol Testing ‐ 250 250 250 0% 0% 7400 Machinery and Equipment 10,398 ‐ ‐ ‐ 0% 0% Total Public Works $ 752,081 $ 645,884 $ 651,954 $ 705,362 9% 10%

Wastewater Collection & Treatment 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐429.**** Estimate Inc/Dec Budget

3640 ALCOSAN Sewage Treatment $ 2,150,912 $ 2,242,006 $ 2,242,006 $ 2,368,786 6% 35% 3641 Pleasant Hills Authority Sewage Treatment 881,635 609,411 609,511 1,008,910 66% 15% 3642 COA Civil Penalty 24,000 15,000 15,000 2,000 ‐87% 0% 3643 Pleasant Hills EQ Basin Operation & Maint. 39,733 20,000 23,500 20,000 0% 1% 0000 PHA Digester Payment ‐ ‐ ‐ 302,240 N/A 4% Total Wastewater Collection & Treatment $ 3,096,280 $ 2,886,417 $ 2,890,017 $ 3,701,937 28% 54%

Public Works Road & Streets 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐436.**** Estimate Inc/Dec Budget

2490 Storm Sewers & Drains $ 5,120 $ 6,000 $ 6,000 $ 6,000 0% 0% Total Public Works Road & Streets $ 5,120 $ 6,000 $ 6,000 $ 6,000 0% 0%

53

2020 SEWER FUND BUDGET

EXPENSES

Debt Service 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐471.**** Estimate Inc/Dec Budget

1000 Debt Service Interest $ 728,139 $ 690,335 $ 690,335 $ 675,521 ‐2% 10% 2000 Debt Service Principal 640,200 652,072 652,072 664,846 2% 10% Total Debt Service $ 1,368,339 $ 1,342,407 $ 1,342,407 $ 1,340,367 0% 20%

Employer Paid Benefits & Withholding 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐48*.**** Estimate Inc/Dec Budget

481.1940 Unemployment Compensation‐ PSAB $ 2,251 $ 3,400 $ 3,400 $ 3,400 0% 0% 483.3000 Pension Contribution 45,000 55,000 40,000 25,000 ‐55% 0% 484.0000 Worker's Compensation 30,915 35,000 35,170 36,657 5% 1% Total Employer Paid Benefits & Withholding $ 78,166 $ 93,400 $ 78,570 $ 65,057 ‐30% 1%

Insurance 2019 % % of Total 2018 Actual 2019 Budget 2020 Budget 008‐486.**** Estimate Inc/Dec Budget

1980 Group Life Insurance 8,400 8,400 8,400 8,400 0% 0% 3510 Fire, Auto & General Liability 8,520 10,000 10,000 10,000 0% 0% Total Insurance $ 16,920 $ 18,400 $ 18,400 $ 18,400 0% 0%

Total Sewer Fund Budget

2019 % 2018 Actual 2019 Budget 2020 Budget Estimate Inc/Dec TOTAL REVENUES $ 6,040,797 $ 8,885,213 $ 8,668,183 $ 6,822,453 ‐23% TOTAL EXPENSES $ 5,996,261 $ 8,856,544 $ 8,591,716 $ 6,822,453 ‐23% DIFFERENCE $ 44,536 $ 28,669 $ 76,467 $ 0

54

2020 HIGHWAY AID FUND BUDGET

REVENUES

Pool Fund Revenue

Summary 2019 2018 Actual 2019 Budget 2020 Budget % Inc/Dec Estimate TOTAL REVENUES $ 154,500 $ 160,985 $ 160,223 $ 163,050 1%

Description The majority of revenue in the Pool Fund comes from charges for using the pool and funds transferred from the General Fund. During 2016 and 2017, the pool facilities have been greatly improved after extensive renovations. In 2020, season pass rates and daily admission rates will stay the same.

Budget Detail Revenue 2019 % of Total 2018 Actual 2019 Budget 2020 Budget % Inc/Dec 031‐3**.**** Estimate Budget

341.0000 Earnings from Temp Dep/Investments $ 1 $ 1 $ 1 $ 1 0% 0% 367.1100 Pool Passes & Tags 31,184 31,500 31,000 31,500 0% 19% 367.1110 Daily Admissions 29,055 33,000 35,517 33,000 0% 20% 367.1120 Private Pool Parties 4,426 5,000 5,250 5,000 0% 3% 367.1300 Concession Stand 11,340 11,000 11,380 11,200 2% 7% 392.0100 Transfer from General Fund 76,661 80,484 66,000 82,349 2% 51% 392.0100 Transfer from Fund Balance 1,833 ‐ 11,075 ‐ N/A 0% Total Pool Fund Revenue $ 154,500 $ 160,985 $ 160,223 $ 163,050 1% 100%

55

2020 HIGHWAY AID FUND BUDGET

EXPENSES

Pool Fund Expenses

Summary 2019 2018 Actual 2019 Budget 2020 Budget % Inc/Dec Estimate TOTAL EXPENSES $ 154,500 $ 160,985 $ 160,223 $ 163,050 1%

Description The pool is operated and managed by a third‐party professional pool management company. The Borough pays the company to staff and operate the pool from the end of May through the beginning of September each year.

In 2016 the pool building phase one remodel was completed, which focused on amenities inside the building, including new restrooms, lockers, and entry area. Phase two, completed in 2017, focused on the amenities and look of the exterior of the building, including canopy shade structures and signage.

