2-2024 Annual Comprehensive Annual Reports (1).pdf

Radnor Township 301 Iven Avenue Wayne, PA 19087

610.688.5600 www.radnor.com

Radnor Township Annual Comprehensive Financial Report

For the Year Ended, December 31, 2024

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

For the year ended, December 31, 2024

TOWNSHIP OF RADNOR,

DELAWARE COUNTY,

PENNSYLVANIA

The Best Place to Live, Work and Do Business on the Main Line!

Prepared by:

Radnor Township Finance Department

Robert V. Tate, Jr., CPA Director of Finance

TOWNSHIP OF RADNOR, PENNSYLVANIA

TABLE OF CONTENTS

YEAR ENDED DECEMBER 31, 2024

Introductory Section

Transmittal Letter ..................................................................................................................................................... i Principal Officials...................................................................................................................................................... x Organization Chart ...................................................................................................................................................xi Map of Radnor Township ........................................................................................................................................ xii Certificate of Achievement for Excellence in Financial Reporting ............................................................................ xiii

Financial Section

Independent Auditors’ Report

Management’s Discussion and Analysis

Basic Financial Statements

Government-Wide Financial Statements Statement of Net Position Statement of Activities Fund Financial Statements:

Balance Sheet – Governmental Funds Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of

Governmental Funds to the Statement of Activities Statement of Net Position – Proprietary Fund Statement of Revenues, Expenses and Changes in Net Position – Proprietary Fund Statement of Cash Flows – Proprietary Fund Statement of Fiduciary Net Position – Fiduciary Funds Statement of Changes in Fiduciary Net Position – Fiduciary Funds Notes to the Financial Statements

1 Summary of Significant Accounting Policies 2 Deposits and Investments 3 Interfund Receivables, Payables and Transfers 4 Capital Assets 5 Loan Receivable 6 Leases 7 Long-Term Debt 8 Defined Benefit Pension Plans 9 Postemployment Benefits Other than Pension Benefits 10 Deferred Compensation Plan 11 Risk Management 12 Radnor-Haverford-Marple Sewer Authority 13 Commitments and Contingencies 14 New Accounting Pronouncements 15 Combining Pension and OPEB Trust Funds 16 Excess of Expenditures over Appropriation in Major Fund 17 Risks and Uncertainties 18 Subsequent Events

YEAR ENDED DECEMBER 31, 2024

Required Supplementary Information

Schedule of Employer Contributions – Police and Civilian Pension Plans Schedule of Investment Returns – Police and Civilian Pension Plans Police Pension Plan - Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios Civilian Pension Plan - Schedule of Changes in the Employer’s Net Pension Liability And Related Ratios Schedule of Changes in the Net OPEB Liability and Related Ratios – Last Ten Years Schedule of Contributions OPEB Plan – Last Ten Years Schedule of Investment Returns in OPEB Plan Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – General Fund

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) Sewer Fund Budget and Actual (Budgetary Basis) Park Improvements & Open Space Fund Budget and Actual (Budgetary Basis) Storm Water Fund Notes to Required Supplementary Information – Budgetary Comparison Schedules

Other Supplementary Information

General Fund Schedule of Revenues and Other Financing Sources – Budget and Actual (Budgetary Basis) – General Fund Schedule of Functional Expenditures by Activity and Other Financing Uses – Budget and Actual (Budgetary Basis) – General Fund Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual (Budgetary Basis) – Debt Service Fund Major Capital Project Funds with Legally Adopted Budget Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual (Budgetary Basis) – Capital Improvement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual (Budgetary Basis) – Special Assessment Fund Nonmajor Governmental Funds Combining Balance Sheet – Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – State Liquid Fuels Tax Fund Fiduciary Funds Combining Statement of Fiduciary Net Position – Pension and OPEB Trust Funds Combining Statement of Changes in Plan Net Position – Pension and OPEB Trust Funds Capital Assets Used in Operation of Governmental Funds Comparative Schedules by Source

YEAR ENDED DECEMBER 31, 2024

Other Supplementary Information (continued)

