SB 861
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Enrolled
Senate Bill 861 (Senator Bailey)
Budget and Taxation Appropriations
St. Mary's County - Public Facilities Bond
This bill authorizes the St. Mary’s County Commissioners to issue up to $30.0 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, 2021.
Fiscal Summary
State Effect: None.
Local Effect: St. Mary’s County receives up to $30.0 million in bond proceeds. County
debt service expenditures increase by an estimated $1.7 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.
Local Fiscal Effect: Since 2008, St. Mary’s County has received authorization by the
General Assembly to issue up to $178.9 million in general obligation bonds for
public facilities, as shown in Exhibit 1. Exhibit 2 shows the planned capital projects in
St. Mary’s County.
 Exhibit 1
Bond Authorizations for St. Mary’s County
($ 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
2020 Ch. 596 33.0
Total $178.9
St. Mary’s County revenues increase by up to $30.0 million from bond proceeds. Annual
debt service costs for the bonds total approximately $1.7 million. This estimate is based on
a 1.34% 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 2019, St. Mary’s County had approximately $190.9 million in total
outstanding debt, which represents approximately 1.5% of the county’s assessable base and
$1,693 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.
Information on local debt measures for Maryland counties and Baltimore City can be found
in the Local Government Overview report. A copy of the 2021 report can be found on the
Department of Legislative Services website.
SB 861/ Page 2
 Exhibit 2
St. Mary’s County Bond Authorization Request
Fiscal 2022
Project Description Amount
Public Facilities
Adult Detention Center Upgrades, Housing and Medical Units $1,935,855
Airport Improvements 4,051,667
Regional Agricultural Center 1,014,166
Total Public Facilities $7,001,688
Highways
Bridge Culvert/Replacement $545,000
Franklin Delano Roosevelt Boulevard Extended 651,262
Neighborhood Drainage Improvements 1,120,000
Roadway and Safety Improvements 4,536,654
Side-path or Bikeways 180,000
Southampton Neighborhood Revitalization 2,578,200
Total Highways $9,611,116
Parks and Recreation
Recreation Facility and Park Improvements $495,164
Recreation/Community Center 450,000
Snow Hill Park 2,340,000
Sports Complex 610,000
Total Parks and Recreation $3,895,164
Public Schools
Building Infrastructure – Critical $1,024,000
Building Infrastructure – Programmatical 1,066,032
Dynard Elementary School – Roof/HVAC Replacement and Emergency Power 1,262,000
Lettie Dent Elementary School – Modernization 400,000
Mechanicsville Elementary School – Modernization 2,421,000
Safety and Security Projects 3,000,000
Town Creek Elementary School – HVAC System Renovation 319,000
Total Public Schools $9,492,032
Grand Total $30,000,000
HVAC: heating, ventilation, and air conditioning
Source: St. Mary’s County Government
SB 861/ Page 3
 Additional Information
Prior Introductions: None.
Designated Cross File: HB 813 (St. Mary's County Delegation) - Appropriations.
Information Source(s): St. Mary’s County; Department of Legislative Services
Fiscal Note History: First Reader - February 11, 2021
rh/hlb Third Reader - March 16, 2021
Enrolled - May 7, 2021
Analysis by: Trevor S. Owen Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 861/ Page 4