Harford County to seek public sale of up to $110 million in CPI bonds and may issue up to $49 million in refunding bonds

The council heard presentations on two bond resolutions that would put Harford County into the market next winter. Bond counsel Chris Sennett (Miles & Stockbridge) described Resolution 043-25, which provides notice of a public sale for up to $110,000,000 in consolidated public improvement (CPI) bonds and establishes related forms and sale procedures, with a public sale scheduled for February 3, 2026. He also described Resolution 042-25, which would authorize notice of sale for up to $49,000,000 in refunding bonds to refinance certain maturities of outstanding 2015 series bonds should market conditions make refunding advantageous.

Treasurer Robbie Salas outlined the rough composition of the CPI authorization: he said about $91,000,000 is expected to be tax-supported CPI debt, with more than half of that for schools (roughly $48,000,000), $10,000,000 for the community college, $13,000,000 for public safety, $5,000,000 for roads and bridges, $6,000,000 for stormwater needs, $5,000,000 for parks and $4,000,000 for other county facilities; separately he said roughly $19,000,000 will support water and sewer projects. Sennett and Salas said the resolutions authorize flexibility: the county may sell fewer than the authorized amounts on the advice of the county’s financial adviser (Davenport & Company) and will return to the council after the February sale to set final terms, denominations, interest rates and maturity years.

Regarding refunding, Sennett and Salas explained refunding the 2015 series could yield savings if market yields in February were sufficiently low; they noted the county is targeting market conditions that could produce savings at approximately a 2.75% all-in level, though the decision would follow Davenport’s advice. The counsel explained steps to preserve tax-exempt status (applicable Internal Revenue Code provisions, escrow agreements and required documentation) and named the depository trust company (DTC) and a paying agent to facilitate clearance and payments.

Councilors asked about the county’s debt profile compared with peers and the potential for increased borrowing driven by rising project costs. Salas said Harford County generally performs well on rating metrics, expects debt levels to grow with costlier projects, and stressed the county links debt to long-term capital assets to match benefits across years. The council will consider subsequent resolutions after the bond sale that set exact terms and enable closing.