Capital Assets Used in Operation of Governmental Funds Schedule by Function and Activity Capital Assets Used in Operation of Governmental Funds Schedule of Changes by Function and Activity

Statistical Section

1. Net Position by Component, Last Ten Years

2. Changes in Net Position, Last Ten Years

3. Program Revenues by Function/Program, Last Ten Years

4. Fund Balances, Governmental Funds, Last Ten Years

5. Changes in Fund Balances, Governmental Funds, Last Ten Years

6. Tax Revenue by Source, Governmental Funds, Last Ten Years

7. Assessed Value and Estimated Actual Value of Taxable Property, Last Ten Years

8. Direct and Overlapping Property Tax Rates, Last Ten Years

9. Principal Property Taxpayers, Current and Nine Years Ago

10. Property Tax Levies and Collections, Last Ten Years

11. Business Privilege and Mercantile Taxes, Revenue Base and Collections, Last Ten Years

12. Principal Business Privilege and Mercantile Tax Remitters, Current and Nine Years Ago

13. Ratio of Net General Bonded Debt Outstanding, Last Ten Years

14. Direct and Overlapping Governmental Activities Debt, as of December 31, 2021

15. Legal Debt Margin Information, Last Ten Years

16. Demographic and Economic Statistics, Last Ten Years

17. Principal Employers, Current and Nine Years Ago

18. Full Time Equivalent Township Government Employees by Function/Program, Last Ten Years

19. Operating Indicators by Function/Program, Last Ten Years

20. Capital Asset Statistics by Function/Program, Last Ten Years

INTRODUCTORY

SECTION

i “The Best Place to Live, Work, Visit and Do Business on the Main Line”

June 25, 2025

To the Citizens and Board of Commissioners Radnor Township, Pennsylvania

On behalf of the staff of the Finance Department, the Township Manager, and the entire administration, we are pleased to submit Radnor Township’s Annual Comprehensive Financial Report (ACFR) for the year ended December 31, 2024.

The annual report, as required by the Township’s Home Rule Charter, includes the “basic financial statements”, including the accompanying footnotes. It also includes Management’s Discussion and Analysis on the activity reported in the audited financial statements. These financial statements have been audited by an independent accounting firm of certified public accountants and are presented in accordance with U.S. generally accepted accounting principles (GAAP) and audited in accordance with U.S. generally accepted auditing standards.

This report portrays management’s representations regarding the Township’s financial position. As such, Radnor Township management assumes full responsibility for the accuracy and completeness of all the information included in the ACFR. The Township management has implemented and maintains various internal control measures to provide a reasonable basis for making these financial representations. The framework of internal controls established is meant to provide reasonable assurances to protect Township assets from loss, theft, or misuse, noting that they do not provide absolute protection.

The Township’s financial statements were audited by Zelenkofske Axelrod LLC. Zelenkofske Axelrod LLC is a regional, independent accounting firm of certified public accountants operating in five locations in Pennsylvania, Delaware, and Maryland. The firm employs 60 professionals with revenues of just over $9 million. In their report, the independent auditors rendered an unmodified opinion which indicates that the financial statements are fairly represented, in accordance with GAAP, and free from material misstatements. The independent audit includes an examination, on a test basis, of Township records and supporting documentation used to generate the amounts and disclosures included in the financial statements. The independent auditor’s report is the first item included in the financial section of this report and can be found on page 1.

Management’s discussion and analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.

MAGGY MYERS Ward 2 President

JIM RILEY Ward 4 Vice President

JACK LARKIN, ESQ. Ward 1 CATHY AGNEW Ward 3

MOIRA MULRONEY, ESQ. Ward 5 JAKE ABEL Ward 6

JAMES COATES Ward 7

WILLIAM M. WHITE

Township Manager Township Secretary

JOHN B. RICE, ESQ.

Solicitor

KEN FROHLICH

Treasurer

RADNOR TOWNSHIP

301 IVEN AVENUE

WAYNE, PENNYLVANIA 19087-5297

Phone (610) 688-5600 Fax (610) 688-1279 www.radnor.com ii

PROFILE OF RADNOR TOWNSHIP

General Profile:

The Radnor Township community is proud of its heritage and continues to reflect many of the values of its settlers of over 300 years earlier. The Township is home to a public school system that has been rated as one of the finest in the nation and includes a vast network of parks, playgrounds, and athletic fields all of which make Radnor “The best place to live, work, visit and do business on the Main Line.”

