$4,395,000 SOUTHERN COLUMBIA AREA SCHOOL DISTRICT (Columbia and Northumberland Counties, Pennsylvania) General Obligation Bonds, Series of 2017

Transcription

1 OFFICIAL STATEMENT DATED MAY 31, 2017 New Issue Book-Entry Only Rating: S&P AA (Stable Outlook) A (Underlying) (Stable Outlook) MAC Insured In the opinion of Bond Counsel, under existing statutes, regulations and judicial decisions, interest on the Bonds is excluded from gross income for purposes of federal income taxation and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, although in the case of corporations (as defined for federal income tax purposes) such interest is taken into account in determining adjusted current earnings for purposes of such alternative minimum tax. This opinion of Bond Counsel is subject to continuing compliance by the School District with its covenants in the Resolution and other documents to comply with requirements of the Internal Revenue Code of 1986, as amended, and applicable regulations thereunder. Bond Counsel is also of the opinion that under the laws of the Commonwealth of Pennsylvania (the Commonwealth ) as presently enacted and construed, the Bonds are exempt from personal property taxes in the Commonwealth and the interest on the Bonds is exempt from the Commonwealth s Personal Income Tax and the Commonwealth s Corporate Net Income Tax. The Bonds are qualified tax-exempt obligations, for purposes and effect contemplated by Section 265 of the Internal Revenue Code of 1986, as amended (relating to expenses and interest relating to tax exempt income of certain financial institutions). For further information concerning federal and state tax matters relating to the Bonds, see Tax Exemption and Other Tax Matters herein. $4,395,000 SOUTHERN COLUMBIA AREA SCHOOL DISTRICT (Columbia and Northumberland Counties, Pennsylvania) General Obligation Bonds, Series of 2017 Bonds Dated: Date of Delivery Bonds Principal Due: April 1, as shown on inside cover Denomination: Integral multiples of $5,000 Interest Payable: April 1 and October 1 First Interest Payment: October 1, 2017 Form: Book-Entry Only General: The General Obligation Bonds, Series of 2017 (the Bonds ), in the aggregate principal amount of $4,395,000 of the Southern Columbia Area School District (the School District ), a public school district, located in portions of Columbia and Northumberland Counties, Pennsylvania, will all be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ( DTC ). DTC will act as the securities depository for the Bonds. Purchases of the Bonds will be made only in book-entry form, and purchasers will not receive certificates representing their interests in the Bonds. While DTC, or its nominee, Cede & Co., is the registered owner of the Bonds, payments of the principal of and interest on the Bonds will be made by the Paying Agent (defined herein) directly to DTC. Disbursement of such payments to the DTC Participants is the responsibility of DTC, and disbursement of such payments to Beneficial Owners of the Bonds is the responsibility of the DTC Participants and the Indirect Participants. See BOOK-ENTRY ONLY SYSTEM herein. Optional Redemption of Bonds: The Bonds are subject to redemption prior to maturity at the option of the School District at 100% of the principal amount of Bonds to be redeemed, plus accrued interest, beginning on the redemption date described herein. Purpose of the Bonds: Proceeds of the Bonds will be used to: (1) construct additions and improvements to School District buildings and facilities; and (2) pay the costs of issuing and insuring the Bonds. Security: In the Resolution adopted by the Board of School Directors of the School District on March 27, 2017, authorizing the issuance of, and securing, the Bonds (the Resolution ), the School District has covenanted with the holders of the Bonds that it shall include the amount of the debt service to be paid on the Bonds for each fiscal year in which such sums are payable in its budget for that year and shall appropriate such amounts for the payment of such debt service, and shall duly and punctually pay or cause to be paid from the Sinking Fund (hereinafter defined), or other revenues or funds of the School District, the principal of and interest on the Bonds on the dates, at the places and in the manner stated in the Bonds, and for such budgeting, appropriation and payment the School District pledges its full faith, credit and taxing power, including the power to levy ad valorem taxes on all taxable property with the School District, within limitations provided by law (see Appendix A, Limitations on Local Taxation ). As provided in the Local Government Unit Debt Act of the Commonwealth of Pennsylvania, 53 Pa C.S. Chs , which governs remedies for bondholders, the foregoing covenant shall be specifically enforceable. Bond Insurance: The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Bonds by MUNICIPAL ASSURANCE CORP. Bonds are Legal Investment for Fiduciaries in Pennsylvania: The Bonds (hereinafter defined) are a legal investment for fiduciaries in the Commonwealth of Pennsylvania under the Probate, Estate and Fiduciaries Code, Act of June 30, 1972, No. 164, P.L. 508, as amended and supplemented. The Bonds are offered for delivery when, as and if issued by the School District and received by the Underwriter and subject to the approving legal opinion of Rhoads & Sinon LLP, of Harrisburg, Pennsylvania, as bond counsel to the School District. Additional legal matters will be passed on for the School District by Richard J. Roberts, Jr., Esquire, Shamokin, Pennsylvania, as School District Solicitor and certain legal matters for the Underwriter will be passed upon by Eckert Seamans Cherin & Mellott, LLC, Harrisburg, Pennsylvania, Limited Scope Underwriter s Counsel. It is expected that the Bonds in definitive form will be available for delivery to DTC or its agent, on or about June 28, The date of this Official Statement is May 31, 2017.

2 $4,395,000 SOUTHERN COLUMBIA AREA SCHOOL DISTRICT (Columbia and Northumberland Counties, Pennsylvania) General Obligation Bonds, Series of 2017 Bonds Dated: Date of Delivery Interest Payable: April 1 and October 1 Principal Due: April 1, as shown on inside cover First Interest Payment: October 1, 2017 Denomination: Integral multiples of $5,000 Form: Book-Entry Only Maturity Schedule Maturity Initial Maturity Initial Date Principal Interest Offering Date Principal Interest Offering (April 1) Amount Rate Price (April 1) Amount Rate Price 2018 $140, % $165, % , % , % , % * , % , % * , % , % * , % * * Priced to the first optional redemption date of October 1, 2022 $305, % Term Bonds due April 1, $315, % Term Bonds due April 1, $335, % Term Bonds due April 1, $360, % Term Bonds due April 1, $370, % Term Bonds due April 1, *

3 No dealer, broker, salesman or other person has been authorized by the School District or the Underwriter to give any information or to make any representation, other than that given or made in this Official Statement, and if given or made, any such other information or representation may not be relied upon as having been authorized by the School District or by RBC Capital Markets, LLC, as managing underwriter (the Underwriter ). This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. This Official Statement has been approved by the School District and, while the information set forth in this Official Statement has been furnished by the School District and other sources which are believed to be reliable, such information is not guaranteed as to accuracy or completeness, and is not to be construed as a representation by the Underwriter or, as to information obtained from other sources, by the School District. The information and expressions of opinion set forth in this Official Statement are subject to change without notice and neither the delivery of this Official Statement nor any sale made under this Official Statement shall, under any circumstances, create any implication that the affairs of the School District have remained unchanged since the date of this Official Statement. IN CONNECTION WITH THIS OFFERING OF SUCH 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. STABILIZATION, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE PUBLIC OFFERING PRICES STATED ON THE COVER HEREOF MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER WITHOUT PRIOR NOTICE. The Underwriter has reviewed the information in this official statement pursuant to its responsibilities to investors under the federal securities laws, but the underwriter does not guarantee the accuracy or completeness of such information. Municipal Assurance Corp. ( MAC ) makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, MAC 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 MAC supplied by MAC and presented under the heading Bond Insurance and Appendix D - Specimen Municipal Bond Insurance Policy. TABLE OF CONTENTS Page Board of School Directors... ii Summary Page... iii Introduction... 1 Purposes of the Issue... 1 Sources and Uses of Bond Proceeds... 1 Description of the Bonds... 2 Book-Entry Only System... 3 Redemption Provisions... 5 Security and Source of Payment for the Bonds... 7 Bond Insurance Tax Exemption and Other Tax Matters Continuing Disclosure Undertaking Miscellaneous Appendix A - Summaries of School District Finances Appendix B - Description of the School District Appendix C - School District Audit Report Appendix D - Specimen Municipal Bond Insurance Policy Appendix E - Proposed Form of Bond Counsel Opinions Appendix F Proposed Form of Continuing Disclosure Certificate Appendix G - Bond Amortization Schedules i

4 SOUTHERN COLUMBIA AREA SCHOOL DISTRICT (Columbia and Northumberland Counties, Pennsylvania) Board of School Directors Michael Yeager... President Charles E. Porter.... Vice-President John O. Yocum... Treasurer Kaye Keller... Member Joseph Klebon... Member Thomas Reich... Member Timothy Vought... Member Gary Wilson... Member Gail Zambor Schuerch... Member Tresa J. Britch... Secretary (Non-Member) Administrative Staff Paul Caputo... Superintendent Denise Kreisher... Business Manager Paying Agent, Registrar and Sinking Fund Depository First Columbia Bank & Trust Co. Bloomsburg, Pennsylvania Bond Counsel Rhoads & Sinon LLP Harrisburg, Pennsylvania Solicitor Richard J. Roberts, Jr., Esquire Shamokin, Pennsylvania Underwriter RBC Capital Markets, LLC Philadelphia, Pennsylvania Limited Scope Underwriter s Counsel Eckert Seamans Cherin & Mellott, LLC Harrisburg, Pennsylvania ii

5 SUMMARY PAGE This Summary Statement is subject in all respects to more complete information in this Official Statement. No person is authorized to detach this Summary Statement from this Official Statement or otherwise use it without the entire Official Statement. A full review of the entire Official Statement should be made by potential bond purchasers. Issuer... Bonds... Redemption Provisions... Southern Columbia Area School District, located in portions of Columbia and Northumberland Counties, Pennsylvania. $4,395,000 General Obligation Bonds, Series of 2017 (the "Bonds") dated the date of delivery, maturing on April 1, with interest payable initially on October 1, 2017 and thereafter semiannually on April 1 and October 1 of each year. See DESCRIPTION OF THE BONDS herein. The Bonds maturing on or after April 1, 2023 are subject to redemption prior to maturity at the option of the Issuer, in whole or, from time to time, in part (and if in part, in such order of maturity or portion of a maturity as the Issuer shall select and within a maturity by lot) at the redemption price of 100% of the principal amount of Bonds to be redeemed, plus accrued interest to the redemption date, at any time on or after October 1, See REDEMPTION PROVISIONS herein. Form... Application of Proceeds... Security... Insurance Rating... Bond Insurance... Book-entry only. Proceeds of the Bonds will be used to: (1) construct additions and improvements to School District buildings and facilities; and (2) pay the costs of issuing and insuring the Bonds. The Bonds are general obligations of the Issuer. See SECURITY FOR THE BONDS and TAXING POWERS OF THE SCHOOL DISTRICT herein. See MISCELLANEOUS - Ratings herein. The Bonds carry the commitment of Municipal Assurance Corp. ("MAC" or the Insurer ), which assures the scheduled payment of principal and interest to the holders of the Bonds. See "BOND INSURANCE" herein. iii

6 [ THIS PAGE INTENTIONALLY LEFT BLANK ]

