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TOGETHER NOW.[Bond Sale on February 4, 2025.]
SO, UH, GOOD AFTERNOON EVERYONE.I WANNA, UH, CALL TO ORDER THE SPECIAL LEGISLATION DAY 25 DASH ZERO FOUR.
I WANNA RECOGNIZE COUNTY EXECUTIVE CAST LEE'S IN A ROOM WITH US TODAY.
UM, BUT WE'RE GONNA START WITH THE PLEDGE OF ALLEGIANCE, FOLLOWED BY THE OPENING PRAYER BREAK.
COUNCILMAN GINGER DENNIS, I PLEDGE THE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
HEAVENLY FATHER, THANK YOU FOR THE OPPORTUNITY TO GATHER AND SERVE A COMMUNITY.
AS WE BEGIN, GRANT US CLARITY, KINDNESS, AND WISDOM.
HELP US LISTEN, SEEK UNDERSTANDING AND FIND COMMON GROUND.
MAY WE LEAD WITH HUMILITY, FAIRNESS, AND A COMMITMENT TO THE GREATER GOOD.
LET US REMEMBER AND HONOR THOSE WHO HAVE SACRIFICED THEIR LIVES FOR OUR COUNTRY.
THEIR BRAVERY AND COMMITMENT INSPIRE US TO SERVE OUR COMMUNITY WITH DEDICATION AND INTEGRITY.
AGENDA NUMBER FOUR, INTRODUCTION, CONSIDERATION OF RESOLUTIONS, RESOLUTION 0 0 1 DASH 25.
UH, MR. ANO, PLEASE READ THAT INTO THE RECORD, PLEASE.
RESOLUTION 0 0 1 DASH 25 AWARD OF BID, CPI BONDS 2025, INTRODUCED BY COUNCIL PRESIDENT VINCE CYNTHIA, THE REQUEST OF THE COUNTY EXECUTIVE, A RESOLUTION FOR THE COUNTY COUNCIL.
THE COUNTY COUNCIL OF HARTFORD COUNTY, MARYLAND, THE COUNTY, HAVING REFERENCED TO AN ISSUANCE OF 60 MILLION ORIGINAL AGGREGATE PRINCIPLE AMOUNT OF SERIAL MATURITY BONDS DESIGNATED AS HARTFORD COUNTY, MARYLAND CONSOLIDATED PUBLIC IMPROVEMENT BONDS SERIES 2025, THE SERIES 2025 CPI BONDS, FIXING THE INTEREST RATES PAYABLE ON A SERIES 2025 CPI BONDS AND AWARDING THE SERIES 2025 CPI BONDS TO THE SUCCESSFUL BIDDER BIDDERS.
UH, THEREFORE UPON THE BASIS OF BIDS RECEIVED THIS DAY IN ACCORDANCE WITH THE ADVERTISEMENT AND OFFICIAL NOTICE OF SALE, GIVING NOTICE OF THE SALE PURSUANT TO RESOLUTION NUMBER 0 42 DASH 24, AS AMENDED ADOPTED BY THE COUNTY COUNCIL ON DECEMBER 17TH, 2024, THE TERMS OF SALE RESOLUTION, DETERMINING THAT THE SERIES 2025 CPI BONDS THAT MATURE ON OR AFTER OCTOBER 1ST, 2035, SHALL BE SUBJECT TO REDEMPTION PRIOR TO MATURITY PRESCRIBING THE FORM OF THE SERIES 2025 CPI BONDS AND THE METHOD OF EXECUTION AND AUTHENTICATION THEREOF, AFFIRMING THAT CERTAIN REVENUES ARE PLEDGED TO THE PAYMENT OF A PORTION OF THE SERIES 2025 CPI BONDS AUTHORIZING THE COUNTY EXECUTIVE TO ENTER INTO A CONTINUING DISCLOSURE AGREEMENT WITH RESPECT TO SERIES 2025 CPI BONDS, AND AFFIRMING THAT THE FULL FAITH IN CREDIT AND UNLIMITED TAXING POWER OF HARTFORD COUNTY, MARYLAND ARE PLEDGE TO THE PAYMENT OF THE PRINCIPAL PREMIUM, IF ANY, AND INTEREST OF THE SERIES 2025 CPI BONDS.