Radnor Township is located in the northwestern corner of Delaware County and is approximately 15 miles west of the City of Philadelphia. The Township encompasses 13.83 square miles, has a population of 33,228 and is located on Philadelphia’s prestigious “Main Line.” The Township consists of all or portions of the Bryn Mawr, Garrett Hill, Newtown Square, Rosemont, St. Davids, Villanova, and Wayne neighborhoods, each of which brings a unique quality to the Radnor demographics. Part of what makes the Radnor Community so special is the opportunity for excellent education from the time a child first steps foot into a classroom all the way through post-secondary degree opportunities. In addition to having excellent public schools, Radnor Township is home to several private education entities such as the Academy of Notre Dame, Agnes Irwin School, Archbishop John Carroll High School, St. Aloysius, St.

Katharine of Siena School, and Jack M. Barrack Hebrew Academy. Colleges and universities located within the Township include Villanova University, Eastern University, and the Valley Forge Military Academy and College. Cabrini University, which ceased operations on June 30, 2024, was acquired by Villanova University. Plans for renovation are underway and the campus is scheduled to reopen in the Fall of 2026.

Radnor Township is also advantageously situated in terms of transportation, making Radnor a primary destination for commercial activity with some of the most valuable commercial real estate in the east coast market. Stakeholders can easily get to Radnor by accessing the Interstate 476 and State Route 30 interchange which is just a few short miles south of the Pennsylvania Turnpike / Interstate 76. These major road arteries allow travelers to get to Philadelphia, New York, Baltimore, Washington D.C., or Harrisburg within a short commute. Radnor is also home to five Southeastern Pennsylvania Transportation Authority (SEPTA) Regional Rail Line stations and six Norristown High Speed Rail stations.

From any of the SEPTA stations, travelers can easily and quickly get to downtown Philadelphia which then connects with the Philadelphia airport, the athletic facilities, museums, performing arts theaters and other greater Philadelphia region attractions as well as with Amtrak. Amtrak can then provide transportation to New York, Baltimore, Washington D.C., and other major metropolitan destinations.

Township Structure and Services Profile

In 1968, the Commonwealth of Pennsylvania ratified a new constitution, giving voters the right to formulate and institute self-rule (called “home rule”) governments at the county and local levels. In 1976, Radnor voters approved the Radnor Township Home Rule Charter. The Home Rule Charter, together with the Pennsylvania laws pertaining to 1st Class Townships as well as Radnor’s Administrative Code, provides the legal structure and guidance of the Township. As provided by the Home Rule Charter, legislative and executive authority is maintained at the Board of Commissioners level (the “Board”). The Board is Radnor’s governing body and consists of seven elected members, each representing one of the seven wards comprising the Township. The Board appoints a Township Manager who is responsible for the day-to-day administration of the Township. The Township Administration consists of five departments, headed by appointed Directors. Those departments include Recreation and Community Programming, Public Works, Police, Community Development, and Finance. Radnor Township stakeholders have come to expect the very best in municipal services and as a result, the Township provides a wide range of top-notch services from basic life safety issues to improved quality of life programming and amenities. The graphic below provides a program summary provided by each of the Township’s departments:

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Finance Department

Accounting, Auditing, Reporting, Budgeting

Sustainability, Grants, Procurement, Right to Know

Human Resources

Information Technology

& GIS

Police Department

Traffic Safety

Patrol

Investigations

Parking and Animal Enforcement

Community Development

Building, Zoning, Plan Review, Permitting

Rental Property Licensing

Fire Safety

Property Maintenance

Recreation and

Community Programming

Recreational Programming

Community Events

Parks and Facility Programming

Community Sports & Civic Association Liasion

Public Works

Highway, Mechanics

Park Maintenance

Solid Waste, Recycling

Sanitary Sewer

Engineering

Project Management

Stormwater

Grading Permit Review and Management

Project Inspection

Community Support Unit iv

Township Budget Process Profile

The Township budgets for its activities through an ongoing budgeting process, in accordance with the Township Charter, that culminates in the adoption of an annual appropriation budget, five-year capital plan as well as a consolidated fee schedule. Included in the annual budget process is the update of the five-year financial forecast and associated assumptions. The forecast consolidates future operational results with the five-year capital plan and is incorporated into the final budget document that is published for public review and comment. The budget process begins in early summer at which time the administrative departments submit their subsequent year requests and capital plan updates along with the necessary materials and supporting documentation to the Township Manager. The Manager then reviews the information and formulates a recommendation to the Board in the form of a preliminary budget by early October. The preliminary budget is then reviewed by the Board and public through various meetings, is amended as necessary, and is ultimately adopted (as revised) in late November or early December. It is during this process that the Board determines the necessary real estate millage, sanitary sewer rent, stormwater, and other significant fee rates necessary to provide funding for the ensuing fiscal year. The legal level of budgetary control is at the functional level of expense, for example, general government and protection to persons and property. All appropriations lapse at the end of the fiscal year except those that are obligated through encumbrance.

The Township adheres to several important fiscal policies aimed at creating balanced budgets, establishing appropriate levels of funding reserves, determining the appropriate use of non-reoccurring revenues, establishing annual capital funding, and appropriating resources as calculated to fund pension obligations and other post-employment benefits (OPEB). These policies can be found in the Township’s Administrative Code, Chapter §44 and are reviewed periodically and updated according to current needs or best practices.

RADNOR’S ECONOMY

Radnor’s economy is made up of a broad spectrum of activities from the smallest family-run retail store to national retail stores; from one-person professional service firms to Fortune 500 companies. As a result, Radnor’s affluence allows the local economy to be resilient. Graph 1 shows the relatively strong revenue in all the Act 511 categories dating back to 2015. In quantifying economic conditions, there are several key metrics to gauge the economic conditions including real estate category makeup, real estate assessment growth, median household income, employment statistics as well as the taxes levied under the Local Enabling Act 511. More specifically, the Act 511 taxes reveal how the real estate and business base in Radnor is doing economically. The business privilege taxes are levied on the gross receipts of commercial business activity at 3.000 mills. The performance of these revenues is a strong indication of the vitality of Radnor’s business community. Next, the local services tax is levied as a fixed amount per employee at $52.00. The performance of these revenues is an indication of employment trends in Radnor by our businesses.

Finally, the real estate transfer tax, levied as a percentage of the sale amount on real estate transactions in Radnor, is 1.00%. The performance of these revenues is an indication of the real estate market in Radnor, both in terms of the number of transactions and the value of each transaction. When these economic factors are reviewed together at the macro level, one can quickly gain an understanding of Radnor’s economic growth. These key metrics are discussed and documented in the Management’s Discussion and Analysis beginning on page 4.

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Another economic factor to consider is the real estate assessment values year over year. Radnor Township has 9,075 tax parcels distributed into four broad categories with relative tax assessment values as shown in Graph 2. In terms of the number of properties, most of the Township’s real estate market is made up of residential, at 72%. Overall, the Township’s total real estate assessed value has remained strong and stable. As shown in Schedule 7 in the Statistical Section, page 114, the annual assessment growth, accounting for the adjusted values following reassessment, has averaged just over 1.00% per year, which contributes to increased real estate tax revenues over and above any changes made to the millage rates and shows a constant, reliable growth trend on a significant portion of the Township’s Revenue makeup.

The Radnor Township Administration understands that another important aspect of a healthy local economy and community is maintaining tax rates.

To that end, the Township strives to balance the needs of the community while minimizing the increases in the real estate tax rate. The real estate millage rate in Radnor was 3.7511 mills from 2012 through 2015 and increased to 3.9228 for 2016 through 2018. Taxes increased again in 2019 to

4.1582 and then up 6% to 4.4082 in 2020. In 2021, millage rates were adjusted accordingly to account for the County wide property reassessment project. Radnor properties in the aggregate increased in assessment by just over 90% and a corresponding adjustment in the millage rate was made to comply with the State mandated “revenue neutral” result. As such, the millage rate was set at 2.2837 mills for 2021 and remained unchanged for 2022. In 2023 the rates were adjusted upward by 4.5% to 2.3865, increased by 2.1% in 2024 to 2.4365 and increased 2.0% in 2025 to 2.4852 mills.

