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HB 561

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2026 Regular Session Introduced by Kim Daniels and 5 co-sponsors

Authorizes St. Mary's County to issue up to $71M in general obligation bonds to fund public facilities, repaid by property taxes, with up to 30-year maturities.

Chapter No. 2026-106
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Bill Summary · HB 561

HB 561 — St. Mary’s County — Public Facilities Bond (Maryland)

Purpose / Intent

Authorize the County Commissioners of St. Mary’s County to borrow up to $71,000,000 through general obligation (GO) bonds to finance acquisition, construction, improvement, renovation and related costs for public buildings, facilities and public works projects in St. Mary’s County.

Key provisions

  • Authorizes St. Mary’s County to issue up to $71,000,000 in GO bonds (aggregate) to finance public facilities and related costs (land, design, engineering, legal, etc.).
  • Bonds may be issued in one or more series; the County determines details (form, denominations, interest rate(s) or method to determine rates, maturities, sale method and price) by County resolution.
  • Maximum maturity for any bond is 30 years from issue date.
  • County may issue refunding bonds to refinance outstanding debt.
  • County must levy ad valorem property taxes annually, at rates and in amounts sufficient to pay principal and interest on the bonds.
  • Bonds and interest are exempt from State, county, municipal and other Maryland taxation; however the County may choose to issue taxable bonds (i.e., interest not federally tax-exempt) if desired.
  • Proceeds may be used for a broad list of public facility categories (highways/bridges, public schools, law enforcement, health, libraries, parks & recreation, community college improvements, airport and marine facilities, refuse disposal, etc.).

Who is affected

  • Directly: St. Mary’s County government (capital projects and debt).
  • Indirectly: County taxpayers, who will fund debt service through property taxes; project beneficiaries (residents, county services, schools, public safety, recreation users).
  • State government: no direct fiscal impact from issuance; the bill is an authorization for a local borrowing (DLS reports “State Effect: None”).

Fiscal impact / numbers

  • County bond proceeds increase up to $71.0 million.
  • Department of Legislative Services (DLS) estimate: annual debt service ≈ $5.0 million over a 20‑year term, based on a 3.72% interest rate (actual cost will vary with interest rates, term, and structure).
  • St. Mary’s County outstanding debt (FY2023): ≈ $238.4 million (about 1.7% of the county’s assessable base; ~$2,077 per capita).
  • DLS notes the county’s planned capital projects total approximately $88.3 million — the $71M authorization would not fully fund the entire planned list.

Procedural / timing notes

  • Bill introduced and first read in the Maryland House (St. Mary’s County Delegation) on January 23, 2025 (filed as HB 561).
  • Assigned to the Appropriations Committee (and other local procedures). A public hearing was scheduled for March 12, 2025 (1:00 p.m.) per provided schedule.
  • Effective date in the version of the fiscal note: June 1, 2025.
  • Authorization is permissive: the County must still adopt resolutions and take steps to actually issue bonds; proceeds are only realized when bonds are sold.

Additional points

  • Because St. Mary’s County operates under the commission form of government, General Assembly authorization is required before the county may sell GO bonds; this bill provides that statutory authorization.
  • The legislation grants broad flexibility to the County in structuring financings (variable rates, private sale, bank/tender options, market enhancements, etc.), and allows for customary covenants needed to comply with federal tax rules and securities laws.

If you want, I can extract the specific projects and dollar amounts from the DLS project list (airport improvements, sheriff’s headquarters, school projects, parks and trails, etc.) and present them in a table.

Compiled from official sources — confirm details with the bill’s official record.

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