THANK YOU MR. JAN AND MR. CALEY.
UH, MR. SANLI, WHENEVER YOU GUYS ARE READY.
SO WE HAD A VERY SUCCESSFUL BOND SALE THIS MORNING.
WE PUT OUT THE BID, AS YOU HEARD, UH, $60 MILLION IN 20 YEAR BONDS.
UH, THE LOWEST BID WAS FROM MERO FINANCIAL AT 3.49%.
UH, TO PUT THAT RATE IN PERSPECTIVE, UH, JUST, UH, LAST WEEK, FREDERICK COUNTY, A JURISDICTION OF SIMILAR POPULATION TO HARTFORD COUNTY HAD, UH, ALSO WITH THE AAA RATING, UH, RECEIVED A RATE OF 3.64%.
UM, I WOULD LIKE TO THANK, UH, OUR FINANCIAL ADVISORS AT DAVENPORT, UH, OUR BOND COUNCIL, MILES AND STOCKBRIDGE, UH, OUR TREASURY BUDGET, AND ECONOMIC DEVELOPMENT DEPARTMENTS, ESPECIALLY, UH, ROBBIE SANDLES, BEN LLOYD AND KAREN HOLT.
UH, AND I WANNA ALSO THANK ALL THE GOVERNMENT EMPLOYEES, HARTFORD COUNTY GOVERNMENT, BECAUSE IN, IN MANY WAYS, SOME SMALL AND SOME LARGE, THEY PLAYED THE, A PART IN CREATING THE CONDITIONS FOR AAA BOND RATING IN, IN, IN THIS, AS WELL AS THIS COUNCIL.
SO I WANNA THANK EVERYBODY FOR, FOR BEING A PART OF THAT, THAT EFFORT TO, TO PROVIDE US WITH THAT AAA RATING.
UH, JUST SOME THOUGHTS ON THE CREDIT RATING PROCESS, UH, AND OUR CONVERSATIONS WITH THE RATING AGENCIES.
UH, HARTFORD SCORED WELL ON, ON THE VARIOUS METRICS.
UH, WE HAVE A GOOD STORY TO TELL WITH SOUND, FINANCIALS AND A GROWING ECONOMY.
UH, THERE ARE CONCERNS THAT THEY EXPRESS RANGING FROM THE FEDERAL GOVERNMENT, ALL THE OBVIOUS UNKNOWNS ABOUT THE FEDERAL GOVERNMENT, THE SERIOUS STATE FINANCIAL CHALLENGES THAT WE FACE, UH, AND AND OUR CONTINUING USE OF OUR FUND BALANCE TO MEET OUR OBLIGATIONS.
BUT THE RATING AGENCIES MARK VERY POSITIVELY THAT WE HAVE A GREAT TEAM IN PLACE AND THAT WE HAVE DEMONSTRATED AN ABILITY TO MAKE THE TOUGH DECISIONS TO, TO EFFECTIVELY MANAGE THE COUNTY.
SO AT THIS POINT, I WOULD, I WOULD ASK FOR THE COUNCIL'S APPROVAL TO AWARD THE BONDS TO LOWEST BIDDER,
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UH, MERO FINANCIAL AT RATE 3.49%.AND NOW I'LL TURN IT OVER TO, TO, UH, UH, JOHN HALFORD, ESQUIRE OF MILES AND STOCKBRIDGE FOR HIS COMMENTS.
UH, I'M JOHN STAUFFER WITH, UH, MILES AND STOCKBRIDGE, UH, BOND COUNCIL TO THE COUNTY, COUNTY COUNTY PRESIDENT VINCENTE MEMBERS OF THE COUNCIL, UH, HERE TODAY TO DISCUSS RESOLUTION 0 0 1 25.
