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Commissioners approve ordinance to begin 2025 new-money bond issue, staff outline $169M–$169M+ plan
Summary
Montgomery County commissioners approved an ordinance authorizing staff to begin work on a new-money general obligation bond issue to fund 2025–26 capital projects, with staff describing roughly $169 million targeted for three series and an expected true interest cost near 4%.
The Montgomery County Board of Commissioners voted Jan. 9 to approve an ordinance authorizing staff to proceed with a new-money general obligation bond issue to finance capital projects in 2025 and 2026.
CFO Dean Duarte presented the structure and timing: three series totaling about $169 million in proceeds — an approximately $150 million tax-exempt series for general capital projects (excluding roads and bridges), a roughly $15 million tax-exempt series dedicated to roads and bridges, and a smaller taxable series of about $4 million for the county’s economic development loan program. Duarte said preliminary modeling suggested a blended true interest cost near 4 percent given current market conditions and that the county has allocated $5 million in the 2025 budget to cover debt service in the first year after issuance.
Duarte outlined next steps: seeking the county’s Moody’s rating affirmation, preparing a preliminary official statement and notice of bond sale, marketing the bonds around mid-March, and closing about 30 days after sale, tentatively in April. He told commissioners the funds are expected to cover capital work including transportation (roads and bridges), county facilities, library renovations, park and trail improvements and an economic development loan program administered by the Commerce Department and the redevelopment authority.
Commissioners asked for examples of how the economic development funds would be used. Duarte and staff said the program would continue the county’s business loan program, which began with a prior bond series and is designed to recycle principal repayments into new loans.
The ordinance motion was moved and seconded in the meeting and carried by voice vote. Commissioners noted the county’s sustained AAA rating history and said staff would report back after the sale with pricing and final results.
Public commenters asked whether borrowing and capital spending were contributing to recent property tax increases. Commissioners and staff responded: the bond plan reflects projects included in the adopted 2025 capital budget, debt service for the sale will be covered from the general fund and staff committed to providing updates on large capital projects such as the courthouse renovation. No change to the county’s tax rate was enacted in the bond vote.
Proceeds and the final interest rate will be established after the bonds are marketed; the bond ordinance authorized staff to start the transaction process and move toward sale.
