AGENDA ITEMS #12 & 12.1
October 1, 2013
Public Hearing/Action
MEMORANDUM
September 27,2013
TO:
FROM:
SUBJECT:
County Council
Jacob Sesker, Senior Legislative Analyst
zs,r.
Public Hearing/Action: Resolution to consolidate previously authorized notes for
sale and issuance as a single issue; Expedited Bill 26-13, Bond Authorization
Expedited Bill 26-13, Bond Authorization and implementing resolution, sponsored by the
Council President at the request of the County Executive, were introduced on September 24, 2013.
Bill
26-13 along with Item 12.1, the implementing resolution, is 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).
The Council President, at the request of the County Executive, has sponsored two items (one
bill and one resolution) to be considered concurrently. The bill and the resolution would authorize the
County to issue debt and to consolidate that debt already issued.
1) Expedited Bill 26-13 (Item 6A) increases the County bond authorization by $435.7 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 3B) will authorize the County to borrow money in an aggregate amount of
$435.7 million for the purposes of financing the cost of certain public facilities.
This packet contains
Expedited Bill 26-13
Legislative Request Report
Bond Consolidation Resolution
Memo from County Executive
Circle #
1
4
5
7
f:lseskerlproject files\bonds\20 13 bond authorization and consolidationlph-action memo.doc
09/25/13
12:02 PM
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Expedited Bill No.
26-13
Concerning: Bond Authorization
Draft No. _1_
Revised:
9/18/13
Introduced:
September 24,2013
Expires:
March 24, 2015
Enacted:
[datel
,"date signed]
Executive:
Effective:
[date takes effect]
Sunset Date: --'N'-'-o""'n"."e'------,,..--_ _---:-_
Ch.
~,
Laws of Mont. Co.
[yeatl
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the request of County Executive
AN EXPEDITED ACT
to:
(1) authorize the County to issue certain bonds;
(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.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unqffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL
No.
26-13
1
2
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 $435,700,000 in
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 $15,100,000 for public
facilities as defined in Section 20-14( a);
(b)
an aggregate principal amount not exceeding $86,800,000 for public
facilities as
(c)
defined in Section 20-14(b );
3
4
5
6
7
8
9
an aggregate principal amount not exceeding $331,600,000 for public
facilities as defined in Section 20-14(c); and
lO
11
(d)
an aggregate principal amount not exceeding $2,200,000 for public
facilities as defined in Section 20-14(i);
12
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 Annotated Code of
Maryland (2010 Replacement Volume and 2012 Supplement), 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.
15
16
17
18
19
20
~esker\prOject
files\bonds\2013 bond authorization and consolidation\bill1.doc
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EXPEDITED BILL
No. 26-13
21
22
23
24
25
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.
Sec. 2.
Expedited Effective Date.
26
27
28
29
30
31
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:
32
33
34
Nancy Navarro, President, County Council
Date
35
Approved:
36
Isiah Leggett, County Executive
Date
37
This is a correct copy o/Council action.
38
Linda M. Lauer, Clerk of the Council
Date
f3\­
~esker\project
files\bonds\2013 bond authorization and consolidation\bill 1.doc
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LEGISLA TIVE REQUEST REPORT
Expedited Bill 26-13
Bond Authorization
DESCRIPTION:
Legislation to authorize the issuance of various
proposed bonds in an amount not to exceed
$435,700,000. 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.
N/A
N/A
PROBLEM:
GOALS
&
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
EVALUATION:
EXPERIENCE ELSEWHERE:
SOURCE OF INFORMATION:
Joseph Beach, Finance Director, 240-777-8870
F:\Sesker\Project Files\Bonds\2013 Bond Authorization And Consolidation\LEGISLATlVE REQUEST REPORT To CE.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,
Resolution No. 17-318 of the County Council adopted on December 6, 2011 and
Resolution No. 17-556 of the County Council adopted on September 25, 2012
(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 Supplement) (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 24,2013, the County Council introduced Expedited
Bill
No. 26-13,
Bond Authorization to authorize the County to borrow money in an aggregate
amount of $435,700,000 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 $1,824,313,000, 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
2013.
