AGENDA ITEMS #2A-B
&
4
September 18, 2012
Introduction
MEMORANDUM
September 13,2012
TO:
FROM:
SUBJECT:
County Council
Jacob Sesker, Senior Legislative Analyst
'rfo
Introduction:
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
Montgomery County
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
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consolidation\bond auth intro 2012 .doc
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12:00 PM
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3) Resolution (Item 2B) authorizes the County to issue $20.1 million in refunding bonds in order to
refund all or part of the outstanding maturities of certain lease revenue bonds previously issued by
the Maryland Economic Development Corporation (MEDCO) on behalf of Montgomery County.
The bill and both resolutions will be introduced on September 18th. A
Public hearing is
tentatively scheduled for September 25
th
with action immediately after the hearing.
This packet contains
Expedited Bill 27-12
Legislative Request Report
Bond Consolidation Resolution
Bond Refunding Resolution
Memo from County Executive
Memo from Finance Director
Memo from County Attorney
Circle
#
1
5
6
8
13
15
16
2
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Expedited Bill No.
:~2~7-~1.=.2:--:--
_ __
Concerning: Bond Authorization
9/13/2012
Draft No.:..1
Revised:
Introduced: September 18. 2012
Expires:
March 18,2014
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 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
Boldface
Underlining
[Single boldface brackets)
Double underlining
[[Double boldface bracketslJ
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted.from existing law by original bill.
Added by amendment.
Deletedfrom 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
27-12
1
Section 1. The following is added to the Laws of Montgomery County:
2
3
4
5
6
III
The County may at any time and from time to time sell up to $260,115,000
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 $187,400,000 for public
facilities as defined in Section 20-14(a);
(b) an aggregate principal amount not exceeding $38,700,000 for public
facilities as
(c)
defined in Section 20-14(b);
7
8
9
10
11
12
13
an aggregate principal amount not exceeding $13,900,000 for public
facilities as defined in Section 20-14(c);
(d) an aggregate principal amount not exceeding $20,115,000 for public
facilities as defined in Section 20-14(e); and
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 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
in a newspaper of general circulation in Montgomery County at least 10 days
before the sale.
14
15
16
17
18
19
20
21
22
23
24
25
26
27
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EXPEDITED BILL
27-12
28
29
Section 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:
30
31
32
33
Roger Berliner, President, County Council
Date
34
Approved:
35
Isiah Leggett, County Executive
Date
36
This is a correct copy ofCouncil action.
37
Linda M. Lauer, Clerk of the Council
Date
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MONTGOMERY COUNTY. MARYLAND
ADDITIONAL COUNTY GOVERNMENT GENERAL OBLIGATION BOND AUTHORITY
REQUIRED TO FINANCE APPROVED FYIJ CAPITAL APPROPRlATIONS
9/1012012,2:41 PM
G.O.
Bond Funds
Required per
Approved
FYI3 Capital
Improvements
Program
(a~
Unexpended
G.O.Bond
Funds
as of
5/31112
(b~
Unrecordoo
FYI2 Capital
Improvements
Program
(c)
G.O.Bond
Funds
Required
as of
5/31112
(a+b+c)
(d)
441,28 I ,306
43,024,533
53,192,205
537,498,044
260,65 1,513
32,657,602
4,025,000
G.O. Bond
Authority
5/31/12
(e)
449,245,937
33,358,313
48,985,750
531,590,000
222,040,000
136,805,000
52,970,000
3,265,000
4,865,000
2,000,000
1,100,000
954,635,000
Adjustments
for Excess
G.O.Bond
Authority
(f)
Adjustments
For
Rounding
(g)
Required
Additional
G.O.Bond
Authority
(d-e-f-g)
(h)
County Government:
General County
Parks
Consolidated Fire Tax District
(C) General County, Parks, and
Consolidatoo Fire Tax District
(B) Road and
Storm
Drainage
(D) Mass Transit
(F)
Public Housing
(E)
Parking Districts:
Silver Spring
Bethesda
(H)
Agricultural Easements
(I)
Fa~e
Easements
Total County Government
12,072,000
6,668,000
4,420,000
23,160,000
97,447,000
429,209,306
36,356,533
48,772,205
514,338,044
163,204,513
32,657,602
4,025,000
(7,964,631 )
(33,780)
6,455
(7,964,631)
(27,325)
(88,487)
(104,147,398)
(48,945,000)
(3,265,000)
(4,865,000)
(2,000,000)
(308,000)
(171,495,029)
(115,812)
52,600,000
9,700,000
4,200,000
