AGENDA ITEMS 2B
&
4A
October 20, 2015
Introduction
MEMORANDUM
October 16,2015
TO:
FROM:
SUBJECT:
County Council
Jacob Sesker, Senior Legislative Analyst
~
Introduction:
Resolution to consolidate previously authorized notes for sale and
issuance as a single issue; Expedited Bill 42-15, Bond Authorization
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 42-15 (Item 4A) increases the County bond authorization by $563.1 million, the
amount needed to fund the capital projects the Council approved this year and fully implement the
Council's approved ClP.
2) Resolution (Item 2B) will authorize the County to borrow money in an aggregate amount of$563.1
million for the purposes of financing the cost of certain public facilities.
The bill and resolution will be introduced on October 20. A
Public hearing is tentatively
scheduled for October 27 at
1:30
p.m. with action immediately after the hearing.
This packet contains
Expedited Bil142-15
Legislative Request Report
Bond Consolidation Resolution
Memo from County Executive
F:\LAW\BILLS\1542 Bond Authorization\lntro Memo.Docx
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Expedited Bill No.
42-15
Concerning: Bond Authorization
Draft No. _1_
Revised:
10/14/15
Introduced:
October 20.2015
Expires:
April 20, 2017
Enacted:
[datel
Executive:
[date signed]
Effective:
[date takes effectl
Sunset Date: . . .;N!. 1!:o: !.n!l: .e_ _ _ _ __
[year]
Ch .
.It!l.-.
Laws of Mont. Co.
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the request of the 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 the Laws of Montgomery County
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Addedto existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bilI 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. 42-15
1
Sec. 1. The following is added to the 2015 Laws of Montgomery County:
The County may at any time and from time to time sell up to $563,100,000 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 $267,200,000 for public
facilities as defined in Section 20-14(a);
(b) an aggregate principal amount not exceeding $113,600,000 for public
facilities as defined in Section 20-14(b);
(c) an aggregate principal amount not exceeding $148,100,000 for public
facilities as defined in Section 20-14(c);
(d) an aggregate principal amount not exceeding $34,200,000 for public
facilities as defined in Section 20-14(d); and
Any bonds issued and sold by the County under this Act constitute an
irrevocable pledge ofthe full faith and credit and unlimited taxing power ofthe County.
In accordance with Section 19-101 of the Local Government Article of the
Annotated Code ofMaryland (2013 Replacement Volume and 2014 Supplement), the
County Executive by order may detennine 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 ofbonds.
The County Executive must detennine all matters relating to the amounts of
bonds to be sold, advertisement, sale, issuance, delivery and payment of the
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 Montgomery County at least 10 days before the
sale.
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ExPEDITED BILL
No.
42-15
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Sec. 2. Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
protection ofthe public interest. This Act takes effect on the date on which it
becomes law.
Approved:
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George Leventhal, President, County Council
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Approved:
Date
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Isiah Leggett, County Executive
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Date
This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk ofthe Council
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Date
f:\lawlbnls\1542 bond authorization\bill1.docx
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LEGISLATIVE REQUEST REPORT
Bill 42-15
Bond Authorization
DESCRIPTION:
Legislation to authorize the issuance of various proposed bonds in an
amount not to exceed $563,100,000. 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
Introduced:_ _ _ __
Adopted:_ _ _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the request of the County Executive
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,
Resolution No. 17-908 of the County Council adopted on October 1, 2013 and
Resolution No. 17-1247 of the County Council adopted on October 14, 2014
(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
Annotated Code of Maryland (2013 Replacement Volume and 2014 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 October 20, 2015, the County Council introduced Expedited Bill No 42-15,
Bond Authorization to authorize the County to borrow money in an aggregate
amount of $563,100,000 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:
The "Authorized Amount" means $1,465,113,000 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 defmition of "Authorizing Legislation" in Section 1, paragraph
(b)(iii) of Resolution 16-1104 is hereby amended to include Expedited Bill 42-15.
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 confrrmed.
. Section 4.
This Resolution takes effect when the law introduced as Expedited
Bill
No. 42-15 takes effect.
1.
This is a correct copy of Council action.
