brodhead creek regional authority

BRODHEAD CREEK REGIONAL AUTHORITY www.bcrawater.com 410 Mill Creek Road │ East Stroudsburg, PA 18301 │ (570) 421‐3232

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MINUTES FOR BRODHEAD CREEK REGIONAL AUTHORITY BOARD MEETING FOR

WEDNESDAY AUGUST 18, 2021 AT 12:00 P.M. (NOON) Present: Tom Wise (Absent) Solicitor – John C. Prevoznik

W. Taylor Wenck Manager – David S. Horton Nyles Possinger BCRA Engineer – Chris Borger

Eric Scelza (By Phone) Engineer / WWTP – Glace Associates (By Phone) Charles Garris Press / Public –

Carl Hogan, Auditor, BBD (By Phone) At 12:00 Mr. Wenck called the meeting to order. Mr. Horton read the SPECIAL NOTE

“To meet the requirements established by the Office of Open records for virtual meetings, this meeting shall be audio and video recorded via WebEx from the initial announcement of the meeting till its conclusion with the exception of Executive Session, if any, which will not be opened to the public.”

Minutes of August 4, 2021 Board Meeting

Motion made by Mr. Possinger, seconded by Mr. Garris, to accept the August 4, 2021 Board Meeting Minutes as presented. The motioned carried unanimously.

Public Comments -Agenda Items

Mr. Wenck opened up the meeting for public comments and no comments were received. Wastewater Engineer’s Report (copy enclosed).

Mr. Wenck then turned the meeting over to Mr. Stoner for his Engineer/WWTP report. Mr. Horton asked the board if there were any questions on the engineer’s report that had been included in the agenda packet dated August 18, 2021 and none were given. Mr. Horton then apprised the board of the following highlights from Mr. Stoner’s report: 1. Sludge Treatment System: Upgrades to the first of two sludge digestion tanks has been

completed. A final clean water test is to be performed this week and it is expected that sludges will begin to be introduced into the first digester beginning next week. Once this has been accomplished, the contractor will begin work on the second digestor tank.

2. Tertiary Filter Project: the refurbishment and coating has been completed on all three tertiary filters. A motion was made by Mr. Possinger and seconded by Mr. Garris to approve Final Pay Application No. 3 for J.P. Smith Contractors, Inc in the amount of $29,019.00. The motion carried unanimously.

Engineering/Operations Manager Report (copy enclosed).

Mr. Wenck then turned the meeting over to Mr. Borger for his Engineer report. Mr. Horton asked the board if there were any questions on the engineer’s report that had been included in the agenda packet dated August 18, 2021 and none were given. Mr. Horton then apprised the board of the following highlights from Mr. Borger’s report:


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1. Tannersville Tank and Pump Station Project: Project is operational and closeout paperwork from the GC and EC is pending. A motion was made by Mr. Garris and second by Mr. Scelza to approve Change Order No. 1 (copy enclosed) for the EC Hayden Power Group in the amount of $7,150.98 and an extension in time for Substantial Completion to May 24, 2021. The motion carried with Mr. Possinger abstaining, as EF Possinger is a subcontractor for HRI (the project’s GC).

2. Pocono Auxiliary Tank Project: The Authority has reviewed the Cooperation and Funding Procedures Agreement with Exhibit B which is the LSA Grant Contract which was previously approved by the Board. Vice Chairman Scelza will sign and execute the agreement later this afternoon.

3. Tank Painting Project: The Authority intends to go out to bid in the Fall of 2021 for painting of the Northgate Tank, which will include lead abatement within the scope of work.

4. Intakes Project: The construction work is pending; scheduled to begin August 2021. Additional safety measures are being taken in advance of the project including: 1) installation of additional orange construction fencing to isolate and protect the work zones; and 2) the installation of conduits underneath of the walking path which will eliminate the need for construction of a wooden ramp overtop of temporary pump hoses. Stroud Township was alerted of the Authority’s intent to install the conduits under the walking path.

5. Eagle Valley Pump Station Project: Construction is ongoing and proceeding satisfactorily. The Authority will continue to look for Pump Station Project Substantial Completion on September 3, 2021. Requests for an extension of Substantial Completion have not been proposed or submitted by the GC to date.

6. Waterline Improvement Projects – Improvements to waterlines on 8th Street in Stroudsburg Borough are underway.

7. Developer Driven Projects: a. Smithfield Gateway – The Developer has met with the Authority to discuss the Draft

Developer’s Agreement and is currently working on addressing the Authority’s initial comments.

b. Pocono Springs Development – The Developer has been advised that a time limit must be established on the Authority’s Intent To Serve Letter. A meeting to discuss the Developer’s future plans is pending.

c. PennDOT Routes 611/715 and I-80 utility relocation project – the Authority is awaiting agreements from PennDOT for review.

Manager’s Report

Mr. Wenck then turned the meeting over to Mr. Horton for the Manager’s report. Mr. Horton reported on the following items: 1. Projects:

a. PJJWA Acquisition – The Authority has met with PJJWA and its counsel (Ralph Matergia) is working on various items for incorporation into the Purchase Agreement.


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2. Finance: a. 2020 Financial Statement – A motion was made by Mr. Possinger and seconded by

Mr. Garris to approve the Financial Statement conditioned upon receiving a edited version which removes from the header the word “unaudited” from the management sections. The motion carried unanimously. (copy enclosed).

b. AR Report – (copy enclosed). c. Status of Funds – (copy enclosed).

3. Planning: a. A visit by the Board to the WWTP and Well 3 is planned after the next board meeting

on September 1, 2021. b. A motion was made by Mr. Garris and seconded by Mr. Scelza to adopt Resolution

2021-03 Drought Contingency and Water Rationing Plan Update. The motion carried unanimously.

c. Pocono Township Water and Sewer Line Extension Project – The Authority continues to work with Pocono Township on conceptual planning as well as research into funding sources for this project and the Auxiliary Water Line Project.

d. Mt Airy – Mr. Horton explained to the board that he met with representatives of Mt. Airy to discuss their inquiry regarding possible connections for water and sewer services. Mt. Airy was directed that the first step would be discussing with Pocono Township the possibility for sewer connection. If that is deemed feasible, then the possibility for water could be discussed further.

e. Pocono Township has inquired with the Authority if it would be interested in providing 811 Utility Location Services to the Township going forward. The Authority will evaluate this request further.

Solicitor’s Report: Bills Payable through August 18, 2021.

Motion made by Mr. Garris, seconded by Mr. Possinger, to pay bills through August 18, 2021.

Executive Session Motion made by Mr. Possinger and seconded by Mr. Scelza to adjourn into Executive Session at 12:30PM relative to professional services contractual matters. The motion carried unanimously. Motion made by Mr. Scelza and seconded by Mr. Possinger to reconvene the meeting at 12:38PM. Mr. Prevoznik, the Authority’s solicitor, reported that he and the manager had met with the Board members in Executive Session relative to contractual matters regarding professional services.


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Adjournment Mr. Wenck asked if there was any further discussion or new business of the Board, there being none he adjourned the meeting at 12:50 p.m. NEXT REGULAR MEETING: Wednesday, September 1, 2021; 12:00 p.m.

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C:\Users\DHorton\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\HGSJ0ASR\2021-08-18 Engineer's Report.docx

BOARD MEETING OF AUGUST 18, 2021 GLACE ASSOCIATES, INC. REPORT

During the past month, the following items occurred: A. WASTEWATER TREATMENT PLANT

1. Sequencing Batch Reactors Three tanks are in service at this time. This scenario is working well within the plant’s discharge limits to the Brodhead Creek. The staff was able to meet the effluent requirements for the entire year of 2020 through July 2021. Additional testing of the influent has been continuing to provide input into enhanced treatment. The staff has reduced the testing frequency.

2. Sludge Treatment System The ATAD unit is out of service due to aeration system issues, similar to the one experienced two years ago. The ATAD unit is being converted into a standard aerated digester. The work is being expedited as the other digester unit is showing similar signs of air piping blockage as the tank that is being modified. The tide flex valves and couplings and the air piping have been installed and were tested last month. Some internal control and piping room demolition has taken place. The first unit is almost ready to be placed into operation.

3. Post-Equalization Basin The staff and electrician are still looking at options to prevent loss of electric power to the flow equalization tanks and Filter/UV Building. Repairs have been made to the VFD and related electrical equipment in the interim.

4. Improve STP Efficiency The staff is still monitoring the results of the Headworks Building ventilation system upgrade.

5. NPDES Renewal The NPDES application was submitted on June 27, 2019. The draft NPDES permit was issued by DEP. The final permit is on hold due to additional mercury testing and the temporary closure of DEP’s offices. No change this month. The DEP annual inspection in July yielded no issues with the WWTP operations or facilities. This was the best report received in years.

6. Pump Station No. 5, Valve Vaults 1 and 2 – Pocono Township

The valve vaults and pump station are being periodically monitored by the WWTP staff. Pocono Township’s Public Works consultant indicated 20 months ago that they are looking at options to upgrade the operation of the pumps at Pump Station No. 5. The wet well at P.S. No. 5 was cleaned out 14 months ago. Pump Station No. 5 improvements are out for bids. Pocono Township’s consultant has communicated with Michael Reisenwitz. The one control valve in the valve vault at the WTTP is out of operation and is to be undergoing evaluation.

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7. IPP Permits-Sanofi-Pasteur/Kalahari Some additional testing has and will continue to be performed on Sanofi’s flows as well as the Pocono Township flows. An application was submitted to BCRA 24 months ago for the renewal of Sanofi’s IPP which had a renewal date of February 10, 2020. The IPP automatically is extended until a new IPP is issued. It is currently under review by BCRA staff, Michael Nines and Glace. The draft IPP Permit is being finalized with Michael Nines. The second quarter 2021 results were received on July 15, 2021. Some additional wastewater surveys have been returned to BCRA from all 3 municipalities and are being reviewed for potential inclusion in a list for additional questions to determine the need for certain companies to submit for an IPP.

8. Odor Issues There were no odor issues from the WWTP reported in the Borough in the past 13 months. Quotes were received to replace the filter media which has not been replaced since the initial plant startup. The biofilters are scheduled to have the media replaced later this fall. It will be replaced through a CoStars contract. The enhanced media option was not selected.

9. Chapter 94 Report The Chapter 94 Report was electronically submitted to DEP on March 29, 2021. There are no current or projected hydraulic or organic overloads at the plant.

10. Other The next operators’ meeting is scheduled for August 17th. An update will be provided at the Board’s August meeting. The September operators’ meeting is scheduled for the 21st. The staff continues training on its maintenance program and inputting historical and current data. The temperature probes in McMichael’s Creek and Brodhead Creek required by PA DEP are continuing to be maintained and monitored by Ecological Systems. The 2020

report was finalized and provided to the staff and for review by DEP during their annual inspection which did occur in July. The 2021 results have been received through May.

The third disk filter tank recoating was completed the week of August 2nd. The staff is reassembling the components and it should be placed back into service this week. Mil gauge and holidays tests were performed on the 3 completed tanks. The staff is checking on pricing to repair the aluminum domes on the ATAD/SNDR tanks. Pinholes were discovered in some of the panels. There are some corrosion issues with the Aerzen blower filters and several need to be replaced. Looking at options for better protection of the filter housings from the elements. The Authority received plans for equalization facilities for the Kalahari Resort wastewater flows. This will be discussed at the operators’ meeting.

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B. WATER MAIN INTERCONNECTION WITH PJJWA

This project is complete except for the agreement with PJJWA.

C. SANOFI - PMSD WATER MAIN EXTENSION

This project is complete.

