HB 97
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader
House Bill 97 (St. Mary's County Delegation)
Appropriations Budget and Taxation
St. Mary's County - Public Facilities Bond
This bill authorizes the St. Mary’s County Commissioners to issue up to $33.0 million in
general obligation bonds for the acquisition, construction, improvement, or renovation of
public buildings, facilities, and public works projects. The date of maturity of the bonds
cannot exceed 30 years. The bill takes effect June 1, 2020.
Fiscal Summary
State Effect: None. The bill only affects local government operations.
Local Effect: St. Mary’s County receives up to $33.0 million in bond proceeds. County
debt service expenditures increase by an estimated $2.0 million annually over a
20-year period.
Small Business Effect: None.
Analysis
Current Law: Commission counties do not have the legislative power to create debt;
General Assembly authorization is required before any bonds can be sold.
St. Mary’s County is one of six counties that still operates under the commission form of
government.
Background: Since 2008, St. Mary’s County has received authorization by the
General Assembly to issue up to $145.9 million in general obligation bonds for
public facilities, as shown in Exhibit 1. Exhibit 2 shows the planned capital projects in
St. Mary’s County.
 Exhibit 1
Bond Authorizations for St. Mary’s County
($ in Millions)
Chapter Authorized
Session Number Amount
2008 Ch. 78 $35.0
2013 Ch. 96 30.0
2017 Ch. 427 26.3
2018 Ch. 109 24.6
2019 Ch. 180 30.0
Total $145.9
Local Fiscal Effect: St. Mary’s County revenues increase by up to $33.0 million from
bond proceeds. Annual debt service costs for the bonds total approximately $2.0 million.
This estimate is based on a 2.08% interest rate and a 20-year term of maturity. To the extent
that the bond issuance, interest rate, or term of maturity deviate from this assumption,
expenditures would adjust accordingly.
At the end of fiscal 2018, St. Mary’s County had approximately $172.1 million in total
outstanding debt, which represents approximately 1.4% of the county’s assessable base and
$1,531 on a per capita basis. The county currently has an AA+ rating from
Standard & Poor’s, an Aa1 credit rating from Moody’s Investors Service, and an AA+
rating from Fitch Ratings.
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 Exhibit 2
St. Mary’s County Bond Authorization Request
Fiscal 2021
Project Description FY 2021 Bonds
Public Facilities
Adult Detention Center Upgrades, Housing and Medical Units $6,526,500
Salt Storage Facility Replacement 2,558,200
Airport Improvements 1,405,900
Total Public Facilities $10,490,600
Highways
Asphalt Overlay $2,634,896
Culvert Replacement and Repair 1,573,700
Total Highways $4,208,596
Parks and Recreation
Multi-purpose Synthetic/Turf Fields $3,805,000
Recreation Facilities and Park Improvements 1,425,500
Sports Complex 2,668,750
Total Parks and Recreation $7,899,250
Public Schools
Building Infrastructure – Critical $1,183,000
Dynard Elementary School – Roof/HVAC Replacement and Emergency Power 2,831,554
Green Holly Elementary School – Switch Gear and HVAC Replacement 2,797,000
Safety and Security Projects 3,590,000
Total Public Schools $10,401,554
Grand Total $33,000,000
HVAC: heating, ventilation, and air conditioning
Source: St. Mary’s County Government
Additional Information
Prior Introductions: None.
Designated Cross File: SB 261 (Senator Bailey) - Budget and Taxation.
Information Source(s): St. Mary’s County; Department of Legislative Services
HB 97/ Page 3
 Fiscal Note History: First Reader - January 23, 2020
mr/hlb Third Reader - March 16, 2020
Analysis by: Trevor S. Owen Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 97/ Page 4