AGENDA ITEMS 3
&
9
December 6, 2011
Public Hearing/Action
MEMORANDUM
December 2, 2011
TO:
FROM:
SUBJECT:
County Council
Jacob Sesker, Senior Legislative Analyst
~
,--c)
0
Public Hearing/Action: Expedited Bill
38-11,
Bond Authorization
Bond Authorization Resolution
Expedited Bill
38-11,
Bond Authorization, along with the implementing resolution, both sponsored
by the Council President at the request of the County Executive, were introduced on November 29,
2011. Bill 38-11 along with Item 9, the implementing resolution, are scheduled for action after
the hearing.
Every year, the Executive sends to the Council a bill increasing the bond authorization and one or
more resolutions consolidating the new bond authority with previous commercial paper bond
anticipation note authority. The Council must act on both the
bill
and the resolution(s).
1)
Expedited Bill 38-11 (Item 8) increases the County bond authorization by $386 million, the
amount needed to fund the capital projects the Council approved this year and fully implement
the Council's approved ClP.
2) Resolution (Item 9) will consolidate the new bond authority (from Item 8) with previous
commercial paper bond anticipation note authority. This consolidation thereby increases the
amount of bond anticipation notes the County is authorized to sell by $386 million. Bond
anticipation notes are sold as needed to fund capital projects and then are repaid when the County
sells bonds, usually once a year.
This packet contains
Expedited Bill
38-11
Legislative Request Report
Bond Anticipation Resolution
Memo from County Executive
Circle
#
1
4
5
9
f:\sesker\word\bonds\ph-action memo, doc 12/01111 II :32 AM
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill No.
-:--~3-=-8-.....:.1...:..1
_ __
Concerning: Bond Authorization
Revised:
11/22/2011
Draft No. _1_
Introduced:
November 29,
2011
Expires:
May 29,
2013
Enacted: _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ __
Sunset Date: ...,N=o=n=e_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the 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
Boldface
Underlining
[Single boldface brackets]
frouhle 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.'
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill 38-11
1
2
3
4
In
Sec.
1.
The following is added to the Laws of Montgomery County:
The County may at any time and from time to time sell up to $386,000,000
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 $214,300,000 for public
facilities as defined in Section 20-14(a);
(b) an aggregate principal amount not exceeding $65,400,000 for public
facilities as defined in Section 20-14(c);
(c) an aggregate principal amount not exceeding $103,200,000 for public
facilities as defined in Section 20-14(d);
(d) an aggregate principal amount not exceeding $2,000,000 for public
facilities as defined in Section 20-14(h); and
(e)
an aggregate principal amount not exceeding $1,100,000 for public
facilities as defined in Section 20-14(i).
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, as
amended, the County Executive by order may determine that all or any of the
bonds and any bonds authorized by any other County laws 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.
At least one advertisement of the public sale of the consolidated bonds must appear
f:\SeSker\WOrd\bOndS\bOnd@.olidation support materials\final bill for council november 18,doc
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
 PDF to HTML - Convert PDF files to HTML files
Expedited Bill 38-11
28
in a newspaper of general circulation in Montgomery County at least 10 days
before the sale.
Sec. 2.
Expedited
Effective
Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it
becomes law.
Approved:
29
30
31
32
33
34
35
Valerie Ervin, President, County Council
Date
36
Approved:
37
Isiah Leggett, County Executive
Date
38
This is a correct copy ofCouncil action.
39
Linda M. Lauer, Clerk ofthe Council
Date
40
f:\seSker\WOrd\bOndS\bon&olidation support materiais\finai bill for council november 18.doc
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Bill 38-11
Bond Authorization
DESCRIPTION:
Legislation to authorize the issuance of various proposed bonds in an
amount not to exceed $386,000,000. 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.
The goal is 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.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMP ACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
N/A.
N/A.
N/A.
Joseph Beach, Finance Director, 240-777-8870
N/A
SOURCE OF
INFORMATION:
APPLICATION
WITIDN
MUNICIPALITIES:
PENALTIES:
N/A
f:\sesker\word\bonds\bond consolidation support materials\legislative reql
 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
1.