END OF REPORT

BRODHEAD CREEK REGIONAL AUTHORITY

ENGINEER/OPERATIONS MANAGER REPORT PREPARED BY CHRIS A. BORGER, PE

(7/1/21 through 7/31/21) BCRA PROJECTS

1. ASSET MANAGEMENT PROGRAM a. Continuing to work with Rick Mosier and Carroll Eng. on GIS mapping updates and other related GIS

initiatives. (8.0 hrs) b. Continuing to work with Kellie Davis on getting all BCRA Easements established in GIS. (0.5 hrs) c. Working with Mark Ambrose and Carroll Engineering on Finalizing our Optimization and Maintenance Tracking and Reporting Program. Also establishing a Leak Detection Map in GIS to help better track

our listening devices that are aggressively being moved throughout our system to help find leaks throughout our system. (1.5 hrs)

2. TANNERSVILLE TANKS & PUMP STATION PROJECT a. Both the Tannersville Pumps Station and the modified Pocono Pump Station are now complete and operational. Fence and gate work is now completed as well. Continuing to coordinate and oversee remaining punch items being completed. (10.5 hrs) b. Working with both contractors on submitting and reviewing closeout documents (1.5 hrs) c. Continuing to coordinate the mandatory connections of three properties along Rte 715. (1.0 hrs) d. Working on closing out various permits for the project – NPDES, HOP’s and Twp Permits. (2.0 hrs) e. Participated in Progress meetings with Hess, Contractors and Inspectors. (4.0 hrs) f. Reviewed and processed HRI Change Orders 2 & 3 and Pay Application No. 15. (2.5 hrs) 3. POCONO AUXILIARY WATERLINE ALONG FRANTZ ROAD a. Hess has now obtained the GP‐5 Permit and BCRA has now obtained the PennDOT HOP. BCRA will be preparing a simple E&S Plan for the entire waterline extension project. In process of obtaining Road Opening Permits from both Stroud Twp and Hamilton Twp. (0.5 hrs)

4. TANK PAINTING a. Working with Carroll Engineering and a third party inspector out of the Harrisburg area on tank painting considerations and preparing proper tank painting specifications. Reviewed Tech Specs and prepared upfront bid docs. After further considerations, we are holding off on painting tanks till next year. Will put out for Bid later this Fall. (0.5 hrs) 5. WTP INTAKE SAND BAR IN BRODHEAD CREEK a. General coordination with contractor in preparation of work starting in late August. The first step will be installing the E&S Measures and temporary Porta Dam during the week of 8/30. (1.5 hrs) 6. EBURG WATER PUMP STATION a. Continuing to review material submittals with Carroll Engineering and RKR Hess. (8.5 hrs) b. Participated in a meeting with E’burg Manager to coordinate the water needs relative to the progress

of the Eburg Dam rehabilitation project. (2.0 hrs) b. Coordinating and overseeing on‐site inspections with Hess and Carroll Engineering. (22.5 hrs) c. Participated in Progress meetings with Hess, Contractors and Inspectors. (4.0 hrs) d. Coordinated a special meeting with Carroll Engineering/Keystone Consulting and North End

Electric/Black Birch Engineering to review all SCADA requirements for the project. Working on addressing all SCADA submittal and equipment procurement issues. (12.5 hrs)

7. EIGHTH STREET (Phillips to Fulmer)/SPRING GARDEN WATERLINE IMPROVEMENTS PROJECT a. Work began on 7/13. Continuing to work with BCRA Maintenance Crew on planning for waterline

replacements, ordering materials and testing protocols. Should have new water mains completed on 8th Street by 8/13 and then starting water lateral work shortly afterwards. Also participated in Borough Roadway Improvement Plans and Pre‐Bid meeting for Roadway Paving work being done this Fall by the Borough. (12.0 hrs)

8. WASTEWATER TREATMENT PLANT ADMINISTRATIVE SERVICES a. Participation in routine Operators meetings and general monitoring of Wastewater Treatment Plant Operations and troubleshooting initiatives. (2.0 hrs billable). b. Continuing to oversee the new Bubbler System installation work being done by Kappe/Derstine. Participated in a low water and high water test of the new bubbler system. (22.5 hrs billable) c. Continuing to work with Glace, Pennoni and Operators on repairing and recoating the filter tanks. The recoating of the third of three tanks is now completed and is being reassembled. Should be back on‐line by 8/23. (2.5 hrs billable) d. Still trying to obtain cost effective quotes through the Co‐Stars Program for replacement of Sludge Holding Tanks Oder Control Carbon Materials. (1.0 hrs billable) 9. EBURG MASTER METER VAULT UPGRADE a. General coordination with Met‐Ed and Paul Brennan to work through electrical service needs for a new sump pump in the vault. (0.5 hrs) 10. WTP UPGRADES a. Working with Dean Johnson on replacing WTP filter actuated valves through Co‐Stars as part of the latest Bond issuance. (0.5 hrs) 11. STOKES MILL ROAD WATERLINE IMPROVEMENT PROJECT a. Continuing to work with BCRA Maintenance Crew on preliminary planning for waterline replacements, PAOneCall requirements, ordering materials and obtaining PennDOT HOP permits. Some of the WL Improvements may be done this year by BCRA Crews. (4.5 hrs)

NEW DEVELOPMENT PROJECTS 1. PENNDOT RTE 611 SAFETY IMPROVEMENT PROJECT – Final construction punchlist is now addressed by

Leeward Construction. Need to follow‐up on some final administrative items to close out the project. (1.0 hrs)

2. SMITHFIELD GATEWAY, Rte 447 & 209 – Continuing to work with Project Engineer on addressing BCRA comments. Commercial properties along Rte 209 may need to connect to new waterlines. The PennDOT HOP for waterlines to be located in Rte 209 Right‐of‐Way has now been obtained. Next critical step is the Developer’s Agreement which Ralph Matergia and BCRA Solicitor will be working on in the near future. (1.5 hrs billable)

3. POCONO HOSPITALITY, New Hotel at former Police Barracks in Pocono Twp – Project is on hold due to COVID‐19.

4. ERTLE CAR DEALERSHIP IN BARTONSVILLE by Baymont Hotel – Working with Randi on new water service application. Developer is struggling to provide estimated peak water usage to properly size the water meter. (0.5 hrs)

5. POCONO SPRINGS DEVELOPMENT by Kalahari – Project is on hold. 6. 572/578 MAIN STREET – Two adjacent properties are jointly doing building renovations that now require

larger domestic water laterals and new fire sprinkler lines to both buildings. Water and Sewer lateral work started the week of 7/12. Overseeing and coordinating the inspections for the new water lateral work being done by Bob Marki. (3.5 hrs)

7. 22 SOUTH SIXTH ST – BCRA has now completed the new connection and lateral work for both the domestic and fire lines. Now working with Randi and Owner to firm up metering requirements and associated fees for new connections and accounts. (1.0 hrs)

8. PENNDOT RTE 80 RECONSTRUCTION ‐ Working with PennDOT Reps to better understand the impacts on critical BCRA Waterlines affected by the Project and obtain reimbursement agreement with PennDOT. (0.5 hrs)

9. VIGON WATERLINE EXTENSION TO NEW WAREHOUSE FACILITY – Vigon seems to have backed out of the deal. Now working with Troy Nauman to ensure waterline extension design meets BCRA requirements. Project seems to be a GO since grant money is still available for the project, however we are waiting on Nauman to get back to us on status of the project. (0.5 hrs)

10. 100 N. NINTH STEET (Former Hess Gas Station) – Continuing to work with Project Engineer on water service improvements for a new quick shop gas station. (0.5 hrs)

11. LINDBERGH AVE PROPOSED 4‐UNIT APT BLDG – Continuing to work with Developer/Project Engineer on New Water Connections for domestic and fire sprinkler lines. (0.5 hrs)

12. SHANTI HOUSE PROPOSED 50‐UNIT APT BLDG AT 621 MAIN ST – Continue to work with Developer/Project Engineer on New Water Connections for domestic and fire sprinkler lines. (0.5 hrs)

13. FORMER KATZ RECYCLING CENTER – Continuing to work with Project Engineer on upgrading the water service for new facilities. Also looking at concerns related to a low pressure sewer line being directional drilled in close proximity to two BCRA waterlines along Katz Drive. Provided a review letter to Engineer on 4/15/21. (0.5 hrs)

14. DIELECTRIC PROPERTIES – Continuing to work with Project Engineer on needed waterline improvements for a Proposed 3 lot Commercial Subdivision. A Water Main dedication and Developer’s Agreement with BCRA may be necessary since a new private waterline cannot serve more than one property per BCRA Rules and Regs. (0.5 hrs)

15. PENNDOT RTE 611 & RTE 715 ROAD WIDENING (West of Pocono Creek) – Participated in a site utility coordination meeting with PennDOT on 4/9/21. Waiting on PennDOT Reps to finalize the design so BCRA fully understands the impacts to BCRA Waterlines. Easement changes may be necessary. (0.5 hrs)

16. PENNDOT RTE 611 & RTE 715 INTERSECTION IMPROVEMENTS (East of Pocono Creek) – Participated in a site utility coord. meeting with PennDOT on 4/9/21. Waiting on PennDOT Reps to finalize the design so BCRA fully understands the impacts to BCRA Waterlines. Easement changes may be necessary. (0.5 hrs)

17. MONROE COUNTY COURTHOUSE EXPANSION – Working with Project Engineer on design for new lateral serving the Courthouse addition. (0.5 hrs)

18. KALAHARI BACKFLOW ‐ Continuing to review new Employee Housing Plans/Material Submittals and work with Kalahari Operations Manager on getting all backflow devices on‐site properly tested. (1.5 hrs Billable)

19. GREAT WOLF LODGE – Working with Project Engineer on providing water for a significant expansion of the hotel and water park and adding townhouses as well. At question right now is how best to meter the new facilities. BCRA is pushing for a new master meter vault near Rte 611. (0.5 hrs)

20. POCONO TWP MISC WL EXTENSIONS – Working with Mike Gable of Boucher & James on various possible waterline extensions for 9 areas to coincide with possible sewer line extensions for several planned developments. (3.5 hrs)

21. PMSD – Working with School Project Engineer on planned water lateral improvements. (5.5 hrs) GENERAL 1. The BCRA Board has elected to not use NWSC for the Backflow Administrative Program. Currently

researching other third party companies to administer this program or possibly purchase a computer program to help with this process. GIS may also be an option for helping with some of the tracking for annual Backflow Testing.

2. Assisted with HOP Application for new residential water service on Phillips Street. 3. Participated in an Itron Presentation for possible purchase of new Hardware for Meter Radio Reading. 4. Continuing to participate in the BCRA Sponsored – GIANT 5 Voices Boot Camp Management Training. 5. Participated in meetings with BCRA Manager and Staff to try to figure out some higher than usual

unaccounted for water for the past year or so. 6. Continuing to work with Twin Hills reps on needed repairs to a small private waterline serving

approximately 10 homes. 7. Participated in a meeting with Todd Fasano to kick off our Pavement Patching work for 2021. 8. Continuing to work with Shinetime Car Wash in Tannersville addressing high water demand issues. 9. Participated in a Hydrant Fire Flow Test for the EVS Metal Facility on Rte 447. 10. Continuing to address all PA One Call Design Requests for BCRA Water System Maps. 11. Participated in a Badger Presentation for possible purchase of new Hardware for Meter Radio Reading. 12. Working on archive filing on a weekly basis.

Adam Shefler, Senior Project Manager

BRODHEAD CREEK REGIONAL AUTHORITY CONTENTS INDEPENDENT AUDITORS' REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Statement of Net Position 9 Statement of Revenues, Expenses and Changes in Net Position 10 Statement of Cash Flows 11 Notes to Financial Statements 12 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Changes in Net Pension Liability 22 Schedule of Employer Pension Contributions 23 SUPPLEMENTARY INFORMATION Schedule of Operating Expenses 24 Schedule of Capital Assets 25 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 26

INDEPENDENT AUDITOR'S REPORT Members of the Board Brodhead Creek Regional Authority East Stroudsburg, Pennsylvania We have audited the accompanying financial statements of the Brodhead Creek Regional Authority, as of December 31, 2020, and the related notes to the financial statements, as listed in the table of contents. Management’s Responsibility for the Financial Statements

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

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Brodhead Creek Regional Authority, as of December 31, 2020, and the changes in its financial position, and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Report on Summarized Comparative Information

We have previously audited Brodhead Creek Regional Authority's 2019 financial statements, and our report dated June 10, 2020 expressed unmodified opinions on those audited financial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2019, is consistent, in all material respects, with the audited financial statements from which it has been derived.

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Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedules of changes in net pension liability and employer pension contributions on pages 3 through 8 and 22 and 23 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Brodhead Creek Regional Authority’s basic financial statements. The schedules of operating expenses and capital assets on pages 24 and 25 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedules of operating expenses and capital assets are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, schedules of operating expenses and capital assets are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated August 9, 2021, on our consideration of Brodhead Creek Regional Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Brodhead Creek Regional Authority’s internal control over financial reporting and compliance.

