Agenda Items 4H
&
7
November 23,2010
Introduction
MEMORANDUM
TO:
FROM:
County Council
~ichael
Faden, Senior Legislative Attorney
Introduction:
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 Item 4H, the implementing
resolution, both sponsored by the Council President at the request of the County Executive, are
scheduled to be introduced on November 23,2010. A public hearing is tentatively scheduled for
November 30 at 1:30 p.m., with action immediately after the 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
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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:a.n!.::!e'__
_ _ __
ChI _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the request of the County Executive
AN EXPEDITED 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, Maryland approves the following Act:
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Expedited Bill 56-10
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Sec. 1.
County:
The following is added to the 2010 Laws of Montgomery
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The County may at any time and from time to time sell up to $721,300,000
in general obligation bonds under Chapter 20 for any project included in an
approved Capital Improvements Program as follows:
(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);
(c)
an aggregate principal amount not exceeding $341,600,000 for public
facilities as defined in Section 20-14(c);
(d) an aggregate principal amount not exceeding $32,600,000 for public
facilities as defined in Section 20-14(d); and
(e)
an aggregate principal amount not exceeding $46,400,000 for public
facilities as defined in Section 20-14( f).
Any bonds issued and sold by the County under this Act constitute an
irrevocable pledge of the full faith and credit and unlimited taxing power of the
County.
In accordance with Section 2C of Article 31 of the Maryland Code, the
County Executive by order may determine that all or any of the bonds and any
bonds authorized by any other County law may be consolidated for sale and issued,
sold, and delivered as a single issue of bonds.
The County Executive must determine all matters relating to the amounts of
bonds to be sold, advertisement, sale, issuance, delivery, and payment of the
consolidated issue, such as the forms, dates, and denominations of the consolidated
bonds, the principal maturities, the method for determining the interest payable on
the consolidated bonds, and provisions for the use of facsimile signatures or seals.
®
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Expedited Bill 56-10
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At least one advertisement of the public sale of the consolidated bonds must appear
29 in a newspaper of general circulation in the County at least 10 days before the sale.
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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
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law.
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Approved:
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N arrcy Floreen, Council President
Date
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Approved:
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Isiah Leggett, County Executive
Date
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This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk of the Council
Date
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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.
N/A
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
NI
A
Jennifer E. Barrett, Finance Director, 240-777-8870
NI
A
NI
A.
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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
1.
Resolution No. 14-1307, adopted by the County Council on June ll, 2002 as amended
and restated by Resolution No 16-1lO4 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, 20 lO, 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:
1.
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.
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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,
of the Laws of Montgomery
introduced on November 23, 2010 [Chapter
County of 2010]" immediately after "Chapter 22 of the Laws of the Montgomery
County of2009".
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.
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.
Except as specifically amended by this Resolution, Resolution No. 16­
Section 3.
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
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OFFICE OF TIlE COtJNTY EXECUTIVE
Isiah Leggett
County Executive
ROCKVlLLE, MARYLk'ID 20850
0595.11
MEMORANDUM
November 5,2010
TO:
Nancy Floreen, President
Montgomery County Council
Isiah Leggett·
County
FROM:
f)
Executiv~
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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 pennanent 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 of the 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 infonnation. If you have any questions please contact Jennifer Barrett at
extension 78870.
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Attachments