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Board directs financial adviser consultation as commissioners weigh capital projects and AAA rating
Summary
Facing growing capital requests and a policy limit that sets aside a reserve benchmark for bond ratings, Calvert County commissioners voted to bring in financial advisers to assess alternatives —including longer amortizations and tradeoffs between pay‑as‑you‑go and debt financing.
On April 7 the Calvert County Board of County Commissioners unanimously directed staff to arrange consultations with financial advisers after a lengthy work session on debt and capital planning.
Danielle Russell, capital improvement projects and grants manager, told the board debt service for FY2027 is projected to remain well within policy limits but that the county is approaching an assessed‑value benchmark used as a guardrail. "We are currently at around 37% of revenues which slightly exceeds Moody's most conservative rating agency benchmark of 35%," Russell said, explaining how reserves and bond ratings affect interest costs and borrowing capacity.
Commissioners pressed staff on what the fund balance actually means in practice. Mary Andes, deputy director of budget, explained that the county’s fund balance includes committed reserves (for catastrophic events), assigned funds and unassigned balance available for use. Commissioners noted that a higher bond rating delivers lower interest costs but requires locking up a significant portion of new revenue.
Commissioner Mike Hart argued that the policy could force the county to reserve 35% of every new dollar of revenue, constraining one‑time purchases and capital choices. "If you want to stay on that path... you're committed to putting 35% of every additional dollar into an account," Hart said during deliberations.
The board voted to bring financial advisers into staff briefings so the county could model options — for example, extending amortization periods, evaluating interest‑cost impacts, and comparing pay‑as‑you‑go versus debt financing — ahead of the May commissioner recommended budget deadlines.
What happens next: staff will schedule advisers to meet with county finance and administration staff, and return recommendations in time to inform the capital‑improvement plan and the commissioners’ recommended budget schedule.