Philadelphia, Pennsylvania August 9, 2021

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BRODHEAD CREEK REGIONAL AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 Management's discussion and analysis ("MD&A") of the Brodhead Creek Regional Authority (the "BCRA") provides an overview of the BCRA's financial performance for 2020. Readers should also review the basic financial statements and notes to the basic financial statements to enhance their understanding of the BCRA's financial performance. The BCRA is a regional authority located in Monroe County, Pennsylvania formed under the provisions of the Municipality Authorities Act of 1945, as amended, for the purpose of acquiring, holding, constructing, financing, improving, maintaining and operating a water supply and distribution system and a sewerage system for the collection and treatment of wastewater and employs 27 full-time people. The BCRA serves the Borough of Stroudsburg and the Townships of Stroud, Pocono, Smithfield and Hamilton. In addition, the BCRA serves the Kalahari Resort located in Tobyhanna Township. The BCRA provides safe drinking water to over 5,700 billing accounts representing a population of approximately 30,000 people in residential, commercial, public and industrial settings and treats approximately 3.0 million gallons of water daily, about half of its total daily permitted capacity of 6.36 million gallons per day. In addition, the BCRA wastewater treatment plant is capable of treating 4.5 million gallons of sewage a day. The activities of the BCRA are accounted for as an enterprise fund of the proprietary fund type. An enterprise fund accounts for the operations that are financed and operated in a manner similar to private enterprises where the intent is that the cost of providing goods and services be recovered primarily through user fees and charges. The operating revenues of the BCRA consist primarily of charges for services from customers. FINANCIAL HIGHLIGHTS

• At December 31, 2020, the assets and deferred outflows of resources of the BCRA exceeded its liabilities and deferred inflows of resources resulting in total net position at the close of 2020 of $61,904,600. During 2020, the BCRA had an increase in total net position of $909,258. The net position of the Water Fund increased by $1,425,660 and the net position of the Sewer Fund decreased by $516,402.

• During 2020, the Water Fund's net position increased by $1,425,660. Operating income for 2020 was $1,130,277, while nonoperating revenues and expenses were a net expense of $109,887 which consisted primarily of interest expense and intergovernmental capital grants. Capital contributions related to new development were $405,270.

• During 2020, the Sewer Fund’s net position decreased by $516,402. The operating loss for 2020 was $1,190,064, while nonoperating revenues and expenses were a net expense of $98,831 which consisted primarily of interest paid on its long-term debt. Capital contributions from participating municipalities to offset 2020 debt service were $772,493.

• In December 2019, an outbreak of a novel strain of coronavirus ("COVID-19") was identified and has since spread worldwide including the United States. On March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. In addition, as of March 14, 2020, Pennsylvania Governor Tom Wolf ordered the closure of the physical location of every "non-essential business" in Monroe County, Pennsylvania for what was an extended period of time resulting in a disruption of Authority services.

OVERVIEW OF THE FINANCIAL STATEMENTS The MD&A is intended to serve as an introduction to the BCRA's basic financial statements. The BCRA's basic financial statements are comprised of two components: 1) basic financial statements and 2) notes to the basic financial statements.

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BRODHEAD CREEK REGIONAL AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 BASIC FINANCIAL STATEMENTS The Statement of Net Position presents information on all of the BCRA's assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial condition of the BCRA is improving or deteriorating. The Statement of Revenues, Expenses and Changes in Net Position presents information showing how the BCRA's net position changed during the most recent fiscal year. All changes in net position are reported as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. The Statement of Cash Flows presents the sources and uses of cash during the course of the fiscal year. The net effect of cash flows is reconciled to cash balances held by the BCRA at the beginning and end of the reporting period. The basic financial statements can be found on Pages 9 through 11 of this report. NOTES TO THE FINANCIAL STATEMENTS The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the basic financial statements. The notes to the financial statements can be found on Pages 12 through 21 of this report. FINANCIAL ANALYSIS As noted above, net position may serve over time as a useful indicator of an entity's financial health. In the case of the BCRA, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $61,904,600 at December 31, 2020. A summary of the Statement of Net Position as of December 31, 2020 and 2019 is presented below.

Statements of Net Position

Water Fund Sewer Fund Totals 2020 2019 2020 2019 2020 2019 Assets Current assets $ 6,636,023 $ 3,271,099 $ 745,038 $ 169,356 $ 7,381,061 $ 3,440,455 Noncurrent assets 47,345,517 41,734,632 41,315,149 42,624,991 88,660,666 84,359,623

Total assets 53,981,540 45,005,731 42,060,187 42,794,347 96,041,727 87,800,078

Deferred outflows of resources 426,473 541,309 135,193 156,254 561,666 697,563 Liabilities Current liabilities 4,807,436 2,688,204 1,049,033 795,253 5,856,469 3,483,457 Noncurrent liabilities 22,234,741 17,151,251 6,301,260 6,867,591 28,536,001 24,018,842

Total liabilities 27,042,177 19,839,455 7,350,293 7,662,844 34,392,470 27,502,299

Deferred inflows of resources 232,591 - 73,732 - 306,323 - Net position Net investment in capital assets 26,257,680 25,853,885 33,386,153 34,007,452 59,643,833 59,861,337 Restricted 498,203 683,758 957,604 1,381,383 1,455,807 2,065,141 Unrestricted 377,362 (830,058) 427,598 (101,078) 804,960 (931,136)

Total net position $27,133,245 $ 25,707,585 $ 34,771,355 $ 35,287,757 $ 61,904,600 $ 60,995,342

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BRODHEAD CREEK REGIONAL AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 The BCRA's total assets as of December 31, 2020 were $96,041,727, of which $6,648,662 or 6.92% consisted of unrestricted cash and investments and $86,869,327 or 90.45% consisted of the BCRA's investment in capital assets. The BCRA's total liabilities as of December 31, 2020 were $34,392,470, of which $27,225,494 or 79.16% consisted of the BCRA’s long-term debt. At December 31, 2020, the BCRA had an unrestricted net position of $804,960. The BCRA’s unrestricted net position increased by $1,736,096 during 2020 primarily due to the results of current year operations. A portion of the BCRA’s net position reflects its restricted net position which totaled $1,455,807 as of December 31, 2020. All of the BCRA’s restricted net position relates to the BCRA’s restricted investments under the provisions of the long-term debt indentures between the BCRA and its trustees.

The largest portion of the BCRA's net position reflects its net investment in capital assets, less any outstanding debt used to acquire those assets. Although the BCRA's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. For the year ended December 31, 2020, BCRA’s net investment in capital assets decreased by $217,504. The BCRA's net position increased by $909,258 during 2020. A summary of the Statement of Revenues, Expenses and Changes in Net Position for the years ending December 31, 2020 and 2019 is presented below.

Statements of Revenues, Expenses and Changes in Net Position

Water Fund Sewer Fund Totals 2020 2019 2020 2019 2020 2019

Operating revenues $ 6,137,655 $ 6,235,077 $ 2,284,708 $ 2,229,240 $ 8,422,363 $ 8,464,317

Operating expenses Purification system 547,312 539,123 1,458,199 1,839,140 2,005,511 2,300,282 Pumping system 374,794 363,325 - - 374,794 363,325 Distribution system 1,109,961 1,153,754 - - 1,109,961 1,153,754 General 1,649,250 1,849,955 762,522 655,216 2,411,772 2,583,152 Depreciation 1,326,061 1,477,707 1,254,051 1,246,988 2,580,112 2,724,695

Total operating expenses 5,007,378 5,383,864 3,474,772 3,741,344 8,482,150 9,125,208

Operating income (loss) 1,130,277 851,213 (1,190,064) (1,512,104) (59,787) (660,891)

Nonoperating revenues (expenses) Investment income 60,653 50,763 5,211 14,593 65,864 65,356 Gain on the sale of capital assets - 12,000 - - - 12,000 Intergovernmental revenues 412,551 1,376,661 - - 412,551 1,376,661 Interest expense (583,091) (550,054) (104,042) (111,058) (687,133) (661,112)

Total nonoperating revenues (109,887) 889,370 (98,831) (96,465) (208,718) 792,905

Net income (loss) before capital contributions 1,020,390 1,740,583 (1,288,895) (1,608,569) (268,505) 132,014

Capital contributions 405,270 742,530 772,493 951,804 1,177,763 1,694,334

Change in net position $ 1,425,660 $ 2,483,113 $ (516,402) $ (656,765) $ 909,258 $ 1,826,348

The BCRA's operating revenues for 2020 and 2019 consisted primarily of metered water sales ($5,821,746 or 69.12% in 2020 and $5,656,246 or 66.82% in 2019) and operation and maintenance sewer billings ($2,284,708 or 27.13% in 2020 and $2,199,677 or 25.99% in 2019). Water rates remained unchanged when compared with the prior year. The BCRA’s water operating expenses decreased by $376,486 or 6.99% primarily due to a decrease in expenses for engineering offset and depreciation.

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BRODHEAD CREEK REGIONAL AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 The BCRA’s sewer operating expenses decreased by $266,572 or 7.12% primarily due to decreases in chemical purchases and sludge removal. The operating expenses of the BCRA area classified as follows:

Purification system/Pumping system: Operation of the water and wastewater treatment plant facilities, wells, storage tank, pump stations, etc.

Distribution system: Responsible for the maintenance of the distribution systems, meter reading, customer service, maintenance of ground and equipment and emergency repairs

General: Administration and all other functions including executive direction, planning, billing/collections, information systems, purchasing, finance, personnel engineering, insurance, legal and payroll

Nonoperating revenues and expenses consist primarily of intergovernmental revenues and interest expense. Intergovernmental revenues in 2020 consisted of capital grants for the Pocono/Tannersville tanks and pump station. Interest expense on the BCRA’s long-term debt increased in 2020 relative to scheduled interest maturities. Water Fund capital contribution in 2020 was primarily contributions from the Pocono Medical Center related to a water line extension project and from East Stroudsburg Borough for the purchase of land for a new pump station. Sewer Fund capital contributions consist solely of contributions from participating municipalities for their proportionate share of debt service. The operating loss in the Sewer Fund is reflective of annual depreciation expense on capital assets that were acquired with long-term debt at the time of acquisition of the wastewater treatment plant. The BCRA’s wastewater treatment services are a pass-through to the participating municipalities. The operating losses are contractually funded by the participating municipalities providing capital reserve funds which are budgeted annually and placed into a dedicated capital repair and replacement fund. CAPITAL ASSETS The BCRA's investment in capital assets as of December 31, 2020 amounted to $86,869,327 net of accumulated depreciation. This investment in capital assets includes buildings, infrastructure and machinery and equipment. The increase in the BCRA's investment in capital assets for the current year was $4,706,690 or 5.73%, which can be attributed to current year capital additions in excess of current year depreciation expense. Current year capital additions were $7,286,802 and depreciation expense was $2,580,112. Major capital additions for the current fiscal year included the following:

• Pocono/Tannersville tanks and pump station – construction in progress $5,697,928

• Eagle Valley pump station – land purchased and construction in progress $ 592,541 LONG-TERM DEBT At December 31, 2020, the BCRA had long-term debt, consisting of notes payable and water revenue bonds, totaling $27,225,494. During 2020, the BCRA’s long-term debt increased by $4,924,194 or 22.08% and is due to the issuance of new long-term debt in excess of scheduled principal payment. Long-term debt is a direct obligation of the BCRA for which full faith and credit is pledged and is secured by the assignment and pledge of the operating revenues of the BCRA except for the 2011 Loan through the Pennsylvania Clean Water State Revolving Fund for which the participating municipalities in the regional wastewater treatment plant have pledged its full faith, credit and taxing power for its proportionate share of the debt service.

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BRODHEAD CREEK REGIONAL AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 On August 25, 2020, the BCRA issued its Series of 2020 Water Revenue Bonds. The Bonds were authorized for $10,000,000, of which $7,776,458 was drawn down in 2020. The proceeds of the Bonds were used for the following: a) to refund the remaining portion of the BCRA’s Series of 2018 Water Revenue Bonds, b) to fund capital projects, and c) to pay for costs of issuance. The BCRA will continue to draw down funds as necessary for capital projects. FACTORS BEARING ON THE BCRA'S FUTURE The long-term economic outlook will continue to be impacted by the COVID-19 which forced several economic shutdowns in 2020. The Authority’s commercial customers, including the water park resorts, which were most susceptible to interruption, have mostly recovered to pre-pandemic conditions. The Authority is still trying to determine the permanent effects of COVID-19 upon the economic landscape, as various businesses appear to have closed permanently. In 2020 the BCRA prepared a multifaceted economic recovery plan to deal with the long-term impacts of COVID-19:

1. The BCRA modified its spending budget in 2020 to include only critical expenses and operations – the

outcome was the Authority did not have to draw from capital reserves to weather the storm, and actually was able to place additional money into reserve accounts;

2. The BCRA examined and restructured its debt – the outcome of which was a reduction in interest rates with an estimated 18 year savings to the Authority of over $1 million;

3. The BCRA procured a $1.5 million line of credit – the outcome of which has been that the Authority has not had to draw from the line of credit for COVID-19 relief.

In 2020, the BCRA continued to invest into its infrastructure by constructing and designing various capital improvement projects that are intended to improve the level of service and reliability to its valued customers. In 2021, the BCRA will continue investing in its infrastructure and the Authority should continue to see revenues that are sufficient to meet the cost of operations, maintain or improve capital reserves and address debt service levels. In 2020, the Authority completed construction of various capital improvement projects including:

a. Well No. 3 water source including a membrane filtration treatment system in Stroud Township; b. Various water main replacements in South Stroudsburg.