7 OFFICIAL STATEMENT $4,395,000 SOUTHERN COLUMBIA AREA SCHOOL DISTRICT (Columbia and Northumberland Counties, Pennsylvania) General Obligation Bonds, Series of 2017 INTRODUCTION This Official Statement is furnished by the Southern Columbia Area School District (the "School District"), located in portions of Columbia and Northumberland Counties, Pennsylvania, in connection with the offering of its $4,395,000 aggregate principal amount General Obligation Bonds, Series of 2017 (the "Bonds"). The Bonds are being issued pursuant to a Resolution of the Board of School Directors of the School District, adopted on March 27, 2017 (the "Resolution"), and in accordance with the Pennsylvania Local Government Unit Debt Act, 53 Pa.C.S. Chs (the "Debt Act"). First Columbia Bank & Trust Co., having its corporate trust office in Bloomsburg, Pennsylvania, will act as paying agent, sinking fund depositary and registrar (in such capacity referred to as the Paying Agent ) for the Bonds. The Bonds will be issued as fully registered bonds and when issued, will be registered in the name of and held by Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for the Bonds. Purchases of the Bonds will be made only in book-entry form, and purchasers will not receive certificates representing their interests in the Bonds. While DTC, or its nominee, Cede & Co., is the registered owner of the Bonds, payments of the principal of and interest on the Bonds will be made by the Paying Agent directly to DTC. Disbursement of such payments to the DTC Participants is the responsibility of DTC, and disbursement of such payments to Beneficial Owners of the Bonds is the responsibility of the DTC Participants and the Indirect Participants. See DESCRIPTION OF THE BONDS and BOOK-ENTRY ONLY SYSTEM herein. The information that follows contains summaries of the Resolution and the Bonds, relevant provisions of state and federal law, the School District's budget and the School District's financial statements. Such summaries do not purport to be complete and reference is made to the Resolution, the School District's budget and the School District's financial statements, copies of which are on file and available for examination at the offices of the School District. Reference is also made to the Bonds and to the actual cited laws and regulations. PURPOSES OF THE ISSUE Proceeds of the Bonds will be used to: (1) construct additions and improvements to School District buildings and facilities; and (2) pay the costs of issuing and insuring the Bonds. SOURCES AND USES OF BOND PROCEEDS Sources of Funds Proceeds of Bonds $4,395, Net Original Issue Premium 69, Cash Contribution 1,500, Total Sources of Funds $5,964, Uses of Funds Construction Fund Deposit $5,869, Costs of Issuance (1) 94, Total Uses of Funds $5,964, (1) Includes legal fees, underwriter s discount, paying agent fees, rating fee, bond insurance premium, CUSIP, printing and miscellaneous fees. 1

8 General Description DESCRIPTION OF THE BONDS The Bonds are issued in fully registered, book-entry only form, without coupons, in the denomination of $5,000 principal amount or any integral multiple thereof. Principal and interest are payable as set forth below. When issued, the Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company ( DTC ), New York, New York. Purchasers of the Bonds (the Beneficial Owners ) will not receive any physical delivery of bond certificates, and beneficial ownership of the Bonds will be evidenced only by book entries. See Book-Entry Only System herein. Payment of Principal and Interest So long as Cede & Co., as nominee of DTC, is the registered owner of the Bonds, payments of principal of and interest on the Bonds, when due, are to be made to DTC and all such payments shall be valid and effective to satisfy fully and to discharge the obligations of the School District with respect to, and to the extent of, principal and interest so paid. If the use of the Book-Entry Only System for the Bonds is discontinued for any reason, bond certificates will be issued to the Beneficial Owners of the Bonds and payment of principal and interest on the Bonds shall be made as described in the following paragraphs. The principal of any certificated Bonds, when due upon maturity or upon any earlier redemption, will be paid to the registered owners of such Bonds, or registered assigns, upon surrender of such Bonds to the Paying Agent at its designated corporate trust office, presently located in Bloomsburg, Pennsylvania (or to any successor paying agent at its designated office(s)). Interest on any certificated Bonds will be payable to the registered owner of such a Bond from the interest payment date next preceding the date of registration and authentication of the Bond, unless: (a) such Bond is registered and authenticated as of an interest payment date, in which event such Bond shall bear interest from said interest payment date, or (b) such Bond is registered and authenticated after a Record Date (hereinafter defined) and before the next succeeding interest payment date, in which event such Bond shall bear interest from such interest payment date, or (c) such Bond is registered and authenticated on or prior to the Record Date preceding October 1, 2017, in which event such Bond shall bear interest from the issue date of the Bonds, or (d) as shown by the records of the Paying Agent, interest on such Bond shall be in default, in which event such Bond shall bear interest from the date to which interest was last paid on such Bond. Interest on a certificated Bond will be payable by check drawn on the Paying Agent, which shall be mailed to the registered owner whose name and address shall appear, at the close of business on the fifteenth (15th) day (whether or not a day on which the Paying Agent is open for business) next preceding each interest payment date (the Record Date ), on the registration books maintained by the Paying Agent, irrespective of any transfer or exchange of such Bond subsequent to such Record Date and prior to such interest payment date, unless the School District shall be in default in payment of interest due on such interest payment date. In the event of any such default, such defaulted interest shall be payable to the person in whose name the Bond is registered at the close of business on a special record date for the payment of such defaulted interest established by notice mailed by the Paying Agent to the registered owners of such Bonds not less than fifteen (15) days preceding such special record date. Such notice shall be mailed to the persons in whose names such certificated Bonds are registered at the close of business on the fifth (5th) day preceding the date of mailing. If the date for payment of the principal of or interest on any Bonds shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the Commonwealth are authorized or required by law or executive order to close, then the date for payment of such principal or interest shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized or required to close, and payment on such date shall have the same force and effect as if made on the nominal date established for such payment. 2

9 Transfer, Exchange and Registration of Certificated Bonds Subject to the provisions below under BOOK-ENTRY ONLY SYSTEM, any certificated Bonds are transferable or exchangeable by the registered owners thereof upon surrender of such Bonds to the Paying Agent, accompanied by a written instrument or instruments in form, with instructions and with guaranty of signature satisfactory to the Paying Agent, duly executed by the registered owner of such Bond or his attorney-in-fact or legal representative. The Paying Agent shall enter any transfer of ownership of such Bonds in the registration books and shall authenticate and deliver in the name of the transferee or transferees a new fully registered and certificated bond or bonds of authorized denominations of the same series, maturity and interest rate for the aggregate principal amount that the registered owner is entitled to receive. The School District and the Paying Agent may deem and treat the registered owner of any certificated Bond as the absolute owner thereof (whether or not such Bond shall be overdue) for the purpose of receiving payment of or on account of principal and interest and for all other purposes, and the School District and the Paying Agent shall not be affected by any notice to the contrary. The School District and the Paying Agent shall not be required: (a) to register the transfer of or exchange any certificated Bonds then considered for redemption during a period beginning at the close of business on the fifteenth (15th) day next preceding any date of selection of such Bonds to be redeemed and ending at the close of business on the day of mailing of the applicable notice of redemption; or (b) to register the transfer of or exchange any portion of any certificated Bond selected for redemption until after the redemption date. Certificated Bonds may be exchanged for a like aggregate principal amount of Bonds of other authorized denominations of the same series, maturity and interest rate. BOOK-ENTRY ONLY SYSTEM The information in this section has been obtained from materials provided by DTC for such purpose. The School District (herein referred to as the Issuer ) and the Underwriter do not guaranty the accuracy or completeness of such information, and such information is not to be construed as a representation of the School District or the Underwriter The Depository Trust Company ( DTC ), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered bonds 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 certificate will be issued for each series of the Bonds, each in the aggregate principal amount of such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue. DTC, the world s largest securities 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 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 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 & 3

10 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 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 each 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 Bonds, except in the event that use of the book-entry 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 such 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 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 shall 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. 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 Issuer 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). Principal, interest and redemption payments 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 Issuer or 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, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, interest and redemption payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or 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. 4

11 DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered. Issuer 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. The information in this section concerning DTC and DTC s book-entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof. NEITHER THE SCHOOL DISTRICT NOR THE PAYING AGENT WILL HAVE ANY RESPONSIBILITY OR OBLIGATION TO ANY DTC PARTICIPANT, INDIRECT PARTICIPANT OR BENEFICIAL OWNER OR ANY OTHER PERSON WITH RESPECT TO: (1) THE BONDS; (2) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DTC PARTICIPANT OR INDIRECT PARTICIPANT; (3) THE PAYMENT BY DTC OR ANY DTC PARTICIPANT OR INDIRECT PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL OR REDEMPTION PRICE OF OR INTEREST ON THE BONDS; (4) THE DELIVERY TO ANY BENEFICIAL OWNER BY DTC OR ANY DTC PARTICIPANT OR INDIRECT PARTICIPANT OF ANY NOTICE WHICH IS REQUIRED OR PERMITTED UNDER THE TERMS OF THE RESOLUTION TO BE GIVEN TO BONDHOLDERS; (5) THE SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE EVENT OF ANY PARTIAL REDEMPTION OF THE BONDS; OR (6) ANY OTHER ACTION TAKEN BY DTC AS BONDHOLDER. The Issuer and the Paying Agent cannot give any assurances that DTC or the Participants will distribute payments of the principal or redemption price of and interest on the Bonds paid to DTC or its nominee, as the registered owner of the Bonds, or any redemption or other notices, to the Beneficial Owners or that they will do so on a timely basis, or that DTC will serve and act in the manner described in this Official Statement. Optional Redemption REDEMPTION PROVISIONS The Bonds maturing on and after April 1, 2023, are subject to redemption prior to maturity at the option of the School District, in whole or in part, in any order of maturities as the School District shall select, on any date on or after October 1, 2022, at a price equal to 100% of the principal amount of the Bonds to be redeemed plus accrued interest thereon to the date fixed for such optional redemption. In the event that less than all the Bonds of a particular maturity are to be redeemed, the Bonds of such maturity shall be drawn by lot by the Paying Agent. Mandatory Redemption The Bonds stated to mature on April 1, 2026, are subject to a mandatory sinking fund redemption prior to maturity, by lot, at 100% of the principal amount thereof, plus accrued interest to the redemption date, on April 1, 2025, in the following aggregate principal amount: * Principal Maturity Year Amount 2025 $150, * 155,000 5

12 The Bonds stated to mature on April 1, 2028, are subject to a mandatory sinking fund redemption prior to maturity, by lot, at 100% of the principal amount thereof, plus accrued interest to the redemption date, on April 1, 2027, in the following aggregate principal amount: * Principal Maturity Year Amount 2027 $155, * 160,000 The Bonds stated to mature on April 1, 2030, are subject to a mandatory sinking fund redemption prior to maturity, by lot, at 100% of the principal amount thereof, plus accrued interest to the redemption date, on April 1, 2029, in the following aggregate principal amount: * Principal Maturity Year Amount 2029 $165, * 170,000 The Bonds stated to mature on April 1, 2032, are subject to a mandatory sinking fund redemption prior to maturity, by lot, at 100% of the principal amount thereof, plus accrued interest to the redemption date, on April 1, 2031, in the following aggregate principal amount: * Principal Maturity Year Amount 2031 $175, * 185,000 The Bonds stated to mature on April 1, 2034, are subject to a mandatory sinking fund redemption prior to maturity, by lot, at 100% of the principal amount thereof, plus accrued interest to the redemption date, on April 1, 2033, in the following aggregate principal amount: * Principal Maturity Year Amount 2033 $180, * 190,000 Notice of Redemption So long as Cede & Co., as nominee of DTC, is the registered owner of the Bonds, however, the School District and the Paying Agent shall send redemption notices only to Cede & Co. See BOOK-ENTRY ONLY SYSTEM herein for further information regarding conveyance of notices and Beneficial Owners. Notice of any redemption of certified Bonds shall be given by depositing a copy of the redemption notice in first class mail not less than thirty (30) days prior to the date fixed for redemption, addressed to each of the registered owners of any certificated Bonds to be redeemed, at the addresses shown on the registration books kept by the Paying Agent as of the date such Bonds are selected for redemption; 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. 6