THIS RESOLUTION MEMORIALIZES THE TERMS OF THIS MORNING'S CONSOLIDATED PUBLIC IMPROVEMENT BOND SALE.
THE COUNCIL ADOPTED BILL NUMBER ZERO, UH, 2 4 0 2 8, AND BILL NUMBER 2 4 0 2 9 AUTHORIZING AND EMPOWERING THE COUNTY TO ISSUE ITS 2025 BONDS FOR COUNTY PROJECTS, INCLUDING PROJECTS RELATED TO WATER AND SEWER INFRASTRUCTURE.
THE BILL AUTHORIZED THE COUNTY TO ADOPT ONE OR MORE RESOLUTIONS TO SELL ITS 2025 CONSOLIDATED PUBLIC IMPROVEMENT BONDS UPON PUBLIC SALE AT A LATER DATE.
THEN ON DECEMBER 17TH, 2024, THE COUNCIL APPROVED A RESOLUTION AUTHORIZING THE COUNTY TO PROCEED WITH THE PUBLIC SALE OF THE 2025 C-P-I-C-P-I BONDS TODAY.
AND THE PUBLIC SALE OF THOSE BONDS OCCURRED THIS MORNING.
AND RESOLUTION 25, UH, OUTLINES THE TERMS OF THAT SALE FOR THE COUNCIL'S APPROVAL SECTION.
ONE OF THE RESOLUTION RATIFIES THE NOTICE OF SALE FOR THE BONDS.
UPON REVIEW OF THE BIDS SUBMITTED AT THE SALE, THE COUNTY'S FINANCIAL ADVISOR, DAVENPORT, HAS RECOMMENDED THAT THE CPI BONDS BE SOLD TO MERO FINANCIAL.
SECTION TWO AND SECTION THREE OUTLINE THE TERMS OF THE SALE TO MEAU, INCLUDING THE TRUE INTEREST COST TO THE COUNTY.
SECTION FOUR OF THE RESOLUTION DETAILS, THE PRINCIPLE AMOUNT OF EACH MATURITY OF THE CPI BONDS, SECTIONS FIVE AND SIX, OUTLINE THE APPLICABLE INTEREST RATES FOR EACH MATURITY.
SECTION SEVEN OF THE RESOLUTION GRANTS, THE COUNTY EXECUTIVE, THE AUTHORITY TO ENTER INTO A CONTINUING DISCLOSURE AGREEMENT TO ENSURE THE COUNTY'S CONTINUING COMPLIANCE WITH AAL SECURITIES AND EXCHANGE COMMISSION.
RULE 15 C TWO 12, SECTION NINE AUTHORIZES M AND T BANK TO FUNCTION AS PAYING AGENT AND BOND REGISTRAR FOR THE BONDS.
AND FINALLY, SECTIONS 10, 11, AND 12 DISCUSS THE APPLICABLE TAXES AND RATES FOR COUNTY REVENUES THAT WILL BE PLEDGED TO REPAY THE CPI BONDS, INCLUDING CONFIRMATION THAT THE COUNTY'S FULL FAITH IN CREDIT AND UNLIMITED TAXING POWER ARE TO REPAY THE SAME ON APPROVAL TODAY, THIS RESOLUTION WILL GO INTO EFFECT IMMEDIATELY AND ALLOW THE COUNTY TO PROCEED TO CLOSING FOR THE CPI BONDS.
OH, THAT, UH, I WAS GONNA HAND IT OVER TO JEN DIRKSEN FROM DAVENPORT.
UH, JENNIFER DIRKSON FROM DAVENPORT AND COMPANY, THE COUNTY'S FINANCIAL ADVISOR.
UH, JUST WANTED TO SAY FIRST AND FOREMOST, CONGRATULATIONS ON A SUCCESSFUL SALE AS WELL AS REAFFIRMATION OF YOUR AAA BOND RATINGS.
UM, THE COUNTY EXECUTIVE PROVIDED VERY COMPREHENSIVE OVERVIEW OF TODAY'S, UH, SALE, BUT JUST WANTED TO ADD, UM, THAT THE BID FROM MESERO FINANCIAL AT THE 3.49, UH, THE COVER BID, THE ONE THAT CAME IN SECOND WAS EXTREMELY CLOSE.