In 2020 the Authority initiated, but did not complete, construction on the Tannersville Tank and Pump Station Project. Construction will continue in 2021. Projects that were designed and permitted in 2020, which are scheduled for construction in 2021 include:

a. In-stream modifications to the Water Treatment Plant’s intake structure allowing for flushing of the intake area to keep sediments and gravels from accumulating and clogging the subsurface structure.

b. Painting of various water storage tanks c. Retrofitting of the Northgate Tank Pump System to include a variable frequency drive – allowing the tank to

be taken out of service for repair and painting down the road. d. Construction of a joint pump station with East Stroudsburg Borough. This cooperative project includes a

new pump station that has been designed and permitted by the Authority (utilizing Series 2020 Bond). The project will be constructed by the Authority utilizing funds provided by the East Stroudsburg Borough. Upon completion, this pump station will be owned and operated by the Authority and will provide emergency water to the Borough during improvements to its dam and water mains, as well as provide the Authority an ability to service future areas within its existing Smithfield Township service area.

No new rate increases were approved in 2021. The last rate increase was ratified in 2019 (i.e. $0.03 per 100 gallons) to assist in addressing the additional capital improvement needs as well as operating costs.

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BRODHEAD CREEK REGIONAL AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2020 On March 1, 2011, the BCRA assumed ownership and operation of the former Stroudsburg Wastewater Treatment Plant ("WWTP"). The BCRA completed the $40 million upgrade and expansion of the WWTP in June of 2014. The regional WWTP serves the Borough of Stroudsburg, and the Townships of Stroud, Pocono, Tobyhanna, and Hamilton. The funds that were necessary to construct the WWTP upgrade were paid by the participating municipalities with the exception of the $10 million loan through the Pennsylvania Clean Water State Revolving Fund, which is guaranteed by the participating municipalities, but paid through the BCRA. The BCRA does not own any of the collection systems or the associated capacity, and its only customers are the participating municipalities. In order to best plan for the future, the BCRA continues to maintain a capital reserve fund which will be used in the future for equipment replacement as the WWTP unit processes age. At the end of 2020, the capital reserve fund had accumulated $932,387. The BCRA also maintains an Operation and Maintenance Reserve fund which is designed to hold 3 months of operating expenses for any unplanned or unusual operating expenses. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the BCRA's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Manager, Brodhead Creek Regional Authority 410 Mill Creek Road East Stroudsburg, PA 18301.

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Water Sewer 2020 2019ASSETS AND DEFERRED OUTFLOWS

OF RESOURCES

CURRENT ASSETSCash 4,678,317$ 776,208$ 5,454,525$ 1,342,653$ Investments 1,194,137 - 1,194,137 1,246,570 Consumer accounts receivable 676,191 - 676,191 807,041 Other accounts receivable 11,371 - 11,371 44,191 Prepaid expenses 33,005 11,832 44,837 - Internal balances 43,002 (43,002) - -

Total current assets 6,636,023 745,038 7,381,061 3,440,455

NONCURRENT ASSETSRestricted investments Debt service funds 498,203 139,010 637,213 954,613 Operating and maintenance fund - 221,739 221,739 321,238 Capital repair and replacement fund - 932,387 932,387 921,135 Capital assets, net 46,847,314 40,022,013 86,869,327 82,162,637

Total noncurrent assets 47,345,517 41,315,149 88,660,666 84,359,623

Total assets 53,981,540 42,060,187 96,041,727 87,800,078

DEFFERRED OUTFLOWS OF RESOUCESDeferred outflows of resources related to pension 426,473 135,193 561,666 697,563

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION

CURRENT LIABILITIESCurrent portion of long-term debt 1,319,918 475,574 1,795,492 1,769,165 Accounts payable 165,508 173,567 339,075 465,057 Due to other governments 4,961 - 4,961 161,282 Construction contracts payable 935,346 - 935,346 - Accrued salaries, payroll withholdings and benefits 177,818 54,840 232,658 158,836 Other current liabilities - 9,520 9,520 9,520 Unearned revenues 2,203,885 335,532 2,539,417 919,597

Total current liabilities 4,807,436 1,049,033 5,856,469 3,483,457

NONCURRENT LIABILITIESLong-term debt, net of current portion 19,269,716 6,160,286 25,430,002 20,532,135 Accrued interest 2,520,317 - 2,520,317 2,452,194 Net pension liability 444,708 140,974 585,682 1,034,513

Total noncurrent liabilities 22,234,741 6,301,260 28,536,001 24,018,842

Total liabilities 27,042,177 7,350,293 34,392,470 27,502,299

DEFFERRED INFLOWS OF RESOUCESDeferred inflows of resources related to pension 232,591 73,732 306,323 -

NET POSITIONNet investment in capital assets 26,257,680 33,386,153 59,643,833 59,861,337 Restricted 498,203 957,604 1,455,807 2,065,141 Unrestricted (deficit) 377,362 427,598 804,960 (931,136)

Total net position 27,133,245$ 34,771,355$ 61,904,600$ 60,995,342$

See accompanying notes-9-


STATEMENT OF NET POSITION

December 31, 2020 with summarized comparative information for 2019

Totals

Water Sewer 2020 2019OPERATING REVENUES

Sales of metered water 5,821,746$ -$ 5,821,746$ 5,656,246$ Operation and maintenance billings - 2,284,708 2,284,708 2,199,677 Connection fees 71,716 - 71,716 253,087 Late fee income 15,528 - 15,528 19,056 Hydrant and fire protection 94,302 - 94,302 97,840 Miscellaneous 134,363 - 134,363 238,411

Total operating revenues 6,137,655 2,284,708 8,422,363 8,464,317

OPERATING EXPENSESPurification system expenses 547,312 1,458,199 2,005,511 2,300,282 Pumping system expenses 374,794 - 374,794 363,325 Distribution system expenses 1,109,961 - 1,109,961 1,153,754 General expenses 1,649,250 762,522 2,411,772 2,583,152 Depreciation expense 1,326,061 1,254,051 2,580,112 2,724,695

Total operating expenses 5,007,378 3,474,772 8,482,150 9,125,208

OPERATING INCOME (LOSS) 1,130,277 (1,190,064) (59,787) (660,891)

NONOPERATING REVENUES (EXPENSES)Investment income 60,653 5,211 65,864 65,356 Gain on the sale of capital assets - - - 12,000 Intergovernmental revenues 412,551 - 412,551 1,376,661 Interest expense (583,091) (104,042) (687,133) (661,112)

Total nonoperating revenues (expenses) (109,887) (98,831) (208,718) 792,905

NET INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 1,020,390 (1,288,895) (268,505) 132,014

CAPITAL CONTRIBUTIONS 405,270 772,493 1,177,763 1,694,334

CHANGE IN NET POSITION 1,425,660 (516,402) 909,258 1,826,348

NET POSITIONBeginning of year 25,707,585 35,287,757 60,995,342 59,168,994

End of year 27,133,245$ 34,771,355$ 61,904,600$ 60,995,342$

See accompanying notes

Totals


Year ended December 31, 2020 with summarized comparative totals for 2019

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

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Water Sewer 2020 2019CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from customers 6,041,402$ 2,488,395$ 8,529,797$ 7,666,605$ Other operating receipts 161,583 - 161,583 300,454 Cash paid to suppliers for goods and services (1,814,726) (1,554,559) (3,369,285) (3,580,568) Cash paid to employees for services (2,002,112) (634,249) (2,636,361) (2,640,067)

Net cash provided by operating activities 2,386,147 299,587 2,685,734 1,746,424

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESAcquisition of capital assets (6,187,155) (164,301) (6,351,456) (5,486,816) Proceeds from issuance of long term debt 7,776,458 - 7,776,458 1,495,690 Repayment of long-term debt (2,383,813) (468,451) (2,852,264) (1,730,182) Proceeds from sale of capital assets - - - 12,000 Interest paid (514,968) (104,042) (619,010) (580,782) Capital contributions 1,757,822 772,493 2,530,315 1,275,086 Intergovernmental revenues 412,551 - 412,551 1,376,661

Net cash provided by (used for) capital andrelated financing activities 860,895 35,699 896,594 (3,638,343)

CASH FLOWS FROM INVESTING ACTIVITIESInvestment income 60,653 10,811 71,464 59,756 Net sale (purchase) of investments 237,988 220,092 458,080 748,114

Net cash provided by investing activities 298,641 230,903 529,544 807,870

Net increase (decrease) in cash 3,545,683 566,189 4,111,872 (1,084,049)

CASHBeginning of year 1,132,634 210,019 1,342,653 2,426,702

End of year 4,678,317$ 776,208$ 5,454,525$ 1,342,653$

Reconciliation of operating income to net cash provided by(used for) operating activities:

Operating income (loss) 1,130,277$ (1,190,064)$ (59,787)$ (660,891)$

Adjustments to reconcile operating income to net cashprovided by operating activities

Depreciation expense 1,326,061 1,254,051 2,580,112 2,724,695

(Increase) decrease inConsumer accounts receivable 130,850 - 130,850 1,984 Other accounts receivable 27,220 - 27,220 62,043 Prepaid expenses (33,005) (11,832) (44,837) - Internal balances 3,261 - 3,261 (6,374) Deferred outflows - pension 114,836 21,061 135,897 (380,476)

Increase (decrease) inAccounts payable (144,594) 18,612 (125,982) 30,764 Due to other governments (156,321) - (156,321) (826,313) Accrued salaries, payroll withholdings and benefits 49,464 24,358 73,822 37,613 Unearned revenues 63,581 203,687 267,268 265,030 Due to other funds - (3,261) (3,261) 6,374 Net pension liability (358,074) (90,757) (448,831) 669,138 Deferred inflows - pension 232,591 73,732 306,323 (177,163)

Net cash provided by operating activities 2,386,147$ 299,587$ 2,685,734$ 1,746,424$

NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES

Acquisition of capital assets 935,346$ -$ 935,346$ -$

Construction contracts payable 935,346$ -$ 935,346$ -$

See accompanying notes

Totals

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STATEMENT OF CASH FLOWS

Year ended December 31, 2020 with summarized comparative totals for 2019

BRODHEAD CREEK REGIONAL AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2020 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of Brodhead Creek Regional Authority (the "BCRA") have been prepared in conformity with generally accepted accounting principles ("GAAP") as applied to governmental units. The Governmental Accounting Standards Board ("GASB") is the accepted standard-setting body for establishing governmental accounting and financial reporting principles, which are primarily set forth in the GASB's Codification of Governmental Accounting and Financial Reporting Standards. The significant accounting principles and policies utilized by the BCRA are described below:

Organization and Reporting Entity

The BCRA is a regional authority located in Monroe County, Pennsylvania formed under the provisions of the Municipality Authorities Act of 1945, as amended, for the purpose of acquiring, holding, constructing, financing, improving, maintaining and operating a water supply and distribution system and a sewerage system for the collection and treatment of wastewater. The BCRA serves the Borough of Stroudsburg and the Townships of Stroud, Pocono, Smithfield and Hamilton. In addition, the BCRA serves the Kalahari Resort located in Tobyhanna Township. A Certification of Incorporation for the BCRA was filed and recorded with the Office of the Secretary of the Commonwealth of Pennsylvania under an ordinance duly enacted November 24, 1953. The Articles of Incorporation have been amended several times, each time extending the existence of the Authority. The last Articles of Amendment were filed on April 13, 2018 and extended the existence of the Authority to January 1, 2067. The BCRA is governed by a five member Board of Directors consisting of a representative appointed by each one of the municipalities it serves.

Measurement Focus and Basis of Accounting and Financial Statement Presentation

The financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. All assets and deferred outflows of resources, and liabilities and deferred inflows of resources associated with the operation of the BCRA are included on the statement of net position. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

The net position of the BCRA represents the difference between assets and deferred outflows of resources, and liabilities and deferred inflows of resources and is classified in one of three components. Net investment in capital assets consists of capital assets net of accumulated depreciation and reduced by the outstanding balances of borrowing attributable to acquiring, constructing or improving those assets. The net position of the BCRA is reported as restricted when constraints placed on net position use is either externally imposed by creditors (such as through debt covenants), grantors, contributors or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Unrestricted net position is the net position that does not meet the definition of "net investment in capital assets" or "restricted net position".

When both restricted and unrestricted resources are available for use, it is the BCRA’s policy to use restricted resources first, then unrestricted resources as they are needed.

The statement of net position includes separate sections for deferred outflows of resources and deferred inflows of resources. Deferred outflows of resources represent a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense) until then. Deferred inflows of resources represent an acquisition of net position that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time.

Cash and Cash Equivalents

The BCRA's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.

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BRODHEAD CREEK REGIONAL AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2020

Investments

Investments are stated at fair value based upon quoted market prices, except for certificates of deposit which are recorded at cost, which approximates fair value.