13 On the date designated for redemption, notice having been provided as aforesaid, and money for payment of the principal and 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 Resolution, and registered owners of such Bonds or portions thereof so called for redemption shall have no rights with respect thereto, except to receive payment of the principal to be redeemed and accrued interest thereon to the date fixed for redemption. The notice of redemption may state that it is conditional, i.e., that it is subject to the deposit of sufficient redemption money with the Paying Agent or other escrow agent on the redemption date in sufficient time to effectuate the redemption of Bonds. If, after issuing a notice of redemption, the School District is unable or otherwise fails to deposit with the Paying Agent (or other bank or depositary acting as refunding escrow agent) money sufficient to redeem the Bonds called for redemption, such notice may be withdrawn or be of no effect until such money is so deposited. Manner of Redemption So long as Cede & Co., nominee of DTC, is the registered owner of the Bonds, payment of the redemption price shall be made by Cede & Co. in accordance with the existing arrangements by and among the School District, the Paying Agent and DTC and, if less than all of the Bonds in a particular maturity are to be redeemed, the amount of the interest of each DTC Participant, Indirect Participant and Beneficial Owner on such Bonds to be redeemed shall be determined by the governing arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. See BOOK-ENTRY ONLY SYSTEM herein for further information regarding redemption of Bonds registered in the name of Cede & Co. If a Bond is of a denomination larger than $5,000, a portion of such Bond may be redeemed. For the purposes of redemption, a Bond shall be treated as representing the number of Bonds that is equal to the principal amount thereof divided by $5,000, each $5,000 portion of such Bond being subject to redemption. In the case of partial redemption of a certificated Bond, payment of the redemption price shall be made only upon surrender of such Bond in exchange for certificated Bonds of authorized denominations in an aggregate principal amount equal to the unredeemed portion of the principal amount thereof. If the redemption date for any Bonds shall be a Saturday, Sunday, legal holiday or on a day on which banking institutions in the Commonwealth are authorized or required by law or executive order to close, then the date for payment of such principal, premium, if any, and interest upon such redemption shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized or required to close, and payment on such date shall have the same force and effect as if made on the nominal date of redemption. If any maturity of the Bonds which is subject to mandatory sinking fund redemption shall be called for optional redemption in part, the School District shall be entitled to designate whether the principal amount redeemed is to be credited against the principal amount of the Bonds of such maturity required to be called for mandatory sinking fund redemption on any particular future date or dates, or shall be credited against the principal amount of such Bonds to be due and payable at stated maturity, in each case in a whole multiple of $5,000 principal amount. General Obligation Pledge SECURITY AND SOURCES OF PAYMENT FOR THE BONDS The Bonds are general obligations of the School District and are payable on a parity basis with all existing and future general obligation debt of the School District from its local taxes and other general revenues, including available state subsidies. The taxing powers of the School District are described more fully in APPENDIX A SUMMARIES OF FINANCIAL INFORMATION ON THE SCHOOL DISTRICT Taxing Powers of the School District. The School District has covenanted in the Resolution that it will include in its budget for each fiscal year, and will appropriate in each such year, the amount of the debt service due on the Bonds for such year and will duly and punctually pay, or cause to be paid, the principal of every Bond and the interest thereon on the dates, at the place and in the manner stated in the Bonds, 7

14 and for such budgeting, appropriation and payment, the School District has irrevocably pledged its full faith, credit and taxing power, which taxing power includes the power to levy ad valorem taxes on all taxable property within the School District within the limits provided by law (See Taxing Powers of the School District herein). The Debt Act presently providers for enforcement of debt service payments as hereinafter described (see Remedies in the Event Default herein), and the Public School Code presently provides for the withholding and application of subsidies in the event of failure to pay debt service (see State Enforcement of Debt Services Payments ) herein). Sinking Fund Under the Resolution, the School District has created a sinking fund (the Sinking Fund ), to be maintained by the Paying Agent (the Sinking Fund Depositary ) as required by the Debt Act and segregated from all other funds of the School District. The School District shall deposit in the Sinking Fund, not later than the date when principal or interest is to become due on the Bonds, an amount sufficient to provide for the payment of interest and principal becoming due on the Bonds. The Sinking Fund shall be held by the Sinking Fund Depositary and separately invested by the Sinking Fund Depositary in such securities as are authorized by the Debt Act, upon direction of the School District. Such deposits and securities shall be in the name of the School District but subject to withdrawal or collection only by the Sinking Fund Depositary, and such deposits and securities, together with the interest thereon, shall be a part of the Sinking Fund. The Paying Agent is authorized and directed to pay from the Sinking Fund the principal of and interest on the Bonds when due and payable. Remedies in the Event of Default The Debt Act prescribes the remedies for bondholders in the event of a default in payments due under the Bonds. In the event the School District defaults in the payment of the principal of or the interest on any of the Bonds after same shall become due, whether at the stated maturity or upon call for prior redemption, and such default shall continue for thirty (30) days, or if the School District fails to comply with any provision of the Bonds or the Resolution, the Debt Act provides that the holders of 25% in aggregate principal amount of the Bonds then outstanding may, upon appropriate action, appoint a trustee to represent the Bondholders. The trustee may, and upon request of the holders of 25% in principal amount of the Bonds then outstanding, and upon being provided with indemnity satisfactory to it, shall take such action on behalf of the Bondholders as is more specifically set forth in the Debt Act. Such representation by the trustee shall be exclusive. State Enforcement of Debt Service Payments under Section 633 of the Pennsylvania Public School Code Section 633 of the Public School Code of 1949 (Act of May 10, 1949, P.L. 30, as amended by Act 150 of 1975) (the "School Code") presently provides that in all cases where the board of school directors of any school district fails to pay or to provide for the payment of any indebtedness, at the date of maturity or mandatory redemption, or any interest due on such indebtedness, in accordance with the schedule under which the bonds were issued, the Secretary of Education of the Commonwealth shall notify the board of school directors of its obligation and shall withhold from any Commonwealth appropriation due such school district an amount equal to the sum of such principal or interest due and shall pay such amount so withheld directly to the bank or other person acting as sinking fund depository for the bond issue. The withholding provisions of Section 633 are not part of any contract with the registered owners of the Bonds and may be amended or repealed by future legislation. The effectiveness of Section 633 may be limited by the application of other withholding provisions contained in the Public School Code, such as provisions for withholding and paying over of appropriations for payment of unpaid teachers' salaries. Enforcement may also be limited by bankruptcy, insolvency, or other laws or equitable principles affecting the enforcement of creditors' rights generally. 8

15 Pennsylvania Budget Adoption Over the past several years the Commonwealth of Pennsylvania has, from time to time, started its fiscal year without a fully adopted state budget. In the state s fiscal year, a final budget was not enacted until 270 days following the beginning of the fiscal year, on March 27, 2016, when the Governor failed to sign or veto the state budget that was adopted by the General Assembly on March 17, For the current fiscal year, the state budget became law, known as Act 16A of 2016, on July 12, 2016 when the Governor failed to sign or veto the state budget that was adopted by the General Assembly on July 1, On July 13, 2016, the General Assembly adopted and the Governor signed into law an additional tax and revenue package, known as Act 85 of 2016, that was needed to balance the state budget. During a state budget impasse, school districts in Pennsylvania cannot be certain when state subsidies and revenues owed them from the Commonwealth will become available. This includes many of the major state subsidies, and overall revenues, that a Pennsylvania school district receives including basic education funding, special education funding, PlanCon reimbursements, and certain block grants, among many others. Future budget impasses may affect the timeliness or amount of payments by the Commonwealth under the withholding provisions of Section 633 of the Public School Code, however recent legislation included in Act 85 of 2016 has attempted to address the timeliness of the withholding provisions of Section 633 of the Public School Code during any future budget impasses. See Act 85 of 2016 hereinafter. Act 85 of 2016 On July 13, 2016, the Governor of the Commonwealth signed into law Act No. 85 of 2016, (P.L. 664, No. 85) ("Act 85 of 2016"), an amendment to the Act of April 9, 1929 (P.L. 343, No. 176), known as the Fiscal Code ("Fiscal Code"). Act 85 of 2016 adds to the Fiscal Code Article XVl-E.4, entitled "School District Intercepts for the Payment of Debt Service During Budget Impasse", which provides for intercept of subsidy payments by PDE from a school district subject to an intercept statute or an intercept agreement in the event of a Commonwealth budget impasse in any fiscal year. Act 85 of 2016 includes in the definition of "intercept statutes" Sections 633 of the Public School Code. The School District's general obligation bonds, including the Bonds, are subject to Section 633 of the Public School Code. Act 85 of 2016 provides that the amounts as may be necessary for PDE to comply with the provisions of the applicable intercept statute or intercept agreement "shall be appropriated" to PDE from the General Fund of the Commonwealth after PDE submits justification to the majority and minority chairs of the appropriations committees of the Pennsylvania Senate and House of Representatives allowing ten (10) calendar days for their review and comment, if, in any fiscal year: 1. annual appropriations for payment of Commonwealth money to school districts have not been enacted by July 1 and continue not to be enacted when a payment is due; 2. the conditions under which PDE is required to comply with an intercept statute or intercept agreement have occurred, thereby requiring PDE to withhold payments which would otherwise be due to school districts; and 3. the Secretary of PDE, in consultation with the Secretary of the Budget, determines that there are no payments or allocations due to be paid to the applicable school districts from which PDE may withhold money as required by the applicable intercept statute or intercept agreement. The necessary amounts shall be appropriated on the expiration of the tenth (10th) day following submission of the justification described above to the majority and minority chairs of the appropriations committees, who may comment on the justification but cannot prevent the effectiveness of the appropriation. 9

16 The total of all intercept payments under Article XVII-E.4 for a school district may not exceed 50% of the total nonfederal general fund subsidy payments made to that school district in the prior fiscal year. Act 85 of 2016 requires that each school district subject to an intercept statute or intercept agreement must deliver to PDE, in such format as PDE may direct, a copy of the final Official Statement for the relevant bonds or notes or the loan documents relating to the obligations, within thirty (30) days of receipt of the proceeds of the obligations. The School District intends on submitting this information to PDE within the prescribed timeframe following the issuance of the Bonds. Act 85 of 2016 provides that any obligation for which PDE does not receive the required documents shall not be subject to the applicable intercept statute or intercept agreement. The provisions of Act 85 of 2016 are not part of any contract with the holders of the Bonds and may be amended or repealed by future legislation. Bond Insurance Policy BOND INSURANCE Concurrently with the issuance of the Bonds, Municipal Assurance Corp. ("MAC" or Bond Insurer ) 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 or Connecticut insurance law. Municipal Assurance Corp. MAC is a New York domiciled financial guaranty insurance company and an indirect subsidiary of Assured Guaranty Ltd. ( AGL ), a Bermuda-based holding company whose shares are publicly traded and are listed on the New York Stock Exchange under the symbol AGO. AGL, through its operating subsidiaries, provides credit enhancement products to the U.S. and global public finance, infrastructure and structured finance markets. Neither AGL nor any of the shareholders or affiliates of AGL, other than MAC, is obligated to pay any debts of MAC or any claims under any insurance policy issued by MAC. MAC is wholly owned by Municipal Assurance Holdings Inc., which, in turn, is owned 61% by Assured Guaranty Municipal Corp. and 39% by Assured Guaranty Corp. MAC s financial strength is rated "AA" (stable outlook) by S&P Global Ratings, a business unit of Standard & Poor s Financial Services LLC ( S&P ) and "AA+" (stable outlook) by Kroll Bond Rating Agency, Inc. ( KBRA ). Each rating of MAC should be evaluated independently. An explanation of the significance of the above ratings may be obtained from the applicable rating agency. The above ratings are not recommendations to buy, sell or hold any security, and such ratings are subject to revision or withdrawal at any time by the rating agencies, including withdrawal initiated at the request of MAC in its sole discretion. In addition, the rating agencies may at any time change MAC s long-term rating outlooks or place such ratings on a watch list for possible downgrade in the near term. Any downward revision or withdrawal of any of the above ratings, the assignment of a negative outlook to such ratings or the placement of such ratings on a negative watch list may have an adverse effect on the market price of any security guaranteed by MAC. MAC only guarantees scheduled principal and scheduled interest payments payable by the issuer of bonds insured by MAC 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 relevant insurance policy), and does not guarantee the market price or liquidity of the securities it insures, nor does it guarantee that the ratings on such securities will not be revised or withdrawn. 10