Budget Detail Expenses 2019 % of Total 2018 Actual 2019 Budget 2020 Budget % Inc/Dec 031‐4**.**** Estimate Budget

452.1100 Pool Management Fee $ 87,129 $ 82,250 $ 82,250 $ 94,000 14% 58% 452.2200 Operting Supplies 1,620 5,700 6,289 2,000 ‐65% 1% 452.2220 Chemicals 9,550 7,500 6,529 7,500 0% 5% 452.2290 Refreshment Stand 6,095 5,500 7,055 6,000 9% 4% 452.3210 Telephone 236 235 200 250 6% 0% 452.3610 Utilities‐ Electricity 6,771 9,300 10,200 9,300 0% 6% 452.3620 Utilities‐ Gas 1,963 3,000 7,700 3,000 0% 2% 452.3660 Utilities‐ Water 30,498 30,000 22,000 25,000 ‐17% 15% 452.3700 Repairs & Maintenance Services 10,638 17,500 18,000 15,000 ‐14% 9% 452.7400 Machinery & Equipment ‐ ‐ ‐ 1,000 N/A 1% Total Pool Fund Expenses $ 154,500 $ 160,985 $ 160,223 $ 163,050 1% 100%

2019 2018 Actual 2019 Budget 2020 Budget % Inc/Dec Estimate TOTAL REVENUES $ 154,500 $ 160,985 $ 160,223 $ 163,050 1% TOTAL EXPENSES $ 154,500 $ 160,985 $ 160,223 $ 163,050 1%

56

2020 HIGHWAY AID FUND BUDGET

EXPENSES

Highway Aid Fund Revenue

Summary 2019 2018 Actual 2019 Budget 2020 Budget % Inc/Dec Estimate TOTAL REVENUES $ 585,201 $ 598,333 $ 601,005 $ 573,282 ‐4%

Description Revenue in the Highway Aid Fund comes from the annual liquid fuels state funding and the earnings from short‐term investments of those funds. The State of Pennsylvania collects a tax on diesel, gasoline, and other liquid fuels sold in the state. They then distribute that tax revenue to local governments based on the number of miles of roads within the Borough or Township.

Budget Detail Revenue 2019 % of Total 2018 Actual 2019 Budget 2020 Budget % Inc/Dec 035‐3**.**** Estimate Budget

341.0000 Earnings from Temp Deposits/Investments $ 5,436 $ 5,000 $ 7,672 $ 7,000 40% 1% 354.0000 State Motor License Fund Grants 579,764 593,333 593,333 566,282 ‐5% 99% Total Highway Aid Fund Revenue $ 585,201 $ 598,333 $ 601,005 $ 573,282 ‐4% 100%

57

2020 HIGHWAY AID FUND BUDGET

EXPENSES

Highway Aid Fund Expenses

Summary 2019 2018 Actual 2019 Budget 2020 Budget % Inc/Dec Estimate TOTAL EXPENSES $ 579,173 $ 581,302 $ 581,302 $ 573,282 ‐1%

Description Highway Aid expenses are restricted to purchases and projects that fall within the State’s list of appropriate uses for liquid fuels monies. In the past, the funding has been spent on purchasing rock salt and street light electricity. Due to mild 2015‐2017 winters, the Borough has spent less on rock salt which allows even more of the state funds to be contributed towards the Borough’s road repaving program.

Budget Detail Expenses 2019 % of Total 2018 Actual 2019 Budget 2020 Budget % Inc/Dec 035‐4**.**** Estimate Budget

432.2450 Highway Supplies ‐ Rock Salt $ 284,504 $ 236,302 $ 236,302 $ 228,282 ‐3% 40% 434.3610 Street Light Electricity 177,620 175,000 175,000 175,000 0% 31% 438.6100 Constr Contracts ‐ Road Paving 117,049 170,000 170,000 170,000 0% 30% Total Highway Aid Fund Expenses $ 579,173 $ 581,302 $ 581,302 $ 573,282 ‐1% 100%

2019 2018 Actual 2019 Budget 2020 Budget % Inc/Dec Estimate TOTAL EXPENSES $ 579,173 $ 581,302 $ 581,302 $ 573,282 ‐1%

58

2020 ASSET FORFEITURE FUND BUDGET

REVENUES

Asset Forfeiture Fund Revenue

Summary 2019 2018 Actual 2019 Budget 2020 Budget % Inc/Dec Estimate TOTAL REVENUES $ 88,165 $ 83,325 $ 83,325 $ 56,773 ‐32%

Description Revenue in the Asset Forfeiture Fund comes from money generated by the sales of assets the Drug Enforcement Administration (DEA) confiscates. Baldwin receives a percentage of each asset confiscated relating to cases the Baldwin Police Officer works on.

Budget Detail Revenue 2019 % of Total 2018 Actual 2019 Budget 2020 Budget % Inc/Dec 070‐3**.**** Estimate Budget

341.0000 Earnings from Temp Deposits $ 8 $ 10 $ 10 $ 8 ‐20% 0% 351.1400 Federal Forfeiture Revenue 88,157 40,654 40,654 5,000 ‐88% 9% 380.0300 Miscellaneous Receipt ‐ 10,000 10,000 ‐ ‐100% 0% 392.9900 Transfer from Fund Balance ‐ 32,661 32,661 51,765 58% 91% Total Asset Forfeiture Fund Revenue $ 88,165 $ 83,325 $ 83,325 $ 56,773 ‐32% 100%

59

2020 ASSET FORFEITURE FUND BUDGET

EXPENSES

Asset Forfeiture Fund Expenses

Summary 2019 2018 Actual 2019 Budget 2020 Budget % Inc/Dec Estimate TOTAL EXPENSES $ ‐ $ 83,325 $ 83,325 $ 56,773 ‐32%

Description The federal government has rules about what Asset Forfeiture funds can be used to purchase. In accordance with those guidelines, the funds will be spent on police supplies and a vehicle in 2019.

The funding for a new Ford Interceptor vehicle will come from the Asset Forfeiture fund. Additionally, the Asset Forfeiture Fund will be used to cover the cost of new tasers and the related training.