Fair Value Measurements of Assets and Liabilities

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the BCRA. Unobservable inputs reflect the BCRA's assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:

Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities that the BCRA has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these assets and liabilities does not require a significant degree of judgment.

Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 – Valuations based on inputs that are unobservable, that is, inputs that reflect the BCRA's own assumptions.

Accounts Receivable

The BCRA's accounts receivables are reported at net realizable value. The BCRA's water and sewer operations experience very small losses from uncollectible accounts. Water and sewer fees constitute a lien against real property and usually can be collected in full when title transfers. Only balances that remain after tax sales are written off each year. Accounts receivable are shown net of an allowance for doubtful accounts. The allowance for doubtful accounts is estimated based on professional judgment and historical trend information.

Unearned Revenues

Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied.

Capital Assets

Capital assets of the BCRA are recorded at cost. Donated assets are valued at their estimated fair value on the date donated. Depreciation is computed using the straight-line method over estimated assets lives as follows: collection, purification, pumping and distribution systems (40-50 years); buildings and improvements (20-50 years) and machinery and equipment (5-20 years). Major additions and betterments are capitalized while expenses for maintenance and repairs that do not add value to the asset or materially extend asset lives are charged to operations as incurred.

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BRODHEAD CREEK REGIONAL AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2020 Impairment of Long-Lived Assets

The BCRA evaluates prominent events or changes in circumstances affecting capital assets to determine whether impairment of a capital asset has occurred. A capital asset is generally considered impaired if both (a) the decline in service utility of the capital asset is large in magnitude and (b) the event or change in circumstances is outside the normal life cycle of the capital asset. If a capital asset is considered to be impaired, the amount of impairment is measured by the method that most reflects the decline in service utility of the capital asset. No impairment losses were recognized in 2020.

Revenues and Expenses

Revenues and expenses are segregated into operating and nonoperating items. Operating revenues generally result from providing service in connection with the BCRA's principal operations. The principal operating revenues of the BCRA are water sales and connection fees for the water supply and distribution system and operation and maintenance charges for the sewerage system. Operating expenses include the costs associated with the operation and administration of the water supply and distribution and sewerage systems. All revenues and expenses not meeting these definitions are reported as nonoperating revenues and expenses.

Reclassifications

Certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation.

Comparative Data

Comparative totals for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the BCRA's financial position and operations. However, presentation of prior year totals by fund and activity type have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Summarized comparative information should be read in conjunction with the BCRA's financial statements for the year ended December 31, 2020, from which the summarized information was derived.

Use of Estimates

Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates.

(2) DEPOSITS AND INVESTMENTS

State statutes authorize the BCRA to invest in U.S. Treasury bills, time or share accounts of institutions insured by the Federal Deposit Insurance Corporation or in certificates of deposit when they are secured by proper bond or collateral, repurchase agreements, state treasurer's investment pools or mutual funds.

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may not be returned. The BCRA is required by statute to deposit funds in depositories that are either banks, banking institutions or trust companies located in the Commonwealth of Pennsylvania. To the extent that such deposits exceed federal insurance, the depositories must pledge as collateral obligations of the United States, the Commonwealth of Pennsylvania or any political subdivision. Under Act 72 of 1971, as amended, the depositories may meet this collateralization requirement by pooling appropriate securities to cover all public funds on deposit.

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At December 31, 2020, the carrying amount of the BCRA's deposits was $5,454,525 and the bank balance was $5,565,814. Of the bank balance, $250,000 was covered by federal depository insurance and $4,354,796 was collateralized by the BCRA's depositories in accordance with Act 72 and the collateral was held by the depositories' agent in pooled public funds. The remaining cash deposits of the BCRA are in the Pennsylvania Local Government Investment Trust ("PLGIT"). Although not registered with the Securities and Exchange Commission and not subject to regulatory oversight, PLGIT acts like a money market mutual fund in that its objective is to maintain a stable net asset value of $1 per share, is rated by a nationally recognized statistical rating organization and is subject to an independent annual audit. As of December 31, 2020, PLGIT was rated AAA by a nationally recognized statistical rating agency.

Investments

At December 31, 2020, the BCRA had the following investments: Investment Type

Money market $2,985,476 Money market investments were valued using Level 1 inputs.

Custodial Credit Risk

For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the BCRA will not be able to recover the value of the investments or collateral security that are in the possession of an outside party. The BCRA had no investments subject to custodial credit risk as of December 31, 2020.

Interest Rate Risk

The BCRA's investment policy limits investment maturities in accordance with state statutes as a means of managing its exposure to fair value losses arising from increasing interest rates.

Credit Risk

Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill their obligations. The BCRA limits its type of investments permitted as defined in the state statutes.

Restricted Investments

The BCRA maintains restricted investments held by fiscal agents, which are restricted by indentures between the BCRA and its trustees pursuant to which bonds and notes payable were issued (See Note 4).

Debt Service Funds

The indentures for the BCRA’s water revenue bonds and loan agreement with the Pennsylvania Clean Water State Revolving Fund establish debt service funds, which are held by the trustees. The trustees are required to use the balances in such funds to pay when due debt service on applicable outstanding bonds and notes payable.

Operation and Maintenance and Capital Repair and Replacement Funds

The indenture for the BCRA’s loan agreement with the Pennsylvania Clean Water State Revolving Fund established operation and maintenance and capital repair and replacement funds to which the BCRA shall transfer from the operating fund any balances remaining in the operating fund in excess of capital and operating reserves determined to be needed by the BCRA to be used at the discretion of the BCRA in a manner that is appropriate for the sewerage system.

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BRODHEAD CREEK REGIONAL AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2020 (3) CAPITAL ASSETS

A summary of the changes in the BCRA's capital assets for 2020 is as follows: Balance Balance January 1, 2020 Additions Deletions December 31, 2020 Capital assets not being depreciated Construction in progress $ 8,965,383 $ 6,250,676 $ 4,428,337 $ 10,787,722 Land 164,109 306,476 - 470,585 Total capital assets not being depreciated 9,129,492 6,557,152 4,428,337 11,258,307

Capital assets being depreciated Buildings 12,758,994 - - 12,758,994 Wastewater treatment plant 49,163,888 202,607 - 49,366,495 Improvement other than buildings 42,705,925 4,432,663 - 47,138,588 Machinery and equipment 2,141,076 522,717 26,945 2,636,848

Total capital assets being depreciated 106,769,883 5,157,987 26,945 111,900,925

Less accumulated depreciation for Buildings (5,904,411) (247,297) - (6,151,708) Wastewater treatment plant (8,098,624) (1,249,488) - (9,348,112) Improvement other than buildings (18,244,362) (915,290) - (19,159,652) Machinery and equipment (1,489,341) (168,037) (26,945) (1,630,433)

Total accumulated depreciation (33,736,738) (2,580,112) (26,945) (36,289,905)

Total capital assets being depreciated, net 73,033,145 2,577,875 - 75,611,020

Total capital assets, net $ 82,162,637 $ 9,135,027 $ 4,428,337 $ 86,869,327

As of December 31, 2020, the BCRA had outstanding construction commitments totaling $2,006,843 related to the Pocono/Tannersville tanks and pump station project.

(4) LONG TERM DEBT

Long-term debt is a direct obligation of the BCRA for which full faith and credit is pledged and is secured by the assignment and pledge of the operating revenues of the BCRA except for the 2011 Loan as described below. Long-term debt was issued to finance capital expenditures or to finance the retirement (refund) prior long-term debt. Long-term debt outstanding as of December 31, 2020 consisted of the following:

On June 12, 2003, the BCRA issued a $5,995,000 Note Payable (the "2003 Loan") to a government sponsored lending institution ("Pennvest"). The proceeds of the 2003 Loan were used for various capital improvements to the water supply and distribution system. The 2003 Loan is payable in 234 monthly payments ranging from $14,345 to $15,810, including interest ranging from 1.379% to 2.740% through December 1, 2025.

On May 11, 2005, the BCRA issued a $3,014,376 Note Payable (the "2005 Loan") to a government sponsored lending institution ("Pennvest"). The proceeds of the 2005 Loan were used to expand its service area up Route 611. The 2005 Loan is payable in 234 monthly payments ranging from $14,345 to $15,810, including interest ranging from 1.379% to 2.740% through May 1, 2026.

On July 15, 2005, the BCRA entered into a note payable agreement with the Borough of Stroudsburg ("Stroudsburg") in the amount of $5,735,000 to finance the purchase of Stroudsburg’s equity interest in the Stroudsburg Municipal Authority in relation to creating a regional municipal authority. The note payable to Stroudsburg is payable in 160 quarterly payments in the amount of $85,660, including interest ranging from 2.30% to 5.45% through October 15, 2044.

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On December 2, 2015, the BCRA issued Water Revenue Bonds, Series of 2015 (the "Series 2015 Bonds") to borrow a maximum aggregate principal amount of $4,750,000. The proceeds of the Series 2015 Bonds were used for various capital improvements to the water supply and distribution system. The Series 2015 Bonds are payable annually in varying amounts from October 2018 through October 2029 and interest is payable semi-annually at a rate of 2.19% through April 15, 2026 and thereafter at a variable rate at 100% of the 30-day LIBOR plus 225 basis points not to exceed 4.75% through maturity. As of December 31, 2020, the BCRA had drawn down all available funds.

On February 26, 2016, the BCRA issued Water Revenue Bonds, Series A of 2016 (the "Series 2016A Bonds") in the aggregate principal amount of $1,507,600. The proceeds of the Series 2016A Bonds were used to refund the BCRA’s outstanding Water Revenue Bonds Series A and B of 2012. The Series 2016A Bonds are payable annually in varying amounts from October 2016 through October 2022 and interest is payable semi-annually at a rate of 2.25%.

On February 26, 2016, the BCRA issued Water Revenue Bonds, Series B of 2016 (the "Series 2016B Bonds") in the aggregate principal amount of $4,215,000. The proceeds of the Series 2016B Bonds were used to refund the BCRA’s outstanding Water Revenue Bonds Series A and B of 2012. The Series 2016B Bonds are payable annually in varying amounts from October 2016 through October 2029 and interest is payable semi-annually at a rate of 2.25% through January 24, 2023 and thereafter at a variable rate at 100% of the 30-day LIBOR plus 225 basis points not to exceed 4.75% through maturity.

On April 25 2011, the BCRA issued a $10,000,000 note payable (the "2011 Loan") through the Pennsylvania Clean Water State Revolving Fund (the "CWSRF"). The proceeds of the 2011 loan were used to finance the upgrade and expansion of the regional wastewater treatment plant. Each of the participating municipalities in the regional wastewater treatment operations (Borough of Stroudsburg and the Townships of Stroud and Pocono) have pledged its full faith, credit and taxing power for its proportionate share of the debt service payments due under the 2011 Loan. The 2011 Loan is payable in 243 monthly payments ranging from $45,989 to $47,708, including interest at 1.00% through August 31, 2018 and 1.51% thereafter through September 1, 2033.

On August 16, 2018, the BCRA issued Water Revenue Bonds, Series of 2018 (the "Series 2018 Bonds") to borrow a maximum aggregate principal amount of $10,000,000. The proceeds of the Series 2018 will be used to a) fund a capital improvement project consisting of the installation of additional distribution lines, tanks and pump stations in the Tannersville Swiftwater and Bartonsville sections of the BCRA’s service area; b) exploration, identification and acquisition or development of new water sources; c) security upgrades to the water system and d) other capital improvements. The Series 2018 Bonds are payable annually in varying amounts from October 2020 through October 2038 and interest is payable semi-annually at rates ranging from 3.90% to 5.00%. The Series of 2018 bonds were refunding during 2020 by the Water Revenue Bonds, Series of 2020.

On August 25, 2020, the BCRA issued its Series of 2020 Water Revenue Bonds (the "Series 2020 Bonds") to borrow a maximum aggregate principal amount of $10,000,000. $7,776,458 was drawn down in 2020. The proceeds of the Bonds were used for the following: a) to refund the remaining portion of the BCRA’s Series of 2018 Water Revenue Bonds, b) to fund capital projects, and c) to pay for costs of issuance. The BCRA will continue to draw down funds as necessary for capital projects. The Series 2020 Bonds are payable annually in varying amounts from October 2020 through October 2038 and interest is payable semi-annually at rates ranging from 2.90% to 4.00%. As of December 31, 2020, the BCRA had $2,223,542 available to be borrowed under the Series 2020 Bonds.