17 Current Financial Strength Ratings On July 8, 2016, KBRA issued a financial guaranty surveillance report in which it affirmed the insurance financial strength rating of AA+, with a Stable Outlook, of MAC. MAC can give no assurance as to any further ratings action that KBRA may take. On July 27, 2016, S&P issued a credit rating report in which it affirmed MAC s financial strength rating of AA (stable outlook). MAC can give no assurance as to any further ratings action that S&P may take. For more information regarding MAC s financial strength ratings and the risks relating thereto, see AGL s Annual Report on Form 10-K for the fiscal year ended December 31, Capitalization of MAC As of March 31, 2017, MAC s policyholders surplus and contingency reserve were approximately $753 million and its unearned premium reserve was approximately $310 million, in each case, determined in accordance with statutory accounting principles. Incorporation of Certain Documents by Reference Portions of the following documents filed by AGL with the Securities and Exchange Commission (the SEC ) that relate to MAC are incorporated by reference into this Official Statement and shall be deemed to be a part hereof: (i) the Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (filed by AGL with the SEC on February 24, 2017); and (ii) the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 (filed by AGL with the SEC on May 5, 2017). All financial statements of MAC and all other information relating to MAC included in, or as exhibits to, documents filed by AGL with the SEC pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, excluding Current Reports or portions thereof furnished under Item 2.02 or Item 7.01 of Form 8-K, after the filing of the last document referred to above and before the termination of the offering of the Bonds shall be deemed incorporated by reference into this Official Statement and to be a part hereof from the respective dates of filing such documents. Copies of materials incorporated by reference are available over the internet at the SEC s website at at AGL s website at or will be provided upon request to Municipal Assurance Corp.: 1633 Broadway, New York, New York 10019, Attention: Communications Department (telephone (212) ). Except for the information referred to above, no information available on or through AGL s website shall be deemed to be part of or incorporated in this Official Statement. Any information regarding MAC included herein under the caption BOND INSURANCE Municipal Assurance Corp. or included in a document incorporated by reference herein (collectively, the MAC Information ) shall be modified or superseded to the extent that any subsequently included MAC Information (either directly or through incorporation by reference) modifies or supersedes such previously included MAC Information. Any MAC Information so modified or superseded shall not constitute a part of this Official Statement, except as so modified or superseded. Miscellaneous Matters MAC makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, MAC 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 MAC supplied by MAC and presented under the heading BOND INSURANCE. 11

18 Bond Insurance Risk Factors In the event of default of the payment of principal or interest with respect to the Bonds when all or some becomes due, any owner of the Bonds shall have a claim under the applicable Policy for such payments. However, in the event of any acceleration of the due date of such principal by reason of mandatory or optional redemption or acceleration resulting from default or otherwise, other than any advancement of maturity pursuant to a mandatory sinking fund payment, the payments are to be made in such amounts and at such times as such payments would have been due had there not been any such acceleration. The Policy does not insure against redemption premium, if any. The payment of principal and interest in connection with mandatory or optional prepayment of the Bonds by the issuer which is recovered by the issuer from the bond owner as a voidable preference under applicable bankruptcy law is covered by the insurance policy, however, such payments will be made by the Insurer at such time and in such amounts as would have been due absence such prepayment by the School District unless the Bond Insurer chooses to pay such amounts at an earlier date. Under most circumstances, default of payment of principal and interest does not obligate acceleration of the obligations of the Bond Insurer without appropriate consent. The Bond Insurer may direct and must consent to any remedies and the Bond Insurer s consent may be required in connection with amendments to any applicable bond documents. In the event the Bond Insurer is unable to make payment of principal and interest as such payments become due under the Policy, the Bonds are payable solely from the moneys received pursuant to the applicable bond documents. In the event the Bond Insurer becomes obligated to make payments with respect to the Bonds, no assurance is given that such event will not adversely affect the market price of the Bonds or the marketability (liquidity) for the Bonds. The long-term ratings on the Bonds are dependent in part on the financial strength of the Bond Insurer and its claim paying ability. The Bond Insurer s financial strength and claims paying ability are predicated upon a number of factors which could change over time. No assurance is given that the long-term ratings of the Bond Insurer and of the ratings on the Bonds insured by the Bond Insurer will not be subject to downgrade and such event could adversely affect the market price of the Bonds or the marketability (liquidity) for the Bonds. See description of MISCELLANEOUS-Ratings herein. The obligations of the Bond Insurer are contractual obligations and in an event of default by the Bond Insurer, the remedies available may be limited by applicable bankruptcy law or state law related to insolvency of insurance companies. Neither the School District or Underwriter have made independent investigation into the claims paying ability of the Bond Insurer and no assurance or representation regarding the financial strength or projected financial strength of the Bond Insurer is given. Thus, when making an investment decision, potential investors should carefully consider the ability of the School District to pay principal and interest on the Bonds and the claims paying ability of the Bond Insurer, particularly over the life of the investment. See Bond Insurance herein for further information provided by the Bond Insurer and the Policy, which includes further instructions for obtaining current financial information concerning the Bond Insurer. Bond Counsel Opinion TAX EXEMPTION AND OTHER TAX MATTERS The information which follows is a summary of Bond Counsel s opinion. This summary does not purport and should not be construed to be a complete recitation of Bond Counsel s opinion. A draft of the full text of Bond Counsel s opinion is appended hereto in Appendix B and reference is made thereto. 12

19 Bond Counsel has not been engaged to verify, nor have they independently verified, the accuracy, completeness or truthfulness of any statements, certifications, information or financial statements set forth in this Official Statement, or otherwise used in connection with the offer and sale of the Bonds set forth in or delivered by the School District officials, and Bond Counsel expresses no opinion with respect to whether the School District, in connection with the sale of the Bonds or preparation of this Official Statement have made any untrue statement of a material fact necessary in order to make any statement made therein not misleading. Federal Income Tax Matters On the date of delivery of the Bonds, Rhoads & Sinon LLP, Harrisburg, Pennsylvania, as Bond Counsel to the School District, will issue an opinion to the effect that under existing statutes, regulations and judicial decisions, interest on the Bonds is excludable from gross income for purposes of federal income taxation and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, although such interest is taken into account in determining adjusted current earnings of corporations (as defined for federal income tax purposes) for purposes of such alternative minimum tax. This opinion of Bond Counsel will assume the accuracy of representations made by the School District and will be subject to the condition that the School District will comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that the interest thereon be, and continue to be, excluded from gross income for federal income tax purposes. See the proposed text of the opinion of Bond Counsel appended to this Official Statement. The School District has covenanted to comply with all such requirements, which include, among others, restrictions upon the yield at which proceeds of the Bonds and other money held for the payment of the Bonds and deemed to be "proceeds" thereof may be invested and the requirement to calculate and rebate any arbitrage that may be generated with respect to investments allocable to the Bonds. Failure to comply with such requirements could cause the interest on the Bonds to be included in gross income retroactive to the date of issuance of the Bonds. Certain maturities of the Bonds may be sold to the public in the initial offering at a price less than the stated redemption price of such Bonds at maturity (that is, at less than par or the stated principal amount), the difference being original issue discount. Generally, original issue discount accruing on a tax-exempt obligation is treated as interest excludable from gross income for federal income tax purposes. In addition, original issue discount that has accrued on a tax-exempt obligation is treated as an adjustment to the issue price of the obligation for the purpose of determining taxable gain upon sale or other disposition of such obligation prior to maturity. The Internal Revenue Code of 1986, as amended, provides specific rules for the accrual of original issue discount on tax-exempt obligations for federal income tax purposes. Prospective purchasers of Bonds being sold with original issue discount should consult their tax advisors for further information. Ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, certain subchapter S corporations with substantial passive income and Subchapter C earnings and profits, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry the Bonds. Bond Counsel will express no opinion as to such collateral tax consequences, and prospective purchasers of the Bonds should consult their tax advisors. No representation is made or can be made by the School District or any other party associated with the issuance of the Bonds as to whether or not any legislation now or hereafter introduced and enacted will be applied retroactively so as to subject interest on the Bonds to inclusion in gross income for Federal income tax purposes or so as to otherwise affect the marketability or market value of the Bonds. Enactment of any legislation that subjects the interest on the Bonds to inclusion in gross income for federal income tax purposes or otherwise imposes taxation on the Bonds or the interest paid thereon may have an adverse effect on the market value or marketability of the Bonds. Proposed or Future Legislation From time to time, there are Presidential proposals, proposals of various federal committees, and legislative proposals in the Congress and in the states that, if enacted, could alter or amend the federal and state tax matters 13

20 referred to herein or adversely affect the marketability or market value of the Bonds or otherwise prevent holders of the Bonds from realizing the full benefit of the tax exemption of interest on the Bonds. Further, such proposals may impact the marketability or market value of the Bonds simply by being proposed. It cannot be predicted whether or in what form any such proposal might be proposed or enacted, or whether if enacted it would apply to bonds issued prior to enactment. In addition, regulatory actions are from time to time announced or proposed and litigation is threatened or commenced which, if implemented or concluded in a particular manner, could adversely affect the market value, marketability or tax status of the Bonds. It cannot be predicted whether any such regulatory action will be implemented, how any particular litigation or judicial action will be resolved, or whether the Bonds would be impacted thereby. Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed legislation, regulatory initiatives or litigation. The disclosures and opinions expressed herein are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the Bonds, and no opinion is expressed as of any date subsequent thereto or with respect to any proposed or pending legislation, regulatory initiatives or litigation. Pennsylvania Tax Matters On the date of delivery of the Bonds, Bond Counsel will issue an opinion to the effect that under the laws of the Commonwealth of Pennsylvania (the "Commonwealth"), as presently enacted and construed, the Bonds are exempt from personal property taxes within the Commonwealth and the interest on the Bonds is exempt from the Commonwealth's Personal Income Tax and the Commonwealth's Corporate Net Income Tax. Profits, gains or income derived from the sale, exchange or other disposition of the Bonds are subject to state and local taxation within the Commonwealth, in accordance with Pennsylvania Act No Certain maturities of the Bonds may be sold to the public in the initial offering at a price less than their stated redemption price at maturity (that is, at an original issue discount ). For Pennsylvania Personal Income Tax purposes, original issue discount on publicly offered obligations is treated under current regulations of the Pennsylvania Department of Revenue as interest and, for purposes of determining taxable gain upon sale or other disposition of an obligation the interest on which is exempt from income taxation by the Commonwealth, as an adjustment to basis. For Pennsylvania Corporate Net Income Tax purposes, original issue discount is to be accorded similar treatment, according to a Private Letter Ruling issued by the Office of the Chief Counsel of the Pennsylvania Department of Revenue dated December 2, 1993, but such Private Letter Ruling may be relied upon only by the taxpayer to whom it was addressed. Prospective purchasers of Bonds issued with original issue discount should consult their tax advisors for further information and advice concerning the reporting of profits, gains or other income related to a sale, exchange or other disposition of such bonds for Pennsylvania tax purposes. Federal Income Tax Interest Expense Deductions for Financial Institutions Under Section 265 of the Internal Revenue Code of 1986, as amended (the Code ), no deduction is allowed for the portion of a financial institution s interest expense which is allocable to tax-exempt interest, such portion being an amount which bears the same ratio to the financial institution s interest expense as the financial institution s average adjusted bases (within the meaning of Section 1016 of the Code) of tax-exempt obligations acquired after August 7, 1986, bears to such average adjusted bases for all assets of the financial institution. An exception that reduces the amount of the interest expense disallowance under Section 265 of the Code is provided for certain tax-exempt obligations that are designated or "deemed designated" by the issuer as "qualified taxexempt obligations" under Section 265 of the Code. 14