Resolution No. 16-1104, adopted by the County Council for Montgomery County,
Maryland (the "County Council"), on September 15, 2009 as amended by
Resolution No 16-1567 of the County Council for Montgomery County, Maryland
adopted on November 30, 2010 (collectively, the "Note Resolution"), 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 Montgomery County,
Maryland (the "Authorizing Legislation") and Section 12 of Article 31 of the
Annotated Code of Maryland (2010 Replacement Volume) (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 29, 2011, the County Council introduced Expedited Bill No _
Bond Authorization to authorize the County to borrow money in an aggregate
amount of $386,000,000 for the purposes of financing the cost of certain public
facilities.
The County wishes to add the authority provided in the Expedited Bill with the
authority remaining under the Note Resolution 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.
2.
3.
 PDF to HTML - Convert PDF files to HTML files
Action
The County Council for Montgomery County, Maryland approves the following
resolution:
Section 1. The Note Resolution is hereby amended as follows:
The "Authorized Amount" means $1,831,403,000, less the
aggregate principal amount of Notes paid after the effective date of this Resolution with
proceeds of Bonds and other legally available funds, as that amount may be amended from
time to time by resolution of the County Council.
2.
The definition of "Authorized Legislation" in Section 1, paragraph
(b)(iii) is hereby amended to include Chapter _ of the Laws of Montgomery County of
2011.
3.
Section 8, paragraph (a)
replaced with the following:
IS
1.
hereby deleted
III
its entirety and
"Section 8.
Under Section 2C of Article 31 of the Annotated Code of Maryland
(2010 Replacement Volume), the County Council authorizes the County to consolidate
for sale and issue, sell and deliver at anyone time and from time to time Notes issued for
the following general purposes:
(a) public schools and community colleges and other purposes provided in
Chapter 20-14(a) of the Code of the County - Chapter 36, Laws of
Montgomery County 2008; Chapter 22, Laws of Montgomery County 2009;
Chapter 54, Laws of Montgomery County 2010, and Chapter _ _, Laws of
Montgomery County 2011 ;
(b) public roads, streets, highways, sidewalks, storm drainage systems and such
other purposes as provided in Chapter 20-14(b) of the Code of the County
Chapter 12, Laws of Montgomery County 2007; Chapter 36, Laws of
Montgomery County 2008; Chapter 22, Laws of Montgomery County 2009;
and Chapter 54, Laws of Montgomery County 2010;
(c) public buildings, parks and recreation, fire and such other purposes as
provided in Chapter 20-14(c) of the Code of the County Chapter 43, Laws of
Montgomery County 2006; Chapter 12, Laws of Montgomery County 2007;
Chapter 36, Laws of Montgomery County 2008; Chapter 22, Laws of
Montgomery County 2009; Chapter 54, Laws of Montgomery County 2010;
and Chapter
Laws of Montgomery County 2011;
2
 PDF to HTML - Convert PDF files to HTML files
(d) mass transit and such other purposes as provided in Chapter 20-14(d) of the
Code of the County Chapter 22, Laws of Montgomery County 2009; Chapter
54, Laws of Montgomery County 2010; and Chapter
--.:J
Laws of Montgomery
County 2011;
(e) off-street parking lots and facilities and such other purposes as provided in
Chapter 20-14(e) of the Code of the County - Chapter 19, Laws of
Montgomery County 1981, Chapter 9, Laws of Montgomery County 1983,
Chapter 14, Laws of Montgomery County 1982, and Chapter 10, Laws of
Montgomery County 1983, and Chapter 6, Laws of Montgomery County
1984;
(f) public housing and such other purposes as provided in Chapter 20-14(f) of the
Code of the County - Chapter 17, Laws of Montgomery County 1981; Chapter
13, Laws of Montgomery County 1982; Chapter 8, Laws of Montgomery
County 1983; Chapter 20, Laws of Montgomery County 1985; Chapter 13,
Laws of Montgomery County 1986; Chapter 22, Laws of Montgomery County
2009; and Chapter 54, Laws of Montgomery County 2010;
(g) agricultural easements and such other purposes as provided in Chapter 20­
14(h) of the Code of the County - Chapter _, Laws of Montgomery County
2011; and
(h) fayade easements and such other purposes as provided in Chapter 20-14(i) of
the Code of the County - Chapter _, Laws of Montgomery County 2011.