Although these millage increases have been nominal over the past 5 years, Radnor continues to enjoy a lower-than-average rate of tax as compared to surrounding municipalities. At the same time and in concert with keeping the real estate millage rate as low as possible, the Administration has embraced the trend whereby the resources generated through business activity continues to significantly outpace those generated by the residents.

Fostering business growth has helped shift the weight away from the residents for many years. With the Township wide reassessment project, the residential properties saw a larger impact as shown in Graphs 3 and 4, which represents the source of the Township tax revenue from 2014 as compared to 2024. As depicted, the residential burden has slightly increased from 33% to 38%. If history is a good indicator, over time the value of commercial properties will outpace the residential and the tax burden will continue to remain favorable for the residential property owners. As such, the taxes generated by the businesses will continue to be a solid contributor to the Township’s financial health. The Township will continue to foster business growth to balance the service demands of the community with the constraint of keeping tax rates as low as possible.

LONG-TERM FINANCIAL PLANNING

The Board of Commissioners, Administration, and the Business Advisory Committee (BAC, formerly the Citizens Audit Review and Financial Advisory Committee) have worked together to build and improve the five-year forecasting model. The model has been used to reevaluate the long-term funding options for the OPEB obligations as well as annual funding for the Township’s operating and capital requirements.

The long-term financial model is incorporated into the Township’s annual budget to help the Commissioners and the Township see the long-term impact of various decisions made today. Further, the model allows for more comprehensive decision making as priorities and initiatives are built into the model and analyzed on a Township-wide scale, rather than in a vacuum.

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Also incorporated into the forecasting model were the results of a comprehensive review of the OPEB funding model as performed by the BAC, whereby the committee analyzed and incorporated updated investment and expense assumptions to develop a more accurate picture of the OPEB liability and to recommend options for maintaining the OPEB trust fund for its’ intended purpose. Their report, presented to the Board of Commissioners in the 3rd quarter of 2022, helped in forming decisions regarding future OPEB obligations and funding.

Following the completion of the OPEB project, the Business Advisory Committee was tasked with analyzing and evaluating the Township’s sewer system and providing a report to the Board of Commissioners. The project was a follow up to a 2018 report presented to the Board that provided a high-level overview of the significant capital investment needed to repair and/or replace the aging infrastructure and, as an alternative, an estimate of value should the Township consider selling the asset.

The committee, working in conjunction with staff and reports from outside professionals, conducted an in-depth analysis and gained an understanding of the age, locations, and condition of the sewer system as well as identified areas that may be in a more critical state of disrepair. The results of their analysis were presented to the Board of Commissioners in the first quarter of 2024. With the 2025 budget, the Board approved an allocation of $500,000 to begin the initial phase of a systematic, multi-year process of televising and identifying areas where repairs and/or replacement of pipes will be required.

MAJOR INITIATIVES:

Comprehensive Plan and Zoning Updates

With an allocation of funding approved by the Board of Commissioners, the Township commenced the process to begin the Comprehensive Plan and Zoning update for the Township in the Fall of 2023. The Township Charter cites that the Comprehensive Plan should be evaluated and updated every ten years and the Township’s last update was in 2003. The Comprehensive Plan defines a shared vision for the Township, shaped by the input from the community. This vision lays the foundation for strategic goals and actionable recommendations, providing a roadmap for decision-making and investment prioritization over the next ten years.