21 The Bonds have been designated or deemed designated as qualified tax-exempt obligations for purposes and effect contemplated by Section 265 of the Code (relating to expenses and interest relating to tax-exempt income of certain financial institutions). Financial institutions intending to purchase Bonds should consult with their professional tax advisors to determine the effect of the interest expense disallowance on their federal income tax liability. CONTINUING DISCLOSURE UNDERTAKING In accordance with Rule 15-c2-12 (the Rule ) of the United States Securities and Exchange Commission (the SEC ), the School District (being an obligated person with respect to the Bonds, within the meaning of the Rule), will agree to provide certain financial information and operating data to the Municipal Securities Rulemaking Board (the MSRB ) in an electronic format as prescribed by the MSRB, either directly, or indirectly through a designated agent, in accordance with its Continuing Disclosure Certificate to be signed by the School District, substantially in the form attached hereto as Appendix F. With respect to the filing of annual financial information and operating data, the School District reserves the right to modify from time to time the specific types of information and data 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 School District or its operations or financial reporting, but the School District will agree that any such modification will be done in a manner consistent with the Rule. The School District is required to give notice of certain events as set forth in the Continuing Disclosure Certificate (not all of which will be relevant to the School District). The School District may from time to time choose to file notice of other events in addition to those specified in the Continuing Disclosure Certificate, but does not commit to provide notice of the occurrence of any events except those specifically listed in Section 6 of the Continuing Disclosure Certificate. The School District acknowledges that its undertaking pursuant to the Rule described herein and in the Continuing Disclosure Certificate is intended to be for the benefit of the holders and beneficial owners of the Bonds and shall be enforceable by the holder and beneficial owner of the Bonds, but the right of the holders and beneficial owners of the Bonds to enforce the provisions of the School District s continuing disclosure undertaking shall be limited to a right to obtain specific enforcement, and any failure by the School District to comply with the provisions of the undertaking shall not be an event of default with respect to the Bonds. The School District s obligations with respect to continuing disclosure described herein shall terminate upon the prior defeasance, redemption or payment in full of all of the Bonds or if and when the School District is no longer an obligated person with respect to the Bonds, within the meaning of the Rule. 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, Information and notices filed by municipal issuers (and other defined 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 The School District entered into prior undertakings to provide information pursuant to previous Continuing Disclosure Certificates that were in effect during the past five years for other outstanding bond issues. The requirements of those Continuing Disclosure Certificates require the School District to submit information as early as 180 days after each end of the fiscal year which occurs on June 30 th. The School District ultimately filed the required annual information for fiscal years ending 2012 through 2016 under its previous undertakings, but such filings were not consistently made in a timely manner. Specifically, the School District failed to file in a timely manner the FY 2012, FY 2014, FY 2015 and FY 2016 audits and FY 2013 and FY 2016 Operating Data and the FY 2012 through FY

22 budgets. Notices regarding the School District s failure to timely file required annual information were separately filed by the School District on EMMA from time to time, as well as notices regarding rating changes of companies insuring outstanding School District bonds. The School District has taken steps to facilitate the timely filing of required information and notices in the future. Specifically, the School District has hired a third party dissemination agent to assist the School District in complying with its active Continuing Disclosure Certificates. No Litigation MISCELLANEOUS As a condition of settlement for the Bonds, the School District will deliver a certificate, and its Solicitor will include in his opinion, a statement that there is no litigation, of any nature, pending, or to their knowledge threatened, against the School District to restrain or enjoin the issuance of the Bonds. Legal Opinion The issuance and delivery of the Bonds is subject to delivery of the approving legal opinion of Rhoads & Sinon LLP, of Harrisburg, Pennsylvania, Bond Counsel to the School District. Certain other legal matters will be passed upon for the School District by Richard J. Roberts, Jr., Esquire, Shamokin, Pennsylvania, Solicitor to the School District and Eckert Seamans Cherin & Mellott, LLC, Harrisburg, Pennsylvania as Limited Scope Underwriter s Counsel, will pass upon certain legal matters for the Underwriter. Ratings S&P Global Ratings, a business unit of Standard & Poor s Financial Services LLC ( S&P ) is expected to assign their municipal bond rating of AA (stable outlook) to the Bonds with the understanding that upon delivery of the Bonds, a municipal bond insurance policy guaranteeing the the scheduled payment when due of principal of and interest on the Bonds will be issued by MAC. Standard & Poor's Corporation has also assigned the School District an underlying rating of A (stable outlook). Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that any such rating will continue for any given period of time or that such a rating will not be revised downward or withdrawn entirely by the rating agency concerned, if in the judgment of such rating agency, circumstances so warrant. Any such downward revision or withdrawal of such rating may have an adverse effect on the market price of the Bonds. Underwriting RBC Capital Markets, LLC, Philadelphia, Pennsylvania (the Underwriter ) subject to certain conditions, has purchased the Bonds from the School District at a net purchase price of $4,437, (representing the par amount of the Bonds of $4,395,000, plus a net original issue premium of $69,228.25, less an underwriting discount of $26,370.00). The Underwriter's obligations are subject to certain conditions precedent; however, the Underwriter will be obligated to purchase all such 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 such public offering prices, and such public offering prices may be changed, from time to time, by the Underwriter. The Underwriter has provided the following information for inclusion in this Official Statement: the Underwriter and its respective affiliates are full-service financial institutions engaged in various activities that may include securities trading, commercial and investment banking, municipal advisory, brokerage, and asset management. In the ordinary course of business, the Underwriter and its respective affiliates may actively trade debt and, if applicable, equity securities (or related derivative securities) and provide financial instruments (which may include bank loans, credit support or interest rate swaps). The Underwriter and its respective affiliates may engage in transactions for their own accounts involving the securities and instruments made the subject of this securities offering 16

23 or other offering of the Issuer. The Underwriter and its respective affiliates may also communicate independent investment recommendations, market color or trading ideas and publish independent research views in respect of this securities offering or other offerings of the Issuer. The Underwriter and its respective affiliates may make a market in credit default swaps with respect to municipal securities in the future. Other All references to sections or language of the Debt Act, Act 1, the Bonds and the Resolution set forth in this Official Statement are made subject to all the detailed provisions thereof, to which reference is hereby made for further information, and this Official Statement does not purport to be complete statements of any or all such provisions. All information, estimates and assumptions herein have been obtained from officials of the School District, other governmental bodies, trade and statistical services, and other sources, which we believe to reliable; but no representations whatsoever are made that such estimates or assumptions are correct or will be realized. So far as any statements herein involve matters of opinion, whether or not expressly so stated, they are intended as such and not representations of fact. The School District has authorized the distribution of this Official Statement. SOUTHERN COLUMBIA AREA SCHOOL DISTRICT Columbia and Northumberland Counties, Pennsylvania By: Michael Yeager President of the Board of School Directors 17

24 [ THIS PAGE INTENTIONALLY LEFT BLANK ]

25 APPENDIX A Summaries of School District Finances

26 [ THIS PAGE INTENTIONALLY LEFT BLANK ]

27 FINANCIAL REVIEW The following information is in summary form only and is not intended to be a complete report. For more complete information, the actual financial statements and the FY and FY budgets of the School District should be reviewed at its business office in Catawissa, Pennsylvania. Review of Recent General Fund Audited Financial Statements and the FY Budget The exhibit on page A-3 is a summary of the audited financial statements for the fiscal years ending June 30, and the School District's budget for the fiscal year ending June 30, The figures have been arranged in a form believed by the School District to be convenient for the purposes of this Official Statement. Accounting Method The School District keeps its books and prepares its financial reports according to a modified accrual basis. Major accrual items are payroll taxes and pension fund contributions payable, loans receivable from other funds, and revenues receivable from other governmental units. Its financial statements are audited annually by a firm of independent certified public accountants, as required by State law. The firm of Schaeffer, Jones, Eichner & Wagner, L.L.P., Selinsgrove, Pennsylvania serves as the School District auditor. The School District s auditor has not been engaged to perform, and has not performed, since the date of its report, any procedures on the financial statements addressed in that report. Such auditor also has not performed any procedures relating to this official statement Budgeting Process in School Districts under Act 1 (The Taxpayer Relief Act ) In General. School districts budget and expend funds according to procedures mandated by the Pennsylvania Department of Education ( PDE ). An annual operating budget is prepared by school district administrative officials on a uniform form furnished by PDE and submitted to the board of school directors for approval prior to the beginning of the school districts fiscal year beginning on July 1. Procedures for Adoption of the Annual Budget. Under Pennsylvania Act 1 of the legislative Special Session of 2006, entitled the Taxpayer Relief Act, as amended ( Act 1 ), Pennsylvania school districts (except as described below) must adopt a preliminary budget proposal (which must include estimated revenues and expenditures and proposed tax rates) no later than 90 days prior to the date of the election immediately preceding the fiscal year. The preliminary budget proposal must be printed and made available for public inspection at least 20 days prior to its adoption; the board of school directors may hold a public hearing on the budget; and the board must give at least 10 days public notice of its intent to adopt the final budget. If the adopted preliminary budget includes an increase in the rate of any tax levy, the preliminary budget must be submitted to PDE no later than 85 days prior to the date of the election immediately preceding the fiscal year. PDE is to compare the proposed percentage increase in the rate of any tax with the school district s Index (see Local Tax Limitations Under Act 1 herein) and within 10 days, but not later than 75 days prior to the upcoming election, inform the school district whether the proposed percentage increase is less than or equal to the Index. If PDE determines that a proposed tax increase will exceed the Index, the school district must reduce the proposed tax increase, seek voter approval for the tax increase at the upcoming election, or seek approval to utilize one of the referendum exceptions authorized under Act 1. With respect to the utilization of any of Act 1 referendum exceptions for which PDE approval is required (see Local Tax Limitations Under Act 1 herein), the school district must publish notice of its intent to seek PDE approval not less than one week before submitting its request for approval to PDE and, if PDE determines to schedule a public hearing on the request, a notice of the date, time and place of such hearing. PDE is required by Act 1 to rule on the school district s request and inform the school district of its decision no later than 55 days prior to the upcoming election so that, if PDE denies the school district s request, the school district may submit a referendum question to the local election officials at least 50 days before the upcoming election, if it so chooses. A-1

28 To use any of the referendum exceptions for which court approval is required under the Act 1, the school district must petition the court of common pleas no later than 75 days prior to the upcoming election, after giving one week s public notice of the intent to file such petition. The court may schedule a hearing on the petition, and the school district must prove by clear and convincing evidence that it qualifies for the exception sought. Act 1 requires that the court rule on the petition and inform the school district of its decision no later than 55 days prior to the upcoming election. Act 1 provides that the court in approving the petition shall determine the dollar amount for which the exception is granted, the tax rate increase required to fund the exception and the appropriate duration of the tax increase. If the court denies the school district s petition, Act 1 permits the school district to submit a referendum question to the local election officials at least 50 days before the upcoming election, if it so chooses. If a school district seeks voter approval to increase taxes at a rate higher than the applicable Index, whether or not it first seeks approval to utilize one of the referendum exceptions available under Act 1, and the referendum question is not approved by a majority of the voters voting on the question, the board of school directors may not approve an increase in the tax rate greater than the applicable Index. Simplified Procedures in Certain Cases. The above budgetary procedures will not apply to a school district if the board of school directors adopts a resolution no later than 110 days prior to the election immediately preceding the upcoming fiscal year declaring that it will not increase any tax at a rate that exceeds the Index and that a tax increase at or below the rate of the Index will be sufficient to balance its budget. In that case, Act 1 requires only that the proposed annual budget be prepared at least 30 days, and made available for public inspection at least 20 days, prior to its adoption, and that at least ten (10) days public notice be given of the board s intent to adopt the annual budget. No referendum exceptions are available to a school district adopting such a resolution. A-2