The effect of the amendments in Section 1 is to increase the
County's authority to issue bond anticipation notes under the Note Resolution.
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.
takes effect.
This is a correct copy of Council action.
Linda M. Lauer
Clerk of the Council
F:\Sesker\Project Files\Bonds\2013 Bond Authorization And Consolidation\FINAL Revised 2013 CP Resolution (04090949-2).Doc
2
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 2()8S0
Isiah Leggett
County Executive
MEMORANDUM
September 16, 2013
TO:
FROM:
SUBJECT:
Nancy NavalTO, President
Montgomery County Counci I
Isiah Leggett
~,,"'f1.."';
L.
County Executive
/
P't~-t,,:;.e
(;d..c-r"l.v;;)
Bond Authorization Legislation - Approved FY 2014 Capital Budget 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 2014 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 c-oDsists ofthe 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.
'
I would appreciate it
if
you could arrange to have the consolidating and refunding
resolutions placed on the September 24, 2013 Council Consent Calendar for introduction concurrent
with the bond authorization legislation, and arrange for
it
to be adopted on October 1, 2013 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
montgomerycountymd.gov/311
240~773-3556.
TTY
(j)
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MONTGOMERY COUNTY, MARYLAND
ADDITIONAL COUNTY GOVERNMENT GENERAL OBLIGATION BOND AUTHORITY
REQUIRED TO FINANCE APPROVED 1'V14 CAPITAL APPROPRIATIONS
0.0.
Bond Funds
Re'ltored
per
Approved
FYI4 Capita'
G.O.Bond
Unexpended
G.O.Bond
Funds
Unrecorded
Funds
Required
Required
G.O. Bond
Adjusbnents
for Excess
FYI3 Capital
Expended
FYI3MEDCO
Improvements
Program
(al
County Govemment:
General
County
PruKs
CQlIsolidated Fire Tax District
176,216,000
7,164,000
3,949,000
as of
Improvements
5131113
Program
(1)L.__.
( c )
538,005,896
38,477,420
53,645,152
630,128,468
247,148.1l9
48,635,717
4,260,261
10,IIS,000
Refunding
Aulbority
{oJ}
as of
5131113
(a+b+<:+<:2)
(dL
114.;121,896
46,241,420
57,594,152
818,057,468
308,041,119
51,601,717
4,660,261
Amhority
5131/)3
(eL
G.O. Bond
Authority
A<ljustment$
For
Rounding
Additional
G.O.Bond
Authority
(d-e-f-g)
(h)
(f)_..
(g)
(24,041)
(16,893)
8,402
(32,532)
395,145,931
40,058,313
50,635,150
486,490,000
221,140,000
101,805,000
52,970,000
4,458,000
4,865,000
2,000,000
1,100,000
880,928,000
318,500,()ll0
6,200,000
6,900,000
(q
GeIlellil Counly, Parks, and
Consolidated Fire Tax District
(8)
Road and Storm Dramage
(0)
Mass Transit
(F)
Public Housing
(E)
Parking Distri<:1S:
Silver Spring
Bethesda
(H) Agricultural Easements
(1)
Fal(8de Easeqtcnts
I87,1l29,OOO
60,893,000
2,966,000
400,000
331,600,000
1.119
(56,203,223)
(48,309,739)
(3,265,000)
(4,865,000)
(2,000,000)
13,900
(114,642,962)
(11,513)
86,SOO,Ooo
(18,9ll,Ooo)
1,193,000
763,000
252.951,000
2,550,900
932.723,:524
20,115,000
(18,922,000)
3,313,900
1,186,867,514
1,100,000
420,600,000
Total County Government
Other Agencies:
Public Schools
Qlmmunily College
143,121,000
33,355,000
176,476,000
419,427,000
302,998,533
&2,917,589
385,916,122
1,318,699,646
20,115,000
(18,922,()llO)
446,119,533
116,332,589
562,452,122
1,"149,319,646
475,398,518
101,269,422
576,668,000
1,457,596,000
(29.119,045)
(36,833)
15,100,000
15,100,000
435,700,000
(A) Total Other
Agencies
Total CIP
(29,279,045)
..
JI43~22,001)
(36,833)
(54,346)
G