13,900,000
38,700,000
792,000
121,399,000
714,225,159
792,000
835,624,159
Other Agencies:
Public Schools
Community College
(A) Total Other Agencies
Total ClP
72,853,000
19,138,000
91,991,000
213,390,000
552,577,972
99,626,853
652,204,825
1,366,429,984
625,430,972
118,764,853
744,195,825
1,579,819,984
468,098,578
88,669,422
556,768,000
1,511,403,000
(171,495,029)
32,394
(4,569)
27,825
(87,987)
157,300,000
30,100,000
187,400,000
240,000,000
@>
J:\Debt Management\Authorities\2012\FY13 Approvool Bond Authority from Controller.xls, Bond Authority Report
Page 1of 1
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LEGISLATIVE REQUEST REPORT
Bill 27-12
BOND AUTHORIZATION
DESCRIPTION (Note 1):
Legislation to authorize the issuance of various proposed
bonds in an amount not to exceed $240,000,000. 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 ClP 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
&
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
EVALUATION:
N/A
EXPERIENCE ELSEWHERE:
NI
A
SOURCE OF INFORMATION:
Joseph Beach, Finance Director, 240-777-8870
Note 1: The legislation also includes the authority to issue $20,115,000 in General Obligation
Refunding bonds for future debt service savings
F:\Sesker\Word\Bonds\2012 Bond Authorization
&
Consolidation\Bond Auth Support Materials\LEGISLAT1VE REQUEST REPORT For
Council. Doc
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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. 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 adopted on November 30, 2010,
and Resolution No. 17-318 of the County Council adopted on December 6,
2011
(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 and 2011 Supple!llent) (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 September 18,2012, the County Council introduced Expedited Bill No. 27-12
Bond Authorization to authorize the County to borrow money in an aggregate
amount of $240,000,000 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.
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Action
The County Council for Montgomery County, Maryland approves the following
resolution:
Section 1. The Note Resolution is hereby amended as follows:
1.
The "Authorized Amount" means $1,715,403,000, less the
aggregate principal amount of Notes paid after the effective date of this Resolution with
proceeds of general obligation 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
2012.
3.
Section 8 is hereby amended in its entirety to add Chapter _ _ of
the Laws of Montgomery County of2012:
The effect of the amendments in Section 1 is to increase the
Section 2.
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.
This Resolution takes effect when the law introduced as Expedited
Bill No. 27-12 takes effect.
This is a correct copy ofCouncil action.
Linda M. Lauer
Clerk of the Council
2
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Resolution No.
Introduced:
Adopted:_~
_ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: County Council
SUBJECT:
Resolution to issue refunding bonds in order to refund certain lease
revenue bonds issued by the Maryland Economic Development
Corporation (MEDCO) on behalf of Montgomery County.
Background
1.
Pursuant to Resolution No. 14-1303 adopted by the County Council of
Montgomery County, Maryland (the "County") on June
11,2002,
the County was
authorized to participate in the issuance by the Maryland Economic Development
Corporation ("MEDCO") of its Lease Revenue Bonds (Montgomery County
Town Square Garage Project), Series 2002A in the original principal amount of
$26,540,000 and its Lease Revenue Bonds (Montgomery County Wayne Avenue
Garage Project), Series 2002A in the original principal amount of
$31,580,000
(collectively, the "Series
2002
Bonds") to finance costs of the development,
construction and equipping of the Wayne Avenue Garage and Town Square
Garage and related improvements located in Silver Spring, Maryland (the
"Projects"), which such Series 2002 Bonds were issued pursuant to Trust
Agreements between the County and U.S. Bank National Association, successor
trustee to Wachovia Bank National Association (the "Trust Agreements").
In connection with the issuance of the Series 2002 Bonds, the County entered into
ground leases of the land with respect to the Projects to MEDCO. The County
and MEDCO entered into separate leases (the "Leases") whereby the County
would lease, develop and operate the Town Square Garage and the Wayne
Avenue Garage.