The Administration contracted with FHI Studio who, in collaboration with a steering committee comprised of Township staff and Board members and members from the community, embarked on a robust and representative engagement process to create a community-driven Plan, focusing on the following priorities:

· Environment & Open Space

· Sustainability, Resiliency & Infrastructure

· Parks, Recreation & Facilities

· Historic Preservation

· Business & Economic Development

· Housing

· Mobility

· Institutions

· Land Use

The final plan was adopted by the Board of Commissioners on April 14, 2025. A link to the plan can be found at https://www.radnor2035.com/plan vii

Wayne Master Plan

As part of the Township’s Comprehensive Plan, special emphasis was placed on developing a long-term Master Plan for the Wayne Business District, establishing planning goals that would guide the future growth and development of the downtown business community. The process includes looking at the area of the Wayne Business District through the lens of view of creating green space, parking accommodations, and ways to overall enhance the Wayne experience. This will include considerable public input from residents, business owners, and the Board of Commissioners. The goal of the Wayne Master Plan is to build on the Township's successes of the past and make the Wayne Business District even more vibrant and successful - economically, culturally, environmentally, and aesthetically.

The boundaries of the Wayne Business District are defined as Aberdeen Avenue to the east, Banbury Avenue to the west, Radnor Middle School to the South, and the AMTRAK/SEPTA rail lines to the north.

Staffing

With the approval and support of the Board for the 2025 budget, the Administration will be adding two new key positions in the Township. The Administration engaged with professional search firms to commence a national search to hire a Fire and Emergency Management Services (EMS) Chief as well as an Economic Development Manager. The Fire and EMS Chief will coordinate and oversee the activities and budgets of the three Fire Companies serving Radnor Township. The Economic Development Manager will work with the business community to support economic sustainability and growth in the Township in accordance with goals outlined in the Comprehensive Plan.

Facility and Infrastructure Improvements

As part of the 2024 budget, the Township issued $9.3 million in General Obligation Bonds to finance a series of capital and infrastructure improvements needed at the Township’s Administration building and Public Works facility. Critical improvements include roof replacements and the installation of solar rooftop panels on the two Township buildings, HVAC replacements and upgrades for the boiler and cooling tower and mechanicals, as well as energy efficient LED lighting, in alignment with the provisions of the Clean Energy Plan as adopted by the Board in 2021.

The energy efficient LED lighting project includes a Township-wide conversion to LED streetlights. In conjunction with the Delaware Valley Regional Planning Commission (DVRPC), the Township authorized a study and inventory of the more than 1,350 Township owned streetlights, identifying the various types of lighting requirements based on the category of roads. Results of the study were reviewed in the Summer 2023 and later approved by the Board for the replacement project to commence. Supply chain delays pushed the project into 2024 with the installations and conversions beginning in June 2024 with the final installations completed in the Spring of 2025.

Records Management

Another component of the 2024 budget was investment in digital technology and a project to catalog and digitize thousands of pages of land use and property records, accumulating and stored for more than 75 years. The Administration engaged with a professional services firm to create the underlying digital data structure and collect and scan approximately 1,200 boxes of files. The project commenced in the Spring of 2025 and when concluded, after approximately one year, the Township will move to a paperless process for the submission of land development plans and applications to the issuance of permits and related property documents.

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Sustainability

Radnor Township prides itself on its commitment to promoting and implementing steps to protect the environment. As such, on March 2, 2021, the Board of Commissioners adopted a comprehensive climate plan or Clean Energy Plan (Resolution 2021-32), as presented by Practical Energy Solutions and the “Green Team”. It focuses on clean energy and conservation with goals for the Township to achieve 100% clean electricity by 2035 and 100% clean energy by 2050. The Plan also calls for pursuing grants and other available funding opportunities to support the clean/renewable energy initiatives and to be the Township’s primary resource for the pursuit and identification of grant opportunities that span all other aspects of the Township’s capital and/or operational needs. Accomplishing these goals required the allocation of resources for a full-time Sustainability Coordinator. Although it has been unfunded since 2021, the Administration worked with staff and transitioned certain functional responsibilities and modified the job duties of several staff members to allow for the primary functions of the Sustainability Coordinator to be incorporated in with the Administrative Coordinator role in 2022. The first clean energy grant submission was approved by the Board on February 28, 2022, in the amount of $400,000 to help fund the transition to electric vehicles for certain fleet assets. The Township received notification in the first quarter of 2023 that the $400,000 grant was awarded. The funds were utilized for the purchase of two fully electric police vehicles in 2023, which marked the beginning of the replacement of combustion engine vehicles, and the award of a contract in 2024 for the purchase and installation of several electric vehicle charging stations. The installation of the charging stations was completed in the Spring of 2025