29 SOUTHERN COLUMBIA AREA SCHOOL DISTRICT Audited Financial Statements Budget and Estimated General Fund Actual Revenues and Expenditures (Fiscal Years ending June 30) Audited 2013 Audited 2014 Audited 2015 Audited 2016 Budgeted 2017 REVENUES: Revenues Local Sources $10,327,462 $10,409,663 $10,662,078 $11,285,699 $11,872,725 State Sources 7,202,133 7,574,627 7,799,433 7,962,145 8,344,643 Federal Sources 325, , , , ,805 Other Fund Balance Appropriation ,273,541 Total Revenues $17,854,595 $18,266,138 $18,842,425 $19,600,947 $21,933,714 EXPENDITURES: Expenditures Instruction $10,461,962 $10,613,717 $10,872,653 $11,375,215 $12,635,695 Support Services 5,106,587 5,189,329 5,331,370 6,351,257 6,648,697 Non Instructional Services 405, , , , ,034 Debt Service 1,322,404 1,329,745 1,590,176 1,545,712 1,545,713 Refund of Prior Years Expenditures 0 0 3, Total Expenditures $17,296,278 $17,566,220 $18,244,615 $19,720,157 $21,244,139 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES $558,317 $699,918 $597,810 ($119,210) 689,575 OTHER FINANCING SOURCES (USES): Interfund Transfers (From Other Funds) (94,521) (135,125) (75,000) (75,000) (75,000) Gain on Sale of Fixed Assets 9,863 2,270 5, ,125 0 Total Other Financing Sources (Uses) (84,658) (84,658) (69,819) 385,125 (75,000) NET CHANGES IN FUND BALANCE 473, , , , FUND BALANCE, BEGINNING OF YEAR 667,620 1,141,279 1,708,342 1,670,911 42,576 PRIOR PERIOD ADJUSTMENT 0 0 (565,422) 0 0 FUND BALANCE, END OF YEAR $1,141,279 $1,708,342 $1,670,911 $1,936,826 $657,151 A-3

30 REVENUE FROM STATE SOURCES Pennsylvania school districts receive financial assistance from the Commonwealth in a number of forms, all subject to statutory provisions and annual appropriation by the Pennsylvania General Assembly. A basic instructional subsidy is allocated to all school districts based on (1) the per pupil market value of assessable real property in the school district; (2) the per pupil earned income in the school district; and (3) the school district's tax effort, as compared with the tax effort of other school districts in the Commonwealth. School districts also receive state aid for special education, pupil transportation, vocational education, and health services, among other things. Commonwealth law presently provides that the School District will receive reimbursement from the Commonwealth for a portion of the debt service on the Bonds after said Bonds have received final approval of the Department of Education. Commonwealth reimbursement is based on the "Reimbursable Percentage" assigned to the Bonds and the School District's Market Value Aid Ratio ( Aid Ratio ) or Capital Accounts Reimbursement Fraction ( CARF ), whichever is higher. In future years, this percentage may change as the School District's Aid Ratio changes, or by future legislation. Aid Ratio is a function of the market value per weighted average daily membership of the School District relative to that of the Commonwealth. The School District s FY Aid Ratio, currently , is larger than its CARF of Current Lack of State Appropriations for Debt Service Subsidies Commonwealth law presently provides that the School District will receive, subject to state legislative appropriation, reimbursement from the Commonwealth for a portion of debt service paid on the Bonds following final approval of the construction project by the PDE. Commonwealth reimbursement is calculated based on the Reimbursable Percentage assigned to the Bonds by the PDE and the School District's permanent CARF currently 53.85% or the wealth based MVAR currently 55.67%, whichever is higher. The Reimbursable Percentage is determined through a process known as the Planning and Construction Workbook or PlanCon. Based on the current PlanCon program, School District officials have estimated that the Reimbursable Percentage of the Bonds will be 0.00% (there has been no determination by the DOE). The School District's MVAR (which is higher than the CARF) is 55.67%. The product of these two factors is 0.00% which is the estimated percentage of debt service which may be reimbursed by the Commonwealth, subject to annual appropriation. In future years, this percentage may change as the School District s MVAR changes, or as a result of future legislation regarding changes to, or even elimination of, the PlanCon program. In May of 2016, the Commonwealth enacted appropriation legislation known as Act 25 ( Act 25 ), which contains authorization for the Commonwealth Finance Authority ( CFA ) to issue up to $2.5 billion of debt to fund PlanCon reimbursements to school districts. Act 25 also instituted a moratorium on new projects entering the PlanCon process while an advisory committee established under Act 25 considers amendments to the PlanCon reimbursement program. This new moratorium went into effect on May 15, 2016 and is scheduled to expire on June 30, On October 31, 2016, CFA issued its Revenue Bonds, Series A of 2017 (Federally Taxable) in the total amount of $758,185,000 to provide for PlanCon reimbursement owed to all Pennsylvania school districts. It is expected that proceeds of this issue will be used to provide PlanCon reimbursement that is owed to the School District for past and current fiscal years. However, the School District cannot be certain that any future PlanCon reimbursement will be received from PDE since such payments may depend on the ability of CFA to issue additional bonds in the future. Any failure by the Commonwealth to adopt a timely budget and enact necessary spending authorizations could have a material adverse effect upon the School District s anticipated receipt of PlanCon reimbursements. There can be no assurances that the School District will be able to successfully apply for, be awarded, and receive sufficient PlanCon reimbursement for the costs of any current or future projects of the School District. A failure by the School District to receive such reimbursement could force the School District to apply other available funds, if A-4

31 any, toward the completion costs of the Project and may have a material adverse effect on the financial resources of the School District to fund other obligations, including payment of debt service on the Bonds. Legislation has been introduced from time to time in the Pennsylvania legislature containing language that would revise or even abolish the debt service reimbursement program for Pennsylvania school districts. As of the date hereof, and except as described above, none of these proposals have been signed into law. To the extent that any future legislation contains material changes to the PlanCon program as it is structured currently, the amount of PlanCon reimbursement to the School District may be positively or negatively affected, which could materially impact the amount of local funds needed to be raised by the School District to pay debt service on its debt obligations. SCHOOL DISTRICT PENSION PROGRAM School Districts in Pennsylvania are required to participate in a statewide pension program administered by the Public School Employees Retirement System ( PSERS ). All of the School District's full-time employees, part-time employees who work more than 80 days in a school year, and hourly employees who work over 500 hours a year participate in the program. However, please note a Pennsylvania Supreme Court decision has removed the hourly de minimis requirement for current members of PSERS regarding the purchase of credit for their part-time school service rendered prior to their being members of PSERS, for purposes of increasing their pension benefits. Beginning July 1, 1976, certain revisions were made in the pension program. The Retirement Board, previously under the Department of Education of the Commonwealth, became an independent agency. However, the program is still guaranteed by the Commonwealth. Currently, each party to the program contributes a fixed percentage of the employee s salary. Employees belonging to the Public School Employees Retirement System ( PSERS ) prior to July 22, 1983 contribute 5.25% of their salary, and employees who joined the PSERS on or after July 22, 1983 contribute 6.25% of their salary. On February 17, 2002, Governor Ridge signed Act 9 which created a new membership class that sets the employee contribution rate at 7.50% of the employee s salary for those employees hired on or after July 1, Act 9 also provides an option for those employees hired prior to July 1, 2001 to elect a contribution rate of 6.50%, if they were hired before July 22, 1983, or 7.50% if they were hired on or after July 22, Act 120 of 2010 was passed by the General Assembly on November 15, 2010 and signed by Governor Rendell on November 23, The benefit reductions contained in this legislation will only impact individuals who become new members of PSERS on or after July 1, New members will have the option of selecting one of 2 new classes. The members selecting class T-E, will contribute a base rate of 7.5% with shared risk contribution levels between 7.5% and 9.5% and a pension multiplier of 2.0%. Members selecting class T-F will contribute a base rate of 10.3% with shared risk contribution levels between 10.3% and 12.3% and a pension multiplier or 2.5%. The PSERS Board certified the employer rate, to be paid by the School District, of 8.22% for the fiscal year (In accordance with Senate Bill 1042 enacted on July 6, 2010, this rate was recertified at 5.64% for fiscal year). The PSERS Board certified the employer rates, to be paid by the School District for fiscal years , , and to be 8.65%, 12.36%, 16.93% and 21.40%, respectively. On December 9, 2014, the PSERS Board certified the employer rate, to be paid by the School District, of 25.84% for the fiscal year. According to Act 120 of 2010 the employer contribution rate is suppressed for future years by using rate caps to keep the rate from rising too high, too fast. The rate caps limit amount the pension component of the employer contribution rate can increase over the prior year s rate as follows: FY not more than 3.0% plus the premium assistance contribution rate; FY not more than 3.5% plus the premium assistance contribution rates; and FY not more than 4.5% plus the premium assistance contribution rate and thereafter at not more than 4.5%. Both the School District and the Commonwealth are responsible for paying a portion of the employer s share. School entities are responsible for paying 100% of the employer share of contributions to PSERS. The Commonwealth reimburses the employer for one-half the payment for employees. The School District contributions are made on a quarterly basis and employee contributions are deducted monthly from each paycheck and remitted quarterly. Both the School District and the Commonwealth are responsible for paying a portion of the employer s share. School entities are responsible for paying 100% of the employer share of contributions to PSERS. The Commonwealth reimburses the employer for one-half the payment for employees. The School District contributions are made on a quarterly basis and employee contributions are deducted bi-weekly for each paycheck and remitted monthly. Recent School District pension contributions to PSERS have been as follows: A-5

32 The School District is current in all payments. The PSERS complete report is available on the PSERS website on the Internet: Source: PSERS Financial Highlights. Fiscal Year Contribution $782, ,124, ,473, ,867, ,172, (Budgeted) 2,543,765 OTHER POST-EMPLOYMENT BENEFITS The School District provides certain health care and life insurance benefits for its retirees (commonly referred to as other post-employment benefits or OPEB ). The School District annually appropriates funds to meet its obligation to pay such benefits on a pay-as-you-go basis, and has not established any fund or irrevocable trust for the accumulation of assets with which to pay such benefits in future years. In the fiscal years ended June 30, 2015 and 2016, the School District s OPEB obligations were approximately $294,203 and $345,144 respectively. LABOR RELATIONS The School District and its professional employees, represented by the Southern Columbia Area Education Association, are currently under a labor contract expiring June 30, Relations between the School District and Association have been good. The School District currently employs 101 teachers who are represented by the Southern Columbia Area Education Association. There are 57 full-time support personnel and 29 part time support personnel who are covered by an AFSCME contract expiring June 30, The School District employs 11 administrators. SCHOOL DISTRICT FINANCIAL HISTORY service. The School District and its predecessors have never defaulted on the payment of capital lease rentals or debt The status of the School District's present indebtedness is shown in the table entitled "Current Long-term Financing," in Appendix B. FUTURE FINANCING The Board of School Directors are currently exploring opportunities to purchase real estate adjacent to School District facilities which may potentially lead to long-term financing. A-6

33 DEBT LIMIT AND REMAINING BORROWING CAPACITY The statutory borrowing limit of the School District under the Debt Act is computed as a percentage of the School District's "Borrowing Base". The "Borrowing Base" is calculated as the annual arithmetic average of total Revenues (as defined by the Debt Act) reduced by specific deductions, for the three full fiscal years ended next preceding the date of incurring debt. The School District calculates its present borrowing base and borrowing capacity as follows: Fiscal Years Total Revenues... $ 18,196,266 $ 18,243,053 $ 19,761,617 Less: Required Deductions (a) Rental and Sinking Fund Reimbursement , , ,477 (b) Revenues for Self-Liquidating Debt (c) Interest Earned on Sinking Funds (d) Grant and Gifts for Capital Projects (e) Sale of Equipment and Non-Recurring Items Total Deductions... $ 0 $ 0 $ 0 Net Revenues... $ 17,986,623 $ 18,007,352 $ 19,586,140 Total Net Revenues for Three Years... $ 55,580,115 Borrowing Base Average Net Revenues for Three-Year Period $ 18,526,705 Under the Debt Act as presently in effect, new nonelectoral debt may not be incurred if the net amount of such new nonelectoral debt plus all outstanding net nonelectoral debt would cause total net nonelectoral debt to exceed 225% of its Borrowing Base. The application of the aforesaid percentage to the School District's Borrowing Base produces the following result: Calculation of Remaining Borrowing Capacity Remaining Legal Net Debt Borrowing Limit Outstanding (1) Capacity Net Nonelectoral Debt Limit: 225% of Borrowing Base $41,685,086 $28,798,270 $12,886,816 (1) Includes Bonds offered through this Official Statement but does not include the Refunded Bonds. A-7