Section 2.
The effect of the amendments in Section 1 is to increase the
County's authority to issue bond anticipation notes under the Note Resolution.
Section 3.
Except as specifically amended by this Resolution, the Note
Resolution is hereby fully ratified and confirmed.
Section 4.
takes effect.
This Resolution takes effect when the law introduced as Bill No.
This is a correct copy of Council action.
Linda M. Lauer
Clerk of the Council
3
 PDF to HTML - Convert PDF files to HTML files
MONTGOMERY COUNTY. MARYLAND
ADDITlONAL COUNTY GOVER.IIJMENT GENERAL OBLIGA TlON BONO AUTHORITY
REQUIRED TO FINANCE APPROVED FYI2 CAPITAL APPROPRIATIONS
1lI21/20
11,8:51 AM
G.O.
Bond Funds
Required per
Approved
FY 12 Capital
Improvements
Program
(a)
County Government:
General County
Parks
Consolidated Fire Tax District
(e)
General County, Parks. and
Consolidated Fire Tax District
(B) Road and Stonn Drainage
(D) Mass Transit
(F) Public Housing
IE) Parking Districts:
Silver Spring
Bethesda
(H) Agricultural Easements
(I)
Fa~ade
Easements
Total County Government
61,201.000
10,279,000
11,663.000
83,143.000
46,917,000
25,346,000
3,990,000
Unexpended
G.O. Bond
Funds
as of
5/31/11
(b)
Unrecorded
FYII/12 Capital
Improvements
Program
(c)
G.O. Bond
Funds
Required
as of
5/31/11
(a+b+c)
(d)
492,771.806
46,856,532
55,947,205
595.575.543
287.622514
166.843,602
26.738,541
G.O. Bond
Authority
5/31/11
(e)
452,545,937
37,658,313
39.985.750
530,190,000
313,540,000
63.605,000
52.970,000
3,265,000
4,865,000
Adjustments
for Excess
G.O. Bond
Authority
(t)
Adjustments
For
Rounding
(g)
Required
Additional
G.O. Bond
Authority
(doe-fog)
(h)
40,200,000
9,200,000
16,000,000
65.400.000
431,570,806
36,577,532
42,109.205
510,257,543
240,705.514
141,497,602
22.748.541
2,175,000
2.175.000
25,869
(1.781 )
(38,545)
(14.457)
(25,917.486)
38.602
(26.231.459)
(3,265.000)
( 4,865,000)
(20,000)
103,200.000
2.000,000
1,080,000
162,476,000
915,209,200
2,175,000
2,000.000
1,080,000
1,079,860.200
968,435,000
(60,278.945)
2,000,000
1,100,000
171,700,000
4,145
Other Agencies:
Public Schools
Community College
(A) Total Other Agencies
Total CIP
244,661,000
17.018,000
261,679,000
424,155,000
341,899.971
87,675,990
429,575,961
1,344,785,16\
2,\75,000
586,560,971
104,693,990
691,254,961
1,771,115,161
388.998,578
87,969A22
476,968,000
1,445,403,000
(60,278,945)
(37,607)
24,568
(13,039)
(8,894)
197.600,000
16,700,000
214,300,000
386,000,000
Page lof I
6;
 PDF to HTML - Convert PDF files to HTML files
"'"'''10 ",-
\S\LL
~-
'~"'"
t
~."
...
~'
.
CC
S~f
065696
OFFICE OF THE COUNTY EXECUTIVE
IWCKVlllE, MARYLAND
20R50
I..-L.
lsiah Leggett
Coun~)'
Executive
MEMORANDUM
November 21,2011
"
'/
TO:
Valerie Ervin, President
Montgomery County Council
],;ah Leggett
County Executive
FROM:
-e
~
.
,
-,
,
,
~
..
-~
SUBJECT:
Bond Authorization Legislation - Approved FY 2012 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 2012 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 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.
] would appreciate it if you could arrange to have the consolidating resolution placed
on the November 29, 2011 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 ControIJer's Office reflecting the composition of the additional bond
authority is enclosed for your information.
If
you have any questions please contact Joseph F. Beach at
extension 7-8870.
IL:jc
Attachments
(j)