Budget Detail Expenses 2019 % of Total 2018 Actual 2019 Budget 2020 Budget % Inc/Dec 070‐410.**** Estimate Budget

2102 Supplies $ ‐ $ 9,725 $ 9,725 $ ‐ ‐100% 0% 3800 Vehicle Lease & Purchase ‐ 39,602 39,602 22,500 ‐43% 40% 7400 Machinery & Equipment ‐ 33,998 33,998 34,273 1% 60% Total Asset Forfeiture Fund Expenses $ ‐ $ 83,325 $ 83,325 $ 56,773 ‐32% 100%

2019 2018 Actual 2019 Budget 2020 Budget % Inc/Dec Estimate TOTAL REVENUES $ 88,165 $ 83,325 $ 83,325 $ 56,773 ‐32% TOTAL EXPENSES $ ‐ $ 83,325 $ 83,325 $ 56,773 ‐32%

60

APPENDIX D

2019 Municipal Annual Audit and Financial Report [ THIS PAGE INTENTIONALLY LEFT BLANK ] DCED-CLGS-30 (9-09) Department of Community & Economic Development Governor's Center for Local Government Services Received by DCED: 03/28/2020 Approved by DCED: Commonwealth Keystone Building 400 North Street, 4th Floor Harrisburg, PA 17120-0225 Ph: 888-223-6837 | fax: 717-783-1402

2019 MUNICIPAL ANNUAL AUDIT AND FINANCIAL REPORT

020123 BALDWIN BORO, ALLEGHENY COUNTY [ THIS PAGE INTENTIONALLY LEFT BLANK ]

Independent Auditor’s Report

Members of Council We have audited the Balance Sheet, Statement of Revenues and Borough of Baldwin Expenditures, Debt Statement, and Statements of Capital Expenditures and Employee Compensation – regulatory basis (Schedules) included in the 2019 Municipal Annual Audit and Financial Report of the Borough of Baldwin (Borough), Pennsylvania.

Management’s Responsibility for the Schedules

Management is responsible for the preparation and fair presentation of these Schedules in accordance with the financial reporting provisions as described in the instructions provided by

the Commonwealth of Pennsylvania Department of Community and Economic Development (DCED) to meet filing requirements in Pennsylvania. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of Schedules that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these Schedules based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Schedules are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Schedules. The procedures selected depend on the auditor’s judgment, including assessment of the risks of material misstatement of the Schedules, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the Schedules in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the Schedules.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Pursuing the profession while promoting the public good© Pittsburgh | Harrisburg | Butler www.md‐cpas.com State College | Erie | Lancaster

Members of Council Borough of Baldwin Independent Auditor’s Report Page 2

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

To meet the financial reporting requirements of the Commonwealth of Pennsylvania, the Schedules are prepared by the Borough on the basis of the instructions provided by DCED, which is a basis of accounting other than accounting principles generally accepted in the United States of America. These requirements permit the Schedules to be prepared without financial statement disclosures, without cash flows, without component unit financial information, without government–wide financial statements, without Management’s Discussion and Analysis, without budgetary comparisons and historical pension information, and require all funds to be aggregated by fund type on the Schedules.

The effects on the Schedules of the variances between the regulatory basis of accounting described above and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” paragraph, the Schedules referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Borough as of December 31, 2019 and the results of its operations for the year then ended.

Unmodified Opinion on Regulatory Basis of Accounting

In our opinion, the Schedules referred to above present fairly, in all material respects, the regulatory basis financial position of the Borough as of December 31, 2019 and the regulatory results of its operations for the year then ended in accordance with the financial reporting provisions described in the instructions provided by DCED.

Pittsburgh, Pennsylvania March 24, 2020 DCED-CLGS-30 (9-09) BALANCE SHEET

DCED-CLGS-30 (09-09) BALDWIN BORO, ALLEGHENY County BALANCE SHEET December 31, 2019 Governmental Funds Proprietary Funds Fid. Fund Account Groups Total Special Revenue General General Capital Internal Trust and General Memorandum (Including Debt Service Enterprise Long Term Fund Projects Service Agency Fixed Assets Only State Liquid Debt Fuels) Assets and Other Debits

100-120 Cash and Investments 1,434,683 234,460 827,982 3,618,023 23,203,755 29,318,903

140-144 Tax Receivable 914,780 914,780

121-129, 145-149 Accounts Receivable (excluding taxes) 9,244 493,003 502,247

130.00 Due From Other Funds 158,892 114,707 273,599

131-139, 150-159 Other Current Assets 214,833 19,854 234,687

160-169 Fixed Assets 22,251,088 10,661,068 32,912,156

180-189 Other Debits 467,588 5,119,079 5,586,667

Total Assets and Other Debits 2,732,432 234,460 827,982 26,849,556 23,318,462 10,661,068 5,119,079 69,743,039

Liabilities and Other Credits Payroll Taxes and Other Payroll 210-229 59,187 11,361 70,548 Withholdings 200-209, 231-239 All Other Current Liabilities 603,986 13,310 100,000 603,598 1,320,894

230.00 Due To Other Funds 158,892 114,707 273,599 DCED-CLGS-30 (09-09) BALDWIN BORO, ALLEGHENY County BALANCE SHEET December 31, 2019 Governmental Funds Proprietary Funds Fid. Fund Account Groups Total Special Revenue General General Capital Internal Trust and General Memorandum (Including Debt Service Enterprise Long Term Fund Projects Service Agency Fixed Assets Only State Liquid Debt Fuels) Liabilities and Other Credits

260-269 Long-Term-Liabilities 20,859,623 4,683,472 25,543,095 Current Portion of Long-Term Debt and 240-259 690,055 435,607 1,125,662 Other Credits Total Liabilities and Other Credits 663,173 13,310 100,000 22,323,529 114,707 5,119,079 28,333,798

Fund and Account Group Equity

281-284 Contributed Capital

290.00 Investment in General Fixed Assets 10,661,068 10,661,068 Fund Balance / Retained Earnings on 270-289 2,069,259 221,150 727,982 4,526,027 23,203,755 30,748,173 12/31

291-299 Other Equity Total Fund and Account Group 2,069,259 221,150 727,982 4,526,027 23,203,755 10,661,068 41,409,241 Equity