34 TAXING POWERS OF THE SCHOOL DISTRICT Subject to legal limitations imposed by the Debt Act (see below), and similar, earlier, state legislation, the School District is empowered by the Public School Code to levy the following taxes: An annual tax on assessed valuation of real estate, for general purposes, not exceeding 25 mills, and an annual per capita tax on each resident over 18 years of age, not exceeding $5.00; In addition, the boards of directors of school districts of such class are authorized and directed to levy an ad valorem tax on property taxable for School purposes: 1. To pay minimum salaries and increments of the teaching and supervisory staff; 2. To pay rentals due any municipality authority, nonprofit corporation or the State Public School Building Authority; 3. To pay interest and principal on any indebtedness incurred under the Debt Act or any prior or subsequent act governing the incurrence of indebtedness of the School District; and 4. To pay for the amortization of a bond issue which provided for a school building prior to the first Monday of July, The School District may also levy additional taxes, subject to division with other political subdivisions authorized to levy similar taxes on the same person, subject, business, transaction or privilege, under Act No. 511, enacted December 31, 1965, as amended (the Local Tax Enabling Act ). These taxes, which may include, among others, an additional per capita tax, wage and other earned income taxes, real estate transfer taxes, gross receipts taxes, and occupation taxes, shall not exceed, in the aggregate, an amount equal to the product of the market valuation of real estate in the School District (as certified by the State Tax Equalization Board of the Commonwealth STEB ) multiplied by 12 mills. A recent amendment to the Local Tax Enabling Act authorized all taxing authorities to increase at their individual discretion, the exemption level for per capita, occupational, earned income and similar taxes from $5,000 to $10,000. The Local Tax Enabling Act was amended by Act 222 of 2004 to authorize all taxing authorities to exempt from per capita, occupation, emergency and municipal service or earned income taxes any person whose total income from all source is less than $12,000 per year. Limitations on Local Taxation (Act 1 of 2006) Under Act 1 which became effective on June 27, 2006, repealing earlier legislation seeking to cap local taxation by school districts, a school district may not levy any tax for the support of the public schools which was not levied in the preceding fiscal year, raise the rate of any earned income and net profits tax if already imposed under the authority of the Local Tax Enabling Act (Act 511), or increase the rate of any tax for school purposes by more than the Index (defined below), unless in each case either (a) such increase is approved by the voters in the school district at a public referendum or (b) one of the exceptions summarized below is applicable and the use of such exception is approved by the Pennsylvania Department of Education (PDE): 1. to pay interest and principal on indebtedness incurred (i) prior to September 4, 2004, in the case of a school district which had elected to become subject to the provisions of the prior Homeowner Tax Relief Act, Act 72 of 2004, or (ii) prior to June 27, 2006, in the case of a school district which had not elected to become subject to Act 72 of 2004; to pay interest and principal on any indebtedness approved by the voters at referendum (electoral debt); and to pay interest and principal on debt refunding or refinancing debt for which one of the above exceptions is permitted, as long as the refunding or refinancing incurs no additional debt other than for costs and expenses related to the refunding or refinancing and the funding of appropriate debt service reserves; 2. to pay costs incurred in providing special education programs and services to students with disabilities, under specified circumstances; and A-8

35 3. to make payments into the State Public School Employees Retirement System when the increase in the estimated payments between the current year and the upcoming year is greater than the Index, as determined by PDE in accordance with the provisions of Act 1. Any revenue derived from an increase in the rate of any tax allowed under the exception numbered 1 above may not exceed the anticipated dollar amount of the expenditure, and any revenue derived from an increase in the rate of any tax allowed pursuant to any other exception enumerated above may not exceed the rate increase required, as determined by PDE. If a school district s petition or request to increase taxes by more than the Index pursuant to one or more of the allowable exceptions is not approved, the school district may submit the proposed tax increase to a referendum. The Index (to be determined and reported by PDE by September of each year for application to the following fiscal year) is the average of the percentage increase in the statewide average weekly wage, as determined by the State Department of Labor and Industry for the preceding calendar year, and the employment cost index for elementary and secondary schools, as reported by the federal Bureau of Labor Statistics for the preceding 12-month period beginning July 1 and ending June 30. If and when a school district has a Market Value/Income Aid Ratio greater than 0.40 for the prior school year, however, the Index is adjusted upward by multiplying the unadjusted Index by the sum of 0.75 and such Aid Ratio. The Index applicable to the School District in the current and previous fiscal years are as follows: % % % % % Under Act 1 the board of school directors of every school district was required to submit a referendum question to the voters at the primary elections in 2007 seeking voter approval allowing the school district to levy, assess and collect an earned income and net profits tax ( EIT ) or a personal income tax ( PIT ) for the purpose of annually funding homestead and farmstead exclusions from real property taxes. The proposed rate of such EIT or PIT could not exceed the rate required to provide the maximum exclusion for homestead and farmstead property allowable under Pennsylvania law, nor could it be less than the rate required to provide 50% of the maximum allowable exclusion. Nevertheless, no school district was required to propose an EIT greater than 1% or a PIT equivalent to an EIT of 1%. Only 8 out of 498 school districts in Pennsylvania required to submit the referendum question on the ballot approved an increase in the EIT or PIT to decrease real estate taxes. The School District s voters did not approve the referendum question which read as follows: Do you favor the Southern Columbia Area School District imposing an additional.4% earned income tax? The revenue generated from the tax will be used to reduce taxes on qualified owner occupied residential properties and on qualified farm buildings by approximately $219. The current school district earned income and net profits tax rate is 1.5%, and the current combined municipal/school district rate is 2.0%. The provisions of Act 1 limiting tax increases to the Index unless an exception applies, remains in effect notwithstanding the failure of the referendum question. A board of school directors may submit, but is not required to submit, a future referendum question to the voters at any municipal election seeking approval to levy or increase the rate of an EIT or a PIT for the purpose of further funding homestead and farmstead exclusions, but the proposed rate of the EIT or PIT shall not exceed the rate which, when combined with any tax rate previously authorized is required to provide the maximum homestead and farmstead exclusions allowable under law. A-9

36 The preceding summary of Act 1 is not intended to be an exhaustive discussion of the provisions of Act 1 nor a legal interpretation of any provision of Act 1, and a prospective purchaser of the Bonds should review the full text of Act 1 as a part of any decision to purchase the Bonds. Status of the Bonds under Act 1 The Bonds are not expected to be eligible for any of the exceptions to the Act 1 referendum requirement described above. Act 48 of 2003 Limitation on Fund Balances Pennsylvania Act No (enacted December 23, 2003) prohibits a school district from increasing real property taxes for the school year or any subsequent school year, unless the school district has adopted a budget for such school year that includes an estimated ending unreserved undesignated fund balance which is not more than a specified percentage of the total budgeted expenditures, as set forth below: Total Budgeted Expenditures: Estimated Ending Unreserved Undesignated Fund Balance as a Percentage of Total Budgeted Expenditures: Less than or equal to $11,999, % Between $12,000,000 and $12,999, % Between 13,000,000 and $13,999, % Between $14,000,000 and $14,999, % Between $15,000,000 and $15,999, % Between $16,000,000 and $16,999, % Between $17,000,000 and $17,999, % Between $18,000,000 and $18,999, % Greater than or equal to $19,000, %* *Applies to the School District. Estimated ending unreserved fund balance is defined in Act as that portion of the fund balance which is appropriable for expenditure or not legally or otherwise segregated for a specific or tentative future use, projected for the close of the school year for which a school district s budget was adopted and held in the general fund accounts of the school district. The total budgeted expenditures in the School District s budget for the fiscal year including fund transfers and budgeted reserves are $20,111,830 and the School District s estimated ending unreserved undesignated fund balance as a percentage of total budgeted expenditures for the fiscal year is 6.8%. SET FORTH ABOVE ARE SUMMARIES OF PRESENT AND PAST PENNSYLVANIA LAWS DEEMED RELEVANT TO THE TAXING POWERS OF THE SCHOOL DISTRICT. THESE SUMMARIES ARE NOT INTENDED TO CONSTITUTE EXHAUSTIVE DISCUSSIONS, OR LEGAL INTERPRETATIONS, OF SUCH LAWS. PDE AND OTHER PENNSYLVANIA AGENCIES AND COURTS ARE IN THE PROCESS OF INTERPRETING AND PROVIDING GUIDANCE REGARDING SUCH LAWS. A PROSPECTIVE PURCHASER OF THE BONDS SHOULD REVIEW THE FULL TEXT AND OFFICIAL INTERPRETATIONS OF THESE LAWS AS A PART OF ANY DECISION TO PURCHASE THE BONDS. A-10

37 TAX REVENUES IN THE SCHOOL DISTRICT Ten Most Valuable Real Estate Parcels in the School District The ten most valuable parcels of real property in the School District, together with the owner, description and assessed values are shown below. The aggregate assessed value of these ten parcels totals approximately 6.96% percent of total School District assessed value. All major real property tax accounts are current. Owner Use Assessed Value Geisinger System Services Health System Services $5,200,000 Elysburg GD LLC Commerical Business Use 1,430,530 Urban Catawissa LP Housing Complex 1,069,296 Knoebel Realty LP Amusement Park 991,385 Knoebel Realty LP Amusement Park 616,050 Knoebel Richard & Ronald Campground 489,148 Hillside Village Investors LLC Housing Complex 445,551 RAM GOVIND ASI LLC Commerical Business Use 351,650 Store Master Funding IX LLC Commerical Business Use 324,150 PFI LLC Commerical Business Use 333,710 Total $11,251,470 Source: School District Officials. Assessed and Market Valuations REAL ESTATE PROPERTY VALUES Board. Market values of real property in the School District, as reported by the Pennsylvania State Tax Equalization Common Level Ratio Year Market Value Assessed Value Columbia Northumberland 2006 $462,253,100 $149,290, % 22.1% ,061, ,289, % 21.7% ,778, ,254, % 22.6% ,886, ,171, % 24.3% ,898, ,643, % 27.6% ,086, ,368, % 27.9% ,734, ,384, % 27.8% ,561, ,836, % 30.3% ,605, ,519, % 29.7% ,202, ,598, % 25.6% Source: Pennsylvania State Tax Equalization Board A-11

38 TAXATION IN THE SCHOOL DISTRICT Tax Collection Record School District real estate taxes are billed on July 1 of the levy year, with a discount of 2% available to the taxpayer if paid before September 1. The taxes are payable at the face value between September 1 and October 31, and a 10% penalty is added to any payment made after November 1 of the levy year. Collection in Year of Levy Total Collections Adjusted Levy Amount % Amount % School Year Assessed Valuation Columbia Millage Northumberland Millage ,289, ,553,632 4,259, % 4,527, % ,254, ,880,535 4,566, % 4,815, % ,171, ,132,746 4,441, % 5,041, % ,643, ,278,377 4,667, % 5,109, % ,368, ,132,932 4,785, % 5,068, % ,384, ,472,595 5,054, % 5,408, % ,836, ,096,012 5,696, % 6,052, % ,519, ,410,753 5,996, % 6,331, % ,418, ,844,559 6,419, % 6,759, % ,610, ,783,428 7,289, % 7,306, % (1) Flat billing plus penalties, less discounts and exonerations. Source: School District Financial Reports Realty and Non-Realty Tax Rates Realty Tax (Mills) Per Capita Earned Income Real Estate Transfer Municipality School Municipal County School Municipal School Municipal School Municipal Catawissa Borough $0.00 $ Catawissa Township Cleveland Township Franklin Township Locust Township Roaring Creek Township Ralpho Township Local Services Municipality Mechanical Fire Equipment School Municipal Occupational Devices & Firehouses Other Catawissa Borough 0.00 $ $ Catawissa Township Cleveland Township Franklin Township Locust Township Roaring Creek Township Ralpho Township , A-12

