AGENDA ITEMS #6, 7
Jacob Sesker, Senior Legislative Analyst
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
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
increases the County bond authorization by
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
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
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_