UH, SO YOU DEFINITELY GOT A MARKET RATE.
UM, IT ALSO CAME IN UNDER OUR ORIGINAL ESTIMATES AND JUST LOOKING AT WHAT RATES WERE SORT OF IN MID-JANUARY, THEY WERE IN SORT OF THE 3.0 JUST BELOW 3.9.
UM, SO I'D BE HAPPY TO ANSWER ANY QUESTIONS ABOUT THE SALE ITSELF.
BUT, UM, IF NO QUESTIONS, I'LL PASS IT ON TO, UH, MR. SANLI.
SO, VERY PLEASED WITH, UM, UH, UM, THIS SALE JUST TO KIND OF, UH, WALK THROUGH.
'CAUSE I KNOW WE HAVE SOME NEW COUNCIL MEMBERS ABOUT WHAT THE BOND PROCESS IS.
UM, AND IT REALLY BEGINS WITH THE BUDGET PROCESS, AND YOU'LL BE GOING THROUGH THAT OBVIOUSLY IN A, IN A COUPLE OF MONTHS.
IT'S PART OF THE NEVER ENDING BUDGET PROCESS IT SEEMS LIKE SOMETIMES.
UM, IN WHICH CASE WE WILL OUT, WE WILL BUDGET BONDS ON, UH, VARIOUS KIND OF, UH, LONG-TERM CAPITAL ASSETS.
UM, AND WHAT WE'RE DOING HERE IS THAT WE'RE SAYING THAT WE'RE GOING TO BE TAKING ON FUTURE DEBT IN ORDER TO PAY FOR THESE ASSETS.
YOU KNOW, WE DON'T TAKE OUT DEBT TO PAY FOR, UM, OPERATING EXPENSES, YOU KNOW, FOR SALARIES OR THINGS LIKE THAT, BUT WE DO TAKE OUT DEBT TO PAY FOR SCHOOLS AND BRIDGES AND ROADS AND THINGS, THINGS ALONG THOSE LINES.
AT WHICH POINT AFTER THE BUDGET PROCESS, WE HAVE A, UM, A BOND AUTHORIZATION BILL THAT PRETTY MUCH MIRRORS EXACTLY WHAT'S IN THAT, THAT BUDGET.
UM, THEN AROUND THE WINTER TIME WE DECIDE, DECIDE HOW MUCH WE ACTUALLY NEED TO SELL FOR BONDS.
AND THESE, THE BONDS THAT WE SELL KIND OF GENERALLY COVER, UM, YOU KNOW, MANY YEARS IN THE PAST.
THEY'RE NOT NECESSARILY, THEY'RE
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ALMOST ALMOST NEVER RELATED TO THAT MOST RECENT BUDGET BILL.UH, BUT THEY'RE NORMALLY RELATED TO BUDGETS, YOU KNOW, 2, 3, 4 YEARS, UH, PRIOR.
AND THAT'S BECAUSE DUE TO IRS REGULATIONS, YOU KNOW, UM, WE DON'T WANT TO BE ISSUING BONDS BEFORE WE CAN ACTUALLY SPEND THEM.
UM, SO WE'D NORMALLY CHOOSE TO JUST, UH, TO REIMBURSE OURSELVES FOR THOSE, UM, KNOWN EXPENDITURES SO THAT WE DON'T END UP TAKING OUT MONIES, UM, THAT WE DON'T, UM, THAT WE DON'T NEED.
UM, AND THAT'S MORE OR LESS THE PROCESS THAT WE'RE AT TODAY, YOU KNOW, SO, UM, WE, WE HAVE $60 MILLION OF BONDS THAT WE SOLD.
56 MILLION OF THOSE, UH, BONDS WERE FOR A TON OF TAXPAYER SUPPORTED DEBT, IF YOU WILL.
THOSE ARE YOUR SCHOOLS AND ROADS AND BRIDGES.
