Management and Fiscal Policy Committee
Amanda Mihi1l, Legislative Analyst
Michael Faden, Senior Legislative Attorney
Bill 34-10, Finance - Public Facilities - Private Projects
Bill 34-10, Finance - Public Facilities - Private Projects, sponsored by Councilmembers
Leventhal, Knapp, and EIrich, was introduced on May 18, 2010. A public hearing was held on
June 22 at which several speakers, including a representative of the County Executive, opposed
Bill 34-10 would amend the definition of public facilities to specifically exclude the
construction, reconstruction, extension, acquisition, improvement, enlargement, alteration,
repair, or modernization of any privately owned building or facility.
In his recommended FYll-16 Capital Improvements Project, the County Executive
recommended funding certain projects with general obligation (GO) debt, including the Olney
Theater, Ivymount School (to assist with renovation and expansion of Annex Building), and CHI
Centers (to assist with renovation of MacDonald Knolls facility). During the Council CIP
worksessions, Councilmembers learned that while many private projects could not be funded by
GO bonds, the County's bond counsel advised that, under existing laws and regulations, GO
bonds could be used to fund the Ivymount School project.
Use of general obligation debt for private projects in the County.
At the public hearing,
Councilmember Leventhal directed Council staff to research whether the County has used GO
bonds to fund nonprofit organizations' capital projects in the past. After reviewing the cost
sharing CIP project, Council staff is unaware of any other time that GO debt has been used to
fund private organizations' projects. A review of past PDFs of the cost-sharing project shows
that the only GO bond funded component in that PDF was for the Old Blair Auditorium (see
©11-12 for the FY09-14 CIP PDF).