Police and Public Safety Service Improvements

The Radnor Township Police Department continues to excel in their professionalism and service delivery, embarking on a strategic realignment of the agency to hire additional officers to serve in a specialized Community Support Unit. This endeavor, supported by a staffing study completed in the 4th quarter of 2022, was approved by the Board of Commissioners in 2023 and provided for three additional officers specially trained in mental health services and accompanied by a licensed, mental health professional. In addition, two more officers were added to a newly created, high-density beat, providing quicker response times in an area of the Township where call volume tends to be higher.

Stormwater Management and Flood Mitigation

The Board of Commissioners adopted Ordinance 2013-15 on October 14, 2013, establishing a Stormwater Management Fee under Chapter 246 of the Radnor Township Code, effective for calendar year 2014.

Since inception, staff maintain and annually update a list of capital projects for addressing stormwater and the Board each year has authorized feasibility studies and design analysis for multiple projects. In late 2020, the Administration presented the Board with a list of priority projects with construction cost estimates ranging from ~$200K to ~$5MM. In early 2021, the Board authorized proceeding with going to bid on up $17MM of projects. Final designs and bid specifications continued throughout 2021 with smaller projects paid from cash available in the Fund. In early 2022, the Administration finalized a $10MM borrowing through the issuance of General Obligation Bonds for the financing of the larger projects.

Commencing in June, 2022 was the single largest stormwater project since the inception of the fund, namely the South Wayne Avenue Flood Reduction Project. Construction continued throughout the Fall and Winter of 2022 and completed in late 2024. Completed projects include the Malin Road culvert replacement, Chamounix Road culvert and channel repair, the West Wayne Preserve stormwater management facility and the Ithan Valley Park downstream culvert rehabilitation. Several other major projects are currently in design stages and, with approval from the Board, a future round of bond financing will be evaluated to continue the Township’s work on stormwater management and infrastructure improvement projects.

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Enterprise Resource Planning (“ERP”) and Technology Improvements

As reported in prior years, The Township administration, working with the former CARFAC, now Business Advisory Committee (BAC), began in 2014 to evaluate the Township’s financial and departmental operating software. Borne out of necessity due to a lack of functionality with the former software system, the Township evaluated its’ enterprise resource needs and data security requirements. Following a thorough due diligence process, the Board of Commissioners adopted a resolution in 2016, entering into an agreement with Tyler Technologies to install their ERP system and went live in the 3rd quarter of 2017 with general ledger and financial reporting, followed by payroll and human resources in the 4th quarter of 2017. Additional modules were activated between 2018 and 2021 that added a Project Accounting module and an application for Inspectors in the field for Codes and Permitting. The Administration is currently evaluating an upgraded version of the Permitting software for implementation in late 2025 that will support electronic permit applications and electronic plan review.

AWARDS

Certificate of Achievement: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Radnor Township for its annual comprehensive financial report for the fiscal year ended December 31, 2023. This was the thirteenth year in a row that the Township had received this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

ACKNOWLEDGMENTS

The preparation of this report would not have been possible without the contributions and dedication of the Township Staff, especially those in the Finance Department. Equally, we would like to thank the volunteer members of the Audit Committee and the Business Advisory Committee for their expertise, dedication, and guidance. Their contributions to the Township, this report and the overall audit process add tremendous value and are much appreciated.

Finally, we thank the members of the Board of Commissioners for their prudent fiscal management and leadership as well as all the volunteer members of the various boards and commissions for their tireless work helping to move Radnor forward.

It is the contributions of all these individuals that make Radnor Township “The Best Place to Live, Work, Visit and Do Business on the Main Line.”