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A summary of the changes in the BCRA’s long term debt for 2020 is as follows: Amount Balance Balance Due Within January 1, 2020 Increases Decreases December 31, 2020 One Year Water Fund 2003 Pennvest loan $ 2,090,274 $ - $ 324,984 $ 1,765,290 $ 334,001 2005 Pennvest loan 1,115,230 - 161,183 954,047 165,655 2005 Stroudsburg note 2,501,586 - 181,028 2,320,558 172,142 Series 2015 bonds 4,653,200 - 93,400 4,559,800 98,700 Series 2016A bonds 665,700 - 214,800 450,900 220,400 Series 2016B bonds 3,087,900 - 300,900 2,787,000 309,300 Series 2018 bonds 1,083,099 - 1,083,099 - - Series 2020 bonds - 7,776,458 24,420 7,752,038 19,720

Total Water Fund 15,196,989 7,776,458 2,383,814 20,589,633 1,319,918

Sewer Fund 2011 CWSRF loan 7,104,311 - 468,450 6,635,861 475,574

Total long-term debt $ 22,301,300 $ 7,776,458 $ 2,852,264 $ 27,225,494 $1,795,492

Annual debt service maturities under the BCRA’s long-term debt are as follows: December 31, Principal Interest Total

2021 $ 1,795,492 $ 733,198 $ 2,528,690 2022 1,822,822 706,639 2,529,461 2023 1,808,715 723,520 2,532,235 2024 1,828,097 704,864 2,532,961 2025 1,864,951 668,132 2,533,083 2026-2030 9,484,449 3,045,593 12,530,042 2031-2035 7,719,712 2,853,727 10,573,439 2036-2040 715,568 1,702,152 2,417,720 2041-2044 185,688 1,184,872 1,370,560

$ 27,225,494 $ 12,322,697 $39,548,191

On August 25, 2020, the BCRA issued a $1,500,000 revolving line of credit with a financial institution including interest at the prime rate (3.25% at December 31, 2020) and matures August 2022. The line of credit was issued as a short-term borrowing for working capital in anticipation of future water receipts. There was no outstanding balance under the line of credit at December 31, 2020.

(5) EMPLOYEE RETIREMENT PLAN

The Brodhead Creek Regional Authority is a single-employer defined benefit pension plan (the "Plan") controlled by the provisions of Resolution 2012-20 and 2013-4. The Plan participates in the Pennsylvania Municipal Retirement System ("PMRS"), which is an agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for participating municipal pension plans. PMRS issues a comprehensive annual financial report that includes financial statements and required supplementary information. A copy of the report may be obtained by writing to Pennsylvania Municipal Retirement System, P.O. Box 1165, Harrisburg, PA 17108-1165; or by accessing its website at http://www.pmrs.state.pa.us.

Plan Membership

Membership in the Plan consisted of the following at December 31, 2019: Active employees 27 Retirees and beneficiaries currently receiving benefits 6 Terminated plan members entitled to but not yet receiving benefits 2

Total 35

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BRODHEAD CREEK REGIONAL AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2020 Benefit Provisions

The Plan provides retirement, disability and death benefits to plan members and their beneficiaries. Cost-of-living allowances are provided at the discretion of the Plan.

Annual Pension Cost

The annual required contribution was determined as part of the January 1, 2019 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) a 5.25% percent investment rate of return (net of administrative costs) and (b) 2.80% inflation and age related scale for merit for salary projections. The unfunded actuarial accrued liability is being amortized on the level dollar closed basis.

Discount Rate

The discount rate used to measure the total pension liability is 5.25%. The projection of cash flows used to determine the discount rate assumes that the employer will continue the historical and legally required practice of contributing to the plan based on an actuarially determined contribution, reflecting a payment equal to annual normal cost, the expected administrative expenses, and an amount necessary to amortize the remaining unfunded actuarial liability as a level dollar amount over a closed period. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Rate of Return

The long-term expected rate of return on pension plan investments was determined using the building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target allocation percentage and by adding expected inflation.

The pension plan's policy in regard to the allocation of invested plan assets is established and may be amended by the PMRS Board of Directors. Plan assets are managed with a long-term objective of achieving and maintaining a fully-funded status for the benefits provided through the pension.

A schedule of plan investments by asset class, target allocations, and long-term expected real rate of return is as follows:

Target Nominal Rate Long-Term Expected Asset Class Allocation of Return Real Rate of Return

Domestic equities (large capitalized firms) 25% 7.4% 4.7% Domestic equities (small capitalized firms) 15% 9.8% 7.1% International equities (international developed markets) 15% 5.5% 2.9% International equities (emerging markets) 10% 9.9% 7.6% Real estate 20% 8.4% 5.3% Fixed income 15% 2.2% 0.0%

Total portfolio 100% 7.1% 4.5%

The above was the PMRS Board's adopted asset allocation policy and best estimates of arithmetic real rates of return for each major asset class as of December 31, 2019.

Net Pension Liability

The BCRA's net pension liability has been measured as of December 31, 2019. The total pension liability was determined by an actuarial valuation as of January 1, 2019, calculated based on the discount rate and actuarial assumptions. There have been no significant changes between the valuation date and the fiscal year end. The net pension liability is $585,682 measured as the difference between the total pension liability of $4,340,580 and the fiduciary net position of $3,754,898.

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The BCRA's change in total net pension liability, plan fiduciary net position, and net pension liability for the year ended December 31, 2019 were as follows: Plan Fiduciary Net Pension

Total Pension Net Fiduciary Liability Liability (A) Position (B) (A) – (B)

Balances as of December 31, 2018 $4,057,125 $ 3,022,612 $1,034,513

Changes for the year: Service cost 204,791 - 204,791 Interest on total pension liability 219,209 - 219,209 Difference between expected and actual experience - - - Employer contributions - 134,606 (134,606) Contributions – PMRS assessment - 740 (740) Member contributions - 121,288 (121,288) PMRS investment income - 175,772 (175,772) Market value investment income - 447,241 (447,241) Transfers - - - Benefit payments (140,545) (140,545) - PMRS administrative expense - (740) 740 Additional administrative expense - (6,076) 6,076

Net changes 283,455 732,286 (448,831)

Balances as of December 31, 2019 $4,340,580 $ 3,754,898 $ 585,682 Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability of the BCRA calculated using the discount rate 5.25%, as well as what the net pension liability would be if it were calculated using the discount rate that is one percentage point lower (4.25%) or 1 percentage point higher (6.25%) than the current rate:

Current Discount 1% Decrease Rate 1% Increase 4.25% 5.25% 6.25%

Net Pension Liability $ 1,156,446 $ 585,682 $ 102,013 Pension Expense and Deferred Outflows and Inflows of Resources Related to Pension

For the year ended December 31, 2019, the BCRA recognized pension expense of $132,000. At December 31, 2019, the BCRA reported deferred outflows and inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows of Resources of Resources

Difference between expected and actual experience $ 366,320 $ - Changes in assumptions 56,775 - Net difference between projected and actual earnings on pension plan investments - 306,323 Contributions subsequent to the measurement date 138,571 -

$ 561,666 $ 306,323

An amount of $138,571 reported as deferred outflows of resources related to pensions resulting from the BCRA contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020.

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Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year ended December 31:

2020 $ (29,617) 2021 (21,052) 2022 36,712 2023 (21,810) 2024 67,646 Thereafter 84,893

$ 116,772

Actuarial Methods and Significant Assumptions

• Discount rate – 5.25%

• Inflation – 2.8%

• Salary increases – age related scale with merit and inflation component

• Cost of living adjustments – 2.80% for those eligible for a COLA

• Pre-retirement mortality – Males – RP 2000; Females – RP 2000 with 5 year set back.

• Post-retirement mortality – Sex distinct – RP 2000 combined healthy mortality. (6) RISK MANAGEMENT

The BCRA is exposed various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; and natural disasters. Significant losses are covered by commercial insurance for all major programs. For insured programs, there were no significant reductions in insurance coverage during 2020. Settlement amounts have not exceeded insurance coverage for the current year or the three prior years.

The BCRA participates in a consortium with other Pennsylvania municipalities and other governmental agencies to provide self-insurance programs for health and prescription insurance coverage and related expenses for eligible employees, spouses and dependents. Accordingly benefit payments plus an administrative charge are made to a third party administrator, who approves and processes all claims.

(7) CONTINGENCIES

The BCRA is subject to various disputes and legal proceedings which arise in the normal course of its operations. In the opinion of management, the amount of ultimate liability with respect to these activities will not be material to the BCRA’s financial condition.

(8) SUBSEQUENT EVENTS

Management has evaluated subsequent events through August 9, 2021, the date on which the financial statements were available to be issued. No material subsequent events have occurred since December 31, 2020 that required recognition or disclosure in the financial statements.

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REQUIRED SUPPLEMENTARY INFORMATION

2019 2018 2017 2016 2015 2014TOTAL PENSION LIABILITY

Service cost 204,791$ 203,963$ 190,102$ 163,447$ 159,675$ 164,898$ Interest on total pension liability 219,209 185,133 175,256 165,304 150,142 129,697 Differences between expected and

actual experience - 381,210 - 36,417 - 109,099 Changes of assumptions - - - 100,236 1,992 - Transfers - - (5,038) - - - Benefit payments, including refunds of

member contributions (140,545) (109,157) (264,352) (41,036) (39,380) (13,857)

Net change in total pension liability 283,455 661,149 95,968 424,368 272,429 389,837

Total pension liability, beginning 4,057,125 3,395,976 3,300,008 2,875,640 2,603,211 2,213,374

Total pension liability, ending 4,340,580$ 4,057,125$ 3,395,976$ 3,300,008$ 2,875,640$ 2,603,211$

PLAN FIDUCIARY NET POSITION Employer contributions 134,606$ 116,791$ 116,206$ 97,360$ 77,722$ 41,699$ Contributions - PMRS assessment 740 700 680 640 600 540 Member contributions 121,288 128,314 120,102 103,396 97,523 96,062 PMRS investment income 175,772 155,530 145,569 142,552 126,603 112,397 Market value investment income 447,241 (292,605) 288,812 42,843 (139,307) (6,775) Transfers - - (5,038) - - - Benefit payments (140,545) (109,157) (264,352) (41,036) (39,380) (13,857) PMRS administrative expense (740) (620) (620) (540) (600) (540) Additional administrative expense (6,076) (6,941) (6,695) (6,984) (5,278) (4,310)

Net change in plan fiduciarynet position 732,286 (7,988) 394,664 338,231 117,883 225,216

Fiduciary net position, beginning 3,022,612 3,030,600 2,635,936 2,297,705 2,179,822 1,954,606

Fiduciary net position, ending 3,754,898$ 3,022,612$ 3,030,600$ 2,635,936$ 2,297,705$ 2,179,822$

Net pension liability, ending 585,682$ 1,034,513$ 365,376$ 664,072$ 577,935$ 423,389$

Fiduciary net position as a % oftotal pension liability 86.51% 74.50% 89.24% 79.88% 79.90% 83.74%

Covered payroll 1,749,425 1,787,711 1,654,231 1,541,990 1,414,473 1,384,196

Net pension liability as a % ofcovered payroll 33.48% 57.87% 22.09% 43.07% 40.86% 30.59%

In accordance with GASB Statement No. 68, this schedule has been prepared prospectively. This schedule will accumulate each year until sufficient information to present a ten-year trend is available.

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SCHEDULE OF CHANGES IN NET PENSION LIABILITY

Year ended December 31

Measurement Date

Measurement ContributionDate as a

Ending Actuarially Actual Contribution PercentageDecember Determined Employer Deficiency Covered of Covered

31 Contribution Contribution (Excess) Payroll Payroll

2014 41,426$ 42,239$ (813) 1,384,196$ 3.05%2015 78,262 78,322 (60) 1,414,473 5.54%2016 97,901 98,000 (99) 1,541,990 6.36%2017 116,826 116,886 (60) 1,654,231 7.07%2018 117,411 117,491 (80) 1,787,711 6.57%2019 135,306 135,346 (40) 1,749,425 7.74%

In accordance with GASB Statement No. 68, this schedule has been prepared prospectively. This schedule will accumulate each year until sufficient information to present a ten-year trend is available.