Section 24 of Article 31 of the Annotated Code of Maryland (2010 Replacement
Volume and 2011 Supplement) (the "State Refunding Act") provides that any
county in the State of Maryland that has the power under any public general or
public local law to borrow money and evidence the borrowing by the issuance of
its general obligation bonds, revenue bonds, or other evidences of obligation by
whatever name known or source of funds secured, may issue bonds for the
purpose of refunding any of its bonds then outstanding, including the payment of
any redemption premium and any interest accrued or to accrue to the date of
2.
3.
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redemption, purchase or maturity of the bonds or other obligations. Refunding
bonds issued under the authority of the State Refunding Act may be issued for
public purposes which include realizing savings in the aggregate cost of debt
service on either a direct comparison or present value basis.
4.
By the terms of the State Refunding Act, the power to issue refunding bonds
under the State Refunding Act is additional and supplemental to the County's
existing borrowing power.
Refunding bonds may be sold on a negotiated basis without solicitation of
competitive bids if the County determines in a public meeting that the procedure
is in the public interest.
Refunding bonds may be issued in one or more series, each series being in
whatever principal amount the County determines to be required to achieve the
purpose for the issuance of the refunding bonds, which amount may be in excess
of the principal amount of the bonds refunded.
Pursuant to the Series 2002 Bonds and Section 4.l(a) of the Trust Agreements,
Series 2002 Bonds maturing on or after September 15, 2013 are subject to
optional redemption in whole at any time, at the option of the County,
commencing on September 15, 2012. Pursuant to Section 10 of the Leases, the
County has the option to prepay the Lease Payments (as defined in the Leases)
thereunder on or after September 1,2012.
The Director of Finance of the County (the "Director of Finance") has
recommended that the County prepay the Lease Payments under the Leases and
refund all or a portion of the Series 2002 Bonds described in this Resolution under
the authority of the State Refunding Act in order to realize savings to the County
in the aggregate cost of debt service on either a direct comparison or present value
basis.
The Director of Finance has recommended that, in light of current market
conditions, the County Executive of the County have the authority to determine
whether the refunding bonds should be sold on a competitive basis following the
solicitation of bids or on a private (negotiated) basis in order to achieve optimum
savings to the County in the aggregate cost of debt service.
5.
6.
7.
8.
9.
Action
The County Council for Montgomery County, Maryland, hereby adopts the
following resolution:
2
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Section 1. Any defined terms used herein have the meanings given them as set
forth in the Background section of this Resolution.
The County is hereby authorized to issue, sell and deliver of bonds
Section 2.
of the County, at one time or from time to time, and in one or more series, under the
authority of the State Refunding Act for the purpose of refunding all or a portion of the
Series 2002 Bonds (the "Refunding Bonds"). Refunding Bonds issued in accordance
with this Section 2 may be issued in such amount as shall be sufficient (a) to purchase
direct obligations of, or obligations the principal of and interest on which are guaranteed
by, the United States of America, the principal of and interest on which will be sufficient
without reinvestment to pay in a timely manner all or any part of the principal of and
redemption premium, if any, and interest on the bonds to be refunded and, if so provided
by order of the County Executive, a portion of the interest on such Refunding Bonds, and
(b) to pay any and all other costs permitted to
be
paid from the proceeds of such
Refunding Bonds under the State Refunding Act, including (without limitation) the costs
of issuance of such Refunding Bonds and applicable underwriting fees.
Any Refunding Bonds will constitute an irrevocable pledge of the
Section 3.
full faith and credit and unlimited taxing power of the County. The County hereby
covenants and agrees that in each and every fiscal year in which any of the Refunding
Bonds are outstanding, it will levy or cause to be levied ad valorem taxes upon all the
assessable property within the corporate limits of the County in rate and amount
sufficient to provide for the payment, when due, of the interest and premium (if any) on
and principal of all the Refunding Bonds maturing in each such fiscal year, and in the
event the proceeds from the ad valorem taxes so levied in any such fiscal year prove
inadequate for the above purposes, it will levy additional taxes in the succeeding fiscal
year to make up for such deficiency, all in accordance with the provisions of Section 20­
18 of the Montgomery County Code, as amended.
