Agenda Item 12
November 30,2010
Public Hearing/Action
MEMORANDUM
TO:
FROM:
County Council
~MiChael
Faden, Senior Legislative Attorney
Public Hearing/Action:
Expedited Bill 56-10, Bond Authorization
Resolution to consolidate previously authorized notes for sale and issuance as a
single issue
SUBJECT:
Expedited Bill 56-10, Bond Authorization, along with the implementing resolution, both
sponsored by the Council President at the request of the County Executive, were introduced on
November 23,2010. Action is scheduled immediately after this hearing.
Every year, the Executive sends to the Council related items for approval after the
Council approves the Capital Improvements Program in May.
• This Bill increases the amount of bonds the County is authorized to sell by $721.3
million, the additional amount needed to fund the capital projects the Council
approved this year which are funded by County bonds.
• The resolution (Item 4H) will increase the amount of bond anticipation notes the
County is authorized to sell by $721.3 million, the additional amount needed to
fund the capital projects the Council approved this year which are funded by
County bonds. Bond anticipation notes are sold as needed to fund capital projects
and then are repaid when the County sells bonds, usually once a year. Bond
anticipation notes are sold in anticipation of being repaid by a later bond issue.
This packet contains
Expedited Bill 56-10
Legislative Request Report
Bond Anticipation Resolution
Memo from County Executive
F:\LAW\BILLS\1056 Bond Authorization\Public Hearing-Action.Doc
Circle
1
4
5
7
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill No.:
_~5~6--.!.1~0
_ _ __
Concerning: Bond Authorization
Revised:
11/17/2010
Draft No.: _1_
Introduced: November
23.2010
Expires:
May
23, 2012
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _---:-:-_ _ _ _ __
Sunset Date:
_--::-!N~o~n.:.::e'_::_---_
ChI _ _ Laws of Mont. Co._ _ __
I
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the request of the County Executive
AN EXPEOrrEO ACT
to:
(1)
authorize the County to issue certain bonds; and
(2) authorize the bonds and bonds previously authorized to be issued to be consolidated
for sale and issued, sold and delivered as a single issue.
By adding to
Laws of Montgomery County 2010
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
*
* *
Heading
or
defined term.
Added to existing law by original bill.
Deleted from existing law by original bill.
Added by amendment
Deleted from existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Mary/and approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill 56-10
1
2
Sec. 1.
County:
The following is added to the 2010 Laws of Montgomery
3
4
In
The County may at any time and from time to time sell up to $721,300,000
general obligation bonds under Chapter 20 for any project included in an
5 approved Capital Improvements Program as follows:
6
7
8
9
10
11
12
13
14
15
16
(e)
(d)
(c)
(a)
an aggregate principal amount not exceeding $108,700,000 for public
facilities as defined in Section 20-14(a);
(b) an aggregate principal amount not exceeding $192,000,000 for public
facilities as defined in Section 20-14(b);
an aggregate principal amount not exceeding $341,600,000 for public
facilities as defined in Section 20-14(c);
an aggregate principal amount not exceeding $32,600,000 for public
facilities as defined in Section 20-14(d); and
an aggregate principal amount not exceeding $46,400,000 for public
facilities as defined in Section 20-14(t).
Any bonds issued and sold by the County under this Act constitute an
17 irrevocable pledge of the full faith and credit and unlimited taxing power of the
18 County.
19
21
23
In accordance with Section 2C of Article 31 of the Maryland Code, the
bonds authorized by any other County law may be consolidated for sale and issued,
The County Executive must determine all matters relating to the amounts of
20 County Executive by order may determine that all or any of the bonds and any
22 sold, and delivered as a single issue of bonds.
24 bonds to be sold, advertisement, sale, issuance, delivery, and payment of the
25 consolidated issue, such as the forms, dates, and denominations of the consolidated
26 bonds, the principal maturities, the method for determining the interest payable on
27 the consolidated bonds, and provisions for the use of facsimile signatures or seals.
@
F:\LA W\BILLS\I 056 Bond AUlhorization\Bill I.Doc
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill 56-10
28
29
30
31
At least one advertisement of the public sale of the consolidated bonds must appear
in a newspaper of general circulation in the County at least 10 days before the sale.
Sec. 2.
Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
32 protection of the public interest. This Act takes effect on the date when
it
becomes
33
law.
34
Approved:
35
Nancy Floreen, Council President
Date
36
Approved:
37
Isiah Leggett, County Executive
Date
38
This is a correct copy ofCouncil action.
39
Linda M. Lauer, Clerk of the Council
Date
F:\LAW\BILLS\1056 Bond Authorization\Bill LDoc
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Expedited Bill 56-10
Bond Authorization
DESCRIPTION:
Legislation to authorize the issuance of various proposed bonds in an
amount not to exceed $721,300,000. These General Obligation
Bonds are to be issued upon the full faith and credit of the County.
There is insufficient bond authorization in certain categories of CIP
expenditures to fully cover the increased appropriation level as
approved by the County Council.
To provide new, additional bond authorization equal to the approved
appropriation level which will be financed from future bond issues.
This bill does not duplicate or overlap existing law.
Future annual debt service costs are incurred at the time the bonds are
actually sold, and are included in the Approved Operating Budget
and Annual Appropriations for Debt Service.
To be requested.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
N/A
N/A
Jennifer E. Barrett, Finance Director, 240-777-8870
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
N/A
N/A.
f:\law\bills\
1056
bond authorization\lrr.doc
 PDF to HTML - Convert PDF files to HTML files
Resolution No. _ _ __
Introduced:_ _ _ __
Adopted:_ _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: County Council
SUBJECT:
Resolution to consolidate previously authorized notes for sale and issuance as a
single issue.