TOTAL LIABILITIES AND FUND AND ACCOUNT GROUP EQUITY 69,743,039 DCED-CLGS-30 (9-09) BALDWIN BORO, ALLEGHENY County STATEMENT OF REVENUES AND EXPENDITURES December 31, 2019 Governmental Funds Proprietary Funds Fiduciary Fund Total Special Revenue Trust and Memorandum General Fund Capital Projects Debt Service Enterprise Internal Service (Including State Agency Only Liquid Fuels) REVENUES Taxes

301.00 Real Estate Taxes 6,297,446 6,297,446

305.00 Occupation Taxes (levied under municipal code)

308.00 Residence Taxes (levied by cities of the 3rd Class) Regional Asset District Sales Tax (Allegheny County 309.00 636,726 636,726 municipalities only)

310.00 Per Capita Taxes

310.10 Real Estate Transfer Taxes 286,440 286,440

310.20 Earned Income Taxes / Wage Taxes 2,646,341 2,646,341

310.30 Business Gross Receipts Taxes

310.40 Occupation Taxes (levied under Act 511)

310.50 Local Services Tax ** 187,123 187,123

310.60 Amusement / Admission Taxes

310.70 Mechanical Device Taxes

310.90 Other: ______

Other: ______

Total Taxes 10,054,076 10,054,076

Licenses and Permits

320-322 All Other Licenses and Permits 56,695 56,695

321.80 Cable Television Franchise Fees 397,642 397,642

Total Licenses and Permits 454,337 454,337

Fines and Forfeits

330-332 Fines and Forfeits 75,805 75,805

Total Fines and Forfeits 75,805 75,805 DCED-CLGS-30 (9-09) BALDWIN BORO, ALLEGHENY County STATEMENT OF REVENUES AND EXPENDITURES December 31, 2019 Governmental Funds Proprietary Funds Fiduciary Fund Total Special Revenue Trust and Memorandum General Fund Capital Projects Debt Service Enterprise Internal Service (Including State Agency Only Liquid Fuels) REVENUES Interest, Rents and Royalties

341.00 Interest Earnings 62,202 7,853 18,695 85,621 3,972,281 4,146,652

342.00 Rents and Royalties 3,850 3,850

Total Interest, Rents and Royalties 66,052 7,853 18,695 85,621 3,972,281 4,150,502

Federal

351.03 Highways and Streets

351.09 Community Development

351.00 All Other Federal Capital and Operating Grants 93,039 93,039

352.01 National Forest

352.00 All Other Federal Shared Revenue and Entitlements

353.00 Federal Payments in Lieu of Taxes

Total Federal 93,039 93,039

State

354.03 Highways and Streets 11,273 11,273

354.09 Community Development 8,024 8,024

354.15 Recycling / Act 101 28,519 28,519

354.00 All Other State Capital and Operating Grants 33,052 33,052

355.01 Public Utility Realty Tax (PURTA) 9,036 9,036

355.02- Motor Vehicle Fuel Tax (Liquid Fuels Tax) and State 593,333 593,333 355.03 Road Turnback

355.04 Alcoholic Beverage Licenses 3,800 3,800

355.05 General Municipal Pension System State Aid 343,073 343,073

355.07 Foreign Fire Insurance Tax Distribution 93,607 93,607

355.08 Local Share Assessment/Gaming Proceeds

355.09 Marcellus Shale Impact Fee Distribution 11,162 11,162 DCED-CLGS-30 (9-09) BALDWIN BORO, ALLEGHENY County STATEMENT OF REVENUES AND EXPENDITURES December 31, 2019 Governmental Funds Proprietary Funds Fiduciary Fund Total Special Revenue Trust and Memorandum General Fund Capital Projects Debt Service Enterprise Internal Service (Including State Agency Only Liquid Fuels) REVENUES State

355.00 All Other State Shared Revenues and Entitlements

356.00 State Payments in Lieu of Taxes

Total State 541,546 593,333 1,134,879

Local Government Units

357.03 Highways and Streets All Other Local Governmental Units Capital and 357.00 Operating Grants Local Government Unit Shared Payments for Contracted 358.00 100,000 100,000 Intergovernmental Services Local Governmental Units and Authorities Payments in 359.00 Lieu of Taxes Total Local Government Units 100,000 100,000

Charges for Service

361.00 General Government 10,782 10,782

362.00 Public Safety 252,891 252,891

363.20 Parking

363.00 All Other Charges for Highway & Street Services 13,420 13,420 Wastewater / Sewage (including connection / tapping 364.10 5,077,583 5,077,583 fees, sewer usage charges, reserve capacity fee, etc.)

364.30 Solid Waste Collection and Disposal Charge (trash)

364.60 Host Municipality Benefit Fee for Solid Waste Facility

364.00 All Other Charges for Sanitation Services

365.00 Health 1,018 1,018

366.00 Human Services

367.00 Culture and Recreation 3,623 83,147 86,770

368.00 Airports

369.00 Bars DCED-CLGS-30 (9-09) BALDWIN BORO, ALLEGHENY County STATEMENT OF REVENUES AND EXPENDITURES December 31, 2019 Governmental Funds Proprietary Funds Fiduciary Fund Total Special Revenue Trust and Memorandum General Fund Capital Projects Debt Service Enterprise Internal Service (Including State Agency Only Liquid Fuels) REVENUES Charges for Service