Refunding Bonds may be sold for a price at, above or below par,
Section 4.
plus accrued interest to the date of delivery. Authority is hereby conferred on the County
Executive to sell the Refunding Bonds through a public sale or through a private
(negotiated) sale without solicitation of competitive bids, as the County Executive by
executive order, upon consultation with the Director of Finance and the County's
financial advisor, shall determine to be in the best interests of the County. Any sale of
Refunding Bonds by private negotiation is hereby determined to be for the County's best
interest.
Refunding Bonds will be designated, dated, bear interest, be in
Section 5.
such denominations, be payable at such times and at such places, mature in such amounts
and on such dates, be subject to redemption prior to maturity, have such other provisions,
be in such forms and be executed and sealed as the County Executive, in his sole and
absolute discretion, determines, by executive order or otherwise. The execution and
delivery of Refunding Bonds shall be conclusive evidence of the approval of the form of
such Refunding Bonds on behalf of the County.
3
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Section 6.
The County Executive may, by executive order or otherwise,
provide for the deposit of any proceeds from the Refunding Bonds in trust with a trust
company or other banking institution and the investment of such proceeds in such manner
as will provide for the payment when due of the principal of and premium (if any) and
interest on the bonds refunded with such Refunding Bonds, all in accordance Vvith the
provisions of the State Refunding Act.
The County Executive may, by executive order or otherwise,
Section 7.
specify, prescribe, determine, provide for, approve, execute and deliver (where
applicable) such other matters, details, forms, documents or procedures, including
(without limitation) notices of sale, forms of proposal, bond purchase agreements, escrow
deposit agreements and continuing disclosure agreements, as are necessary, proper or
expedient to consummate the authorization, sale, security, issuance, delivery or payment
of or for the Refunding Bonds.
The County hereby covenants that it will take, or refrain from
Section 8.
taking, any and all actions necessary to comply with the provisions of Section 103 and
Sections 141 through 150, inclusive, of the Internal Revenue Code of 1986, as amended
(the "Code"), applicable to the Refunding Bonds in order to preserve the excludability of
the interest on the Refunding Bonds from gross income for Federal income tax purposes.
Without limiting the generality of the preceding sentence, the County will (a) not use or
permit the use of any of the proceeds of the Refunding Bonds in such manner as would
cause the interest on the Refunding Bonds to be includable in gross income for Federal
income tax purposes, (b) make periodic determinations of the rebate amount (if any) and
timely pay any rebate amount, or installment thereof, to the United States of America,
and (c) prepare and timely file Internal Revenue Service Form 8038-G, Information
Return for Tax-Exempt Governmental Obligations, or any successor or additional form
required by the Internal Revenue Service.
Section 9. In accordance with the provisions of Section 211 of the Charter of the
County, the County Executive is hereby authorized to delegate to the Chief
Administrative Officer the power and authority to take any and all actions required or
permitted to be taken by the County Executive pursuant to this Ordinance.
Section 10. The members ofthe County Council, the County Executive, the Chief
Administrative Officer of the County, the County Attorney, the Director of Finance of the
County and the Clerk of the Council, for and on behalf of the County, are hereby
authorized and empowered to do all things, execute all instruments, and otherwise take
all such action as may be necessary, proper or expedient to carry out the authority
conferred by this Resolution, including (without limitation) the execution of certificates
of the County, elections, statements, opinions, letters and reports pursuant to application
provisions of the Code and the Treasury Regulations prescribed thereunder, subject to the
limitations set forth in the State Refunding Act and this Resolution.
Section 11. This Resolution shall take effect upon approval of the President for
the County Council.
4
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President, County Council for
Montgomery County, Maryland
Date
This is a correct copy of Council action.
Linda M. Lauer
Clerk of the Council
5
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OHICE OF THE COUNTY EXECUTIVE
ROCKVILLE. MARYLAND 20850
Isiah Leggett
County Executive
MEMORANDUM
September 11, 2012
TO:
Roger Berliner, President
Montgomery County Council
FROM:
SUBJECT:
Isiah
Leggett,
County Executive
-P
~
')
~
Bond Authorization Legislation - Approved FY 2013 Capital Budget, Council
Refunding Resolution, and 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 2013 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.
Our regular annual request has been increased by $20,115,000 to provide for the
authority needed to issue General Obligation Refunding bonds to refund, for future debt service
savings, the outstanding lease revenue bonds issued by the Maryland Economic Development
Corporation (MEDCO) on behalf of Montgomery County. MEDCO bonds were issued in 2002
to finance the costs of the development, construction and equipping of the Wayne Avenue and
Town Square Garages located in Silver Spring. I have also enclosed the required MEDCO
refunding resolution.