Linda M. Lauer
Clerk of the Council
F:\LAW\BILLS\l542 Bond Authorization\Mont Co 20 16CP Resolution (041 09558-2xa3d99) From Bond Counsel.Doc
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MONTGOMERY COUNTY. MARYLAND
ADDITIONAL CQUNTY GOVERNMENT GENERAL OBLIGATION BOND AUTHORITY
REQUIRED TO FINANCE APPROVED FY16 CAPITAL APPROPRIATIONS
0.0.
Bond Funds
Required per
Approved
FY16 Capital
Improvements
Program
(8)
Unexpended
G.O. Bond
Funds
as ,of
6130/15
(b)
Unexpended
FYI3 Capital
Improvements
Program
(c)
G.O.Bond
Funds
Required
as of
6130/15
(a+b+c)
"
' G.O.Bond
Authority
6130115
~e)
Adjustments
for Excess
G.O.Bond
Authority
(f)
Adjustments
For
Rounding
(g)
Required
Additional
0.0.
Bond
'Authority
(d-e-f-g)
(h)
-:i
.,'::!
(d)
822,281,096
53,491,798
33,549,931
909,322,825
329,365,451
74,898,160
19,508,691
County Government:
General County
Parks
Consolidated Fire Tax
Distric
(C)
General
County,
Parks,
and
Consolidated Fire Tax Distric
(8)
Road and Storm
DrainagE
(D) Mass Transit
(F)
Public Housillg
(E)
Parking Districts:
Silver Spring
Bethesda
(II)
Agricultural Easements
(I)
Fayade Easements
76.734,000
6,518,000
6,336,000
89,588,000
71,793,000
64,878,000
7,725,000
745,547,096
46,973,798
27,213,931 '
819,734,825
257,572,451
10,020,160
11,783,691
1,193,000
674,135,937
53,610,313
38,507,750
766,254,000
215,780,000
40,670,000
52,270,000
4,458,000
4,865,000
2,000,000
3,300,000
1,089,597,000
45,159
(118,515)
~4,957,819)
148,100,000
(5,076,333)
45,159
(14,549)
28,160
148,100,000
113,600,000
34,200,000
(32,761,309)
(3,265,000)
(4,865,000)
(2,000,000)
(1,047,739)
(49,015,~81)
1,193,000
2,252,261
233,984,000
1,101,363,389
1,193,OQO
2,252,261
1,336,540,389
Total County Oavemment
58,770
295,900,000
Other Agencies:
Public Schools
Community College
(A) Total Other Agencies '
TotalCIP
140,680,000
20,754,000
161.434,000
395,418,000
427,910,174
74,624,263
502,534,438
1,603,897,827
1,193,000
568,590,174
95,378,263
663,968.438
2,000,508,827
311,923,578
84,875,422
396,799,000
1,486,396,000
(49,015,381)
(33,404)
2,841
(30,563)
28,207
256,700,000
10,500,000
267,200,000
563,100,000
e
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVIl..LE, MARYLAND ZOIlSO
Isiab
Leggett
County Executive
MEMORANDUM
October 7, 2015
TO:
George Leventhal. Council President
Montgomery County Council
~
FROM:
SUBJECT:
Isiah
Leggett, County Executivo
_~
"-.
Bond Authorization Legislation - Approved
FY
2016 Capital Budget and Resolution
Providing for the Consolidation ofCertain Previously Authorized Notes forSale and
Issuance as a Single Issue
'The approved Capital Budget for Fiscal Year 2016 provides fur certain increased
appropriation authority tbat will requ ire 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 fuJly implement
this
program. Accordingly.
I am
transmitting the
attached
bill providing
for additional
County
bond authorization. This legislation was prepared by the Department ofFinance
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 with all
previous
commercial
paper bond anticipation note
authority. This
"consolidating resolution"
wiH
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 20, 20] 5 Council Consent Calendar for introduction concurrent with
the bond authorization legislation, and arrange for
it
to
be
adopted on October 27) 2015 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 information. Ifyou have any questions please contact
Joseph F. Beach at extension 7-8870.
lL:jc
Attachments
mont:gomeFycountymd.gov/311