AGENDA ITEMS 2A
&
4
October 7, 2014
Introduction
MEMORANDUM
October 3, 2014
TO:
FROM:
County Council
~Ob
Sesker, Senior Legislative Analyst
Introduction:
Resolution to consolidate previously authorized notes for sale and
issuance as a single issue; Expedited Bill 4 7-14, Bond Authorization
SUBJECT:
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 together would
authorize the County to issue debt and to consolidate that debt with other debt already authorized so
that the bonds can be sold as a single issue.
1) Expedited Bill 47-14 (Item 4) increases the County bond authorization by $388.1 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 authorize the County to borrow money in an aggregate amount of
$388.1 million for the purposes of financing the cost of certain public facilities.
The bill and resolution will be introduced on October 7. A
Public hearing
is
tentatively
scheduled for October 14 at 1:30 p.m. with action immediately after the hearing.
This packet contains
Expedited Bill 47-14
Legislative Request Report
Bond Consolidation Resolution
Memo from County Executive
Circle #
1
4
5
8
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Expedited Bill No.
47-14
Concerning: Bond Authorization
Revised:
Draft No.
_1_
Introduced:
October 7. 2014
Expires:
April 7, 2016
Enacted: _ _ _ _ _ _ _ _ __
Executive:
[date signed)
Effective:
[date takes effect]
Sunset Date: -!..!,No::,:n:-::e'-:----::--_::----:::-_
Ch.
-1tt1-,
Laws
of Mont. Co.
[Year]
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 unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL
No.
47-14
1
Sec.t. The following is added to the Laws
of Montgomery
County:
Montgomery County may at any time and from time to time sell up to
$388,100,000 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 $162,000,000 for public
facilities as defmed in Section 20-14(a);
(b)
an aggregate principal amount not exceeding $49,300,000 for public
facilities as defined in Section 20-14(b);
(c)
an aggregate principal amount not exceeding $167,400,000 for public
facilities as defined in Section 20-14(c); and
(d)
an aggregate principal' amount not exceeding $9,400,000 for public
facilities as defined in Section 20-14(d).
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 19-101 of the Local Government Article of the
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Maryland Code, the County Executive by Executive 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
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ExPEDITED BILL
No. 47-14
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consolidated issue, such as the fonns, dates and denominations of the consolidated
bonds, the principal maturities, the method for detennining 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 the County at least 10 days before the sale.
Sec. 2.
Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest.
becomes law.
Approved:
This Act takes effect on the date on which it
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32
Craig
L.
Rice, President, County Council
33
Approved:
Date
34
Isiah Leggett, County Executive
35
36
Date
This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk ofthe Council
37
Date
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LEGISLATIVE REQUEST REPORT
Expedited Bill 47-14
Bond Authorization
DESCRIPTION:
Legislation to authorize the issuance of various proposed bonds in an
amount not to exceed $388,100,000. 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 AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
Joseph Beach, Finance Director, 240-777-8870
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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,
Resolution No. 17-556 of the County Council adopted on September 25,2012 and
Resolution No. 17-908 of the County Council adopted on October 1, 2013
(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 19-212 of the Local Government Article of the
Maryland Code (2013 Replacement Volume and 2014 Supplement) (the "Bond
Anticipation Note Act"), for the public putposes and uses as set forth in the
Authorizing Legislation and to pay the costs of issuing the Notes.
On October 7, 2014, the County Council introduced Expedited Bill No. 47-14,
Bond Authorization to authorize the County to borrow money in an aggregate
amount of $388,100,000 for the putposes 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 $1,402,013,000 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
2014.
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. 47-14 takes effect.
This is a correct copy of Council action.
Linda M. Lauer
Clerk of the Council
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MONTGOMERY COUNTY, MARYLAND
ADDITIONAL COUNTY GOVERNMENT GENERAL OBLIGATlON BOND AUTHORITY
REQUIRED TO FINANCE APPROVED
FYlS
CAPITAL APPROPRIATIONS
DondFunds
Required
per
Approved
FY15 Capital
Improvements
Program
(a)
Unexpended
G.O.Bond
Funds
as of
6/30114
(b)
Unexpended
FY13
Capital
Improvements
Program
(c)
G.O.Bond
Funds
Required
as of
6/30114
(a+b+c)
~d~
G.O.Bond
Authority
6/30/14
~e)
Adjustments
for Bxcess
G.O.Bond
Authority
(I)
Adjustments
For
Rounding
~)
Required
Additional
G.O.Bond
Authority
(d-e-f-g)
(h)
County Government:
General County
Parks
Consolidated F'll'e Tax District
(C)
General County, Parks, and
Consolidated Pire Tax District
(D) Road and Storm DraInage
(D)
MUll
Transit
(p)
Public Housing
(B) Parking Districts:
SUver Spring
Bethesda
(H)
Agricultural Basements
(1)
Pa~
Basements
Total County GQvernment
219,463,000
16,244.000
6,565,000
242,272,000
56,333.000
3,296,000
2,000.000
571,818,406
43,477,554
36.732,242
652,028,202
230,781,533
81,471,278
4,366,684
1,193,000
791,281,406
59,721,554
43,297,242
894.300,202
287.114,533
84,767,278
6,366,684
1.193,000
645,145,937
38.458.313
44,685,750
728,290,000
237,840,000
75,405,000
52,270,000
4,458,000
4,865,000
2,000,000
3,300,000
1,108,428,000
35,469
(36,759)
(1,388,508)
(1,388,508)
(1,290)
(25,467)
(37,722)
(45.903,316)
(3,265,000)
(4,865,000)
(2,000,000)
(284,739)
(57,706,562)
(64,479)
146,100,000
21.300.000
167,400,000
49,300,000
9,400,000
3,015,261
303,901,000
971,662,959
1,193,000
3,015,261
1,276,756,959
226,100,000
Other
Agencies:
Public Sc.hools
Community College
(A) Total
Other
Agencies
TotalCIP
122,627,000
23,199,000
145,826,000
449,727,000
389,886,313
116,139,528
506,025,841
1,477,688,800
1,193,000
512,513,313
139,338,528
651,851,841
1,928,608,800
392,098,578
97,769,422
489,868,000
1,598,296,000
(57,706,562)
14,735
(30,895)
(16,160)
(80,638)
120,400,000
41,600,000
162,000,000
388,100,000
G
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 20850
Isiah Leggett
County Executive
MEMORANDUM
Sep~ber26,2014
TO:
FROM:
SUBJECT:
Bond Authorization Legislation - Approved FY 2015 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 2015 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,! am transmitting the attached bill providing
for additional County bond
authorizati~n.
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.
I am transmitting concurrently the resolution that consolidates the new authority wi1h
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 October 7, 2014 Council Consent Calendar for introduction concurrent with
the bond authorization legislation, and arrange for it 10 be adopted on October 14,2014 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
montgomerycountymd.gov/311
3
240-773-3556 TTY