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St. Mary’s County presents $64.35 million CIP and schedules $30 million bond sale
Summary
County finance staff presented an updated FY2023 capital improvement program that totals $64,350,000, outlined funding sources including $22.3 million in available bond authority and $13 million in PAYGO, and laid out a timeline that would bring a $30 million competitive bond sale in July with closing in August.
LEXINGTON PARK, Md. — St. Mary’s County finance staff on Feb. 15 presented a finalized FY2023 capital improvement program (CIP) totaling $64,350,000 and a bond-sale timetable that would put a $30 million borrowing before commissioners this summer.
The county’s finance team said the CIP as presented is balanced across funding sources, including $22,300,000 in available bond authority and an expected $13,000,000 in pay‑as‑you‑go (PAYGO) funds applied to the plan. Staff also reported an increase in transfer‑tax receipts: the recurring estimate was raised from $7,000,000 to $8,000,000 per year and an additional $3,000,000 already collected was applied to 2023 projects.
Why it matters: the CIP and the timing of debt issuance affect which projects move forward this fiscal year and how the county manages long‑term debt and operating impacts.
County staff walked the board through funding by project and year, explaining that the net change since December reduced the plan by $182,000. The finance presentation noted historical bond authority receipts of about $99,000,000 since 2018 and an average annual bond need of roughly $20,600,000 under the current five‑year plan. Staff said they monitor project cash‑flow and will only borrow when project spending requires it. As Deputy Director Jody Kwosney summarized, “we only borrow when the cash flow dictates.”
Debt‑capacity metrics presented to the commissioners showed the county remaining well below self‑imposed policy limits. Staff reported an outstanding debt equal to about 1.32% of the assessable base in the highest projection year (2027), with debt service running about 4.64% of revenue under the current plan (policy limit: 10%). The county uses November SDAT assessments for its real‑property base and will update projections with the constant‑yield letter it received the day before the meeting.
On the sale schedule, staff asked the board to approve a bond‑sale resolution on May 17. The county plans an organizational call in mid‑March with advisors and three virtual rating‑agency presentations slated for June 15–16, followed by a competitive sale on July 19 and a closing around Aug. 2. Staff said they expect to update the public offering statement with the most recent audit and the FY2023 budget before the sale.
The presentation also included program‑level notes: certain projects that already have substantial expenditures (for example, some public‑school and recreation projects) are candidates to be included in the July sale to ensure the county can reimburse PAYGO spending within statutory timelines.
Staff will return to the commission in March with updated constant‑yield calculations and the operating‑impact pieces tied to the CIP projects.
Ending: Commissioners directed staff to proceed with the May resolution and follow the advertised bond‑sale timetable; staff will return with updated audit, constant‑yield and operating‑impact numbers at the March work session.