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.
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Roger Berliner, President, County Council
September 11, 2012
Page 2
I would appreciate
it
if you could arrange to have the consolidating and refunding
resolutions placed on the September 18, 2012 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 Joseph F. Beach at extension 7-8870.
IL:jc
Attachments
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DEPARTMENT OF FINANCE
Isiah Leggett
County Executive
MEMORANDUM
September 11,2012
Joseph
F.
Beach
DirecTOr
TO:
Isiah Leggett
County Executive
Joseph F. Beach
Director, Department of Finance
New General Obligation Bond Authority, Refunding Resolution and Consolidating
Resolutions
FROM:
SUBJECT:
Enclosed for your review is a copy of the legislation for additional bond authorization, as
approved by the County Council in the Capital Budget for Fiscal Year 2013. The bill was prepared by
the Department of Finance and reviewed by the County's bond counsel, McKennon Shelton
&
Henn LLP.
This is an annual request that is necessary for issuance of general obligation bonds.
Our regular annual request has been increased by $20,115,000 to provide for the
authority needed to issue General Obligation Refunding bonds to refund, for future debt service savings,
the outstanding lease revenue bonds issued by the Maryland Economic Development Corporation
(MEDCO) on behalf of Montgomery County. MEDCO bonds were issued in 2002 to finance the costs of
the development, construction and equipping of the Wayne Avenue and Town Square Garages located in
Silver Spring. We have also enclosed the required MEDCO refunding resolution.
Included with this transmittal is 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. This step allows for a more efficient
paperwork process and eliminates the need to seek a separate Council action after the bond authority
becomes effective.
Please sign the attached cover memo and return
it
to Jacqueline Carter in the Director's
Office, 15th Floor.
Thank you.
JB:jc
Attachments
Office
of
the
Director
101 Monroe Street, 15th Floor • Rockville, Maryland 20850 • 240-777-8860 • 240-777 -8857 fAX
www.montgomerycountymd.gov
montgomerycountymd.gov/311
240-773-3556 TlY
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MEMORANDUM
March 1,2012
TO:
FROM:
VIA:
RE:
Isiah Leggett
County Executive
Scott
R.
Foncannon
I'1f'
Associate County
Attorne~
Marc P. Hansen
Ma-z-c:.:.
County Attorney
(1
~
fI~
Bond Orders - Exemption from County Attorney Approval
Montgomery County
has
the authority to issue bonds or other debt obligations (bonds) to
fmance public facilities under Article III and IV of Chapter 20 of the Montgomery County Code
and Article 31, Section 12 of the Annotated Code of Maryland. These provisions establish the
actions that must
be
taken to issue bonds, all of which are initiated by an order of the County
Executive.
The procedure for the issuance and maintenance of Executive Orders appears in
Administrative Procedure 1-3, Section 4.1:
All Executive Orders must
be
approved as to form and legality by the County
Attorney. Standard Executive Orders which address routine subject matters ...
may
be
exempted from County Attorney approval provided that the text for such
orders has been approved by the County Attorney and that approval is on file with
the Office of the County Executive.
In order to authorize the sale of bonds, the Department of Finance routinely submits
Executive Orders, also known as "Bond Orders," to the County Executive for signature. The
Bond Orders are prepared by the County's bond counsel who is engaged by the County Attorney,
pursuant to Section 213 of the Montgomery County Charter. On bond-related matters,the
County's bond counsel
is
authorized to act as the attorney for the County. Approval of the Bond
Orders, as to form and legality, by the County's bond counsel satisfies the requirement of
Administrative Procedure 1·3 and further review and signature of the Bond Orders by the County
Attorney, as to fonn and legality is wmecessary.
A copy of this approval should be kept on file in the Office of the County Executive. If
you have any questions or need additional information about this matter, please contact me at
extension 7-6795.
cc:
Joseph Beach, Director, Department of Finance
101
Monroe
Street,
Rockville,
MaryllUld
208S0
(240) 777-6795 TID (240) 777·2545· FAX (240) 777·6705 • scott.fonClUlnon@montgomerycountymd.gov