St. Mary's County commissioners review CIP, prepare for bond sale as projects shift

St. Mary's County Commissioners on Oct. 27 held their first budget work session for fiscal 2022 and focused primarily on the countycapital improvement plan and timing for a new bond sale.

The session, led by County Administrator staff and Jeanette Cudmore, the county CFO, outlined current unexpended CIP balances, cash flows through Sept. 30 and the department-level project updates that together determine when the county must return to market to sell bonds. Cudmore said the county typically waits until about $10 million of "bonds spent but not sold" accrues before beginning a new sale and recommended starting the process now to allow the roughly six months needed to close ("we have 3 years to spend" and "it takes about 6 months to get actually from the start to when we close," Cudmore said).

Why it matters: The commissioners were asked to weigh which projects remain in the near-term borrowing plan and which should be moved out or placed as "balance to complete" to keep future debt within policy limits. The CFOteam projected that, after adjustments discussed at the meeting, the immediate fiscal-year borrowing request could fall from the planed mid-30 millions to roughly $14million to $21million depending on which projects are deferred.

Major takeaways and directions

- Bond timing and amount: Cudmore told commissioners she would start the bond-sale calendar work with the county's bond adviser and return in December with a refined schedule; she noted a likely closing in late April or May if the process begins now. Commissioners asked staff to prepare both a one-year and a two-year bond-authority request for December so the board can decide whether to seek authority for multiple years at once.

- Project timing changes: Multiple CIP items were pushed out to later years because departments reported slower spending or incomplete studies. Commissioners and staff repeatedly cited the need to match project schedules to realistic cash flows and procurement timelines and to tighten initial cost estimates.

- FDR Boulevard and utility/property delays: Commissioners pressed on long-running delays for FDR Boulevard, with Commissioner Morgan calling the project "the bane of my existence" and noting it had seen years of slow progress. Staff identified property acquisition and utility coordination (Washington Gas, Verizon, SMECO) as the two biggest remaining impediments to execution.

- Storm damage and FEMA reimbursement: Commissioners discussed recent storm-related road damage and the uncertain prospect of state or FEMA reimbursement. Staff said the county has appealed an initial denial and continues to track costs, estimating storm repairs are "just under $4,000,000" but that reimbursement will not occur unless the state reaches its own damage threshold. Commissioners directed staff to hold roughly $4 million in abeyance in case county funds must be used.

- Specific project edits: The board moved to remove additional county funding for a state grant-funded bike-path project after staff said the state award did not materialize. Commissioners agreed to move the county sports-complex project to "balance to complete" (pushed into the out years) rather than commit to near-term bond financing; transcript figures show a total project estimate of about $7,200,000 on the CIP sheet.

- Piney Point and shoreline projects: Staff said the county has state funding only for Potomac-side work at Piney Point Lighthouse Museum and is developing a separate funding strategy for the lagoon/creek side. Commissioners directed staff to pursue state partners and legislative assistance because the affected roads are state-owned.

- Farmers market and regional meat-processing facility: Staff told the board they are exploring consolidating the proposed North County Farmers Market and a planned regional meat-processing facility to avoid duplicating commercial kitchens and septic capacity. Commissioners asked staff to pursue site feasibility (septic/perk tests, potential holding tanks) and to coordinate with SMADC (Southern Maryland Agricultural Development Commission) and the health department.

- Animal shelter and veterinary staffing: Steve Walker (animal shelter representative) said the shelter will monitor demand after opening rather than immediately hiring an in-house veterinarian; operating history and early caseloads will inform any future staffing request.

- Health department renovation and other major buildings: Commissioners asked staff to reassess scope and cost on an $11.1 million health-department renovation after state funding did not appear. The board favored moving the project to "balance to complete" while staff evaluates consolidation or alternative scope options (for example, combining emergency-services space and health services to reduce overall cost).

Budget calendar and next steps

Staff reiterated key dates: a draft audited financial statement presentation is set for Dec. 8; the next CIP/budget work session will be Dec. 15 to review staff follow-ups and revenue estimates; final CIP sheets are due to finance Jan. 4; and the county will offer budget training for departments in December (virtual options available). Finance staff said they will return with reconciled fund-balance estimates, PAYGO availability and updated bond-authority options in December.

Quotes (from meeting)

"We have 3 years to spend ... it takes about 6 months to get actually from the start to when we close," Jeanette Cudmore, CFO, said when describing the bond-timing calendar.

"This project is the bane of my existence," Commissioner Morgan said of FDR Boulevard, describing years of delay on a multi-mile corridor.

"If we don't receive any outside funding from FEMA, then we'll probably be coming to you," Jeanette Cudmore said about county responsibilities for recent storm damage costs.

"Consolidation does sound really great, actually," a commissioner said after staff outlined options for combining the farmers market site and the meat-processing facility to reduce duplicated infrastructure costs.

Ending

Staff will bring updated CIP sheets, a revised debt-capacity analysis and a one- and two-year bond-authority option back to the commissioners in December; commissioners also asked for targeted reassessments of large projects (health department, sports complex, Piney Point) and confirmation of storm-repair funding plans. The board scheduled further CIP follow-up on Dec. 15 and awaits the auditor's report on Dec. 8.

Votes at a glance

- Motion (amend previous closed-session entry): "Amend my previous motion that we entered into closed session for personnel, not litigation." Moved by Commissioner Coleman; second not specified in the transcript. Chair called for the question; the motion passed (affirmative voice vote recorded).

- Motion (grievance/appeal): "In response to the grievance employee's appeal, dated October 2020, I move to uphold the GRAMA review board determination in its entirety and authorize the Commissioner present to sign the ready documents." Mover not specified; second recorded. Chair called for the question; the motion passed (affirmative voice vote recorded).