Washington County commissioners approve $37M bond resolution for new projects and refinancing

The Board of County Commissioners for Washington County, Maryland, convened on April 29, 2025, to discuss a significant financial resolution regarding the issuance of general obligation bonds. The meeting focused on a proposal to authorize the county to issue bonds totaling up to $37,025,000. This amount includes $18,510,000 for new projects and $18,515,000 for refunding existing bonds issued in 2015.

Lindsay Raider from Funk and Bolton presented the resolution, explaining that the county aims to refinance callable bonds from 2015 to achieve debt service savings. The resolution allows for flexibility in the bond issuance, enabling adjustments based on market conditions at the time of sale, which is scheduled for May 20, 2025, with a closing date of June 3, 2025. If the refunding component is executed, the 2015 bonds will be called for payment on July 7, 2025.

The county's financial adviser has prepared a preliminary amortization schedule, but the resolution permits the chief financial officer to modify the bond amounts and maturities as needed. The county will continue to work with Manufacturers and Traders Trust Company as the bond register and paying agent.

During the meeting, concerns were raised about the sensitivity of bond rates to decisions made by the Federal Reserve. While specific financial advice could not be provided, it was noted that the market for tax-exempt bonds has experienced volatility recently, which could impact the timing of the bond sale.

The resolution underscores the county's commitment to maintaining its financial integrity, pledging its full faith and credit to the bonds while ensuring that actions taken will not adversely affect their tax-exempt status. The outcome of this resolution is crucial for funding future projects and managing existing debt effectively.