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Staff flags higher GO bond capacity and PAYGO assumptions in executive CIP
Summary
Presenters told the committee the County Executive's CIP recommends a higher GO bond capacity ($2.19 billion over six years) and a PAYGO assumption equal to 10% of bonds ($219 million), increasing debt and current revenue pressure compared with Council-approved SAGs.
County staff walked the committee through bond and PAYGO assumptions embedded in the County Executive's CIP. The presentation contrasted the Council'approved SAGs with the executive'recommended GO bond capacity, noting the Council last approved a $1.8 billion GO bond plan while the County Executive is recommending $2.19 billion over six years.
Staff said PAYGO is set at roughly 10% of the recommended GO bond plan, with the executive's PAYGO assumption shown as $219,000,000 (10% of $2.19 billion). "We generally try to target 10% of GO bonds at any given year to be matched by current revenue, which we call PAYGo," a presenter said, and cautioned that increases in either GO bonds or other short'term financing raise debt service pressure on the operating budget. Committee members were reminded the Council's SAG decision last fall (which modestly raised SAG from $1.68 billion to $1.8 billion) affects the gap chart and choices during reconciliation.
