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St. Mary’s County officials begin review of capital improvements, warn bond requests may need trimming
Summary
County finance staff opened a series of capital improvement program (CIP) discussions on unsold bond authority, cash-flow timing and a planned spring bond sale, and told commissioners they will return Dec. 17 with updated cash flows and debt-capacity scenarios.
St. Mary’s County finance staff and department leaders spent an extended work session reviewing the county’s capital improvement plan and bond authority, and flagged a need to match borrowing requests to realistic project spending timetables.
The session opened with Chief Financial Officer (CFO) Mr. Cudmore outlining the agenda and a one‑page spreadsheet showing current CIP balances, changes from the last year and newly requested projects. Finance staff told commissioners that roughly $15.4 million currently sits in the county’s CIP reserve accounts and that about $23.2 million of bond authority has been requested but not yet sold.
Why it matters: Commissioners were cautioned that asking for bond authority long before the county will need cash can push the county’s projected debt service above locally set limits. Staff said they will not pursue a bond sale until cash flows and actual near‑term expenditures justify it.
Department directors and finance staff used cash‑flow worksheets to show when they expect encumbrances to convert to checks. Several large projects in the plan still show modest or zero near‑term spending in the cash‑flow worksheets, and staff said they will update those figures after department follow‑ups so the county can time a bond sale to actual cash requirements. Finance director Jeanette said the county’s financial adviser will provide a timeline for bond market activity and that staff will circulate the plan to commissioners when available.
Commissioners asked for two scenarios: an updated CIP and debt‑capacity projection that (a) keeps Metropolitan Commission (METCOM) debt included and (b) removes METCOM debt (the “decoupling” commissioners are pursuing in Annapolis). Staff agreed to bring both versions to the Dec. 17 budget work session, after the county audit is presented Dec. 3 and the large November income‑tax payment is received.
Directives from the session included: (1) staff will collect updated cash‑flow estimates from project managers and return a revised CIP and debt‑capacity analysis on Dec. 17; (2) the county will not move to sell bonds until near‑term expenditures indicate the need; and (3) staff will prioritize and propose projects to move out or reprioritize if debt capacity is insufficient.
What remains uncertain: Staff estimated an approximate $5 million preliminary positive variance in the 2019 fiscal year—money that would increase fund balance—but said the exact fund‑balance number will be confirmed by the December audit. Commissioners asked departments to justify vacancy lists and new full‑time position requests in the operating budget process.