Respectfully, William M. White Robert V. Tate, Jr. CPA Township Manager / Secretary Director of Finance x

PRINCIPAL OFFICIALS

As of December 31, 2024

RADNOR TOWNSHIP, PENNSYLVANIA

ELECTED OFFICIALS

Board of Commissioners Jack Larkin, Esq ...................................................................................................... 1st Ward Commissioner Maggy Myers........................................................................................................ 2nd Ward Commissioner Catherine Agnew, Esq ............................................................................................3rd Ward Commissioner Jim Riley ................................................................................................................4th Ward Commissioner Moira Mulroney, Esq .............................................................................................5th Ward Commissioner Jake Abel ...............................................................................................................6th Ward Commissioner James Coates .........................................................................................................7th Ward Commissioner

Elected Treasurer Kenneth Froelich ......................................................................................................... Treasurer, At-Large

APPOINTED OFFICIALS

William M. White, MBA ............................................................................. Township Manager / Secretary John Rice, Esq., Grim Biehn & Thatcher, PC ....................................................................Township Solicitor Christopher B. Flanagan....................................................................................... Superintendent of Police Tammy Cohen ......................................................... Director of Recreation and Community Programming Kevin Kochanski, RLA, CZO ................................................................Director of Community Development Stephen Norcini, P.E. ....................................................................................................Township Engineer Ricky Foster, Jr..................................................................................................... Director of Public Works Robert V. Tate, Jr. CPA ................................................................................................. Director of Finance

APPOINTED PROFESSIONAL FIRMS

T.D. Bank, NA .............................................................................................................. Banking Depository Cozen O’Conner ................................................................................................................... Bond Counsel PFM Asset Management, LLC.................................................................. Pension Plan Investment Advisor Mockenhaupt Benefits Group ................................................................................... Pension Plan Actuary Clark Hill, PLC ............................................................................................................... Labor Law Solicitor Eastburn & Gray, PC ................................................................................................. Business Tax Solicitor Gannett Fleming .............................................................................................................. Engineering Firm xi xii

MAP OF RADNOR AND SURROUNDING COMMUNITIES

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Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting

Presented to

Township of Radnor Pennsylvania

For its Annual Comprehensive Financial Report

For the Fiscal Year Ended

December 31, 2023

Executive Director/CEO

FINANCIAL

SECTION

INDEPENDENT AUDITOR’S REPORT

Board of Commissioners Township of Radnor Wayne, Pennsylvania

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Radnor Township (the “Township”), as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the Township’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Township, as of December 31, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Township and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

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

Responsibilities of Management for the Financial Statements

The Township’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Township’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

· Exercise professional judgment and maintain professional skepticism throughout the audit.

· Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

· Obtain an understanding of internal control relevant to the audit 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 Township’s internal control. Accordingly, no such opinion is expressed.

· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

· Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Township’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Adoption of New GASB Statements

As described in Note 14 to the financial statements, in 2024 the Township of Radnor adopted the provisions of Governmental Accounting Standards Board’s Statement No. 100, Accounting Changes and Error Corrections, and No. 101, Compensated Absences. Our opinion is not modified with respect to this matter.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of employer contributions – police and civilian pension plans, pension plans – schedule of investment returns, police pension plan – schedule of changes in the employer’s net pension liability and related ratios, civilian pension plan – schedule of change in the employer’s net pension liability and related ratios, schedule of changes in the net OPEB liability and related ratios, schedule of contributions OPEB plan, schedule of investment returns in OPEB plan, and budgetary comparison information on pages 4-19 and 74-86 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Township’s basic financial statements. The combining statements, budgetary comparison for certain major and nonmajor funds, and capital assets used in operation of governmental funds (“supplementary information”) are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information

Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

ZELENKOFSKE AXELROD LLC

Jamison, Pennsylvania June 25, 2025

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED DECEMBER 31, 2024

It is a pleasure to present the financial picture for the Township of Radnor, Pennsylvania. We offer readers of the Township’s financial statements this narrative overview and analysis of the financial activities of the Township for the fiscal year ended December 31, 2024.

Financial Highlights

Radnor Township’s government-wide net position (deficit) on December 31, 2024, was ($18,246,785), an improvement of $333,784 from the December 31, 2023, net deficit of ($18,580,569).