Every two years, Cecil County government goes into the bond market. The purpose is two-fold. First, they seek the best rates to borrow money for schools, roads projects and other major expenditures. Second, they look into refunding, which is basically similar to refinancing a mortgage since the goal is to find cheaper rates on existing debt.
The Cecil County Council is looking at both bond packages.
Bill No. 2017-16 authorizes the General Obligation Bonds. These would fund the projects proposed by the County Executive’s budget. It would allow the county administration to borrow up to $42,400,000.
The money funds projects at various schools including Bohemia Manor High/Middle, Cecilton Elementary, Conowingo Elementary, construction of the new Gilpin Elementary, planning for the new Chesapeake City Elementary, North East High School, Perryville Elementary, Perryville High, Thomson Estates Elementary, Cherry Hill Elementary, Kenmore Elementary and the Providence School. It also funds the artificial turf project in Perryville.
Some of the bond money would be utilized for infrastructure projects along the US40 corridor and at individual sewer plants operated by the county. The county’s technology infrastructure would be improved.
Money would be used for improvements at the Calvert Regional Park and the Animal Control center. The holding cell at the county courthouse would be renovated.
Included in the bond would be money for roads projects. These include: Lums Road, Mechanics Valley Road, Oldfield Point Road, Racine School Road, Razor Strap Road, Bohemia Church Road, Star Route Road, Reservoir Road and to paint several bridges.
Director of Administration Al Wein told the County Council the bond keeps Cecil County within the debt borders established by the county. The county policy is that debt service cannot exceed ten percent of the general fund expenditures each year. He said the county currently has $258 million in bonds with an annual debt service of $19.5 million per year.
Resolution No. 38-2017 would allow county government to refund (refinance) bonds in the amount of $21,774,000. Previous refunding measures have saving the county a significant amount of money and the county would look to achieve additional interest payment savings through this process.