AND THEN 4 MILLION IS FOR WATER.
AND SO PROJECTS AND THOSE, UH, BONDS ARE PAID WITH, UH, BY ONLY THOSE PEOPLE THAT ARE ON THE WATER AND SOURCE SYSTEMS. THOSE RATE, UM, THOSE RATE PAYERS.
UM, WE HAVE SOME SIGNIFICANT PROJECTS IN HERE.
UM, HOMESTEAD WAKEFIELD, UM, IS ONE OF THE LARGEST, UH, AS IS HARTFORD, UH, VOCATIONAL TECHNICAL HIGH SCHOOL, UM, RENOVATION, UM, SOME OF THE COSTS ASSOCIATED WITH THE NEW, UM, HARTFORD ACADEMY THAT'S GOING TO BE, UM, BUILT IN THE FUTURE.
AND THEN ALSO THE CHESAPEAKE, UH, WELCOME CENTER.
OF COURSE, ALL OF THOSE PROJECTS, AGAIN, HAVE BEEN THROUGH, BEEN THROUGH THE BUDGET PROCESS.
UM, AND THIS IS KIND OF, UH, KINDA THE CULMINATION OF ALL OF THAT.
TAKE ANY QUESTIONS? THANK YOU, MR. SANTOS.
UH, THANKS EVERYBODY FOR, UH, COMING FOR THE BOND SALE.
SO MERAN FINANCIAL, I NEVER HEARD OF THOSE, NEVER HEARD THEM MENTIONED BEFORE.
UM, SO MAYBE JUST A LITTLE BIT, AND THEN ALSO I'VE HAD PEOPLE ASK ME, UM, WHEN THE COUNTY SELLS THESE BONDS, HOW, HOW DO, DOES IT, CAN AN INDIVIDUAL GO TO THEIR STOCK PORTFOLIO? CAN IT GO THROUGH FIDELITY? OR DO THEY HAVE TO GO DIRECTLY TO MERO FINANCIAL TO BUY A, A PIECE OF THE BOND? YOU KNOW, CAN YOU EXPLAIN MAYBE THAT IF POSSIBLE? SURE.
UH, SO FOR YOUR FIRST QUESTION, MERO IS, UH, A NATIONAL FIRM.
UM, THEY, UM, HAVE BECOME MORE ACTIVE IN THE UNDERWRITING MARKET, UM, RECENTLY.
SO, UH, BUT THIS IS THE FIRST TIME THAT THEY HAVE WON THE COUNTY'S BONDS.
UM, BUT THEY'VE, THEY'VE PURCHASED OTHER BONDS, UM, YOU KNOW, THROUGHOUT THE NATION.
UM, IN TERMS OF HOW, UH, YOU KNOW, UH, HARPER COUNTY CONSTITUENTS COULD BUY YOUR BONDS, UH, THAT I WOULD RECOMMEND THAT THEY REACH OUT TO THEIR BROKER.
UM, YOU CAN'T NECESSARILY REACH OUT TO NRO THEMSELVES, REACH OUT TO YOUR BRO, UH, THEIR BROKER, AND THEN THEY CAN PURCHASE, UM, YOU KNOW, UH, EXPRESS THEIR DESIRE TO PURCHASE THOSE AND THAT BROKER CAN HELP THEM.
ANYONE ELSE? I SEEING NO ONE ELSE.
UM, MAY I HAVE A MOTION COUNCIL'S PRESIDENT? I MOVE TO CLOSE THE BOND SALE.
IT'S BEEN MOVING A SECOND TO APPROVE, UH, RESOLUTION 0 0 1 25.
IS THERE ANY DISCUSSION? SEEING NONE, MS. DIXON? MR. PRESIDENT? AYE.
MRS. S AYE, YOU MEAN SIX VOTES IN THE AFFIRMATIVE AND ONE ABSENT RESOLUTION? 0 1 1 25 IS HEREBY APPROVED.
AND WE'LL GO AHEAD AND ADJOURN NOW.