Background
L
Resolution No. 14-1307, adopted by the County Council on June 11, 2002 as amended
and restated by Resolution No 16-1104 of the County Council adopted on September 15,
2009, authorized the County to issue, at one time or from time to time, bond anticipation
notes (the "Notes") of Montgomery County, Maryland (the "County"). The Notes are to
be issued pursuant to and in accordance with certain laws of the County (the "Authorizing
Legislation") and Section 12 of Article 31 of the Maryland Code (the "Bond Anticipation
Note Act"), for the public purposes and uses as set forth in the Authorizing Legislation
and to pay the costs of issuing the Notes.
On November 23, 2010, the County Council introduced Expedited Bill 56-10, Bond
Authorization, to authorize the County to borrow money in an aggregate amount of
$721,300,000 to finance the cost of certain public facilities.
The County wishes to add the authority provided in Expedited Bill 56-10 with the
authority remaining under Resolution No. 16-1104 so that the aggregate amount of all the
authority may be consolidated for sale and issued, sold and delivered from time to time as
one or more series of bond anticipation notes.
Action
2.
3.
The County Council for Montgomery County, Maryland approves the follqwing resolution:
Section
1.
Resolution No. 16-1104 is hereby amended as follows:
L
The amount of $1,348,703,000 in Section 1, paragraph (a) "Authorized Amount"
is deleted and replaced with $2,070,003,000.
The definition of "Authorized Legislation" in Section 1, paragraph (b)(iii) is
hereby amended to include Chapter _ of the Laws of Montgomery County of
2010.
2.
 PDF to HTML - Convert PDF files to HTML files
3.
Section 8, paragraph (a) is amended by inserting "and Expedited Bill 56-10,
introduced on November 23, 2010 [Chapter _ of the Laws of Montgomery
County of 2010]" immediately after "Chapter 22 of the Laws of the Montgomery
County of 2009".
Section 8, paragraph (b) is amended by inserting "and Expedited Bill 56-10,
introduced on November 23, 2010 [Chapter _ of the Laws of Montgomery
County of 2010]" immediately after "Chapter 22 of the Laws of the Montgomery
County of 2009".
Section 8, paragraph (c) is amended by inserting "and Expedited Bill 56-10,
introduced on November 23, 2010 [Chapter _ of the Laws of Montgomery
County of 2010]" immediately after "Chapter 22 of the Laws of the Montgomery
County of 2009".
Section 8, paragraph (d) is amended by inserting "and Expedited Bill 56-10,
introduced on November 23, 2010 [Chapter _ of the Laws of Montgomery
County of 2010]" immediately after "Chapter 22 of the Laws of the Montgomery
County of 2009".
Section 8, is amended by adding paragraph (g) is amended by inserting "and
Expedited Bill 56-10, introduced on November 23,2010 [Chapter _ of the Laws
of Montgomery County of 2010]" immediately after "Chapter 22 of the Laws of
the Montgomery County of 2009".
4.
5.
6.
7.
Section 2.
The effect of the amendments in Section 1 is to increase the County's
authority to issue bond anticipation notes under Resolution No. 16-1104.
Section 3.
Except as specifically amended by this Resolution, Resolution No. 16­
1104 is hereby fully ratified and confirmed.
Section 4.
10 takes effect.
This Resolution takes effect when the law introduced as Expedited Bill 56­
This is a correct copy of Council action.
Linda M. Lauer
Clerk of the Council
2
F:\LAW\B[LLS\[ 056 Bond Authorization\Resolution.Doc
 PDF to HTML - Convert PDF files to HTML files
OFFICE OF THE COLJNTY EXECUTIVE
Isiah Leggett
County Executive
ROCKVILLE, MARYLAND 20850
05951.1
MEMORANDUM
November 5, 2010
TO:
Nancy Floreen, President
Montgomery County Council
IsiahLeggett·
County
FROM:
U
~
Executiv~
.,rr
0
U
SUBJECT:
Bond Authorization Legislation - Approved FY 2011 Capital Budget and
Council Resolution Providing for the Consolidation of Certain Previously Authorized
Notes for Sale and Issuance as a Single Issue
The approved Capital Budget for Fiscal Year 2011 provides for certain increased
appropriation authority that will require funding initially from Commercial Paper Bond Anticipation
Notes, and permanent financing from future County general obligation bond issues.
The Council, therefore, will have to consider the related additional bond authority
necessary to fully implement this program. Accordingly,I am transmitting the attached bill providing
for additional County bond authorization. This legislation was prepared by the Department of Finance
and reviewed by the County's bond counsel, McKennon Shelton
&
Henn LLP. The fiscal impact with
respect to the legislation is contained within the approved Operating Budget and consists ofthe related
annual debt service on the Notes and bonds following their ultimate issue.
I am transmitting concurrently the resolution that consolidates the new authority with
all previous commercial paper bond anticipation note authority. This "consolidating resolution" will
take effect from the date on which the bond authority becomes effective.
I would appreciate it if you could arrange to have the consolidating resolution placed
on the November 23,2010 Council Consent Calendar for introduction concurrent with the bond
authorization legislation and arrange for it to be adopted when the bond authority bill is approved. A
copy of a schedule prepared by the Controller's Office reflecting the composition of the additional bond
authority is enclosed for your information. If you have any questions please contact Jennifer Barrett at
extension 78870.
IL:js
Attachments