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St. Mary's County realigns capital funds, reducing NextGen 800 MHz borrowing by $1.14 million
Summary
The Commissioners approved a budget amendment on May 23 that moves county sources out of the FY2017 capital reserve into the NextGen 800 MHz project, lowering planned borrowing by $1,137,616 and increasing available debt capacity for FY2019.
Commissioners of St. Mary's County on May 23 approved a budget amendment that realigns capital funding sources and reduces the county's planned borrowing for the NextGen 800 MHz public safety radio project by $1,137,616.
County Chief Financial Officer Jeanette Cudmore told the board the change moves county transfer-tax and pay-as-you-go (PAYGO) sources from the FY2017 capital reserve into the NextGen project to reduce the amount the county needs to sell in bonds. "So what we're gonna do is we're gonna reduce it by the $1,137,616 and then change out the sources, thereby reducing the amount we need to borrow for," Cudmore said.
The change also substitutes transfer tax and intergovernmental PAYGO funds for previously programmed spent bond proceeds, which Cudmore said had not been sold yet. She told commissioners that lowering the outstanding borrowed amount delays the need for the county's next bond sale once borrowings reach $10,000,000: "When we get to 10,000,000, we need to start planning for the next bond sale." The amendment, the CFO said, will free additional bond capacity and adds roughly $6.2 million of debt capacity toward FY2019.
Commissioners moved and seconded the amendment during the meeting; the motion passed on a unanimous recorded voice vote. The agenda item was described as the annual capital-closeout process: as projects conclude, their funding sources are consolidated in the capital reserve and then reallocated to active projects in the new fiscal year.
The board also approved a second, related amendment to close the FY2017 capital reserve and open the FY2018 capital reserve, shifting approximately $500,000 of remaining balances into the new reserve for use if state or other grant funds become available.
The amendments were presented during the financial portion of the meeting by Cudmore, and the commissioners voted to authorize the commissioner president to execute related documents.