SCHEDULE OF EMPLOYER PENSION CONTRIBUTIONS

Year ended December 31,

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SUPPLEMENTARY INFORMATION

Water Sewer 2020 2019Purification system expenses

Operating labor 310,232$ 277,748$ 587,980$ 527,445$ Supplies and maintenance 237,080 383,930 621,010 760,303 Purchased power - 327,971 327,971 345,147 Sludge removal - 226,696 226,696 323,894 Chemicals - 241,854 241,854 343,493

Total purification system expenses 547,312 1,458,199 2,005,511 2,300,282

Pumping system expensesSupplies 24,346 - 24,346 42,247 Purchased power 273,294 - 273,294 265,554 Pump repair 77,154 - 77,154 55,524

Total pumping system expenses 374,794 - 374,794 363,325

Distribution system expensesOperating labor 630,641 - 630,641 661,578 Uniforms 3,352 - 3,352 4,798 Supplies 37,402 - 37,402 47,593 Maintenance of mains 98,518 - 98,518 83,139 Maintenance of service 20,191 - 20,191 29,414 Maintenance of meters, meter boxes and vaults 202,113 - 202,113 177,231 Purchased water 107,767 - 107,767 119,944 Maintenance of system properties 9,977 - 9,977 30,057

Total distribution system expenses 1,109,961 - 1,109,961 1,153,754

General expensesOffice salaries 492,534 176,632 669,166 637,222 Payroll taxes 105,150 34,926 140,076 150,239 Employee benefits 505,633 170,076 675,709 812,694 Office 253,637 17,211 270,848 298,636 Bad debt expense - - - 2,349 Legal 81,891 214,342 296,233 259,415 Engineering 88,507 82,625 171,132 238,111 Accounting 4,850 4,850 9,700 9,500 Authority costs 48,527 - 48,527 46,113 Insurance 57,134 61,860 118,994 119,752 Maintenance of general properties 11,387 - 11,387 9,121

Total general expenses 1,649,250 762,522 2,411,772 2,583,152

Depreciation expense 1,326,061 1,254,051 2,580,112 2,724,695

Total operating expenses 5,007,378$ 3,474,772$ 8,482,150$ 9,125,208$

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SCHEDULE OF OPERATING EXPENSES

Year ended December 31, 2020 with comparative totals for 2019

Totals

Water Water Pumping Distribution GeneralCollection Purification System System Property WWTP Total

Buildings -$ 11,633,835$ 46,408$ 11,750$ 1,067,001$ 49,366,495$ 62,125,489$ Improvements other than buildings 2,379,201 - 1,295,083 43,170,605 293,699 - 47,138,588 Equipment - - 675,276 43,360 1,846,297 71,915 2,636,848 Land 9,356 - 328,536 114,612 18,080 - 470,584

Total capital assets 2,388,557 11,633,835 2,345,303 43,340,327 3,225,077 49,438,410 112,371,509

Less: accumulated depreciation (601,906) (5,782,056) (304,714) (18,404,561) (1,780,243) (9,416,425) (36,289,905)

Construction in progress - - 362,542 10,425,181 - - 10,787,723

Net capital assets 1,786,651$ 5,851,779$ 2,403,131$ 35,360,947$ 1,444,834$ 40,021,985$ 86,869,327$


SCHEDULE OF CAPITAL ASSETS

December 31, 2020

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INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Members of the Board Brodhead Creek Regional Authority East Stroudsburg, Pennsylvania We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Brodhead Creek Regional Authority as of and for the year ended December 31, 2020, and the related notes to the financial statements, and have issued our report thereon dated August 9, 2021. Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Brodhead Creek Regional Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Brodhead Creek Regional Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of Brodhead Creek Regional Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters

As part of obtaining reasonable assurance about whether Brodhead Creek Regional Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Philadelphia, Pennsylvania August 9, 2021

-27-

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

‐50,000.00

0.00

50,000.00

100,000.00

150,000.00

200,000.00

250,000.00

300,000.00

350,000.00

400,000.00

5/29/2020 6/29/2020 7/29/2020 8/29/2020 9/29/2020 10/29/2020 11/29/2020 12/29/2020 1/29/2021 2/28/2021 3/31/2021 4/30/2021 5/31/2021 6/30/2021 7/31/2021

BCRA Accounts Receivable Summary

60 days 90 Days 120 days Aged Receivables 180+ Days TOTAL AR 60 DAYS AND GREATER % OF WATER FUND

OPERATING FUNDS:

OPERATING FUNDS: BALANCE RATE

ESSA General Account (1102) $785,497.47 *varies

TOTAL OPERATING FUNDS: $785,497.47

RAINY DAY FUNDS: (1)


ESSA Rainy Day Fund (MM) (1130100) $1,722,005.27 0.40%PLGIT Capital Reserve (1125100) $755,140.32 0.10%

(1) These funds are reserved for unanticipated costs or unexpected revenue shortfalls.

TOTAL RAINY DAY FUNDS: $2,477,145.59

COMBINED TOTAL: $3,262,643.06

BRODHEAD CREEK REGIONAL AUTHORITYSTATUS OF FUNDS (Water)

DATE: Aug 16, 2021

OPERATING FUNDS: BALANCE RATEESSA General Account (5102) $212,445.83 *varies

TOTAL OPERATING FUNDS: $212,445.83


ESSA MM Reg. O & M Res. (5130200) $443,939.28 0.20%ESSA MM Cap. Impr. Res. (5130300) $699,727.10 0.20%

PLGIT Capital Reserve (5126100) $208,410.50 0.10%PLGIT O&M Reserve $205,924.96 0.10%

(1) These funds are reserved for unanticipated costs or unexpected revenue shortfalls.

TOTAL RAINY DAY FUNDS: $1,558,001.84


ESSA Debt Service Account (5101) $104,516.83 N/A*

*Non Interest Bearing Account

TOTAL WWTP DEBT SERVICE FUNDS: $104,516.83

COMBINED TOTAL: $1,874,964.50

cc: BoardD. HortonC. Schmelz

BRODHEAD CREEK REGIONAL AUTHORITYSTATUS OF FUNDS (Sewer)

DATE: Aug 16, 2021

OPERATING FUNDS:

RAINY DAY FUNDS: (2)

Date Num Memo Split Open Balance

ACE TRUCKING & REPAIRS INC.08/10/2021 20357 PO# 10951 INSPECTION & OIL CH... 1468207 · Vehicle Supplies/Expense 94.23

Total ACE TRUCKING & REPAIRS INC. 94.23

Altronics Inc dba Royal Security07/14/2021 72750 PO# 10893 CELL/INTERNET COM... 1482202 · Office Supplies 295.0007/15/2021 72753 PO# 10893 ACCESS CONTROL- A... 1482202 · Office Supplies 3,193.5007/15/2021 42759 PO# 10893 ADC ACCESS 1482202 · Office Supplies 438.8307/14/2021 42752 PO# 10893 VIDEO INTERCOM 1482202 · Office Supplies 1,675.0007/16/2021 42760 PO# 10893 3G UPGRADE 1482202 · Office Supplies 195.0007/14/2021 42751 PO# 10893 LANDLINE TO CELLUL... 1482202 · Office Supplies 125.00

Total Altronics Inc dba Royal Security 5,922.33

BADGER METER INC.07/29/2021 80077... CELLUAR METER CONNECTION 1468217 · METER CONNECTION 266.11

Total BADGER METER INC. 266.11

BBD, LLC08/10/2021 42840 2020 Audit 1482301 · Auditing 4,950.00

Total BBD, LLC 4,950.00

Biros Septic & Drain Cleaning Inc.08/05/2021 40987 PO# 10961 SLUDGE REMOVAL W... 1454212 · Sludge Removal - Well 3 330.0008/06/2021 41002 PO# 10961 SLUDGE REMOVAL W... 1454212 · Sludge Removal - Well 3 330.0007/30/2021 40937 PO# 10883 SLUDGE REMOVAL W... 1454203 · Sludge Removal 630.00

Total Biros Septic & Drain Cleaning Inc. 1,290.00

Carroll Engineering Corporation08/06/2021 226136 ENGINEERING SERVICES: EVPS ... -SPLIT- 6,588.6808/06/2021 226137 ENGINEER SERVICES: EVPS -SPLIT- 3,394.2508/05/2021 226134 ENGINEER SERVICES: GIS -SPLIT- 1,104.00

Total Carroll Engineering Corporation 11,086.93

CHRISTOPHER S BROWN LAW OFFICE08/06/2021 00241-0 REFUND ON WATER/SEWER AC... -SPLIT- 1,140.18

Total CHRISTOPHER S BROWN LAW OFFICE 1,140.18

CLAUDE S. CYPHERS INC.07/30/2021 00710... PO# 10943 HYDRAULIC HOSES &... 1468210 · Equipment Supplies/Expense 202.29

Total CLAUDE S. CYPHERS INC. 202.29

COORDINATED HEALTH BETHLEHEM08/01/2021 185544 DOT RE-EVALUATION C. MILLER 1482304 · Other Expense (b) 20.0008/03/2021 199050 PRE-EPMLOYMENT SCREENING ... -SPLIT- 544.00

Total COORDINATED HEALTH BETHLEHEM 564.00

COUNTY WASTE08/02/2021 AUG 2... TRASH REMOVAL AUG 2021 1468206 · Property Supplies/Expense 234.21

Total COUNTY WASTE 234.21

CRAMER'S HOME CENTER08/13/2021 2108-... PO# 10956 BLADE SET 1468210 · Equipment Supplies/Expense 66.90

Total CRAMER'S HOME CENTER 66.90

DAVID S. HORTON08/12/2021 EmpR... EmpReim08122021 Intuit, MicroSoft... -SPLIT- 1,013.29

Total DAVID S. HORTON 1,013.29

DE LAGE LANDEN FINANCIAL SERVICES INC.08/07/2021 73388... MONTHLY LEASE ON PLOTTER 1482202 · Office Supplies 134.88

10:06 AM Brodhead Creek Regional Authority08/18/21 Unpaid Bills Detail

As of August 18, 2021

Page 1


Total DE LAGE LANDEN FINANCIAL SERVICES INC. 134.88

DES-CPR INC.07/30/2021 63649 RECYCLING 1482306 · Office Maintenance 37.50

Total DES-CPR INC. 37.50

DONNA GENTILE.08/12/2021 EmpR... EmpReim08122021- MESSAGE B... 1482202 · Office Supplies 39.10

Total DONNA GENTILE. 39.10

EUREKA STONE QUARRY INC.08/12/2021 435681 PO# 10919 2A BULK STONE 8TH ... 1497101 · Waterline Upgrades-Boro. ... 875.7707/28/2021 432799 PO# 10919 2A BULK STONE 8TH ... 1497101 · Waterline Upgrades-Boro. ... 1,170.0307/29/2021 432952 PO# 10919 2A BULK STONE 8TH ... 1497101 · Waterline Upgrades-Boro. ... 280.59

Total EUREKA STONE QUARRY INC. 2,326.39

FASANO ENTERPRISES INC.07/30/2021 3311 PO# 10892 ROAD RESTORATION:... 1468212 · Cost to Repair Street O 6,670.00

Total FASANO ENTERPRISES INC. 6,670.00

FASTENAL COMPANY06/11/2021 PAST... PO# 10828 CLEAR SAFETY GLAS... 1468101 · Uniform Expense (b) 81.56

Total FASTENAL COMPANY 81.56

FEDEX07/27/2021 74479... SHIPPING CHARGES 1482203 · Postage 50.95

Total FEDEX 50.95

H&K GROUP, INC.07/15/2021 B-103... PO# 10914 HIGH PERFORMANCE... 1497101 · Waterline Upgrades-Boro. ... 2,288.20

Total H&K GROUP, INC. 2,288.20

HACH COMPANY08/04/2021 12577... PO# 10965 CHEMICAL SUPPLY P... 1454201 · Chemicals 726.05

Total HACH COMPANY 726.05

INNOVATIVE CONTROL SOLUTIONS & ELECTRIC08/05/2021 07152... PO# 10654 PROGRAMMING HMI ... 1454209 · Scada Support 500.0008/05/2021 07162... FINISH TANKS LEVELS ON NEW ... 1454209 · Scada Support 375.0008/05/2021 07222... PO# 10654 FIX TRENDING FOR F... 1454209 · Scada Support 250.0008/05/2021 06302... PO# 10798 TROUBLE SHOOT TTP... 1497161 · Tannersville Tank & Pump ... 687.5008/05/2021 07162... PO# 10882 MEETING FOR EVPS ... 130000 · Eagle Valley P/S Expense Acct 687.5008/05/2021 07202... PO# 10882 REVIEW SCOPE AND ... 130000 · Eagle Valley P/S Expense Acct 562.5008/05/2021 07012... PO# 10811 PROGRAM THE POD F... 1454209 · Scada Support 875.0008/05/2021 07022... PO# 10881 TURN ON HEART BEA... 1454209 · Scada Support 875.0008/05/2021 07092... PO# 10881 VERIZION MEETING 1454209 · Scada Support 812.5008/05/2021 07142... PO# 10881 CHANGE OUT TWO C... 1454209 · Scada Support 944.9008/05/2021 07192... PO# 10881 WELL 3 TROUBLE SH... 1454209 · Scada Support 812.50

Total INNOVATIVE CONTROL SOLUTIONS & ELECTRIC 7,382.40

Integra Business Center Inc.07/08/2021 194388 PO# 10826 CISCO MERAKI MR 36 ... 1482201 · Computer Service 586.49