370.00 Cemeteries

372.00 Electric System

373.00 Gas System

374.00 Housing System

375.00 Markets

377.00 Transit Systems

378.00 Water System

379.00 All Other Charges for Service

Total Charges for Service 281,734 5,160,730 5,442,464

Unclassified Operating Revenues

383.00 Special Assessments

386.00 Escheats (sale of personal property)

387.00 Contributions and Donations from Private Sectors

388.00 Fiduciary Fund Pension Contributions 1,651,339 1,651,339

389.00 All Other Unclassified Operating Revenues 41,716 75 41,791

Total Unclassified Operating Revenues 41,716 1,651,414 1,693,130

Other Financing Sources

391.00 Proceeds of General Fixed Asset Disposition

392.00 Interfund Operating Transfers 210,406 16,667 76,001 303,074

393.00 Proceeds of General Long-Term Debt 349,617 349,617

394.00 Proceeds of Short Term-Debt

395.00 Refunds of Prior Year Expenditures

Total Other Financing Sources 560,023 16,667 76,001 652,691 DCED-CLGS-30 (9-09) BALDWIN BORO, ALLEGHENY County STATEMENT OF REVENUES AND EXPENDITURES December 31, 2019 Governmental Funds Proprietary Funds Fiduciary Fund Total Special Revenue Trust and Memorandum General Fund Capital Projects Debt Service Enterprise Internal Service (Including State Agency Only Liquid Fuels) TOTAL REVENUES 12,168,328 617,853 18,695 5,422,352 5,623,695 23,850,923 EXPENDITURES General Government

400.00 Legislative (Governing) Body 47,542 47,542

401.00 Executive (Manager or Mayor) 204,949 204,949

402.00 Auditing Services / Financial Administration 17,654 17,654

403.00 Tax Collection 180,671 180,671

404.00 Solicitor / Legal Services 4,475 24,882 29,357

405.00 Secretary / Clerk

406.00 Other General Government Administration 140,531 140,531

407.00 IT-Networking Services-Data Processing 928 928

408.00 Engineering Services 115,265 115,265

409.00 General Government Buildings and Plant 171,102 171,102

Total General Government 883,117 24,882 907,999

Public Safety

410.00 Police 3,918,035 3,918,035

411.00 Fire 335,146 335,146

412.00 Ambulance / Rescue 50,238 50,238

413.00 UCC and Code Enforcement 257,240 257,240

414.00 Planning and Zoning

415.00 Emergency Management and Communications

416.00 Militia and Armories

417.00 Examination of Licensed Occupations

418.00 Public Scales (weights and measures)

419.00 Other Public Safety

Total Public Safety 4,560,659 4,560,659 DCED-CLGS-30 (9-09) BALDWIN BORO, ALLEGHENY County STATEMENT OF REVENUES AND EXPENDITURES December 31, 2019 Governmental Funds Proprietary Funds Fiduciary Fund Total Special Revenue Trust and Memorandum General Fund Capital Projects Debt Service Enterprise Internal Service (Including State Agency Only Liquid Fuels) EXPENDITURES Health and Human Services 420.00- 425.00 Health and Human Services Total Health and Human Services

Public Works - Sanitation

426.00 Recycling Collection and Disposal 322,843 58,310 381,153

427.00 Solid Waste Collection and Disposal (garbage) 1,121,064 1,121,064

428.00 Weed Control

429.00 Wastewater / Sewage Treatment and Collection 4,317,656 4,317,656

Total Public Works - Sanitation 1,443,907 4,375,966 5,819,873

Public Works - Highways and Streets

430.00 General Services - Administration 1,079,920 1,079,920

431.00 Cleaning of Streets and Gutters

432.00 Winter Maintenance – Snow Removal 209,503 209,503

433.00 Traffic Control Devices 24,786 24,786

434.00 Street Lighting 172,971 172,971

435.00 Sidewalks and Crosswalks

436.00 Storm Sewers and Drains 36,494 6,000 42,494

437.00 Repairs of Tools and Machinery

438.00 Maintenance and Repairs of Roads and Bridges 853,460 131,241 984,701

439.00 Highway Construction and Rebuilding Projects

Total Public Works - Highways and Streets 1,994,660 513,715 6,000 2,514,375 DCED-CLGS-30 (9-09) BALDWIN BORO, ALLEGHENY County STATEMENT OF REVENUES AND EXPENDITURES December 31, 2019 Governmental Funds Proprietary Funds Fiduciary Fund Total Special Revenue Trust and Memorandum General Fund Capital Projects Debt Service Enterprise Internal Service (Including State Agency Only Liquid Fuels) EXPENDITURES Other Public Works Enterprises

440.00 Airports

441.00 Cemeteries

442.00 Electric System

443.00 Gas System

444.00 Markets

445.00 Parking

446.00 Storm Water and Flood Control

447.00 Transit System

448.00 Water System

449.00 Water Transport and Terminals Total Other Public Works Enterprises

Culture and Recreation

451.00 Culture-Recreation Administration

452.00 Participant Recreation 159,415 159,415

453.00 Spectator Recreation

454.00 Parks 318,959 318,959

455.00 Shade Trees

456.00 Libraries 185,000 185,000

457.00 Civil and Military Celebrations 5,595 5,595

458.00 Senior Citizens’ Centers

459.00 All Other Culture and Recreation

Total Culture and Recreation 509,554 159,415 668,969

Community Development

461.00 Conservation of Natural Resources DCED-CLGS-30 (9-09) BALDWIN BORO, ALLEGHENY County STATEMENT OF REVENUES AND EXPENDITURES December 31, 2019 Governmental Funds Proprietary Funds Fiduciary Fund Total Special Revenue Trust and Memorandum General Fund Capital Projects Debt Service Enterprise Internal Service (Including State Agency Only Liquid Fuels) EXPENDITURES Community Development

462.00 Community Development and Housing

463.00 Economic Development

464.00 Economic Opportunity

465-469 All Other Community Development Total Community Development

Debt Service

471.00 Debt Principal (short-term and long-term) 411,812 411,812

472.00 Debt Interest (short-term and long-term) 157,018 716,705 873,723

475.00 Fiscal Agent Fees 61,896 61,896

Total Debt Service 568,830 716,705 61,896 1,347,431

Employer Paid Benefits and Withholding Items Employer Paid Withholding Taxes and Unemployment 481.00 13,888 2,270 16,158 Compensation

