AGENDA ITEMS #6, 7

&

8

September

25,2012

Public Hearing/Action

MEMORANDUM

September

20,2012

TO:

FROM:

SUBJECT:

County Council

Jacob Sesker, Senior Legislative Analyst

W

Public Hearing/Action:

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

Expedited Bill

27-12,

Bond Authorization and two implementing resolutions, sponsored by

the Council President at the request of the County Executive, were introduced on September 18,

2012. Bill 27-12 along with Items 7

&

8, the implementing resolutions, 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

27-12

(Item

6)

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 7) will consolidate the new bond authority (from Item 6) 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.

3) Resolution (Item 8) 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_



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

l3

15

16

F:\Sesker\Word\Bonds\2012 Bond Authorization

&

Consolidation\PH Action Memo.Doc

2



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 brackets]]

* * *

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:



EXPEDITED BILL

27-12

1

2

Section

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 $260,115,000

In

3

4

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);

5

6

7

8

9

10

an aggregate principal amount not exceeding $13,900,000 for public

facilities as defined in Section 20-14(c);

11

12

(d)

an aggregate principal amount not exceeding $20,115,000 for public

facilities as defined in Section 20-14(e); and

13

14

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.

15

16

17

18

19

20

21

22

23

24

25

26

27



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

37

This is a correct copy o/Council action.

Linda M. Lauer, Clerk of the Council

Date



MONTGOMERY COUNTY, MARYLAND

ADDITIONAL COUNTY GOVERNMENT GENERAL OBLIGATION BOND AUTHORITY

REQIDRED

TO FINANCE APPROVED FY13 CAPITAL APPROPRIATIONS

9/1012012,2:41 PM

G.O.

Bond Funds

Required per

Approved

FY13 Capital

Improvements

Program

(a)

Unexpended

G.O. Bond

Funds

as of

5/31112

(b)

Unrecorded

FY12 Capital

Improvements

Program

(c)

G.O.Bond

Funds

Required

as

of

5131/12

G.O.Bond

Authority

5/31112

(a+h+c)

(d)

441,281,306

43,024,533

53,192,205

537,498,044

260,651,513

32,657,602

4,025,000

(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)

(7,964,631)

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

Consolidated

Fire Tax

District

(8)

Road and Stonn Drainage

(D) Mass Transit

(F) Public Housing

(E)

Parking Districts:

Silver Spring

Bethesda

(H)

Agricu1.tural Easements

(I)

Fa~e

Easements

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

(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)

p08,000)

(171,495,029)

(115,812)

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

Total County Government

52,600,000

Other Agencies:

Public Schools

Community College

(A)

Total Other Agencies

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

TotalCIP

~

J

:\Debt Management\Authorities\20 12\FY13 Approved 1 Bond Authority from Controller.xls, Bond Authority Report

Page 1 of I



LEGISLATIVE REQUEST REPORT

Bill 27-12

BOND AUTHORIZATION

DESCRIPTION (Note I):

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 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.

NI

A

NI

A

PROBLEM:

GOALS

&

OBJECTIVES:

COORDINATION:

FISCAL IMPACT:

EVALUATION:

EXPERIENCE ELSEWHERE:

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\LEGlSLATlVE REQUEST REPORT For

Counci

I.

Doc

(j)



Resolution

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~ent)

(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.



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:

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.

This Resolution takes effect when the law introduced as Expedited

Bill No. 27-12 takes effect.

This is a correct copy of Council action.

Linda M. Lauer

Clerk of the Council

2



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

A venue 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.



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 tenns 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 detennines 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 detennines to be required to achieve the

purpose for the issuance of the refunding bonds, which amount may be in excess

ofthe 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 detennine

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 l\1/ontgomery County, l\l/aryland, hereby adopts the

following resolution:

2



Section 1. Any defined terms used herein have the meanings given them as set

forth in the Background section of this Resolution.

Section 2.

The County is hereby authorized to issue, sell and deliver of bonds

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.

Section 3.

Any Refunding Bonds will constitute an irrevocable pledge of the

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.

Section 4.

Refunding Bonds may be sold for a price at, above or below par,

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.

Section 5.

Refunding Bonds will be designated, dated, bear interest, be in

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



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 with 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 of the 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



President, County Council for

Montgomery County, Maryland

Date

This is a correct copy of Council action.

Linda M. Lauer

Clerk of the Council

5

@



OFFICE OF THE COUNTY EXECUTIVE

ROCKVILLE, MARYLAND 2Q850

Isiah Leggett

County Executive

MEMORANDUM

September

11~

2012

TO:

FROM:

SUBJECT:

Roger Berliner, President

Montgomery County Council

Isiah Leggett, County Executive

--P

~

J

~

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 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.

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 MEDeO

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.

@



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 ofa schedule prepared by the Controller'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



DEPARTMENT OF FINANCE

Isiah Leggett

County Executive

Joseph F.

Beach

MEMORANDUM

September 11,2012

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 behalfof 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 TTY



MEMORANDUM

March

1.2012

TO:

Isiah Leggett

County Executive

Scott

R.

Foncannon

Associate County Attorne

Marc P. Hansen

M~c.:..

County Attorney

FROM:

VIA:

fI~

RE:

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

rv

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 ofthe 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 ofthe 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 ofthe Bond Orders by the County

Attorney, as to form and legality is unnecessary.

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, Maryland

208S0

(240) 777--6795 TID (240)

777·1545.

FAX (240) 777·6705.

scott.foneannon@montgomerycountymd.gov