Total Integra Business Center Inc. 586.49

JOHN C. PREVOZNIK07/31/2021 12397 LEGAL EXPENSE: GENERAL 1482206 · Legal Expense 2,330.0007/31/2021 12398 LEGAL EXPENSE: SMITHFIELD G... 1497173 · Smithfield Gateway Project 280.0007/31/2021 12400 LEGAL EXPENSE: PJJWA 1497164 · PJJWA Acquisition 700.0007/31/2021 12401 LEGAL EXPENSE: COLLECTIONS... 1482206 · Legal Expense 76.0007/31/2021 12402 LEGAL EXPENSE: COLLECTIONS... 1482206 · Legal Expense 80.0007/31/2021 12403 LEGAL EXPENSE: POCONO MAN... 1482206 · Legal Expense 60.0007/31/2021 12404 LEGAL EXPENSE: MOUNT AIRY 1482206 · Legal Expense 60.00



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07/31/2021 12399 LEGAL EXPENSE: POCONO TOW... 1482206 · Legal Expense 440.00

Total JOHN C. PREVOZNIK 4,026.00

Loikits Industrial Services08/03/2021 58142 PO# 10942 SECURITY GATE MAI... 1468206 · Property Supplies/Expense 829.40

Total Loikits Industrial Services 829.40

Mack's Prairie Wings08/18/2021 861960 PO# 10994 LACROSSE ALPHABU... 1468101 · Uniform Expense (b) 639.80

Total Mack's Prairie Wings 639.80

MAIN POOL & CHEMICAL SUPPLY CO.07/30/2021 2191144 PO# 10889 1013 GALLONS SODIU... 1454201 · Chemicals 1,195.34

Total MAIN POOL & CHEMICAL SUPPLY CO. 1,195.34

MEDICO INDUSTRIES INC08/11/2021 RT079... PO# 10838 EQUIPMENT RENTAL- ... 1497101 · Waterline Upgrades-Boro. ... 4,400.00

Total MEDICO INDUSTRIES INC 4,400.00

MET-ED07/28/2021 10001... ELECTRIC SERVICE: 410 MILL CR... 1462204 · Power Purchased 15,349.5507/28/2021 10003... ELECTRIC SERVICE: AVE B 07/20... 1462204 · Power Purchased 23.7007/28/2021 10001... ELECTRIC SERVICE: SCHUBERT ... 1462204 · Power Purchased 106.8107/28/2021 10001... ELECTRIC SERVICE: NORTHVIE... 1462204 · Power Purchased 54.81

Total MET-ED 15,534.87

MICROBAC LABORATORIES INC.07/31/2021 PP1G... WATER ANALYSIS 1454202 · Water Analysis 1,441.35

Total MICROBAC LABORATORIES INC. 1,441.35

PA RURAL WATER ASSOCIATION08/03/2021 64311 PO# 10990 UNACCOUNTED FOR ... 1482110 · Training Expenses (c) 105.00

Total PA RURAL WATER ASSOCIATION 105.00

PA STATE ASSOCIATION OF BOROUGHS07/21/2021 28647 PO 10960 PA MUNICIPAL LEGAL ... 1482110 · Training Expenses (c) 150.00

Total PA STATE ASSOCIATION OF BOROUGHS 150.00

PENNDOT08/16/2021 78781... 572/578 Main Street Inspection fee 1482304 · Other Expense (b) 139.66

Total PENNDOT 139.66

PENNSYLVANIA MUNICIPAL HEALTH INS. CO.08/05/2021 66493-0 EMPLOYEE HEALTH/DENTAL/VIS... 1482410 · Health / Dental Insurance 32,798.18

Total PENNSYLVANIA MUNICIPAL HEALTH INS. CO. 32,798.18

PENNSYLVANIA ONE CALL SYSTEM INC.07/31/2021 915700 NOTIFICATION SERVICES 1468202 · Water Main Supplies/Expen... 247.53

Total PENNSYLVANIA ONE CALL SYSTEM INC. 247.53

PPL ELECTRIC 0500707/29/2021 38609... ELECTRIC SERVICE: 2700 ROUT... 1462204 · Power Purchased 29.60

Total PPL ELECTRIC 05007 29.60

PPL ELECTRIC 0601508/05/2021 97126... ELECTRIC SERVICE: KALAHARI ... 1462204 · Power Purchased 1,424.05

Total PPL ELECTRIC 06015 1,424.05

PPL ELECTRIC 09013



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08/05/2021 90824... ELECTRIC SERVICE: KALAHARI B... 1462204 · Power Purchased 1,429.81


PPL ELECTRIC 1901608/02/2021 54635... ELECTRIC SERVICE: STROUD M... 1462204 · Power Purchased 5,779.74


PPL ELECTRIC 2101008/02/2021 54774... ELECTRIC SERVICE: WOODWIN... 1462204 · Power Purchased 185.34


PPL ELECTRIC 2703407/30/2021 63771... ELECTRIC SERVICE: MARION RD... 1462204 · Power Purchased 97.98


PPL ELECTRIC 3201207/30/2021 96971... ELECTRIC SERVICE: NG ESTATE... 1462204 · Power Purchased 260.09


PPL ELECTRIC 3201307/30/2021 04771... ELECTRIC SERVICE: NG ESTATE... 1462204 · Power Purchased 47.77


PPL ELECTRIC 4401708/02/2021 55384... ELECTRIC SERVICE: ARBORWO... 1462204 · Power Purchased 128.16


PPL ELECTRIC 6901408/02/2021 47078... ELECTRIC SERVICE: RAMBLE BU... 1462204 · Power Purchased 92.37


PPL ELECTRIC 7901608/05/2021 98401... ELECTRIC SERVICE: DREHER AV... 1462204 · Power Purchased 33.76


PPL ELECTRIC 9100808/05/2021 93587... ELECTRIC SERVICE: GLENBROO... 1462204 · Power Purchased 1,323.05


PPL ELECTRIC 9701708/02/2021 23374... ELECTRIC SERVICE: FRANTZ RD... 1462204 · Power Purchased 73.78


RESERVE ACCOUNT08/17/2021 52231... POSTAGE FOR MACHINE 1482203 · Postage 1,000.00

Total RESERVE ACCOUNT 1,000.00

Steele's Hardware Inc.08/11/2021 472354 PO# 10953 SPRAY PAINT FOR HY... 1468209 · Fire Hydrant Supplies/Expe... 67.0808/10/2021 472321 PO# 10950 MESSAGE BOARD HA... 1468206 · Property Supplies/Expense 40.9708/06/2021 472217 PO# 10970 20' CHAIN 1462205 · Mainten. of Properties 91.8007/29/2021 471977 PO# 10962 CARPET CLEANER RE... 1454208 · Maintenance of Buildings 71.9708/10/2021 472324 PO# 10973 25' EXTENSION CORD 1462202 · Other Expenses 59.98

Total Steele's Hardware Inc. 331.80

Stiff Oil Co.08/01/2021 701 FUEL PURCHASE JULY 2021 1468211 · Gasoline/Diesel Fuel (Equip) 906.17

Total Stiff Oil Co. 906.17



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TOM JOSIAH CONSULTING LLC08/03/2021 17 CONSULTING: JULY 2021 1482305 · Consulting 787.50

Total TOM JOSIAH CONSULTING LLC 787.50

UGI Central07/19/2021 41100... GAS SERVICE: RIVER RD 1462201 · Gas (Heating) 23.5507/19/2021 41100... GAS SERVICE: 410 MILL CREEK ... 1462201 · Gas (Heating) 62.13

Total UGI Central 85.68

VERIZON WIRELESS07/23/2021 98847... TABLET SERIVCE 1482204 · Telephone 20.0407/26/2021 98850... CELLUAR SERVICE 1482204 · Telephone 2,470.76

Total VERIZON WIRELESS 2,490.80

TOTAL 125,168.57



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ABB, INC08/03/2021 10042459 PO # 2804 REPLACE FAILED G.... 5620305 · Equipm... 9,795.00

Total ABB, INC 9,795.00

AMERICAN AQUATIC TESTING INC.08/10/2021 11366 PO # 2873 7 DAY W.E.T. TEST P... 5620304 · Contrac... 1,900.00

Total AMERICAN AQUATIC TESTING INC. 1,900.00

BBD, LLP08/10/2021 42840 AUDIT OF 2020 FINANCIAL STA... 5630406 · Auditin... 4,950.00

Total BBD, LLP 4,950.00

BLUE RIDGE COMMUNICATIONS07/26/2021 0336717-01AU... INTERNET/PHONE 5630401 · Teleph... 126.76

Total BLUE RIDGE COMMUNICATIONS 126.76

FERGUSON WATER WORKS #92011/10/2020 S026244259.001 RETURN PO# 2659 5620306 · Materia... -39.71

Total FERGUSON WATER WORKS #920 -39.71

GARY W. GRAY TRUCKING INC.07/31/2021 14780 SLUDGE REMOVAL 07/26, 07/27,... 5620303 · Sludge ... 7,544.7707/29/2021 14722 SLUDGE REMOVAL 07/20, 07/22,... 5620303 · Sludge ... 4,713.06

Total GARY W. GRAY TRUCKING INC. 12,257.83

GLACE ASSOCIATES INC.08/09/2021 52768889 ENGINEERING SERVICES 5630404 · Engine... 730.23

Total GLACE ASSOCIATES INC. 730.23

GRAINGER07/21/2021 9970635042 PO # 2867 WASP SPRAY KILLE... 5620305 · Equipm... 225.43

Total GRAINGER 225.43

J.P. SMITH CONTRACTORS, INC07/31/2021 6224 PO # 2799 TERTIARY PROJECT 5897103 · Tertiary... 29,019.00

Total J.P. SMITH CONTRACTORS, INC 29,019.00

JOHN C. PREVOZNIK07/31/2021 12405 LEGAL SERVICES: GENERAL 5630403 · Legal E... 500.0007/31/2021 12406 LEGAL SERVICES: SANOFI IPP 5630420 · SANOF... 1,004.0007/31/2021 12407 LEGAL SERVICES: KALAHARI 5630403 · Legal E... 60.00

Total JOHN C. PREVOZNIK 1,564.00

MARSHALLS CREEK PLUMBING SUPPLIES07/29/2021 00016496 PO # 2876 FERNCOS, UNION, C... 5620305 · Equipm... 118.63

Total MARSHALLS CREEK PLUMBING SUPPLIES 118.63

PA RURAL WATER ASSOCIATION07/29/2021 64283 PO # 2874 OPERATION OF WAS... 5600102 · Trainin... 105.00

Total PA RURAL WATER ASSOCIATION 105.00

PENNSYLVANIA Municipal Health Insurance08/05/2021 66493-0 EMPLOYEE HEALTH/VISION/DE... 5630408 · Health /... 13,462.65

Total PENNSYLVANIA Municipal Health Insurance 13,462.65

SEM/BDS08/11/2021 6209009 PO # 2881 REPAIR SBR MIXER ... 5620305 · Equipm... 632.9908/05/2021 6206600 PO # 2883 CUTTING WHEEL 5620306 · Materia... 19.90

9:55 AM Brodhead Creek Regional Authority- WWTP08/18/21 Unpaid Bills Detail


Page 1


Total SEM/BDS 652.89

Suburban Testing Labs, Inc.08/02/2021 P1001310 WATER ANALYSIS 5620304 · Contrac... 4,809.00

Total Suburban Testing Labs, Inc. 4,809.00

THATCHER COMPANY OF NEW YORK07/29/2021 659324 PO # 2872 4,000 GALLONS LIQU... 5620301 · Chemic... 4,097.65

Total THATCHER COMPANY OF NEW YORK 4,097.65

TRIJAY SYSTEMS INC.08/05/2021 20111-4 PO # 2884 QUARTERLY MAINTE... 5620314 · SCADA... 600.00

Total TRIJAY SYSTEMS INC. 600.00

UNIVAR USA INC.07/22/2021 49321342 PO # 2862 4,000 GALLONS SODI... 5620301 · Chemic... 2,473.8308/02/2021 49343262 PO # 2871 4,000 GALLONS SODI... 5620301 · Chemic... 2,476.1607/12/2021 49314304 PO # 2855 4,000 GALLONS SODI... 5620301 · Chemic... 2,478.48

Total UNIVAR USA INC. 7,428.47

VERIZON WIRELESS07/26/2021 9885017411 WIRELESS SERVICE 5630401 · Teleph... 337.49

Total VERIZON WIRELESS 337.49

WARNICK WELDING & FABRICATION LLC07/28/2021 721 PO # 2882 FABRICATE & INSTAL... 5620305 · Equipm... 2,443.76

Total WARNICK WELDING & FABRICATION LLC 2,443.76

TOTAL 94,584.08

9:55 AM Brodhead Creek Regional Authority- WWTP08/18/21 Unpaid Bills Detail


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