482.00 Judgments and Losses

483.00 Pension / Retirement Fund Contributions 1,396,346 40,000 1,436,346

484.00 Worker Compensation Insurance 189,984 33,798 223,782

487.00 Other Group Insurance Benefits 5,782 8,400 14,182 Total Employer Paid Benefits and Withholding 1,606,000 84,468 1,690,468 Items

Insurance

486.00 Insurance, Casualty, and Surety 88,159 9,067 97,226

Total Insurance 88,159 9,067 97,226 DCED-CLGS-30 (9-09) BALDWIN BORO, ALLEGHENY County STATEMENT OF REVENUES AND EXPENDITURES December 31, 2019 Governmental Funds Proprietary Funds Fiduciary Fund Total Special Revenue Trust and Memorandum General Fund Capital Projects Debt Service Enterprise Internal Service (Including State Agency Only Liquid Fuels) EXPENDITURES Unclassified Operating Expenditures

488.00 Fiduciary Fund Benefits and Refunds Paid 1,282,116 1,282,116

489.00 All Other Unclassified Expenditures 18,123 18,123

Total Unclassified Operating Expenditures 18,123 1,282,116 1,300,239

Other Financing Uses

491.00 Refund of Prior Year Revenues 8,183 8,183

492.00 Interfund Operating Transfers 92,668 210,406 303,074

493.00 All Other Financing Uses

Total Other Financing Uses 100,851 210,406 311,257

TOTAL EXPENDITURES 11,755,737 513,715 210,406 5,394,626 1,344,012 19,218,496

EXCESS/DEFICIT OF REVENUES OVER 412,591 104,138 -191,711 27,726 4,279,683 4,632,427 EXPENDITURES DCED-CLGS-30 (9-06) BALDWIN BORO December 31, 2019

DEBT STATEMENT OUTSTANDING BONDS AND NOTES Listed below are all currently outstanding bond and note issues according to our files, excluding bond issues redeemed or refunded and defeased. Please show the principal payments and make any other necessary corrections and additions. Purpose Bond (B) Issue Year Maturity Original Outstanding Principal Principal Current Year Outstanding at Plus (less) Total Capital Lease (C) (yyyy) Year Amount of Beginning of Incurred Paid This Accretion on Year End (1) Unamortized Balance Lease Rental (L) (yyyy) Issue Year (1) This Year Year Compound Interest Premium Note (N) Bonds (Discount) General Obligation Bonds and Notes

General Obligation Bonds Bond 2011 2032 7,425,000 725,000 235,000 490,000 490,000

General Obligation Bonds - Series A Bond 2012 2026 3,360,000 2,025,000 260,000 1,765,000 1,765,000

General Obligation Bonds - Series B Bond 2012 2043 11,010,000 10,970,000 20,000 10,950,000 -207,950 10,742,050

General Obligation Bonds Bond 2015 2035 3,670,000 3,230,000 155,000 3,075,000 -69,287 3,005,713

General Obligation Bonds - Refunding Series Bond 2015 2032 5,885,000 5,810,000 40,000 5,770,000 5,770,000

General Obligation Bonds Bond 2017 2037 4,575,000 4,405,000 175,000 4,230,000 4,230,000

Allegheny County AIM Loan Note 2017 2022 152,635 122,108 30,527 91,581 91,581

Allegheny County AIM Loan Note 2018 2021 80,400 80,400 26,800 53,600 53,600

Revenue Bonds and Notes

Lease Rental Debt

Capital Leases Capital Leases 2008 2017 1,025,486 131,571 86,406 45,165 45,165

Capital Lease Capital Leases 2018 2021 35,000 35,000 11,242 23,758 23,758

Capital Leases Capital Leases 2019 2024 505,290 0 505,290 53,400 451,890 451,890

Other

(1) - excludes unamortized premium/discount Total bonds and notes outstanding 26,147,944

Capitalized lease obligations 520,813

Net debt 26,668,757 DCED-CLGS-30 (9-09) BALDWIN BORO, ALLEGHENY County STATEMENT OF CAPITAL EXPENDITURES December 31, 2019

Category Capital Purchases Capital Construction Total Community Development

Electric

Fire

Gas System

General Government 15,159 15,159

Health

Housing

Libraries

Mass Transit

Parks 256,855 256,855

Police 136,535 136,535

Recreation

Sewer 3,441,961 3,441,961

Solid Waste

Streets / Highways 369,870 369,870

Water

Other: ______TOTAL CAPITAL EXPENDITURES 778,419 3,441,961 4,220,380

EMPLOYEE COMPENSATION

Total salaries, wages, commissions, etc. paid this year (including all employees and elected officials) 4,032,658 DCED-CLGS-30 (9-09) Independent Public Accountant/Certified Public Accountant Submission Page Opinion page was provided in lieu of signature page.

SIGNATURE AND VERIFICATION

Signed: See Attached Appointed Auditor/CPA

DCED-CLGS-30 (9-09)

December 31, 2019

NOTES / COMMENTS

APPENDIX E

Specimen Municipal Bond Insurance Policy

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MUNICIPAL BOND INSURANCE POLICY

ISSUER: [NAME OF ISSUER] Policy No: _____

MEMBER: [NAME OF MEMBER]

BONDS: $______in aggregate principal Effective Date: ______amount of [NAME OF TRANSACTION] [and maturing on] Risk Premium: $______Member Surplus Contribution: $ ______Total Insurance Payment: $______

BUILD AMERICA MUTUAL ASSURANCE COMPANY (“BAM”), for consideration received, hereby UNCONDITIONALLY AND IRREVOCABLY agrees to pay to the trustee (the “Trustee”) or paying agent (the “Paying Agent”) for the Bonds named above (as set forth in the documentation providing for the issuance and securing of the Bonds), for the benefit of the Owners or, at the election of BAM, directly to each Owner, subject only to the terms of this Policy (which includes each endorsement hereto), that portion of the principal of and interest on the Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer.

