AGENDA ITEMS #2A-B
September 18, 2012
Jacob Sesker, Senior Legislative Analyst
Expedited Bill 27-12, Bond Authorization; Resolution to consolidate
previously authorized notes for sale and issuance as a single issue; Resolution to issue
refunding bonds in order to refund certain lease revenue bonds previously issued by
the Maryland Economic Development Corporation (MEDCO) on behalf of
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).
The Council President, at the request of the County Executive, has sponsored three items (one
bill and two resolutions) to be considered concurrently. The bill and the one of the two resolutions
would authorize the County to issue debt and to consolidate that debt already issued. The second
resolution authorizes the County to issue refunding bonds in order to refund lease revenue bonds
previously issued by MEDCO on the County's behalf. The County would issue these refunding
bonds in order to reduce debt service costs.
1) Expedited Bill 27-12 (Item 4) increases the County bond authorization by $260.1 million, the
amount needed to fund the capital projects the Council approved this year and fully implement
the Council's approved CIP.
2) Resolution (Item 2A) will consolidate the new bond authority (from Item 5) 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 $240.0 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.
f:\sesker\word\bonds\2012 bond authorization
consolidation\bond auth intro 2012 .doc