39 FINANCING SUMMARY Issue Date of Issue Outstanding Debt % Reimbursable Effective Reimbursement (1) State Share Local Share 2017 Bonds 06/28/2017 $4,395, $4,395, A Bonds 10/12/ ,205, % 20.34% 3,702,897 14,502, B Bonds 10/12/2016 1,520, ,520, Notes 06/25/2014 3,748, ,748, Notes 02/15/ , % 15.18% 29, , Bonds 02/15/ , % 20.34% 149, ,501 (1) Multiplied by School District s MVAR Ratio of 55.67%. Financial Factors and Ratios STEB Market Valuation of Real Estate (2015)... $654,202,453 STEB Assessed Valuation of Real Estate (2015) ,598,245 Population: ,386 Market Valuation of Real Estate to Population... $62,989 Assessed Valuation of Real Estate to Population... $15,559 Overlapping Indebtedness Obligations of the Residents of the School District: School District General Obligation... $28,798,270 Columbia County (1) ,147 Northumberland County (2)... 1,306,675 Total Obligations... $30,940,092 Ratio of Total Obligations to: Market Valuation of Real Estate % Assessed Valuation of Real Estate % Population (2010)... $2,979 Obligations of the Residents after State Reimbursement School District General Obligations... $24,916,273 Columbia County (1) ,147 Northumberland County (2)... 1,306,675 Total Obligations After State Reimbursement... $27,058,095 Ratio of Total Obligations after State Reimbursement to: Market Valuation of Real Estate % Assessed Valuation of Real Estate % Population (2010)... $2,605 (1) The Net Direct Debt of Columbia County totals $14,575, as reported by the Department of Community and Economic Development as of May The School District s proportionate share, 5.73%, is determined by dividing the School District s reported 2015 assessed value by the total 2015 assessed values of all the municipalities within Columbia County. (2) The Net Direct Debt of Northumberland County totals $25,521,000 as reported by the Department of Community and Economic Development as of May The School District s proportionate share, 5.12%, is determined by dividing the School District s reported 2015 assessed value by the total 2015 assessed values of all the municipalities within Northumberland County. A-13

40 [ THIS PAGE INTENTIONALLY LEFT BLANK ]

41 APPENDIX B Description of the School District

42 [ THIS PAGE INTENTIONALLY LEFT BLANK ]

43 DESCRIPTION OF THE SCHOOL DISTRICT The Southern Columbia Area School District is composed of Catawissa Borough, the Townships of Catawissa, Cleveland, Franklin, Roaring Creek, and Locust in Columbia County, and Ralpho Township in Northumberland County. The School District is approximately 60 miles northeast of Harrisburg, the State Capital, 45 miles south of Wilkes-Barre and 35 miles southeast of Williamsport. Many residents of the School District commute to jobs in Danville and as far as Harrisburg. The School District itself is a growing residential area with a population of approximately 10,386. Population School District 9,803 10,386 Columbia County 64,151 67,295 Northumberland County 94,556 94,528 Commonwealth 12,281,054 12,702,379 Age Composition (2010) Under or Over School District 22.2% 17.6% Columbia County Northumberland County Commonwealth Family Income (2010) Median Families Below Family Income Poverty Level School District $45, % Columbia County 54, Northumberland County 48, Commonwealth 65, Occupied Housing (2010) Total Occupied Housing Housing Owner-Occupied Units Units % Housing Units % School District 5,365 3, % 3, % Columbia County 29,498 26, , Northumberland County 44,910 39, , Commonwealth 5,567,315 5,018, ,491, B-1

44 Transportation The major highways in Columbia County are I-80 and U.S. Route 11. There are 19.1 miles of Interstate Highways miles of State and Federal Highways and miles of secondary and municipal roads. Northumberland County is traversed by Routes 11 and 15, which run north and south along the Susquehanna River. These roads provide access to all major population centers in eastern Pennsylvania, southeastern New York and northern New Jersey. Utilities Electrical service is provided by PPL Utilities which, in the case of the Borough of Catawissa, provides bulk power which the Borough distributes through its own electrical distribution system to retail customers. Gas service is provided by PG Energy Inc. Water service is provided in portions of Ralpho Township by Consumer s Pennsylvania Water Co. Roaring Creek Division and the Borough of Catawissa by a municipal authority. Residents not having public water service use private wells. Sewer service is provided by municipal sewer authorities. Higher Education Bloomsburg University of Pennsylvania is located five miles from the School District and offers Undergraduate and Graduate degrees. There are other excellent educational facilities within commuting distance. The closest, Susquehanna University in Selinsgrove, and Bucknell University Lewisburg, are liberal arts colleges offering Bachelors degrees in a range of majors. Medical Facilities The Berwick Health Care Corporation offers a 179 bed hospital facility and a 120 bed nursing home, and the Bloomsburg Hospital is a 125 bed facility. Located nearby and offering medical services to the area are the Geisinger Medical Center in Danville, Evangelical Hospital is Lewisburg, Shamokin State General Hospital in Shamokin and Sunbury Community Hospital in Sunbury. B-2

45 ECONOMY Top 10 Employers in the Area The ten largest employers in the School District and their approximate number of employees are shown below: Company Product/Service Estimated Number of Employees HH Knoebel Sons Inc. Amusement Park 2,173 Southern Columbia Area School Public Education 380 Family Care Home Health Agency Health Care 245 PA State Sportsmans Association Gun Club 209 3B Consulting Services Inc. Cleaning Service Industry 144 Onesource Staffing Solutions Staffing/Recruiting 101 Bill Anskis Company Inc. Construction 90 Millers Cleaning Services Inc. Cleaning Service Industry 73 Catawissa Wood & Componets Inc. Wholesaler of Lumber 71 R and K Foods of Pennsylvania Ltd Retail Food (Grocery Store) 70 Source: School District Officials. Employment Trends in Columbia and Northumberland Counties Unemployment Year Columbia Northumberland Pennsylvania U.S % 5.4% 4.7% 4.8% (May) Source: Pennsylvania Department of Labor & Industry. B-3

46 Classification of Employment by Industry The following tables are a breakdown of employment in Columbia County and Northumberland County for 2014 from the Pennsylvania Department of Labor & Industry. Average annual earnings for workers are included. Columbia County, Pennsylvania Industry Average Average Monthly Quarterly Units Employment Total Wages (1000s) Average Annual Wage Columbia County * * * * AGRICULTURE, FORESTRY, FISHING AND HUNTING $4,264 $29,205 CONSTRUCTION ,182 50,427 MINING ,117 31,926 UTILITIES ,925 56,614 MANUFACTURING 72 5, ,870 45,509 Food Manufacturing 11 1,472 70,535 47,918 Beverage and Tobacco Product Manufacturing * * * * Textile Mills * * * * Textile Product Mills 4 1,276 52,209 40,916 Apparel Manufacturing * * * * Wood Product Manufacturing ,423 Printing and Related Support Activities ,709 Petroleum & Coal Products Manufacturing * * * * Chemical Manufacturing * * * * Plastics and Rubber Products Manufacturing ,612 50,188 Nonmetallic Mineral Product Manufacturing ,419 34,620 Primary Metal Manufacturing * * * * Fabricated Metal Product Manufacturing 20 1,201 55,346 46,083 Machinery Manufacturing ,976 54,982 Electrical Equipment, Appliance, and Component Manufacturing * * * * Transportation Equipment Manufacturing * * * * RETAIL TRADE 232 3,383 78,201 23,116 TRANSPORTATION AND WAREHOUSING 38 1,051 35,132 33,427 WHOLESALE TRADE ,082 38,372 ADMINISTRATIVE AND WASTE MANAGEMENT AND REMEDIATION SERVICES ,239 23,628 FINANCE AND INSURANCE ,972 42,731 INFORMATION ,620 41,036 MANAGEMENT OF COMPANIES AND ENTERPRISES 15 1,233 72,599 58,880 PROFESSIONAL AND TECHNICAL SERVICES ,594 43,324 REAL ESTATE AND RENTAL AND LEASING ,254 28,559 EDUCATIONAL SERVICES ,977 35,789 HEALTH CARE AND SOCIAL ASSISTANCE 208 3, ,184 38,535 ACCOMMODATION AND FOOD SERVICES 148 2,476 31,220 12,609 ARTS, ENTERTAINMENT, AND RECREATION ,639 10,517 OTHER SERVICES (EXCEPT PUBLIC ADMINISTRATION) ,321 24,842 FEDERAL GOVERNMENT * * * * LOCAL GOVERNMENT 90 2,220 82,717 37,260 STATE GOVERNMENT * * * * Source: Pennsylvania Department of Labor & Industry, report completed May * Data that might be identified with an individual employer and/or data involving fewer than twenty-five employees are not published. B-4

47 Northumberland County, Pennsylvania Industry Average Average Monthly Quarterly Units Employment Total Wages (1000s) Average Annual Wage Northumberland County 1,864 27, ,827 35,842 AGRICULTURE, FORESTRY, FISHING AND HUNTING ,398 27,478 CONSTRUCTION 145 1,073 46,392 43,236 MINING ,863 45,152 UTILITIES ,287 66,815 MANUFACTURING 88 4, ,289 48,475 Food Manufacturing 17 1,564 70,518 45,089 Beverage and Tobacco Product Manufacturing * * * * Textile Mills * * * * Wood Product Manufacturing ,067 40,906 Paper Manufacturing ,690 50,816 Printing and Related Support Activities * * * * Petroleum & Coal Products Manufacturing * * * * Chemical Manufacturing * * * * Plastics & Rubber Products Manufacturing ,755 30,201 Nonmetallic Mineral Product Manufacturing * * * * Primary Metal Manufacturing ,086 56,351 Fabricated Metal Product Manufacturing ,010 43,516 Machinery Manufacturing ,101 45,511 Computer and Electronic Product Manufacturing * * * * Electric Equipment and Appliances * * * * Transportation Equipment Manufacturing ,299 41,277 Furniture and Related Product Manufacturing * * * * Miscellaneous Manufacturing ,768 56,934 RETAIL TRADE 268 2,804 67,114 23,935 TRANSPORTATION AND WAREHOUSING 95 2,296 93,760 40,836 WHOLESALE TRADE 74 1,106 52,252 47,244 ADMINISTRATIVE AND WASTE MANAGEMENT AND REMEDIATION SERVICES ,532 32,579 FINANCE AND INSURANCE ,029 45,591 INFORMATION ,104 39,350 MANAGEMENT OF COMPANIES AND ENTERPRISES * * * * PROFESSIONAL AND TECHNICAL SERVICES ,841 36,933 REAL ESTATE AND RENTAL AND LEASING ,086 31,394 EDUCATIONAL SERVICES ,157 23,992 HEALTH CARE AND SOCIAL ASSISTANCE 325 4, ,536 31,636 ACCOMMODATION AND FOOD SERVICES 156 1,525 18,275 11,984 ARTS, ENTERTAINMENT, AND RECREATION * * * * OTHER SERVICES (EXCEPT PUBLIC ADMINISTRATION) 183 1,014 22,050 21,746 FEDERAL GOVERNMENT ,772 51,908 LOCAL GOVERNMENT 122 3, ,925 35,597 STATE GOVERNMENT ,248 61,102 Source: Pennsylvania Department of Labor & Industry, report completed May * Data that might be identified with an individual employer and/or data involving fewer than twenty-five employees are not published. B-5

48 SCHOOL FACILITIES AND STUDENT ENROLLMENT The school buildings presently operated by the School District consist of one Junior/Senior High School (grades 7-12) and one Elementary School (grades K-6) Enrollment by Facility Year Constructed Additions/ Alterations 2016/17 Enrollment (2) School Grades Elementary: Elementary Center , 2014 K Secondary: Junior/Senior High School , 2000, 2004, 2010, Pupil Enrollment - History and Projection Year K Total , , , , , , , , , , , (Projected) ,387 Source: School District Officials Note: The above table represents only those students educated on the school campus; the school district is responsible for providing and paying for the education of resident students educated outside the school campus as well: Columbia Montour Area Vocational-Technical School students, students in Central Susquehanna Intermediate Unit and other IU special classes, students in special classes provided by other school districts, students in charter schools (including cyber-charter schools), and students in alternative education classes. B-6

49 APPENDIX C School District Audit Report

50 [ THIS PAGE INTENTIONALLY LEFT BLANK ]

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

123

124

125

126

127