On the later of the day on which such principal and interest becomes Due for Payment or the first Business Day following the Business Day on which BAM shall have received Notice of Nonpayment, BAM will disburse (but without duplication in the case of duplicate claims for the same Nonpayment) to or for the benefit of each Owner of the Bonds, the face amount of principal of and interest on the Bonds that is then Due for Payment but is then unpaid by reason of Nonpayment by the Issuer, but only upon receipt by BAM, in a form reasonably satisfactory to it, of (a) evidence of the Owner’s right to receive payment of such principal or interest then Due for Payment and (b) evidence, including any appropriate instruments of assignment, that all of the Owner’s rights with respect to payment of such principal or interest that is Due for Payment shall thereupon vest in BAM. A Notice of Nonpayment will be deemed received on a given Business Day if it is received prior to 1:00 p.m. (New York time) on such Business Day; otherwise, it will be deemed received on the next Business Day. If any Notice of Nonpayment received by BAM is incomplete, it shall be deemed not to have been received by BAM for purposes of the preceding sentence, and BAM shall promptly so advise the Trustee, Paying Agent or Owner, as appropriate, any of whom may submit an amended Notice of Nonpayment. Upon disbursement under this Policy in respect of a Bond and to the extent of such payment, BAM shall become the owner of such Bond, any appurtenant coupon to such Bond and right to receipt of payment of principal of or interest on such Bond and shall be fully subrogated to the rights of the Owner, including the Owner’s right to receive payments under such Bond. Payment by BAM either to the Trustee or Paying Agent for the benefit of the Owners, or directly to the Owners, on account of any Nonpayment shall discharge the obligation of BAM under this Policy with respect to said Nonpayment.

Except to the extent expressly modified by an endorsement hereto, the following terms shall have the meanings specified for all purposes of this Policy. “Business Day” means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State of New York or the Insurer’s Fiscal Agent (as defined herein) are authorized or required by law or executive order to remain closed. “Due for Payment” means (a) when referring to the principal of a Bond, payable on the stated maturity date thereof or the date on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to any earlier date on which payment is due by reason of call for redemption (other than by mandatory sinking fund redemption), acceleration or other advancement of maturity (unless BAM shall elect, in its sole discretion, to pay such principal due upon such acceleration together with any accrued interest to the date of acceleration) and (b) when referring to interest on a Bond, payable on the stated date for payment of interest. “Nonpayment” means, in respect of a Bond, the failure of the Issuer to have provided sufficient funds to the Trustee or, if there is no Trustee, to the Paying Agent for payment in full of all principal and interest that is Due for Payment on such Bond. “Nonpayment” shall also include, in respect of a Bond, any payment made to an Owner by or on behalf of the Issuer of principal or interest that is Due for Payment, which payment has been recovered from such Owner pursuant to the United States Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction. “Notice” means delivery to BAM of a notice of claim and certificate, by certified mail, email or telecopy as set forth on the attached Schedule or other acceptable electronic delivery, in a form satisfactory to BAM, from and signed by an Owner, the Trustee or the Paying Agent, which notice shall specify (a) the person or entity making the claim, (b) the Policy Number, (c) the claimed amount, (d) payment instructions and (e) the date such claimed amount becomes or became Due for Payment. “Owner” means, in respect of a Bond, the person or entity who, at the time of Nonpayment, is entitled under the terms of such Bond to payment thereof, except that “Owner” shall not include the Issuer, the Member or any other person or entity whose direct or indirect obligation constitutes the underlying security for the Bonds.

BAM may appoint a fiscal agent (the “Insurer’s Fiscal Agent”) for purposes of this Policy by giving written notice to the Trustee, the Paying Agent, the Member and the Issuer specifying the name and notice address of the Insurer’s Fiscal Agent. From and after the date of receipt of such notice by the Trustee, the Paying Agent, the Member or the Issuer (a) copies of all notices required to be delivered to BAM pursuant to this Policy shall be simultaneously delivered to the Insurer’s Fiscal Agent and to BAM and shall not be deemed received until received by both and (b) all payments required to be made by BAM under this Policy may be made directly by BAM or by the Insurer’s Fiscal Agent on behalf of BAM. The Insurer’s Fiscal Agent is the agent of BAM only, and the Insurer’s Fiscal Agent shall in no event be liable to the Trustee, Paying Agent or any Owner for any act of the Insurer’s Fiscal Agent or any failure of BAM to deposit or cause to be deposited sufficient funds to make payments due under this Policy.

To the fullest extent permitted by applicable law, BAM agrees not to assert, and hereby waives, only for the benefit of each Owner, all rights (whether by counterclaim, setoff or otherwise) and defenses (including, without limitation, the defense of fraud), whether acquired by subrogation, assignment or otherwise, to the extent that such rights and defenses may be available to BAM to avoid payment of its obligations under this Policy in accordance with the express provisions of this Policy. This Policy may not be canceled or revoked.

This Policy sets forth in full the undertaking of BAM and shall not be modified, altered or affected by any other agreement or instrument, including any modification or amendment thereto. Except to the extent expressly modified by an endorsement hereto, any premium paid in respect of this Policy is nonrefundable for any reason whatsoever, including payment, or provision being made for payment, of the Bonds prior to maturity. THIS POLICY IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW. THIS POLICY IS ISSUED WITHOUT CONTINGENT MUTUAL LIABILITY FOR ASSESSMENT.

In witness whereof, BUILD AMERICA MUTUAL ASSURANCE COMPANY has caused this Policy to be executed on its behalf by its Authorized Officer.

