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Budget Year / Version:
Budget Trends
Program Contacts

Contact Jacqueline Carter of the Department of Finance at 240.777.8979 or Christopher Mullin of the Office of Management and Budget at 240.777.2772 for more information regarding this department's operating budget.

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Mission Statement

This section provides budget data for the repayment of general obligation bond issues, and other long- and short-term financing for public facilities, equipment, and infrastructure in the Debt Service Fund for all tax supported County agencies (Montgomery County Government, Maryland-National Capital Park and Planning Commission, Montgomery County Public Schools, and Montgomery College), as well as other associated costs. Non-tax supported debt repayment related to the Montgomery Housing Initiative Property Acquisition Fund and Water Quality Protection bonds are also included.

Budget Overview

The total approved FY18 Operating Budget for Debt Service is $408,233,670 an increase of $10,632,820 or 2.7 percent from the FY17 approved budget of $397,600,850. This amount includes long-term lease expenditures of $6,580,900, short-term financing of $16,557,600 and other long-term debt of $15,239,620. The budget excludes $59,020 in debt service, which is appropriated in a non-tax supported fund.

FY18 Approved Changes
The Debt Service appropriation increase of 2.7 percent is primarily due to additional financing needs for General Obligation (G.O.) Bonds and short-term leases.

G.O. Bonds are issued by the County to finance a major portion of the construction of long-lived additions or improvements to the County's publicly-owned infrastructure. The County's budget and fiscal plan for these improvements is known as the Capital Improvements Program (CIP) and is published separately from the Operating Budget and Public Services Program. Currently, G.O. Bonds are anticipated to fund approximately 42.0 percent of the County's capital expenditures for the six years of the Amended FY17-22 CIP. Other long-term debt includes financing for the Silver Spring Music Venue, Site II Acquisition, Affordable Housing (MHI Property Acquisition), Stormwater Management (Water Quality Protection Bonds), and Energy Performance Contracting.

Long-term leases are similar to debt service in that they are long-term commitments of County funds for the construction or purchase of long-lived assets. They are displayed and appropriated within the Debt Service Fund. Short-term financing, where the payments represent a substantial County commitment for the acquisition of assets which have a shorter life, but still result in a substantial asset, are also displayed and appropriated within this Fund.

The FY18 Debt Service budget is predicated on the bond issuance requirements in the Amended CIP, adjusted for inflation, and implementation of the capital program at a projected 100.0 percent rate for FY17-FY22. An interest cost of 5.5 percent was budgeted for the Fall 2017 issuance. Projected interest rates for bond issues for FY18 through FY23 are based on market expectations for coupon rates, which drive actual debt service costs. Under these projections and assumptions, total Debt Service will increase from $408.2 million in FY18 to $504.5 million by FY23.

Budget Summary
TitleActual
FY16
Budget
FY17
Estimate
FY17
Approved
FY18
%Chg
Bud/App
DEBT SERVICE
EXPENDITURES
Salaries and Wages0.000.00 0.00 0.000.0
Employee Benefits0.000.00 0.00 0.000.0
Debt Service Personnel Costs0.000.00 0.00 0.000.0
Debt Service G.O Bonds311703671.00352370610.00 349602923.00 369855550.005.0
Debt Service Other26601589.0030912030.00 25626340.00 24424110.00-21.0
Debt Service Expenditures338305260.00383282640.00 375229263.00 394279660.002.9
PERSONNEL
Full-Time0.000.00 0.00 0.000.0
Part-Time0.000.00 0.00 0.000.0
FTEs0.000.00 0.00 0.000.0
REVENUES
Federal Grants5881147.005591000.00 5660800.00 5598670.000.1
Miscellaneous Revenues34020.000.00 42860.00 1033870.000.0
Premium on General Obligation Bonds14998462.006942760.00 11421060.00 16230640.00133.8
State Grants2176165.000.00 0.00 0.000.0
Debt Service Revenues23089794.0012533760.00 17124720.00 22863180.0082.4
 
DEBT SERVICE - NON-TAX SUPPORTED
EXPENDITURES
Salaries and Wages0.000.00 0.00 0.000.0
Employee Benefits0.000.00 0.00 0.000.0
Debt Service - Non-Tax Supported Personnel Costs0.000.00 0.00 0.000.0
Debt Service Other10216272.0014318210.00 13348710.00 13954010.00-2.5
Debt Service - Non-Tax Supported Expenditures10216272.0014318210.00 13348710.00 13954010.00-2.5
PERSONNEL
Full-Time0.000.00 0.00 0.000.0
Part-Time0.000.00 0.00 0.000.0
FTEs0.000.00 0.00 0.000.0
REVENUES
 
DEPARTMENT TOTALS
Total Expenditures348521532.00397600850.00 388577973.00 408233670.002.7
Total Full-Time Positions0.000.00 0.00 0.000.0
Total Part-Time Positions0.000.00 0.00 0.000.0
Total FTEs0.000.00 0.00 0.000.0
Total Revenues23089794.0012533760.00 17124720.00 22863180.0082.4
Additional Documentation

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