Bill
SB 623
St. Mary’s County may issue up to 71 million in GO bonds to fund public buildings, facilities, and related infrastructure projects.
Status and timing
- Enacted as Chapter 408; approved by the Governor (May 6, 2025).
- Takes effect June 1, 2025 (per Department of Legislative Services fiscal note).
- Cross-file / companion: HB 561 (St. Mary’s County Delegation).
Purpose and intent
- Authorizes the St. Mary’s County Commissioners to borrow up to $71,000,000 by issuing general obligation (GO) bonds to finance acquisition, construction, improvement, renovation, and related costs for public buildings, facilities, and public works in St. Mary’s County.
Key provisions
- Authorization: County may incur indebtedness and issue GO bonds in an aggregate principal amount not to exceed $71,000,000.
- Uses: Proceeds may be used for a broad set of public facilities and public works (e.g., highways/bridges/storm drains, public schools, parks and recreation, libraries, public safety, community college, airports, landfill/recycling, land acquisition, and associated planning/engineering/legal costs).
- Bond terms and issuance: County resolution may set form, denominations, interest rate(s) (including variable rate), maturities (no bond may mature later than 30 years from issue date), sale method (public or private), redemption provisions, and other details.
- Refunding: County may issue refunding bonds to redeem outstanding bonds in advance of maturity.
- Security / marketability: County may enter into agreements with banks, insurers, agents, etc., to enhance marketability or secure tender options.
- Tax status: Bonds and interest are exempt from State, county, municipal, and other Maryland taxation; county may nonetheless authorize issuance of taxable bonds (i.e., interest not excludable from federal gross income).
- Revenue pledge: County directed to levy ad valorem taxes sufficient to pay principal and interest as they mature.
- Exemptions: Issuance and sale of the bonds are exempt from certain Local Government Article provisions (§§ 19–205 and 19–206).
Fiscal and budgetary impact
- State effect: None.
- Local effect: St. Mary’s County would receive up to $71.0 million in bond proceeds.
- Estimated debt service: Department of Legislative Services estimates roughly $5.0 million per year in additional county debt service over a 20‑year period (assumes 3.72% interest and 20‑year term). Actual costs will vary with interest rates, maturity schedule, and structure.
- Existing context: Since 2013, the Legislature previously authorized about $229.9 million in GO bonds for the county. At end of FY2023 the county had ~$238.4 million outstanding debt (about 1.7% of assessable base) and strong credit ratings (S&P AA+, Moody’s Aa1, Fitch AA+).
- Planned projects: County’s capital plan lists projects totaling about $88.3 million across public facilities, highways, parks/recreation, and public schools; the $71.0 million authorization would not fully fund the listed needs.
Who is affected
- Primary: St. Mary’s County government (ability to fund capital projects) and county taxpayers (through ad valorem taxes pledged for debt service).
- Indirect: Local firms and contractors involved in the funded capital projects; residents who use or benefit from upgraded facilities and infrastructure.
Procedural notes
- The County must adopt a resolution specifying bond details prior to issuance. Sale may be public or private; advertisement requirements apply if sold competitively. The county has discretion over structure, sale timing, and use of market-enhancing instruments.
Compiled from official sources — confirm details with the bill’s official record.
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