BUILD AMERICA MUTUAL ASSURANCE COMPANY

By: ______Authorized Officer

2

Notices (Unless Otherwise Specified by BAM)

Email: [email protected] Address: 1 World Financial Center, 27th floor 200 Liberty Street New York, New York 10281 Telecopy: 212-962-1524 (attention: Claims)

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APPENDIX F

Form of Opinion of Bond Counsel

[ THIS PAGE INTENTIONALLY LEFT BLANK ] OPINION OF BOND COUNSEL

The form of the approving legal opinion of Dinsmore & Shohl LLP, Bond Counsel, is set forth below. The actual opinion will be delivered on the date of delivery of the Bonds and may vary from the form set forth to reflect circumstances both factual and legal at the time of such delivery. Bond Counsel has no duty, and has assumed no obligation, to revise, update or supplement its opinion to address or reflect a change or changes in such circumstances subsequent to the date of delivery of the Bonds, whether or not it has notice or obtains knowledge of the same, and whether or not this Official Statement shall be recirculated. The approving legal opinion of Bond Counsel represents its considered professional judgment, following a comparison of relevant factual certifications to applicable law. Such opinion is not a guarantee of a particular result, nor is such opinion binding on any administrative or judicial tribunal.

We have served as Bond Counsel to the Borough of Baldwin (Allegheny County, Pennsylvania) (the “Local Government Unit”) and do hereby undertake to advise you in connection with the issuance, sale and delivery of its $______, aggregate principal amount, General Obligation Bonds, Series of 2020 (the “Bonds”), issued in fully registered form, dated and bearing interest from ______, maturing on various annual dates ending ______and subject to redemption at the option of the Local Government Unit beginning ______.

In that capacity, we have examined the Constitution of the Commonwealth of Pennsylvania; the Borough Code, Act 581 of 1965, P.L. 1656, as amended (the “Municipal Code”); the Local Government Unit Debt Act, 53 Pa.C.S.A. §8001 et seq., as amended (the "Debt Act"); the formal action of the Governing Body of the Local Government Unit authorizing the incurrence of nonelectoral debt evidenced by the Bonds (the “Debt Ordinance”); the corresponding Certificate of Approval of the Department of Community and Economic Development; the Opinion of Stanley Lederman, Esq., solicitor for the Local Government Unit, on which we have relied; the Internal Revenue Code of 1986, as amended (the “Tax Code”); and such other proceedings and law as we deemed necessary in order to render this opinion. We have reviewed the Federal Income Tax Certificate of an authorized officer of the Local Government Unit, along with other closing certificates of the Local Government Unit and other parties to the issuance and sale of the Bonds. Unless separately noted, we have relied upon, but have not independently verified, factual certifications made to us by the Local Government Unit, its officers and agents, and by said other parties, both in such certificates and otherwise during the course of our engagement.

Both principal of, and interest on, the Bonds are payable at the principal corporate trust office of U.S. Bank National Association, Pittsburgh, Pennsylvania, as Paying Agent for the Local Government Unit; said bank has additionally been appointed Registrar and Sinking Fund Depository for the Bonds.

We have not been engaged nor undertaken to review the adequacy of disclosure in the Official Statement nor in any other securities offering material produced in respect of the Bonds and, except as to matters set forth in this opinion and described as such in said Official Statement, we express no opinion or belief with respect thereto.

1. Based on the foregoing, we are of the opinion on this date as follows:

(a) The Bonds are valid and binding general obligations of the Local Government Unit.

(b) The Bonds are issued for a valid purpose under the Municipal Code.

(c) The Bonds, and all other outstanding debt of the Local Government Unit, are within constitutional and statutory limitations.

(d) The Debt Ordinance authorizing the Bonds was duly and properly enacted and is in full force and effect.

(e) The Bonds conform, in all substantial respects, to the form provided in the Debt Ordinance.

2. The Bonds are secured by a pledge of the full faith, credit and taxing power of the Local Government Unit. The Local Government Unit has effectively covenanted in the Debt Ordinance to include the amount of debt service on this issue, in each fiscal year for which such sums are due, in its budget for that year; to appropriate such amount to the payment of such debt service; and to pay or cause to be paid, from time to time as and when due, the principal of every Bond and the interest thereon on the dates, at the place and in the manner stated in the Bonds.

3. Presently included among the general revenues of the Local Government Unit available for the payment of the Bonds are ad valorem taxes which may be levied, without limitation as to rate or amount, upon all taxable real property situate within the corporate limits of the Local Government Unit.

4. The Bonds are payable and enforceable according to their own terms, those of the Debt Ordinance and all provisions of the Debt Act; however, any such payment and enforcement could be restrained by a court of proper jurisdiction operating under the authority of bankruptcy, receivership and other similar laws of accommodation and adjustment of creditors' rights, as then applicable. Upon the satisfaction of certain preconditions under the Municipalities Financial Recovery Act, a municipality, such as the Local Government Unit, may seek to restructure its debt under the supervision of the Department of Community and Economic Development and is also authorized to file a Federal municipal debt adjustment action under Chapter 9 of the U.S. Bankruptcy Code.

5. The Bonds, having all the qualities and incidents of securities under Article 8 of the Uniform Commercial Code, are negotiable instruments.

6. The Bonds are an authorized investment, under the Probate, Estates and Fiduciaries Code, as amended, for fiduciaries and personal representatives (as such terms are therein defined) within the Commonwealth of Pennsylvania.

7. Under the laws, regulations, rulings and judicial decisions in effect as of the date hereof, interest on and accruals of original issue discount with respect to the Bonds are excludable from gross income for Federal income tax purposes, pursuant to the Tax Code. Furthermore, interest on and accruals of original issue discount with respect to the Bonds will not be treated as a specific item of tax preference, under Section 57(a)(5) of the Tax Code, in computing the alternative minimum tax for individuals. Due to the designation of the Bonds as “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Tax Code, certain financial institutions may be able to deduct 80% of the interest expense incurred in purchasing or carrying the Bonds. In rendering the opinions in this paragraph, we have assumed continuing compliance with certain covenants designed to meet the requirements of Section 103 of the Tax Code. We express no opinion as to any other Federal income tax consequence arising from ownership of the Bonds.

8. The Bonds, and interest income therefrom, are free from taxation for purposes of personal income, corporate net income and personal property taxes within the Commonwealth of Pennsylvania.

This opinion is rendered 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 be brought to our attention, or any changes in law that may hereafter arise.

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